Direct Trading Account

Cash Account

Open a cash account if you intend to pay cash in full for each purchase. Generally speaking, the only requirement is that all payments for trade purchases must be in your TD Waterhouse Discount Brokerage account on or before the settlement date. Settlement periods vary depending on the securities traded. Funds required for the first trade purchase must be in the cash account before the order is placed.

Margin Account

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

When applying for a margin account you can also apply to be approved for the following account features :

• Option Trading
• Short Selling

For more information about margin accounts, and the risks associated with investing on margin, please read the Margin Disclosure Statement. Please also review the Margin Requirements and Concentration Guidelines page and a few examples of Margin Calculations.

If you'd like to learn more about the risks, rewards and strategies associated with options, read the TD Waterhouse Options Guide.