Why was my request to borrow denied?
In order to be eligible to use M1 Borrow, you must have a taxable M1 brokerage account with an account balance of $10,000 or more. IRAs do not qualify.
It is possible your request to use M1 Borrow will be denied if your portfolio is not diversified, such as a situation where your entire portfolio is invested in a single security.
You can be denied as well if you request to borrow above 35% of your portfolio value. If you have already borrowed the maximum amount, you will not be able to borrow more.
Why was my request to withdraw funds denied?
If you are using M1 Borrow, you will only be able to withdraw up to a certain amount of money from your portfolio to your bank. M1 will not allow you to withdraw funds such that your borrowed amount is greater than 35% of your account equity. M1 will require you to pay back some of your debt before your withdrawal request can be completed.
Using margin involves risks: you can lose more than you deposit, you are subject to a margin call, and interest rates may change. To learn more about the risks associated with margin loans, please see our Margin Disclosure. M1 Borrow available on margin accounts with a balance of at least $10,000. Does not apply to retirement accounts.