I am new to investing and opened a brokerage account through TD Ameritrade.

I've been purchasing stock with cash deposited into the account.

I noticed today the Maintenance requirement row in the balance sheet, and it made me wonder are they going to charge me for holding stocks?

It says I am approved for margin, and 6 out of the 7 positions I hold are considered marginable.

I've read the documentation on the site but man am I over my head on this stuff. I'm considering turning off margin approval on the account.

I purchased all stocks in full with cash, so I do not understand what the maintenance requirement fees would be? And the maintenance requirement seems to be raising as the stocks go up in value?

Will I be charged if the stocks go down in value? What are the risks?

If I always purchase stocks in full with cash will I ever be charged a fee?

My goal was to have a 0 commission account where I could purchase stocks and only lose money if the stocks depreciated in value. I do not want to deal with other fees and maintenance fees.

1 Answer 1


There are no maintenance charges for buying stocks with cash.

Because it's a margin account, it provides stats relevant to margin which you are not on.

The info regarding 6 out of your 7 positions being marginable is just that, a stat, relevant to margin borrowing should you change your mind and opt to go that route.

When you buy stocks on margin, there is an initial margin requirement (maximum of 50% in the US) and a minimum margin maintenance requirement of 25% (which increases as a stock appreciates). Brokers can require more.

None of this is applicable to you if you are only buying for cash.

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