Trading with Financing Overview
Benefits of a Margin Trading Account
Use the cash or securities in your account as leverage to increase your buying power.
Get the lowest market investment loan interest rates of any broker.
Diversify trading strategies with short selling, options and futures contracts, or currency trading.
Understand the Risks of Trading with Financing
Financing transactions with investment loans is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.
Before trading on margin, understand the following risks
- Trading losses may be greater than the value of the initial investment
- Leveraged investments create a greater potential risk of loss
- Additional costs from margin interest charges
- Potential margin calls or liquidation of securities
Rated Lowest Margin Fees1 by StockBrokers.com
US Investment Loan Rates Comparison2
| USD 25K | USD 300K | USD 1.5M | USD 3.5M | |
|---|---|---|---|---|
| Interactive Brokers | 6.83% | 6.50% | 6.28% | 6.17% |
| E-Trade | 13.70% | 12.20% | N/A | N/A |
| Fidelity | 13.08% | 11.83% | 9.25% | 9.25% |
| Schwab | 13.08% | 11.83% | N/A | N/A |
| Vanguard | 13.25% | 11.75% | N/A | N/A |
Each firm's information reflects the standard online investment loan rates obtained from their respective websites. Competitor rates and offers subject to change without notice. Services vary by firm.
Margin Education Course on Traders’ Academy
Introduction to Margin Trading
- Getting Started
- Securities Margin Trading in the US
- Commodities Margin Trading in the US
- Margin in Practice Part 1: Trader Workstation (TWS)
- Non-US Margin Trading
Start trading like a professional today!
Open an AccountDisclosures
- According to StockBrokers.com Online Broker Survey 2022: Read the full article Online Broker Reviews, January 11, 2022. "Professionals can take advantage of industry-leading commissions, including the lowest margin rates across all balance tiers."
- Annual Percentage Rate (APR) on USD investment loan balances as of September 12, 2023. Interactive Brokers calculates the interest charged on investment loans using the applicable rates for each interest rate tier listed on its website. Learn more about investment loan rates.