I want to trade options with RBC, but you need a margin account to do so. I only plan purchase options (don`t write them), so I never need to actually borrow money. In addition, I will only use my own money and I do not intend to borrow one day. Will it essentially only work in cash? Or are there hidden differences/fees/etc.? You don`t need a margin account. You can use a TFSA account or any type of direct investment account. If you`re not sure if a margin account is for you, you can use a convenient account to test the waters without risking your own money. I have already set up a TFSA and a RRSP elsewhere with most of my money. I just want to create a smaller, riskier portfolio, I think. Also, I`m not just trading options – that`s part of that and the reason I would need a margin account, so I just mentioned that. A margin account allows you to borrow money from the securities you own. Margin-eligible securities in your RBC Direct Investing account are used as collateral for the loan.
Use margin securities in your RBC Direct Investing account as collateral for the loan. Margin trading is not for everyone, but many investors love it. Connect with others to learn how to identify opportunities and assess risks. You will probably need RBC`s “permission” for business options. Yes, even if you don`t have other money calls when buying.