What is trading on margin?

Trading on margin involves borrowing money from a broker to boost your purchasing power. This allows you to buy more stocks or other investments, which can lead to bigger profits if your stocks perform well. Just be aware that you also risk losing a lot of money if your investments underperform.

How can I open a margin account?

You can open a margin account by applying for one with your current broker. If you don't already have a broker or you want to shop around, we recommend that you compare multiple brokers to find the one that offers the best interest rates and terms for its margin trading accounts.

Is there a difference between a margin account and a TFSA?

There is definitely a difference between a margin account and a TFSA. A margin account lets you borrow relatively low-interest funds to invest with a brokerage. A TFSA is a tax-free savings account that lets you hold different types of investments – but doesn't offer any options to borrow money.

What is a margin call in day trading?

A margin call in day trading is when the value of your margin account falls below your broker's minimum balance requirements. This leads your broker to request that you deposit more funds or sell off some of your investments to get your account balance back up to the minimum.