Margin on Invest accounts

Are there any plans to introduce margin/leverage on Invest accounts?

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Potential New Feature:

Being able to borrow on margin in the Invest account.
Essentially levering up the account to boost returns.
Degiro offers this

Only for Advanced Users and not beginners

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What’s the difference between this and CFD?

Not having to deal with spread mark-up.
Owning the actual shares rather than a contract based on their value.

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Plus,
I can lever up the account to the extent with which I feel comfortable instead of being based on the product (derivative).
Like instead of levering AAPL up to 1:5, which is what the CFD Account offers, I can simply take a 20% leverage on my whole account, buying whatever stocks I want worth £120, with £100 upfront, and go ahead with that.

Sort of gearing the whole portfolio, up 10-20-30%

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This feature and being able to transfer stocks here are the reasons I’m still using degiro as my main broker instead of trading212.
Please add this :slightly_smiling_face:

The difference is that you borrow the money and actually own the shares you buy, unlike CFD.

I would love to see margin investing, is there any plan for it?

Would there be any difference from taking a short term loan and funding your account?

Are you suggesting T212 become a bank and make money just off the interest fee on the loan? And If you can’t pay it back come round with baseball bats? :sweat_smile:

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That’s not how it works. Please do some googling friend and educate yourself.

i am being facetious maybe I should have added an upside down face or something.

I’m trying to gauge from @vento how T212 would be making money to provide this with raw spreads in Invest/ISA. They aren’t going to do it out of kindness.

When you borrow money from the broker to invest, you pay interest on the money you borrow, and usually, you can borrow up to a certain amount, depending on how you invest, how much you have invested, the risks you take and so on. It carries more risks and not suitable for beginners, but can give a higher return.

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So not changing the Invest/ISA functionality/interface, and simply providing a loan (based on your trading and risks to assess how much to lend) and make money from the interest.

So as mentioned anyone can technically do this already taking a personal loan and depositing it. The only difference is the external lender would not be basing it on risk/trading but on credit report. Are you still imaging they would offer the negative balance protection similar to CFD and have margin calls? Obv if you took an external loan they want their money back if lost.

Does T212 have a cash reserves to do this? Or are you thinking the margin would be provided by T212 partnership?

Have a look at this thread and then see whether the community would like an open door on assets aswell as cfd leverage