With a margin account, you can borrow money from Lumentrades to purchase marginable securities—providing you with up to twice the buying power of a traditional cash account. The securities held in your account act as collateral for the loan, and you pay interest on the money borrowed. With proper risk and money management techniques, margin can be used to potentially enhance your investment strategy.
While regular cash-brokerage accounts limit your trading to the amount of money available in them, a margin account gives you the ability to borrow money—potentially increasing your securities buying power by as much as 75%. A Lumentrades account that’s approved to trade on margin must have:
A margin account can help advance your trading strategy by potentially opening up new opportunities, such as shorting stocks, and trading cryptos, forex, and portfolio margin. Plus, when you open an account with Lumentrades, you’ll experience the value of straightforward pricing, including fair, affordable commissions and fees, and no platform or market data fees.