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How do I get approved for margin with TDA?

post #1 of 15
Thread Starter 
I was hoping to get some feed back from people who have been approved for margin with TDA. I am trying to make the conversion over from Firstrade, but if I cannot short, then I don't see the point. I applied with zero balance, should I just transfer my 6k into the account and apply again? Other than that I don't know what would have stopped me. I called them up and asked why I was denied, but the guy said that it is a separate department that no one is allowed to ask questions to.


Can anyone help. Oh and they asked how much experience I have, and I just said 1 year. Should I put over 2 years, because that is how long I have had an account with Firstrade. I just didn't trade until less than 1 year ago. I am wondering if it would look suspicious if I just refilled the application out with totally different information.
post #2 of 15
If this is just for equities trading, I would think you have to meet their $2k minimum deposit requirement to be considered for a margin account. Also, since you already told them you have only 1 year trading experience, they may only give you level 2 option trading access if you are interested in going that route. Maybe even only level 1.
post #3 of 15
SCG, I recently changed accounts from a joint to an entity account at TDA. I was shocked when they did not approve me for margin at all. I basically opened the account to to spreads and debits instead of buy calls and puts. They said that I asked for too much at once. They basically have a formula that they put in a computer that makes sure that the investment objective and experience and option levels match. So, the supervisor suggested that I reapply and make sure that the objective of the account matched the level that I was applying for instead of asking for it all at once. He then suggested that I reapply for the highest level in a few months. In so many words, he suggested that you should stretch the truth on your application to match your desires. I did not have issues with the experience etc., but the computer wants to see all of the criteria match to be approved for the level that you are looking for.
post #4 of 15
Thread Starter 
Quote:
Originally Posted by iragreen View Post
SCG, I recently changed accounts from a joint to an entity account at TDA. I was shocked when they did not approve me for margin at all. I basically opened the account to to spreads and debits instead of buy calls and puts. They said that I asked for too much at once. They basically have a formula that they put in a computer that makes sure that the investment objective and experience and option levels match. So, the supervisor suggested that I reapply and make sure that the objective of the account matched the level that I was applying for instead of asking for it all at once. He then suggested that I reapply for the highest level in a few months. In so many words, he suggested that you should stretch the truth on your application to match your desires. I did not have issues with the experience etc., but the computer wants to see all of the criteria match to be approved for the level that you are looking for.
I found someone late at night who told me to open up a whole new account when I got a little more money and do basically the same thing you said. He told me that once you apply and are denied the first time, then it becomes even more difficult to get approved. He said that the system doesn't keep a close eye on the name of an account, so applying under a new account with updated information(as he put it) was just a lot easier.
post #5 of 15
Quote:
Originally Posted by S.C.G. View Post
I found someone late at night who told me to open up a whole new account when I got a little more money and do basically the same thing you said. He told me that once you apply and are denied the first time, then it becomes even more difficult to get approved. He said that the system doesn't keep a close eye on the name of an account, so applying under a new account with updated information(as he put it) was just a lot easier.
I swithched to E-TRADE mainly for the free trades and was approved for level 3 options, good to have.
post #6 of 15

Hi ,

 

I just deny from TOS from trading at tier2 and i red your post , can u help me by telling me if u successed at the end , and what did u change in the forms or whatever to get approved?
 

post #7 of 15

Lie about your experience like everyone else? 

post #8 of 15

Thank for the replay ,
the problem is that i did lie , i wrote:

1. Annual Income: 25,000-49,999$ .
2. Approximate Net Worth: 250,000-4999,999$  .
3. Approximate Liquid Net Worth: 100,000-249,999$.
4. Funds Available for options trading : 20,000-49,999$ .
5.Years of Investmenet Experience: 10+.
6. Investmenet Knowledge: Proffesional Trader.
7. Average Transaction size: under 1000$ - may be this is the problem?
8. Number of transaction per year: 50+.
9. Type of transactions(options,Bonds,Stocks): options.
10. Objective(Growth,Speculation,Income,ConservationOfCapital):Income  - may be this also  the problem?
 11

and for all of that i got deny , I have no idea what to change may be  u do????
 

post #9 of 15
Ask them!

Maybe they just don't believe you.

What's your account size?
post #10 of 15

Your objective must be speculation in order to use margins at most brokers. 

post #11 of 15

Rst : its less offcourse, but do u think i exaggerate? i thought i should say i have a lot of money so they wont b worry no? or should i say less?

 

Chhansen : I thought speculation says i love to take risk and that will make me a dangerous customer that will lose its  money and sue them, are u sure?
 

post #12 of 15
Are you trying to sell naked options?

Not sure why you don't qualify. Do you have a small account balance?

Fidelity is a pretty good broker.
post #13 of 15

Margin = risk

Speculation = I am willing to take risk

 

I always put speculation when I apply for margin and I've never been denied. I've also seen a thread on another board where I got didn't get approved until he applied as speculation instead. 

 

Try it out, maybe it will get you approved as well cool.gif Won't hurt to try!

post #14 of 15
Quote:
Originally Posted by avihrvz View Post

Rst : its less offcourse, but do u think i exaggerate? i thought i should say i have a lot of money so they wont b worry no? or should i say less?

 

Chhansen : I thought speculation says i love to take risk and that will make me a dangerous customer that will lose its  money and sue them, are u sure?
 

 

First of all you can't sue them for the risks you choose to take.  An income investor has less need for a margin account especially when transaction sizes are less than $1000.  Speculation, larger transaction sizes, and more money in the account and you should be fine.

post #15 of 15

Thank u all , I just approve tier 2 !!!!
 

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