Margin Rate Comparison
Compare Broker Interest Rates: The Difference is Significant
Many investors are impacted by high margin rates, regardless of the size of their debit balance. Using the hypothetical comparisons[1] below, for every additional interest percentage point charged you would pay an additional $5,000 annually.
| If you are currently paying 7% on a $100,000 Debit Balance, switching to Investrade could save you $5,000 annually. | If you are currently paying 7% on a $500,000 Debit Balance, switching to Investrade could save you $30,000 annually. |
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At Investrade, you don't have to bother with an arbitrary base rate when calculating your margin interest. Investrade uses the published Broker's Call Rate as the base rate when calculating margin interest rates. Broker's Call Rate is published daily in The Wall Street Journal and Investors Business Daily. The current Broker's Call Rate is 2.00% and was last changed on 12/19/2008.
| Margin Balance | Investrade | Fidelity | E*TRADE | TDAmeritrade | Schwab | Scottrade |
|---|---|---|---|---|---|---|
| $0 - $9,999 | 3.50% | 8.575% | 8.44% | 9.00% | 8.50% | 7.75% |
| $10k - $24,999 | 3.50% | 8.075% | 8.44% | 8.75% | 8.50% | 7.50% |
| $25k - $49,999 | 3.50% | 7.575% | 7.94% | 8.50% | 8.00% | 7.25% |
| $50k - $99,999 | 2.75% | 7.075% | 7.44% | 7.50% | 7.00% | 6.75% |
| $100k - $249,000 | 2.00% | 6.575% | 6.14% | 7.25% | 6.875% | 6.50% |
| $250k - $499,999 | 1.50% | 6.575% | 5.14% | 7.00% | 6.75% | 6.25% |
| $500k - $999,999 | 1.00% | 3.75% | 4.14% | 7.00% | 6.75% | 5.75% |
| $999,999 - $2,499,999 | 1.00% | 3.75% | 3.89% | 6.25% | 6.25% | 5.25% |
| Over $2,499,999 | 1.00% | 3.75% | 3.89% | 6.25% | 6.00% | 5.25% |
The competitor interest rates from published web sites are believed to be accurate but they are not guaranteed. Certain firms may offer more competitive rates if additional criteria such as account value, trading volume or certain other conditions are met. Data contained in this section was verified as of 1/4/2012. Please contact each broker individually to confirm their margin fees.
Margin involves risk that you should fully understand. For more information about Investrade's margin rates, guidelines and risks click here.
[1] Comparsions are based on hypothetical examples of current margin rates of competitor firms.
