Minimum account balance and deposit at Passfolio
This article discusses what the minimum account balance (if required) and the minimum deposit (if required) at Passfolio stand for. Find out in which cases you must have a minimum balance at Passfolio.
Have you ever accidentally mixed up the minimum account balance with the minimum deposit? Rest assured, you’re not the only one. To prevent any confusion, we'll tell you what they are and how they differ from each other.
Passfolio does not offer margin or derivative trading: you can't trade stocks/ETFs on margin and derivative products, such as futures or options, are also unavailable. In this case, no minimum account balance is required and you can start using the Passfolio platform without having a minimum deposit in your account.
The minimum deposit is the minimum amount required for opening an online brokerage account. While some brokers do not require a minimum deposit, others do. The minimum deposit requirement means that you will need to transfer this amount to your brokerage account from your bank account in order to start trading. You can check the minimum deposit at Passfolio here.
Minimum account balance at Passfolio
Minimum account balance for stock/ETF margin trading
For trading stocks and ETFs at US-regulated brokers, margin accounts need to have a minimum balance of $2,000 (also called “initial margin”) in cash before the start of trading. Once you buy securities on margin, FINRA rules require your broker to impose a “maintenance margin requirement” on your margin account. This specifies the minimum amount of equity (cash and asset value) you must always maintain in your margin account.
The securities margin is the money you borrow as a partial down payment, up to 50% of the purchase price, to buy and own a stock, bond, or ETF. This practice is often referred to as buying on margin.
Source: Global derivatives marketplace CME Group
Passfolio requires a 2,000 minimum account balance for stock/ETF margin trading.
Minimum account balance at Passfolio
Minimum account balance for derivative products
Passfolio offers derivative products to its clients:
Pattern Day Trading at Passfolio
The Pattern Day Trading (PTD) Rule applies at Passfolio. According to FINRA rules, you are a day trader if you execute at least four day trades within five business days.
Pattern Day Traders have to maintain a minimum account balance of $25,000 in their margin accounts. This allows them to engage in unlimited day trading. Brokers are free to impose a higher minimum requirement, which is often called a house requirement. If the account balance drops below the set minimum, traders are not permitted to day trade until the minimum level is restored. If the account balance is less than $25,000, maximum four day trades are allowed in five business days.
Minimum account balance at Passfolio
Minimum amount to open an account at Passfolio
Good news: the minimum deposit to open a Passfolio account is $0. There are brokers that require as much as a couple of thousand dollars. You can check in the table below what is the minimum deposit at the competitors of Passfolio.
| Passfolio | Revolut | SoFi Invest | |
|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 |
Minimum account balance at Passfolio
Bottom line
Now you know what the minimum deposit and the minimum balance are at Passfolio and you understand the difference between the two. If you want to dig deeper, read our article on margin calls and short selling.
The minimum deposit is the minimum amount required to open a new online broker account.
The minimum account balance is not relevant at Passfolio as it doesn't provide stock/ETF margin trading or derivative products.
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