Line of credit from a broker

[proptrader911]

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

 

[Robert Morse]

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

 

[proptrader911]

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?

 

[garachen]

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.

 

[Robert Morse]

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?

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.

 

[proptrader911]

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

Happy trading.