Goodmorning, can you suggest me couple of brokers or banks who have the lowest margin requirements for trading ETFs ? Would be amazing 5%. Thank you
If you’re looking for that much leverage on ETFs you may have to consider options. But before you go that route you better really know your Greeks, time frame etc.
Yes, you'd have to go offshore. But even then, 20:1 on a concentrated portfolio is very unlikely, though not absolutely impossible.
Newer forever go offshore - look what UBS and Credit Suisse have done on us in the offshore jurisdiction - my thread from 19 April 2018 in retail brokers forum or website https://letsmaketheworldfairer.wordpress.com/.
I have been trading for years SPY with exactly that kind of leverage. 5% margin , required also 2,5% min stop loss....although i don t risk more than 0,2%-0,3% per trade. I ve got the account with an italian bank who provide this kind of leverage. Since january 2018 disgracefully Mifid 2 went live in Europe and instruments without the KID can't be negotiated. So I am being awfully impaired from this silly regulation as I am reporting -40%/-50% gains generated versus past years considering the first 5 months of the year. I GOTTA find a solution. I am pretty amazed by this requirements in US (50% margin, best case scenario I found 25% margin required). You became also a socialist country.
I prefer to stick with what I know, simple and consistent. Option would mean starting from zero as....what makes the difference here is experience.
I would look into futures then as someone else mentioned. If your strategy is pretty much SPY the /ES S&P mini should provide the leverage you need and it’s essentially the same.
You know....I m very reluctant to do something that I never did before. Hate it. I gotta find a solution for trading the spy. Or I gotta make another 50K ...thing that is gonna take time Point is that with 50K I m not even able to load up 500 shares of the spy...considering 50% margin ... I called State Street and told them to produce the KID....they said is too expensive...can t believe this crap
Yet, they are not the same. Every country has different income tax levels for equities vs futures. Future in the US are much better. Also, even though SPY trades pre and post market, the hours are limited to 4am to 8pm if you have that access and early morning and evening liquidity is limited. ES trades 22 hours and 15 min per day,