How much does it cost if you don't use any margin for Merrill Lynch?
Newbie to margin trading, I want to know how much does it cost if you don't use any margin for Bank of America brokerage? Only using my cash balance. I just want to get rid of the free-ride(T+3 settlement date).
- Common SenseLv 710 years agoFavorite Answer
The main reason day & swing traders have margin accounts is for settlement. As long as you have a "plus" balance at the end of the day.... there's no margin charge.
The interesting thing about T+3 is that it's the maximum a broker can hold your funds (there is no minimum). I day & swing trade inside my IRA Rollover account. My broker settles the next day. Not as good as a margin account..... put pretty close.