does anyone use freetrade? i just started my account with $5000 and have $10000 of buying power. Does anyone know if there are any charges for the extra $5000 of buying power. thanks
Posted by Bob Frey on :
Interest if you use it
Posted by gphs98 on :
when i place an order it does not ask if i want to solely use my funds or the extra buying power. It just takes half from my $5000 and the other half from the "buying power". Do you know how to just use your money? How much interest do they charge? I didn't see that anywhere. thanks bob
Posted by Bob Frey on :
Call your broker and ask them about interest.
Make order from cash account prob.
Posted by novocain on :
5000/10,000 is a margin account if I would assume you have.... means that you have 5,000 in your account but you can use up to 10,000 to buy stocks over 3.00 or maybe less depending on your broker. The problem comes in when you use the extra money and then lose it hahaha....but yea call your broker to find out for sure. I do know that the extra money can not be used towards pennies...
Good luck
Posted by gphs98 on :
i also thought it was margin, but there is an area for margin and the margin balance is 0. I would love to call freetrade, but they only answer email. I guess it could be margin, but hopefully someone that deals with freetrade will be able to answer my questions. thanks to all
Posted by gphs98 on :
yeah it is margin. The only thing i don't understand is how to buy/short stocks without using margin. I have enough cash available to trade without margin so I am still looking for help from anyone that has Freetrade. thanks
Posted by kbpkt on :
quote:Originally posted by gphs98: yeah it is margin. The only thing i don't understand is how to buy/short stocks without using margin. I have enough cash available to trade without margin so I am still looking for help from anyone that has Freetrade. thanks
I use freetrade. If you only use $5000, you will not be using marginable funds. When you open a freetrade account, they automatically give you a margin account. If you use all $5000 of cash, you will see that your buying power is at $0. You won't be on margin if you only use the $5000 you deposited. If you want to buy on margin with freetrade, the security has to be at least $5 PPS, it won't work for pennies. If you have any more questions about them, feel free to ask.