Tiger Brokers’ trading app, Tiger Trade, offers a variety of account types to suit different trading preferences. One of the most straightforward options is the Cash Account, which is ideal for users who prefer to trade using their available funds without engaging in margin trading or short selling.
What is a Cash Account on Tiger Trade?
The Cash Account on Tiger Trade is the basic account type, providing users with a simple and secure way to trade by using only the cash in their account. Unlike more advanced accounts, the Cash Account does not allow for borrowing funds, making it a lower-risk option for those who want to trade within their means.
Key Features of the Cash Account
Trading with Available Cash: With a Cash Account, users are required to have sufficient cash in their account to execute trades. This means you can only trade with the funds you deposit, which helps prevent the risk of borrowing money for trades.
No Margin Trading or Short Selling: Unlike the Margin Account, which allows users to trade on leverage, the Cash Account does not support margin trading or short selling. This makes it a safer option for those who want to avoid the risks associated with borrowing money to make trades.
No Futures or Options: Products that require financing, such as futures and options, cannot be traded using the Cash Account. It is a simpler account designed for more traditional types of investments like stocks and ETFs.
No Limits on T+0 Trades: A standout feature of the Cash Account is that there is no limit on the number or frequency of T+0 trades. This means you can make same-day trades as often as you like, giving you greater flexibility if you prefer to take advantage of intraday market movements.
Advantages of Using a Cash Account
Lower Risk: Since you are only trading with your available funds, there’s no risk of owing more money than you have, making the Cash Account a safer choice for those new to trading or those who prefer a more conservative approach.
Simplicity: The Cash Account offers a straightforward trading experience without the complexity of margin trading or the additional risks that come with using borrowed funds. It’s an excellent option for investors who want to keep things simple and focus on long-term goals.
Important Considerations
While the Cash Account is more conservative and offers fewer risks than margin trading, it’s important to remember that it limits your ability to trade products that require margin or financing. For those looking to access a broader range of financial instruments, such as futures or options, a different type of account may be necessary.
Conclusion
Tiger Trade’s Cash Account is an excellent starting point for those who want to trade without the complexities of margin or short selling. It provides a straightforward, low-risk trading experience, making it suitable for investors who prefer to operate within the funds they have available. However, as with any account type, it’s essential to be aware of its limitations and choose the right account based on your trading goals and strategies.
