Pro tip: Don't let a broker talk you into margin trading on the first call

Guy from Fidelis Capital called me last week, spent 20 minutes trying to sell me on 4x leverage for my 8k account. Told him I just wanted a basic IRA rollover and he said 'you're leaving money on the table.' I hung up. Has anyone else had brokers push margin before they even ask your risk tolerance?

2 comments

2 Comments

jason738d ago

Read somewhere that 70% of margin traders end up losing more than their initial account...

thea6928d ago

70% losing MORE than their initial account? That cant be right, can it? I mean how do you even lose more than what you put in, that sounds like some kind of black magic. Margin trading must be like playing with borrowed money and then the broker comes knocking for the rest of it. Wild that people actually do that stuff, id be terrified of getting a margin call in the middle of the night.