Can retirees get margin approval?

Discussion in 'Retail Brokers' started by vic38, Mar 22, 2020.

  1. vic38


    I help manage my parents' investments. We tried to get margin approval at TD Ameritrade, and were instantly rejected via the automated system. I don't think it's an income or liquid assets issue. Perhaps because they listed 'Retired' under Employment?

    We wanted to get margin not because we actually want to borrow, but because we don't want to be subject to cash settlement requirements in this very volatile environment, where moves that used to take weeks now happen intraday.

    Do brokers generally not give margin privileges to retirees?
  2. ZBZB


    Interactive brokers will give retired margin. Portfolio margin if you have over 100k.
    vic38 likes this.
  3. ajacobson


    Conventional accounts no problem. Trusts can get sticky and they may need to see a copy to assure it allows margin.
    ironchef and vic38 like this.
  4. Robert Morse

    Robert Morse Sponsor

    Hi vic38- Every broker asked certain standard questions to meet the "know your customer" requirements from regulators. Retirement is not typically a stumbling block but no income would be. As long as your parents meet our financials and risk requirements, a margin account is possible.
    vic38 likes this.
  5. vic38


    If income is from pension and social security, is that typically sufficient?
  6. Robert Morse

    Robert Morse Sponsor

    We look at the entire application and financials. Until I see an entire application I have no way of telling you whether they meet the financial hurdles or not.
  7. ironchef


    Living Trust yes, custodial no, other trust don't know.