An investment club account operates like a standard joint account, but for more than three individuals. People open club accounts for a variety of reasons, such as learning how to trade with the benefit of other traders, or taking advantage of the added buying power that comes with multiple investors.
Is there a limit to how many people can be in our club?
You can have up to 50 people in your investment club. Each member is required to provide individual documentation to participate.
Short answer: everything. In a margin account, your club can trade stocks (including OTC penny stocks), options (standard and mini lots), ETFs, mutual funds, bonds and precious metals.
Foreign exchange and CFD trading is available in your club’s FX & CFD account.
Is an agreement required for an investment club?
Yes. Every member of your club must sign an agreement with Questrade as well as an investment club trading authorization form. There are some additional documents that may be required depending on the number of members in your club.
When you’re investing as a group, there is a real benefit to automating new cash contributions. We have a number of ways to help you build your club account, including PACCs (pre-authorized cash contribution), automatic deposits, and free dividend re-investment plans (DRIPs – only available in margin/equities accounts).