Margin Borrowing
When you qualify, we offer margin borrowing, enabling you to purchase additional eligible securities (including fractional shares of securities) without depositing additional funds, based on the eligible securities you already have in your eligible account. By borrowing against your securities rather than selling them, you can keep your investment strategy intact and delay capital gains (or losses) resulting from the sale of investments (consult your tax advisor for more details).
As of November 27, 2023 the Effective Federal Funds Rate (EFFR) is 5.33% and is subject to change without notice.
|
Margin Tier
|
Effective November 27, 2023
|
|
Min
|
Max
|
EFFR
|
+
|
Spread
|
=
|
Margin Rate*
|
|
$0
|
$25,000
|
5.33%
|
+
|
4.00%
|
=
|
9.33%
|
|
$25,000
|
$50,000
|
5.33%
|
+
|
3.75%
|
=
|
9.08%
|
|
$50,000
|
$250,000
|
5.33%
|
+
|
3.25%
|
=
|
8.58%
|
|
$250,000
|
$500,000
|
5.33%
|
+
|
3.10%
|
=
|
8.43%
|
|
$500,000
|
$1,000,000
|
5.33%
|
+
|
2.85%
|
=
|
8.18%
|
|
$1,000,000
|
|
5.33%
|
+
|
2.35%
|
=
|
7.68%
|
Key Features
- Individual, Joint, Trust, and Business accounts are eligible for margin borrowing
- Note that only one individual account and one joint account may be margin enabled. Refer to the FAQs for details.
- Publicly traded stocks and ETFs held by us in client brokerage accounts are generally considered eligible securities for margin borrowing
- For an account to be eligible for margin borrowing, it must have a value of at least $2,000, either in cash and/or in eligible securities
- We may lend you up to 50% of the purchase price of eligible securities
- There is no set repayment schedule, as long as you maintain the required equity in your account
Learn more about margin borrowing.
Risks of Margin Borrowing
- The main risk of margin borrowing is related to decreases in the market value of the securities in your account. If the value of your securities falls significantly, then you will need to add funds or sell securities in your account. Even if you do so, we may still sell assets in your account without notifying you first.
- We encourage you to read our FAQs and the full FINRA margin disclosure statement, for more information.
Margin Interest Rates
- The annual rate of interest applicable to your account will be computed based on the Effective Federal Funds Rate, which is available on the New York Federal Reserve website . Your margin rate will change without prior notice to you, in accordance with changes in the Effective Federal Funds Rate. Please note that the margin rate you will be charged will be based on the Effective Federal Funds Rate in effect at that time and not based on the margin rate published to our website, which may not be updated immediately to reflect the current Effective Federal Funds Rate. We will update the rates published to our website soon after a change in the Effective Federal Funds Rate. You will be notified of any change to increase the spread prior to its effective date.
- * The margin rates in the table above are our standard rates (“Standard Rates”). Advisors may negotiate rates for their clients that are different than our Standard Rates. Please contact your advisor to understand the margin rates that will be charged to you. Any negotiated rate may be terminated without prior notice to you and you will be charged an interest rate consistent with the then current Standard Rates.