Thread: CIBC Investor's Edge wants a personal guarantee for a cash account?

Gee, Good for you for having a non-personal margin account without a personal guarantee. I enquired with Scotia iTRADE and they wanted an Account Guarantee for non-personal accounts. I specifically asked why they needed one for a cash account and the response implied what leslie said about them not wanting to risk dealing with incorporated entities making whole on the liabilities. Their position, to me, makes no sense. The good news is RBC...

This begs the question: Is there a broker that doesn’t need a personal guarantee for corporate margin account? Don't you read the reply to your posts? I already said to you in a previous most i use iTrade for my corporate account and had no problem setting up a Margin account with out signing any personal guarantee?

You have to understand their POV. They do NOT want to deal with corps for the same reason you WANT to incorporate. I don't know about trading accounts, but ALL banks will ask business owners to sign away their personal assets for bank services like lines-of-credit. Whether you comply, and whether they insist is a game.

It seems odd if it's a cash account, try one of the smaller firms.

It's possible that this is a regulatory issue. I forget the terms for it, but they have serious rules about anyone that might buy a stock and not come up with the cash upon settlement. They think of it more as an illegal trade then they do about it being a bad debt. Perhaps this is one of the rules the OSC/IIROC puts on the brokerages to reduce this from occuring. Just a guess on my part. Thought I would mention it.