Marginable lower priced stocks

Discussion in 'Trading' started by apo99, Oct 24, 2017.

  1. apo99

    apo99

    Hey guys,

    I exclusively trade equities between $0.10-0.70 that are listed on the tsx and tsx-v. I have a decent sized account with a crappy big bank brokerage.

    Since most of these securities are very illiquid many of my orders might take a week to get filled or just sit on the bid for a very long time. So let’s say I have a 500k account, at any given time I might own about 100k worth or stock and the rest of the 400k is broken up into many different orders that are waiting to get filled. Now most brokers do not offer any type of margin on lower priced securities does anyone know if there is any way to get any sort of leverage for this scenario? I don’t see any restriction on Interactive brokers, can anyone confirm this? It has been almost impossible for me to scale up since I can only rely on a pure cash account.


    Any help would be appreciated.


    Apo
     
  2. Robert Morse

    Robert Morse Sponsor

    Not allowed in the US because of Fed Rules.
     
  3. apo99

    apo99

    Im in Canada, its the same thing here im assuming?
     
  4. Robert Morse

    Robert Morse Sponsor

    I can't tell you that. The rule here is based on the Federal Reserve Board.