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Not to mention good margin rates (not that one should ever go on margin if you don't know what you are doing). Also good for options trading too.
by noname123 13y ago
Not to mention good margin rates (not that one should ever go on margin if you don't know what you are doing).
Also good for options trading too.
- PhantomGremlin 13y ago> Not to mention good margin rates Yeah, that's understating it. Here's the interest rate on a $100,000 margin loan: Interactive Brokers 1.09% Schwab 6.875% TD Ameritrade 7.25% Fidelity 6.575% Scottrade 6.50% Etrade 6.14% Having said that, I still haven't created an account there, because I agree strongly with what you said: not that one should ever go on margin if you don't know what you are doing For example, look at how the ex-CEO of Chesapeake Energy, Aubrey McClendon, got blown up by margin (from Wiki): It was announced on October 10, 2008, that McClendon sold approximately 33.4 million shares, approximately 90% of his stock in Chesapeake Energy (stock symbol CHK), for $16.52 per share to meet a margin call after the drop in the U.S. stock market that week. The stock had been worth as much as $74.00 per share in the year prior to the sale, a loss of nearly $1.92 billion. I think that last bit qualifies as #RichPeopleProblems