Why do Portfolio Margin (PM) account margin requirements differ so much? | Reviews of Brokers and Data Feeds


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Why do Portfolio Margin (PM) account margin requirements differ so much?

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Legendary Market Wizard
Switzerland
 
Trading Experience: Intermediate
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Lets have a look at it from a economical point of view:

Every broker company sits in the same market - but:
Bigger companies are not looking for short time clients. They are neither looking for
small accounts.
Smaller companies have smaller client base and need to attract future clients by sending
out signals like being the best: better pricing, better margins, better leverage etc.
IB for example needs a large client base with steady growth in client capital - this
is the survival plan. Platform and other things are not that important as the quick
user is not taking profit of the offer - only 10% of the offered tools are really used.
The new companies jumping in offer a big bunch of goodies, easy platform with
only the basics.
Trading market is tough! For brokers as for traders.
Benefitting of longtime security thinking of funds and traders put bigger brokers
in a better position. Maybe some better leverage or smaller margin can attract
for short time traders - the security of investment is for many investors the main thing.

Just my 2 cents
GFIs1

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