Why choose Fidelity for margin?
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.
The Margin Calculator helps you view current margin requirements for each of your positions, model hypothetical trades to view their potential impact, and see how price changes can affect your margin requirements and margin balances.
Margin alerts—including margin call notifications— can be sent via email, Active Trader Pro message center, or mobile device.
Real-time margin balances provide you with the up-to-date information you need to make trading decisions.
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.
There is 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.
The advantages of margin
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.
Interest on margin loans may be tax deductible. Consult your tax advisor for details regarding your particular situation.
Determine whether margin is 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.
Trading FAQs: Margin Borrowing
Get more information on margin borrowing, including margin requirements, margin calls, and day trading restrictions.