Can opening a trading account affect my credit score?

Asked 5 years ago

Morning. I want to open a broker account, but before I do, I would like to find out if it affects or shows up on my credit report? Also, for interest's sake, is it required to have good credit to open an account? Thanks.

Credit score Open a brokerage account

Andrew Moran

Monday, September 20, 2021

It depends on what broker you are using and what type of account you are applying for, such as a standard forex broker account or a stock-trading margin account.
The company will either perform a soft or hard inquiry. A hard check will definitely affect your credit rating and cut it by a couple of points. A soft inquiry will have little impact on your credit report.
For the most part, your credit report will not lead to your account application being rejected. This may only apply to a margin account. That said, it is not out of the realm of possibility, especially if you have a poor credit report or you lack the funds to trade.