Do I need good credit to trade on margin?

Question: Do I need good credit to trade on margin?

Answer: You do not have to have good credit to be able to trade on margin. Brokers are more than happy to give you margin to trade on because it is part of how they make their money. Brokers make their money by collecting the spread and the larger your trade is on the market, the more the spread is worth.

By giving you margin to trade on, the broker is able to collect more money from your account per trade.