Currently working on an analysis to compare margin requirements across the street. So basically looking to retrieve the house advance/maintenance requirements across each product (Common Stock, Preferred, Fixed Income IG, Fixed Income Non-IG, Munis, Mutual Funds, ETF's, Options, Etc) from different firms.
Here is an example from Charles Schwab of the data i'm trying to track down: http://www.schwab.com/public/schwab/investing/accounts_products/investm…
Question 1:
I want to get data on around 12 brokerages, what are a solid 12 to go after figuring that i'm trying to hit 4 different categories. That said, do these categories make sense as well ... Can 3 and 4 be combined??
So thinking getting the following data for the following categories
Category 1. Full Service - US:
Brokerages: MS, GS, JPM
Category 2. Full Service - Euro:
Brokerages: CS, DB, UBS
Category 3. Discount - Traditional:
Brokerages: Schwab, Fidelity, Merrill Lynch (MerrillEdge)
Category 4. Discount - New / Online Base:
Brokerages: Scottrade, Etrade, Interactive Brokers
Question 2:
What is the best way to obtain the margin lending requirements from each of these brokerages?
Currently these are the ways I came up with:
1. Try to find online (So far only found Charles Schwab published online)
2. Ask people I know who work for/with each brokerage
3. Ask people who have an account with each brokerage
4. Contact the brokerage help desk / potential account sign-up help desk
I'm in category 1 (FYI, I'd add Merrill & Wells to that list), we're 50 bps cheaper than Schwab
also for whatever it's worth I don't think this is a very smart use of your time. in reality, I can get a lot cheaper on my rate depending on my relationship with my banker, the client situation, etc. so our base rates are effectively meaningless, as with the rest of tier 1 & 2.
I should also probably mention that we rarely if ever use margin lending. lines of credit (non purpose), sure, but never margin
Hi, thanks for answering.
My goal is to learn more about "The Business Of Margin Lending." ... I've wasted time on worse things.
Also keep in mind 'm looking for maintenance/advance requirements ant not margin int rates. Although both are negotiable ... requirements are negotiated less.
Margin requirements are determined by the regulators for the most part. minimal variance between firms
http://www.sec.gov/investor/pubs/margin.htm
Those are the exchange requirements..
I'm looking for House/Firm requirements which are higher than Finra/Exchange, similar to the link I have for Schwab.
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