Select your account type
Posted: Mon Dec 09, 2024 5:47 am
The following describes the differences between these accounts:
>Cash account:
It is the simplest account and does not allow overdrafts or short selling of stocks. Some brokers do not even allow cash accounts to buy and sell options or only allow low-risk option combinations.
Cash accounts implement T+3, which is also the T+3 delivery system list of ecuador whatsapp phone numbers implemented in US stocks. That is, clearing and delivery can only be completed on the third working day after the transaction occurs. However, please note that day trading (DayTrader) is not allowed, that is, you cannot buy or sell the same stock more than 3 times within 5 trading days, otherwise your account will be frozen for 90 days.
Open a cash account with IB Interactive Brokers without any capital restrictions. Cash accounts are suitable for new investors or investors who don't want to make complicated transactions.
>Margin account:
As the name suggests, you can obtain financing from securities companies for stock trading. The general financing scale is twice the investor's own assets. That is to say, assuming that an investor has US$10,000 in assets (including the sum of cash + stocks + options + funds + bonds, etc.), he can raise US$10,000 from a brokerage firm for transactions.
In addition to financing, if your capital reaches more than 25,000 US dollars, you can also do T+0 transactions without restrictions, which is the hedging transaction we mentioned earlier. However, the opening funds for a margin account are higher, and usually the account is You must have more than 2,000 US dollars.
>Cash account:
It is the simplest account and does not allow overdrafts or short selling of stocks. Some brokers do not even allow cash accounts to buy and sell options or only allow low-risk option combinations.
Cash accounts implement T+3, which is also the T+3 delivery system list of ecuador whatsapp phone numbers implemented in US stocks. That is, clearing and delivery can only be completed on the third working day after the transaction occurs. However, please note that day trading (DayTrader) is not allowed, that is, you cannot buy or sell the same stock more than 3 times within 5 trading days, otherwise your account will be frozen for 90 days.
Open a cash account with IB Interactive Brokers without any capital restrictions. Cash accounts are suitable for new investors or investors who don't want to make complicated transactions.
>Margin account:
As the name suggests, you can obtain financing from securities companies for stock trading. The general financing scale is twice the investor's own assets. That is to say, assuming that an investor has US$10,000 in assets (including the sum of cash + stocks + options + funds + bonds, etc.), he can raise US$10,000 from a brokerage firm for transactions.
In addition to financing, if your capital reaches more than 25,000 US dollars, you can also do T+0 transactions without restrictions, which is the hedging transaction we mentioned earlier. However, the opening funds for a margin account are higher, and usually the account is You must have more than 2,000 US dollars.