What are the requirements to open a margin account with a stock broker like ameritrade or scottrade?

Question

If Im a student with a income of only a couple thousand a year is it still possible to get a margin account or will I be denied?

Answer 1

"What is the minimum amount required for opening an account?

Generally, $1,000 equity is required to open an IRA, and $2,000 equity is required to open any non-IRA. Your minimum initial deposit is based on the account type you have selected and may be modified by special promotional offers. Regardless of any promotional offer, a $2,000 minimum deposit is required to be considered for margin and options privileges."

That's per ameritrade's policy.

Now, I invest mainly at Edward Jones, and they're a little more flexible. I would recommend going to a local EJ broker. The meeting is free!

Answer 2

Generally all you have to do is ask. I have a scottrade brokerage account and recently converted it to a margin account. They didn't even ask me my income. If you don't have an account yet, just check "margin" on the application form when you fill it out. There's no verification of income, employment or anything else to have an investment account.

Though to get approved to trade options they might ask you why you think you're qualified. I didn't get asked that at Scottrade, but a friend did at another firm. He just said he studied finance in college and that was it.