united-states securities
Two Margin accounts at the same Brokerage Account
<p>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.</p>
<p>Is there a law or a FINRA regulation that prevents them from opening two margin accounts for the same customer?</p>

<p>Margin accounts typically have terms that automatically seize the securities that are collateral for the account when the loan to value of the account is too high. More than one margin account would undermine the administrative process of determining that this loan to value limit has been exceeded, and having multiple margin accounts rather than just one, for a brokerage account serves no legitimate purpose.</p>
