Both E*Trade and TD Ameritrade have a policy that says an investor cannot have two margin accounts with them. He can have two or more cash accounts. Neither firm could tell me why they have this policy.
In the case of E*Trade, one of the accounts came from Option House and it was being charged lower commissions so I wanted to keep it separate. E*Trade had taken margin off the account.
Is there a reason for a firm not to allow one customer to have two separate margin accounts?