At Hapi, you can choose between two types of accounts: a cash account and a margin account.
Each has different characteristics that affect how you can trade, how your funds are used, and the level of risk within your account.
Comparison between a Cash Account and a Margin Account
| Access to margin loan | Buy and sell assets within the same trading day | Invest using funds from pending sales |
Cash account | No | Yes | No |
Margin account | Yes | Restrictions apply | Yes |
Features of a Cash Account
You trade only with your own money.
Stock sales settle in T + 1 (one business day after the trade). During this time, you may have limitations on reusing or withdrawing those funds.
You do not have access to loans or a credit line.
The Pattern Day Trading (PDT) rule does not apply. This means you can buy and sell assets within the same trading day as many times as you want using your own funds.
Features of a Margin Account
You can access a line of credit backed by your assets, subject to eligibility and maintaining more than $2,500 in your portfolio.
You can reuse proceeds from sales before settlement, without waiting for T + 1.
It is subject to the Pattern Day Trading (PDT) rule, which may limit how often you can buy and sell within the same day depending on your portfolio value.
You must maintain a minimum level of equity (margin maintenance). If you do not meet this requirement, you may receive a margin call.
Using margin generates interest on the borrowed amount.
| Non-Prime | Prime |
Up to $2,000 | 1 PDT per day up to 3 PDTs in 5 business days | 3 PDTs in 5 business days |
$2,000 - $25,000 | 1 PDT per day up to 3 PDTs in 5 business days | 3 PDTs in 5 business days |
More than $25,000 | Unlimited | Unlimited |
How to change your account type
In your app settings, you can switch from a cash account to a margin account. Simply go to the menu and select account type. There you will see your current account type and have the option to request a change.
If you decide to switch from a margin account to a cash account, the process may take up to 3 business days. If you switch back to a cash account, the process may take a few days and you must wait at least 30 days before switching back to margin.
Important note
This article is for informational purposes only and does not represent investment advice. A margin account may offer greater flexibility, but it also involves additional risks.
You may lose more than your initial investment
Your portfolio value may fluctuate rapidly
You may face margin calls and forced liquidations
Before using margin, consider your investment objectives, experience, and risk tolerance. Hapi does not promote day trading, as it can be a high-risk strategy and may not be suitable for all investors.
If you have questions or experienced any issues, feel free to contact us — we’ll be happy to help.
Legal Disclaimer: Using margin involves risks and is not suitable for all investors. When trading on margin, you can lose more than your initial investment. Past performance does not guarantee future results. This content is for informational purposes only and does not constitute advice, a recommendation, or an offer to buy or sell securities.