Investing

Do most brokers only allow 95% purchasing power for a money market fund?

  • Last Updated:
  • May 19th, 2020 1:06 pm
[OP]
Sr. Member
Jan 26, 2020
587 posts
140 upvotes
Canada

Do most brokers only allow 95% purchasing power for a money market fund?

I was at Qtrade for a while and they always allowed me 100%. If I had $100,000 in a MMF I could buy $100,000 of stock and they trusted I would sell the MMF the next day to pay for the stock's 2 day settlement time. Worked great.
Now I'm with ThinkorSwim and they only offer 95%. My MMF pays 2%. I asked them if I could buy the 5% on margin but they said no. I don't ever want to go into margin and pay interest - just need that buffer so I can pay for the stock with the MMF.
Wondering what others have experienced.
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