To use the proceeds of stock sales immediately, any cons(downside) to upgrade to margin account?

I have IBKR cash account, I never planned to use a Margin account as I wish to reduce the risks and fees linked to margin trade…

The issue now is I wish to be able to use the proceeds of stock sales immediately, instead of having to wait for the 2 days settlement . I have unconciously violated the free riding rule so the ban will not get lifted till June.

I could apply to upgrade my Cash account to Margin account, but I am a bit scared of the additional risk/fees. As my sole purpose of the upgrade is to use the sales proceeds immediately, not interested in any other margin account feature.

So what would be the risks/cons/downside to have a margin account? and shall I upgrade in your opinion?


I don’t see any downsides, I also use the margin account basically only for that purpose so I don’t have to wait until something is settled. I don’t trade on margin otherwise. You won’t even notice the fees because the time frames are very short until cash has settled.


If you don’t borrow funds, meaning having a negative cash balance overnight, you don’t pay anything.


I switched recently, no problem so far. For 2 days, the interest/fees will be negligible, don’t worry. The only downside would be to get tempted to use more margin than your risk tolerance should allow.