Margin loans

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.


Why use a margin loan?

A margin loan allows you to borrow against the value of securities you already own. It's an interest-bearing loan that can be used to gain access to funds for a variety of reasons that cover both investment and non-investment needs. For either use, carefully consider your personal situation to help determine if borrowing money makes sense for you. In many cases, you might be better advised to simply pay with available funds, or if that is not possible, to not buy it—whatever it is—at all.

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Increased trading buying power

Buying securities on margin allows you to acquire more shares than you could on a cash-only basis.

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Convenient line of credit

Margin borrowing can be used to satisfy short-term liquidity needs similar to how you may use a home equity line of credit.

What are the potential advantages?

Flexibility
  • You can have purchasing power to buy more securities, make a large purchase, or use as a bridge loan for short-term liquidity needs.
  • You can access cash without having to sell your investments.
  • Pay back your loan by depositing cash or selling securities at any time.1
Low rates
  • Our margin rates are among the most competitive in the industry—as low as 5.00%.2

View our margin rates

Clear & simple
  • Once approved, you can begin using the funds right away.
  • There are no closing costs, annual fees, setup fees, or non-use fees that you may find on other types of traditional loans.

Consider the risks

Before using a margin loan, carefully review your investment objectives, financial resources, and risk tolerance to determine if it's an appropriate borrowing mechanism for you.

Please be aware of these risks:

  • Amplified losses if the securities in your account decline in value
  • Margin calls or liquidation of securities
  • Losses greater than the original investment are possible
  • Interest rates may rise, increasing the cost of your loan

View important information about using margin (PDF)

Insights and education

This is only a brief introduction, and it should not be considered sufficient basis for a decision regarding the use of margin borrowing. To help make a fully informed decision regarding the use of margin, read the more detailed guides available from regulators, including the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).

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