Can retirees get margin approval?

[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?

 

[ZBZB]

Interactive brokers will give retired margin. Portfolio margin if you have over 100k.

 

[ajacobson]

Conventional accounts no problem. Trusts can get sticky and they may need to see a copy to assure it allows margin.

 

[Robert Morse]

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]

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.

If income is from pension and social security, is that typically sufficient?

 

[Robert Morse]

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.

If income is from pension and social security, is that typically sufficient?

 

[ironchef]

Conventional accounts no problem. Trusts can get sticky and they may need to see a copy to assure it allows margin.

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