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Regulators say holding back a small amount of customer cash would decrease the amount of capital that firms would have to hold in reserve and compare the idea to a minimum account balance required by banks.
WSJ: U.S. Sets Money-Market Plan
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If Mr. Market trashes your investments in a sudden panic, your margin debts may be "called, " forcing you to sell some of your assets to sustain the minimum account values you committed to under the terms of the loan.
WSJ: The Intelligent Investor: Borrowing Against Yourself
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Clients often equate a higher level of service with a higher account minimum, people in the industry say.
WSJ: Do You Make the Asset Cut?