Margin Trading

Put more purchasing power behind your trading with margin privileges

With a margin account, you can borrow money from Lumentrades to purchase marginable securities—providing you with up to twice the buying power of a traditional cash account. The securities held in your account act as collateral for the loan, and you pay interest on the money borrowed. With proper risk and money management techniques, margin can be used to potentially enhance your investment strategy.

Margin trading minimum requirements

Web trading plaform

While regular cash-brokerage accounts limit your trading to the amount of money available in them, a margin account gives you the ability to borrow money—potentially increasing your securities buying power by as much as 75%. A Lumentrades account that’s approved to trade on margin must have:

  • At least $2,000 in cash equity or eligible securities
  • A minimum of $10,000 of its total value as equity at all times

Benefits and risks of margin trading

Benefits

  • Greater potential returns due to increased leverage
  • The potential for more trades, and therefore more diversification, which may hedge and manage risk
  • Ability to execute more-advanced trading strategies

Risks

  • Greater potential risk of loss from increased leverage
  • Additional costs from margin interest charges
  • Potential margin calls or liquidation of securities**

Get started with margin trading

  • Open a Lumentrades account
  • Fund your account with at least $10,000 in cash or marginable securities
  • Then select margin account from your dashboard.

Advanced trading offerings, plus straighforward pricing

A margin account can help advance your trading strategy by potentially opening up new opportunities, such as shorting stocks, and trading cryptos, forex, and portfolio margin. Plus, when you open an account with Lumentrades, you’ll experience the value of straightforward pricing, including fair, affordable commissions and fees, and no platform or market data fees.