How To Open a Margin Account

Existing Clients

If you already have an existing Scottrade account, you can easily request margin through our Margin Application. Once you've completed the application, submit it to your local Scottrade branch office using one of the following methods:

  • Fax
  • Mail
  • Scan the application and email your scanned copy to
  • Drop off your application in person

New Clients

If you're not a current Scottrade client and want to open a margin account, you can elect to enable margin trading during the online apply process.

You can request margin trading privileges under the Additional Account Services section of our Online Application.

Once Scottrade approves your application, you'll need to deposit a minimum of $2,000 in cash or negotiable securities, such as stocks, bonds or other eligible securities.

Please allow three-to-five business days for your application to be processed.

Accounts Ineligible for Margin Trading

  • IRAs
  • Custodial Accounts
  • Estate Accounts
  • Coverdell ESA Accounts

All other Scottrade brokerage account types are eligible for margin trading. If you're looking for help determining which account type is right for you, you can read about our different account types or call any of our nationwide branches.

Regardless of the account type you open, not all securities will be marginable.

Marginable Securities

Securities that can be purchased using borrowed funds from your margin account include:

  • Most stocks and ETFs traded on major exchanges with a share price of $3 or higher
  • The majority of mutual funds owned for at least 30 days
  • Most corporate, municipal, treasury and government agency bonds

Non-Marginable Securities

Certain securities are considered non-marginable, meaning they must be purchased using solely your own funds. Non-marginable securities include but are not limited to securities listed under $3/share, options, penny stocks and over-the-counter bulletin board stocks.