Margin Account Or Cash Account? [Which Is Better?]

Margin Account Or Cash Account? [Which Is Better?]

While this isn't necessarily an investing topic for beginners. I think the cash account and the margin account are something EVERY investor should know and be fully aware of.

Today let's talk cash accounts vs margin accounts.

Your online brokerage probably has the option of using either (or both) of these accounts to buy stocks online. But just because a brokerage offers certain services doesn't mean that you should be using them.

🎥IN TODAY'S VIDEO🎥
0:00 - Intro
00:35 - Cash Accounts
01:42 - Margin Accounts
02:32 - Best Case (Bad Illustration)
05:54 - Worst Case (Bad Illustration)
10:09 - Recap
12:19 - Wrap-Up

#cashvsmargin #marginvscash #cashormargin

Let's compare the pros and cons of margin accounts as well as the pros and cons of cash accounts and I'll give you my take.

We'll talk about all the juicy stuff, too: margin account pros and cons, margin calls, return on investment, breakeven points, buying stocks on margin, do some buying on margin example problems, and everything in between.

Hopefully, I can break things down in a way that makes sense.

👍If you enjoyed this video, please don't forget to click that like button!👍

**WANT FOUR FREE STOCKS?**
💰💰Sign up for WeBull!💰💰
You get 2 free stocks (valued up to $250) when you sign up and
2 additional stocks (valued up to $1600) when you deposit your first $100.
Limited Time Offer! Use this link:

**WHAT TOPICS WOULD YOU LIKE TO SEE?**
Are there other stocks or topics that you would like to talk about? Let me know in the comments!

**INVESTING BOOKS WORTH READING**
Yes, these are affiliate link, and I do earn a small commission when you buy.
I only recommend them because they've helped me:

📙"The Little Common Sense Book Of Investing"
(by John Bogle)

📕“The Intelligent Investor”
(by Benjamin Graham)

📘“One Up On Wall Street”
(by Peter Lynch)

📙“Common Stocks, Uncommon Profits”
(by Philip Fisher)

**MY GEAR**
📷Dash's Camera (CANON REBEL)

🎙 Dash's Microphone (BLUE YETI)

🎤Backup Recorder (TASCAM)

🎵Looking for cool, royalty free music for your videos?🎵

I highly recommend Epidemic Sound!
You can click here:

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
**IMPORTANT!**I'm not a professional, Wall Street analyst nor am I a financial advisor. This video isn't intended to be investment advice. ALWAYS do your own research before investing any money in any stock, bond or other investment.

**AFFILIATE DISCLAIMER**Please note that this page does contain affiliate links and I do earn a small commission (at not extra cost to you) when you make purchases using the links on this page

[MindOverFinance]

Have you ever tried buying stocks on margin? Did you have a good experience or a bad one?
Let me know in the comments!

[tanvirnuman]

Thanx a lots for experience, Appreciate

[andrewcasey]

Greatly appreciate this video! Thank you so much!

[nabubito]

Thanks for taking your time making this video!!!

[MrSoutherhospitality]

I just want the instant settlement feature
And not risk more than what I have

[josephjones]

Solid advice 👌. The best way to use a margin account is to never exceed your cash you put in it. Treat it like a line of credit. Of course, never borrow for your long term investments. But, I find margin account is usful in certain cases.

3 reasons for margin account:
1. Leverage your stock positions ( i don't recommend it) - as per this video.
2. Day trading- helps avoid PDT rule because you trade without having to wait for your funds to settle; without using debt. This is the case unless you have a cash account of $25 k or more.
3. Options trading for level 3 or above - you can use a margin account without exceeding your cash limit. This account is required for more advanced strategies like spreads. But, I recommend sticking to risk defined strategies.
4. Forex trading- ( stay away from it all costs!) Unless you have access to high frequency trading.

[rantg]

only you have settlement time.. 2 days.. only on cash accounts.

[BrooklynBound]

I enjoyed your video fantastic presentation! I agree with you as far using Margins but it all depends on who is utilizing it .and not being greedy and irresponsible. Margins work for those that want to trade and not have to wait for the cash to settle. I missed out on a dip waiting for coach to settle and that is when I decided to open a Margins Account. I use common sense and am conservative with my investing just s with 💰. Thank you for the upload

[josephjones]

I signed up for Scottrade which got taken over by TD Ameritrade, and then Charles bought them. Big bank take little bank lol!