Getting a loan to day trade (but not to day trade)

S

Sky123987

I seriously doubt this would even be considered, however it's worth at least a post.

This brokerage I like give 4 to 1 intraday. There is no prop firm that is offered with them, however I need more than the 4 to 1 intraday. Could I possibly think about going to a bank and saying "hey I need some money, just to throw in a day trading account" to get more margin?
 
One way to look at it is that many, if not most, businesses get start up loans.

So in one sense it seems viable.

On the other hand, the extra debt increases the pressure you have to deal with, and if you were to fail, you are going to have to pay that money back. Insult to injury.

Double edged sword.
 
Quote from Reaver:

One way to look at it is that many, if not most, businesses get start up loans.

So in one sense it seems viable.
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There is no way any bank would give a start up loan to someone who wanted to be a trader. You may look at trading as a business, but a bank does not. It wants good collateral and interest.
 
Quote from HolyGrail:

There is no way any bank would give a start up loan to someone who wanted to be a trader. You may look at trading as a business, but a bank does not. It wants good collateral and interest.
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I work in lending. There are ways around it. Many banks offer signature (unsecured) loans.

Many banks just factor in your debt to income ratio as well as credit score and determine how much unsecured debt you are allowed to borrow.

If you apply for it as a business loan, then yeah, you're gonna have to prove a lot more than you would if you just applied for the loan in your name as a personal expense loan.
 
Sounds like a great plan. Very well thought out and it's very likely to be successful.

In fact, I can't think of any reason not to do this.
 
Quote from Reaver:

I work in lending. There are ways around it. Many banks offer signature (unsecured) loans.
More...

LMAO. How many people do you know with little or no assets that can get a signature loan? Why do I say he has little or no assets? If he had anything of value to convert to cash he would not have started the thread.
 
As long as you have some collateral against the loan you should be able to get one...i know a younger guy that got a small business loan to 'make markets' in the 10yr options pit. He needed the loan money to pay the monthly lease and to hire a few clerks. He then found a clearing firm that was willing to give him huge leverage to make markets with and they monitor his risk and in return get a cut of profits.
 
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