Why was my Borrow request denied?

 

Why was my request to borrow denied?

To be eligible to use M1 Borrow, you must have a taxable M1 brokerage account with an invested account balance of $5,000 or more. IRA, custodial, and trust accounts do not qualify.  

 Your Borrow request also may be denied if: 

  • Your portfolio is not diversified. For example, your entire portfolio is invested in a single stock. 
  • You request to borrow above 35% of your invested portfolio value. 
  • You have already borrowed the maximum amount. 

Why was my request to withdraw funds denied?

While using Borrow, you will only be able to withdraw a portion of the money from your portfolio to your bank.  

M1 will not allow withdrawals that make your borrowed amount greater than 35% of your account value. 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 $5,000. This does not apply to retirement accounts.

 

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