Account Trading Types

Account Trading types specify whether an account will use cash or credit to purchase securities.

Account Trading Type

Enum

Description

Leverage

Cash

"CASH"

A “cash account” is a type of account in which the client must pay the full amount for securities purchased using their own funds.

Not available

Margin

"MARGIN"

A “margin account” is a type of account in which DriveWealth lends the client funds, using the account as collateral, to purchase securities.

Options:

  • 0.5 - 2:1 Leverage (Default)
  • 1 - 1:1 Leverage

Margin Account Eligibility

When creating a margin account DriveWealth performs a preliminary check on the information provided in the Investing Profile Document Object during user creation to determine appropriate leverage options.

Requirements for 2:1

  • annualIncome must be greater than $25k, AND
  • networthTotal must be greater than $25k, AND
  • networthLiquid must be greater than $5k, AND
  • investmentExperience must be more than NONE

If a user is created not meeting all of the above requirements the margin account will automatically be opened as 1:1 leverage.