Questrade is one of the leading brokers in Canada which offers a margin trading account among its various functionalities.
The broker offers a DIY RRSP account, TFSA, non-registered account, and has positioned itself in Canada as a low-fee discount brokerages which appeals to passive ETF investors who want to pay as little as possible per transaction. Questrade started offering a margin trade account in the past 2 years and offers its customers with an easy reallocation of funds from other Questrade accounts into the Questrade margin trade account.
The company offers the following leverage (CAD)
- Stocks under $1.5 – no leverage
- Socks $1.5-$1.74 – 20% leverage
- Stocks $1.75 – $1.99 – 40% leverage
- Stocks or short positions for stocks $2.00+ – 50% leverage
- Gold and silver can be leverage at 80% and 70% respectively.
The broker also offers options trade at 4 different levels which require different minimum account balance.
Margin calls: If your equity balance falls below the total margin requirement, you should know that Questrade will be eligible to liquidate assets from your account until you are back above the total margin requirements. To increase your buying Strength, Questrade started “Margin Power” which connects your saving accounts to your trading accounts, but we don’t recommend you’ll do that.
Currency exchanges are not automatic and interest rate differential is charged upon currency exchanges.