Individual Accounts

Individual brokerage accounts have only one account owner. They are the most common and versatile account type, offering stock, options, and futures trading. Explore and learn about the different account types and their associated trading permissions below.

Cash Account

Cash accounts are the most basic type of trading account. Cash accounts allow for trading only with cash, meaning buying power must cover the full purchase price of each trade. Traded funds are subject to an overnight settling period, so proceeds can be accessed quickly but not immediately. Cash accounts are not subject to Pattern Day Trader (PDT) rules as long as unsettled funds are not used for trading.

Margin Account

Margin accounts provide the advantage of leverage, enabling greater flexibility in employing various trading strategies and accessing different trading products. When funding requirements are met, users can trade with up to 6.7 times their cash buying power on eligible products in a portfolio margin account. Standard margin accounts offer 2x leverage relative to the cash balance. A minimum account balance of $2,000 or more is required to retain full margin privileges. For more details, review the Trading Permissions and select the trading level that aligns with your personal financial objectives and risk preference.

To learn more about minimums for margin and cash accounts, see our Minimums and Funding Requirements.