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Who has ever tried to get a bank loan for trading? 57 replies

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Take a Loan to Trade?

Quoting samlarson
{quote} Somewhere in the middle of your story, I got pretty concerned about how you could get out of this situation because it's somehow related to mine It was basically my second month in trading and I've somehow managed to triple my first investment of 1500 dollars. I was pretty proud of myself and thought that I could do even better with more money. So I decided to pull all the money I have left ( about 5k ) and take a maximum loan I could get ( which was 25k Quebec...
Yes, I agree with you. Banks provide many sources of funding, for example: car loans, consumer loans, mortgages, industry and business loans. In my opinion quick loans can be more profitable than traditional loans. You can also find online small loans at various sites. It's very convenient when I can borrow before pay day. You need to look at different sites and options. And then choose the best for yourself.
i would never advise taking a loan from banks, it's too risky if you lose that amount then you would end up with a heavy debt that you need to pay back and gain nothing from it. I would never trade with money that i can't afford to lose as it can affect your financial situation.

You are better to save up funds for trading, it may take longer but at least in the worst case, it won't put you in financial trouble.
By the time you are profitable as a trader investors happily give you their money and you split profits with them. It's better than being bound to a loan.
Quoting MrAnonymous
By the time you are profitable as a trader investors happily give you their money and you split profits with them. It's better than being bound to a loan.
This is where trade co-ops aka prop firms come in

But when the OP posted this 10 yrs ago there weren't any and I'd advise against what they're were trying to do anyways
Quoting newyear498
Would it be advisable to take out a loan and use that money to make speculative trading positions in the Forex market?
Even though it’s a decade old question but the ruled is still fresh. Taking loan from any bank will increase your burden and pressure. Knowledge is the main capital in Forex market. So, if you have knowledge, can turn a small capital to huge but if you don’t have knowledge, you can vanish even a bigger capital within a day. You can’t trade Forex with the pressure that you have to go shopping or pay back the loan.
A Blunder & Plunder mistake is , Take a Loan to Trade.
Neither a Bro Nor a Pro I am I
Quoting samlarson
{quote} Somewhere in the middle of your story, I got pretty concerned about how you could get out of this situation because it's somehow related to mine It was basically my second month in trading and I've somehow managed to triple my first investment of 1500 dollars. I was pretty proud of myself and thought that I could do even better with more money. So I decided to pull all the money I have left ( about 5k ) and take a loans nova scotia...
You're lucky it all ended so well for you. I would never recommend taking out a bank loan; it is far too dangerous; if you lose the money, you will be saddled with a large debt that you would have to repay while gaining nothing in return. I would never trade with money I couldn't afford to lose since it might have a negative impact on your finances.
I dont say in general definetely "No", but it depends on the situation and your expertise.
If Jerome Powell is my uncle and he tells me, that today at the press conference he is going so say at a certain point
" ...we are not going to raise interest rates so fast as we planned..." i would take the hughest loan i get, deposit it in the account, open the order mask for selling USD, and wait for the code word.....

So it really depends on the situation, definetely "No" i would say to an average employe who wants to start learning trading and takes for this purpose a loan and pay back the credit rates with expected profit.....
Thats nonsense.
Quoting laven
{quote} I am 100% agreed you don't have to invest the money which you not have and would affect double to you. But in my opinion you can start with little amount.
Definitely agree with your words. Taking loans for such a dicey business like trading is 100% total loss. This is not because you are lack of skills or experience, the main here is that you will feel obliged and owed to someone who gave this sum to you. It will destruct and ruin your mental health while you will trading.
I am convinced that forex traders hould always trade on their money, because it will be much safer to lose your all the money rather than owing it to someone. At least, I have never faced traders who borrowed money or took out loans for trading and then they becom millionaires and give this money back. As a rule, the 90% of traders in this case unfortunately lose their money. Forex requires wise approach.
Horrible idea. While not quite the same it would be like taking a loan out to spend in Vegas.
Quoting j12
I get what people are saying that this is a business & people take out loans for business's etc Most the time in actual business you would have a tangible asset, here I don't see you have that. So personally it's not for me to take a loan out J12
Well said! I see, most of the successful traders rely on their trading skill; besides common traders try to make money by investing capital only; of course it’s a bad practice!
I suggest avoiding taking loans to trade because there is already a risk involved in trading, and taking a loan is like adding another risk to it, which can cause serious damage and leave you unable to recover from it.
keep platinum spoon feeding
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It would serve you better to open a prop trading account before a loan.
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  • Post #115
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  • Last Post: Aug 30, 2022 11:53am Aug 30, 2022 11:53am
I really hope that you do not borrow to trade leveraged positions. If you do borrow to trade then I would advise unleveraged positions and do not throw it all into the same asset class such as crypto.

Make sure you diversify your positions and do not average down on losing trades as this just increases your risk.

Good luck!
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