I'm setting up a TD Ameritrade account (cash or cash/margin). Whats the difference between the two types of accounts. What can I do with one that I can't do with the other. Does either one hold any advantage over the other?
TIA
Posted by Bob Frey on :
Margin allows you to turn your money faster after a trade but you should talk to your broker to know for sure.
Posted by 10of13 on :
When i started...I opened a cash account...within 3 months It became more and more difficult...because as i learned...I was wanting to "flip stock" or sell one,(knowing that I had "time" to get back in) so that I could hurry and buy another stock that was "running" now...but with the cash account you have to wait the 3 days to let the funds settle before you can reinvest that money AND sell the new stock...with the margin account...i can do this...and not have to wait for funds to settle... So i started with a cash account...and tranferred to a margin account...i also suggest maybe having more than one account to trade...with the same or different broker...it doesn't matter...IMHO