What is Margin Lending?
Open a Margin Account
Open a margin account, complete the margin agreement and follow the steps to transfer your portfolio. Call 1-800-498-7120 to determine the dollar value you can borrow against your investments as collateral. Once a margin agreement is on file, you essentially are pre-approved to use your credit-line whenever you choose. By setting up a margin account, you have no obligation to borrow. Margin borrowing can be accessed at your convenience.
If you already have an Investrade account and are considering using margin, you must have sufficient buying power and eligible securities in your account as well as a completed Margin Account Agreement on file.
Margin lending allows you the flexibility to use your existing investment portfolio as collateral to purchase additional investments, or as a lending alternative to borrowing outside of traditional sources. You may use the funds at your discretion, even for personal needs.
If you are leveraging your existing portfolio to purchase additional investments, the benefits of low margin rates can significantly outweigh your commission charges. How much margin interest do you pay annually to your broker?
For personal needs, at what interest rate are you currently paying for your car loan, credit cards, education financing or personal line of credit? Investrade clients benefit from some of the lowest interest rates in the industry and typically are charged a lower interest rate compared to other types of loans.
Smart Investors Know to Think Beyond Commissions
For many investors, their account is impacted by the cost of high margin rates, not the cost of commission. If you carry a margin balance, consider the impact of “borrowing smarter” with Investrade. Investrade has a tiered, low margin rate structure for all of our clients, and we do not use 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. The Broker’s Call Rate is published daily in The Wall Street Journal and Investors Business Daily.
The current Broker's Call Rate is 2.25% and was last changed 12/17/2015.
|Daily Average $ Debit Balance||Interest Rate||Margin Rate|
|Less than $49,999||5.25%||3.00% Above Broker's Call Rate|
|$50,000-$99,999||4.25%||2.00% Above Broker's Call Rate|
|$100,000-$249,999||2.25%||at Broker's Call Rate|
|$250,000+||2.00%||0.25% Below Broker's Call Rate|
Click here for the risks involved with trading securities in a margin account.
The calculator presented by Investrade is merely a tool for you to estimate hypothetical calculations and is for illustrative purposes only. Results obtained are based on information that you yourself provide and the figures shown may not be applicable to your individual situation. Accuracy is not guaranteed.