A margin account account allows you to borrow, at competitive interest rates, against the value of your securities or for part of the purchase price of securities you want to buy. The maximum amount varies according to the type of investment and the market value of the securities. To learn more about brokerage terminology, consult our glossary.
The interest rate applied on the debit balance of a margin account is the Preferred Rate + 1%. The Interest is calculated daily on the balance throughout the month (from the 25th through the 24th of the following month) and is charged or deposited to the account on the 25th of each month.
You must fill out and then send or bring in a Transfer Form accompanied by the last statement of the account which you would like to transfer. Upon receiving these documents, we will then do the transfer with the other broker.
You can obtain transfer forms through our site, stopping by a branch of the Laurentian Bank, or by contacting a Customer Service Representative. As well, you will find a form in the "Welcome Kit" which is sent to you when you open an account.
For non-registered accounts, the interest rate applied to assets depends upon the balance in the account; the greater the balance, the more advantageous the rate. In registered accounts, the rate is the Preferred Rate less 3.25%.