Margin Trading

Margin Trading

Margin Trading Overview

Benefits of a Margin Trading Account

Leverage Assets

Use the cash or securities in your brokerage account as leverage to increase your buying power.

Access Funds

Get the lowest market margin loan interest rates of any broker.1

Enable Account for Short Selling

Diversify trading strategies with short selling, options and futures contracts, or currency trading.

Get a Line of Credit

Borrow against a margin account at any time and repay the loan on your own schedule.

Understand the Risks of Margin Trading

Margin borrowing is only for experienced 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
Example profit / loss on stock trade using margin
Example profit / loss on stock trade using margin: Bought 100
 shares @ $40 (50 shares with cash and 50 shares on margin)

Rated Lowest Margin Fees1 by StockBrokers.com

US Margin Loan Rates Comparison2

USD 25K USD 300K USD 1.5M USD 3.5M
Interactive Brokers 6.08% 5.75% 5.53% 5.42%
E-Trade 12.95% 11.45% N/A N/A
Fidelity 12.33% 11.08% 8.50% 8.50%
Schwab 12.33% 11.08% N/A N/A
Vanguard 12.50% 11.00% N/A N/A

Each firm's information reflects the standard online margin loan rates obtained from their respective websites. Competitor rates and offers subject to change without notice. Services vary by firm.

View Margin Rate Details

Margin Education Course on Traders' Academy

Introduction to Margin Trading

This course is designed to help investors understand margin basics, including different types of margin accounts, margining methods, and margin requirements, plus how to monitor margin on both Trader Workstation (TWS) and IBKR Mobile.

Trading on margin is only for sophisticated traders. You may lose more than your initial investment.

  • Introduction to Margin
  • Monitoring Margin in Trader Workstation (TWS)
  • Looking at Margin on IBKR Mobile
Take Introduction to Margin Trading
Introduction to Margin
Futures trading at IBKR

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Disclosures

  1. According to StockBrokers.com Interactive Brokers Review: Read the full article Online Broker Reviews, May 6, 2024. "Professionals can take advantage of industry-leading commissions, including the lowest margin rates across all balance tiers."
  2. Annual Percentage Rate (APR) on USD margin loan balances as of November 11, 2024. Interactive Brokers calculates the interest charged on margin loans using the applicable rates for each interest rate tier listed on its website. Learn more about margin loan rates.