free credit balance

Free Credit Balance

The cash in a brokerage account to which the account holder may receive at any time or use to buy more securities. The free credit balance usually comes from dividends or coupon payments. The account holder may elect to receive the free credit balance each month or may direct the brokerage to make certain investments with it.

free credit balance

Cash held in a brokerage account that may be withdrawn or used to acquire additional securities. Free credit balances generally originate from dividends, interest payments, and security sales. Many firms automatically send balances to customers on the first day of each month. Investors may also request placement of the funds in a money market mutual fund. See also debit balance.