The subject line of the email you send will be "Fidelity.com: ". Copyright 1998-2020 FMR LLC. Please assess your financial circumstances and risk tolerance before short selling or trading on margin. By using this service, you agree to input your real email address and only send it to people you know. Although not listed in the table, Interactive Brokers offers margin rates below 2.5% for deposit amounts of $2,000,000 or greater. The margin rates listed here are what's publicly listed on each respective broker's website. Some use margin accounts to borrow money for investments outside their stock portfolio (e.g., a down payment on a house) without having to sell stocks. Our website uses cookies to improve the performance of our site, to analyze the traffic to our site, and to personalize your experience of the site. I'm assuming this is outside the scope of most investors. You should consult your tax advisor for details regarding your particular situation. Smaller deal sizes generally benefit from better market liquidity, so these positions attract our lowest margin rates. For more information, please read our, How to Protect Your Investments If Your Broker Goes Out of Business. Check out the rates. In addition, Interactive Brokers … He currently resides in Long Island, New York, with his wife and three children. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917, (Separate multiple email addresses with commas). Whether you need extra money for a short-term financing need or buying more securities, a margin loan may help you get the money you need. So it's critical you don't leverage too much, if you use margin. The interest rate is variable based on a tiered schedule which is determined by the size of the margin loan. As with any loan, you'll need to pay interest on the amount of the margin loan. Trading Basics Powered by Warrior Trading. These are the lowest interest rates among the brokers surveyed. If planned carefully, it can be a wise decision, since you don't have to sell your stock and pay tax on the capital gains. Important legal information about the email you will be sending. Our tiers start at one, with the lowest margin rates, and go up to four, with the highest margin rates. Learn More About Margin Margin Rates Company Margin Rate* 7.50% Etrade 9.25% Tradeking (Ally) 8.50% TD Ameritrade 9.75% * Rates for the firms listed above are based on their individual posted rates as of 03/09/20. Investor Junkie has advertising relationships with some of the offers listed on this website. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt, and is not suitable for all investors. Like credit card terms, it is possible to negotiate a better rate. Fidelity does not guarantee accuracy of results or suitability of information provided. InvestorJunkie.com© Copyright 2020, All Rights Reserved | The higher your balance, the lower the rate you're charged. Margin trading is extended by National Financial Services, Member NYSE, SIPC, a Fidelity Investments company. You can control cookies through your browser settings. In the table below, you'll see that most of the brokers make off very well with the interest they charge. All products are presented without warranty.