• Print
  • Default text size A
  • Larger text size A
  • Largest text size A

Margin Trading

Trading on margin allows you to leverage securities you already own to purchase additional securities, sell securities short, protect your account from overdraft, or access a convenient line of credit.

Why choose Fidelity for margin?

  • Rates as low as 3.75%*
  • Powerful margin trading tools
  • Convenience: borrow for any reason, any time
  • Repayment flexibility

Get started

A margin agreement is required to trade on margin.

Low rates

Our margin rates are among the most competitive in the industry—as low as 3.75%.* The rate you pay depends on your outstanding margin balance—the higher your balance, the lower the margin rate you are charged.

View our margin rates

Powerful tools

Margin Calculator – View any position’s current margin requirements, calculate the impact of hypothetical trades, and see how price changes can affect your margin requirements and balances.

Learn more about the margin calculator

Margin alerts – Send margin call notifications and other alerts via email, Active Trader Pro message center, or mobile device.

Real-time margin balances – Get the up-to-date information you need to make trading decisions.

Convenience

Borrow for any purpose, at any time. Once you have been approved for margin borrowing, there are no additional forms to complete, application fees to pay, or loan officers to consult.

Repayment flexibility

No set repayment schedule as long as you maintain the required level of equity in your account. Interest charges on outstanding balances are posted to your account monthly. Any cash dividends (not enrolled in dividend reinvestment) and interest received will be automatically applied to your margin balance.

Opportunity to leverage assets

Margin borrowing lets you leverage securities you already own to purchase additional securities. This gives you the opportunity to amplify returns, but it can also increase risk.

Advanced options strategies

Having both a margin and an options agreement allows you to place advanced options orders such as spreads, butterflies, and uncovered options on equities, ETFs, and indexes.

Tax-deductible interest

Interest on margin loans may be tax deductible. Consult your tax advisor for details regarding your particular situation.

Is margin right for you?

Margin investing carries greater risks and may not be appropriate for every investor. Before you use margin, carefully review your investment objectives, financial resources, and risk tolerance to determine whether margin borrowing is appropriate for you.

Two of the risks associated with margin borrowing are:

  • Leverage risk
  • Maintenance call risk
Know the requirements

If the market value of the securities in your margin account declines, you may be required to deposit more money or securities in order to maintain your line of credit. If you are unable to do so, Fidelity may be required to sell all or a portion of your pledged assets.

Questions?

Other ways to use margin

  • Options

    Options are a useful way to generate income, reduce risk, and diversify your portfolio.

  • Short selling

    Enter short sale and buy-to-cover orders for any U.S. stock.

margin-offering-thumb
Fidelity's margin offering (4:26)

Watch this video to learn how our three margin products can help you achieve your goals.

*3.75% rate available for debt balances over $500,000. Fidelity’s current Base Margin Rate, effective since 01/12/09, is 6.575%.

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options, and call 800-343-3548 to be approved for options trading. Supporting documentation for any claims, if applicable, will be furnished upon request.

In order to short sell at Fidelity, you must have a margin account. Short selling and margin trading entail greater risk, including, but not limited to, risk of unlimited losses and incurrence of margin interest debt, and are not suitable for all investors. Please assess your financial circumstances and risk tolerance before short selling or trading on margin. Margin trading is extended by National Financial Services, Member NYSE, SIPC, a Fidelity Investments company.

456747.6.0
close

Margin Rates

The margin rate you pay depends on your outstanding margin balance—the higher your balance, the lower the margin rate you are charged.

Debit balance Margin rate Effective rate
$500,000+ Base – 2.825% 3.750%
$100,000–$499,999 Base 6.575%
$50,000–$99,999 Base + 0.50% 7.075%
$25,000–$49,999 Base + 1.00% 7.575%
$10,000–$24,999 Base + 1.50% 8.075%
$0–$9,999 Base + 2.00% 8.575%