Line of credit from a broker

Hi fellow traders,

Could you please clarify for me if there is any difference between getting margin from your broker (portfolio margin or less) and getting a line of credit are two different things or they are both the same things?

If a line of credit is a different thing, do you know how to get one from Interactive Brokers?

Thanks guys

 

-Margin loan has securities as collateral.
- A line of credit from a bank or credit card is an unsecured loan.

 

Thanks for your reply, Rob!

In that case is it possible to get a line of credit from a broker? Is this a common practice?

 

It's possible and fairly common. But you'd have to have at least $1M up with them and be paying 500k+ in commission. IB doesn't do it.

 

I would say no. No broker dealer will provide an unsecured loan, at least not in the USA. It would have to be their banking division.

 

Thanks guys. Will speak to several brokers this week to find out if this is something that they do.

Happy trading.