Scottrade

[brindle26]

Will Scottrade be a HP or SP?

[Revelate]

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@brindle26 wrote:

Will Scottrade be a HP or SP?

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I've never experienced a brokerage account doing a credit check unless (maybe) if you're asking for margin trading and usually that's based on the assets in the account.  Even that never was for me but I haven't made a margin request in a long time.

It won't cost a pull of any type to open an account.

[asulaw]

I have a Scottrade account, and they do not do any sort of credit pulls. I'm pretty sure that no brokerage account does. They want SSN for taxes etc.

[coterotie]

E trade, Sharebuilder both are hard pulls.  Scottrade probably is as well.  If you request a margin or option level 4 you will get a credit review.  Simple IRA's will not generate a pull (in general).  I don't know if option level 2 generates a pull (this is the option level allowed for IRA's) but it likely doesn't since all trades are covered i.e. nothing naked.

[Revelate]

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@coterotie wrote:

E trade, Sharebuilder both are hard pulls.  Scottrade probably is as well.  If you request a margin or option level 4 you will get a credit review.  Simple IRA's will not generate a pull (in general).  I don't know if option level 2 generates a pull (this is the option level allowed for IRA's) but it likely doesn't since all trades are covered i.e. nothing naked.

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The typical new investor isn't going to be requesting either.  Option level 2 does not with Fidelity at least.

Margin is not for the faint of heart, nor for any neophyte investor.  Too many people have lost their financial lives completely that way, beware of playing with house money: margin calls are not fun from personal experience.

[myjourney]

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@Revelate wrote:

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@coterotie wrote:

E trade, Sharebuilder both are hard pulls.  Scottrade probably is as well.  If you request a margin or option level 4 you will get a credit review.  Simple IRA's will not generate a pull (in general).  I don't know if option level 2 generates a pull (this is the option level allowed for IRA's) but it likely doesn't since all trades are covered i.e. nothing naked.

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The typical new investor isn't going to be requesting either.  Option level 2 does not with Fidelity at least.

Margin is not for the faint of heart, nor for any neophyte investor.  Too many people have lost their financial lives completely that way, beware of playing with house money: margin calls are not fun from personal experience.

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+1 to Revelate

Margins/ Options are dangerous way to play with your money if your not well versed you could owe large amounts of money at the end of the day when the bell rings 

For OP I have a Fidelity brokerage account and it did not require a HP 

[mongstradamus]

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@myjourney wrote:

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@Revelate wrote:

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@coterotie wrote:

E trade, Sharebuilder both are hard pulls.  Scottrade probably is as well.  If you request a margin or option level 4 you will get a credit review.  Simple IRA's will not generate a pull (in general).  I don't know if option level 2 generates a pull (this is the option level allowed for IRA's) but it likely doesn't since all trades are covered i.e. nothing naked.

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The typical new investor isn't going to be requesting either.  Option level 2 does not with Fidelity at least.

Margin is not for the faint of heart, nor for any neophyte investor.  Too many people have lost their financial lives completely that way, beware of playing with house money: margin calls are not fun from personal experience.

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+1 to Revelate

Margins/ Options are dangerous way to play with your money if your not well versed you could owe large amounts of money at the end of the day when the bell rings 

For OP I have a Fidelity brokerage account and it did not require a HP 

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For the record I have an vanguard brokerage account and there was no HP at all.

[coterotie]

I don't disagree with your opinion of margin, which I very rarely use.  However, a margin account is extremely useful.  Let's say that the market is moving in a direction and you need to move with it.  I can liquidate a position/portfolio which may be substantial and want to re-invest.  If it is a stock, then I will have to wait 3 business days for the transaction to clear in order to re-invest or be guilty of a free-riding transaction.  However, if you have a margin account then you can pull out of one investment into another investment immeidately and not incur a free-riding infraction.  So you didn't borrow any money technically, but the ability to borrow allowed you to freely move your money when you want to, not when the rules say you can.  Options settle same day so you don't have to worry about them so much, which is why I use them in my IRA.  I frequently run afoul of the free-riding in that account as I keep it relatively fully invested.  (although it is 40% cash right now as I can't find much that is attractive)

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@myjourney wrote:

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@Revelate wrote:

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@coterotie wrote:

E trade, Sharebuilder both are hard pulls.  Scottrade probably is as well.  If you request a margin or option level 4 you will get a credit review.  Simple IRA's will not generate a pull (in general).  I don't know if option level 2 generates a pull (this is the option level allowed for IRA's) but it likely doesn't since all trades are covered i.e. nothing naked.

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The typical new investor isn't going to be requesting either.  Option level 2 does not with Fidelity at least.

Margin is not for the faint of heart, nor for any neophyte investor.  Too many people have lost their financial lives completely that way, beware of playing with house money: margin calls are not fun from personal experience.

---

+1 to Revelate

Margins/ Options are dangerous way to play with your money if your not well versed you could owe large amounts of money at the end of the day when the bell rings 

For OP I have a Fidelity brokerage account and it did not require a HP 

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[myjourney]

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@coterotie wrote:

I don't disagree with your opinion of margin, which I very rarely use.  However, a margin account is extremely useful.  Let's say that the market is moving in a direction and you need to move with it.  I can liquidate a position/portfolio which may be substantial and want to re-invest.  If it is a stock, then I will have to wait 3 business days for the transaction to clear in order to re-invest or be guilty of a free-riding transaction.  However, if you have a margin account then you can pull out of one investment into another investment immeidately and not incur a free-riding infraction.  So you didn't borrow any money technically, but the ability to borrow allowed you to freely move your money when you want to, not when the rules say you can.  Options settle same day so you don't have to worry about them so much, which is why I use them in my IRA.  I frequently run afoul of the free-riding in that account as I keep it relatively fully invested.  (although it is 40% cash right now as I can't find much that is attractive)

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@myjourney wrote:

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@Revelate wrote:

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@coterotie wrote:

E trade, Sharebuilder both are hard pulls.  Scottrade probably is as well.  If you request a margin or option level 4 you will get a credit review.  Simple IRA's will not generate a pull (in general).  I don't know if option level 2 generates a pull (this is the option level allowed for IRA's) but it likely doesn't since all trades are covered i.e. nothing naked.

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The typical new investor isn't going to be requesting either.  Option level 2 does not with Fidelity at least.

Margin is not for the faint of heart, nor for any neophyte investor.  Too many people have lost their financial lives completely that way, beware of playing with house money: margin calls are not fun from personal experience.

---

+1 to Revelate

Margins/ Options are dangerous way to play with your money if your not well versed you could owe large amounts of money at the end of the day when the bell rings 

For OP I have a Fidelity brokerage account and it did not require a HP 

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Agreed good point 

Margins can be very profitable If your well versed and as you point out liquidated and immediately available funds to emerge in other positions at the end of the day....

However they're for someone that watches the ticker tape all day (day trader) and not for someone who's not seasoned enough to know when the bell rings at the end of the day if you haven't made the right moves be prepared to fork over some cash (same day) to cover those losses.

10 minutes of the ticker tape can change lives and portfolios and the most volatile trades on the exchange are options/margins/calls

That old song .....

Know when to hold them

Know when to fold them 

Comes to mind 

[IamB2]

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@brindle26 wrote:

Will Scottrade be a HP or SP?

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If you are looking for a retirement account, (401K/IRA) there is no credit pull. If you are talking a brokerage account, I can see that happening when/if you are looking to trade on margin as others have mentioned.

Hope that helps