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What is the difference between a Margin and Cash account?

Cash Account

A Cash Account is the typical choice if you intend to pay cash in full for each purchase. When you put your excess cash in your account you will have easy access to your funds so you can plan for your next investment strategy.

You are required:

  1. To have all payments for trade purchases in your TD Direct Investing account on or before the settlement date. Settlement periods vary depending on the securities traded
  2. To have funds in the cash account before you place an order 

Margin Account

With a Margin Account, you can borrow against securities already in your account, or borrow part of the purchase price of the securities you are buying. That way, you can react quickly to market opportunities without having to worry about finding the cash to cover the transaction.

Open a Margin Account if you wish to borrow money to buy securities or borrow against the securities you already own. If you qualify and the Margin Account is approved, you will be able to borrow on margin at a competitive interest rate.

This type of account is subject to risk and responsibilities that differ from those of a cash account.

For detailed information, please refer to our Margin Disclosure Statement.

View interest rates

A Margin Account is required for the following features. You can apply to be approved for them when applying for a Margin Account.

  1. Option Trading
  2. Short Selling

For more information about margin accounts, visit our website.

New Accounts can be opened in person at any TD Direct Investing location or TD Canada Trust branch. To set up an appointment at your convenience, please call TD Direct Investing or a TD Canada Trust branch.

Open a TD Direct Investing Account today.


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