Does anyone here invest on margin in their personal accounts? I'm curious if margin could be used for a dividend-focused investment strategy, but as a retail investor it seems prohibitively expensive.
So I'm trying to understand what the benefits of this are. It can obviously be very beneficial if you have a large account and can get favorable terms. But for reference, I was just looking at the margin application for Scottrade - there was an >8% interest rate for accounts with $10,000 or less - and I can't understand why anyone would borrow money on those terms. (FWIW, I understand you can get a very low rate just by using an IB account.)
Thoughts?
Submitted January 03, 2017 at 09:08PM by B_A_Bananas http://ift.tt/2j74fvS
