[Kon-Peki]

Yes. In a margin loan, the "things of value" never leave the institution handing out the loan. The borrower buys stock, for example. And the institution giving out the loan has the right to sell whatever you bought to prevent losses on the loan, without your permission if certain conditions are triggered.

In a loan backed by collateral, all the money can leave into some external account controlled by the borrower. To get some or all of it back requires an expensive and lengthy process that doesn't guarantee success.

[ywvcbk]

IBKR claims that you can establish a margin loan by:

“Withdrawing funds in excess of settled cash in the denomination of the currency being withdrawn;”

So as long as you have enough collateral it’s effectively the same?

[mixmastamyk]

Sounds like the GP is saying that there are additional protections with the equity loan. Such as portfolio liquidation prevention if you move assets to another bank.