Margin loan as "credit card" for stock buying

I’m on IB. I want to buy stocks, right now! I don’t have time to wait for my money to transfer to IB. Can I buy stocks for x amount of $ now and simultanously transfer money to my account to cover the loan instantly without accruing interest? Sort of like using a credit card and paying it full ASAP.

I don’t like using loans for anything, but sometimes you’re itching to buy some stock :smiley:

I simply can’t find the information yet, so I thought I’d ask. Maybe I’m just too stupid to understand it.

Your money is on IB within 2-4 hours.

Always seemed to take longer. I’ll try now and see how long it takes. Thank you!

Honstely, I’m not in a situation where I need the margin loan now, I was just wondering in case I’ll ever need it.

If you borrow less than 10% of your portfolio value, you can. Should you is a completely different question, and I hope you know what you are doing.

Interest for few days won’t be much anyway.

Thank you! I’m honestly just starting to look into it, because there’ve been days recently where I wanted to buy but dind’t have any cash in my account. At worst, I’d do it like that where I buy on margin and transfer the cash back ASAP. I understand that I’d still be able to lose money that way.

I might just transfer more money to IB than I want to buy next time since there seems to be no negative interest rate up to 50000 CHF.

I’d be wary, patience is a key virtue in stocks investing. If an opportunity really requires you to act “right now”, chances are the move hasn’t been sufficiently prepared/studied and its returns rely on luck rather than proper planning. It may work a few times but on the long run, this attitude is more likely to lead to losses in my opinion.

Edit: the main risk I’m seing here is to use money actually needed on the short term for impulse buying, then loosing on fees and potential market downturns when it turns out you need to take it back sooner than expected. It may not be your situation so, as always, apply your own judgement.

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Which stocks are so urgent that they need to be bought right now and can’t wait a day or two? :face_with_monocle:

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