Personal Guarantee for Margin Account

Discussion in 'Online Brokers' started by Mark17, May 11, 2018.

  1. Mark17

    Mark17 Well-Known Member

    My broker just sent me this 8-page form with the thread title. I've had a PM account for 10 years and have never seen one of these. Does anyone have any thoughts/experience with this? Thanks!
  2. status1

    status1 Well-Known Member

    What is on the form ?
    What are they asking from you ?
    Is this like a new application for a PM account or something else ?
  3. status1

    status1 Well-Known Member

    I just did a quick search and came up with this from TDAmeritrade regarding the portfolio margin account requirements

    "Clients must have $125,000 initial equity and must maintain $100,000
    equity at all times. Additionally, clients must have full option approval,
    three years of option experience, pass a Portfolio Margin Test, pass
    a client risk review, and currently have no outstanding margin calls.
    Entity accounts may be required to supply a personal guarantee"

    I guess maybe they have someone new in charge and they want to make sure that everyone is in compliance after 10 years
  4. Mark17

    Mark17 Well-Known Member

    Wow... so perhaps this is industry wide. Thanks for the info!

    I wonder if it's a big deal? To me it seems like a potential compromise of the limited liability nature of the business.

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