Lowest Margin Rates

Best Brokerage Margin Accounts With Lowest Margin Rates In 2016


Broker Margin Rates


Interest rates in the United States have been at the historic lows for a number of years now. While some online brokers provide their customers an opportunity to take advantage of this unique environment by offering low margin interest rates, others are still charging an arm and a leg for lending money to investors and traders. Below we are listing current 2016 margin interest rates of the major U.S. online brokerage companies for readers to compare.


Broker With Lowest Margin Rates


As anyone can see, Interactive Brokers offers the cheapest margin account along with the lowest published margin rate of only 1.86% on balances under $100,000. This is not surprising, because this deep discount broker targets as clients very active traders and hedge funds.

There are a few points that prospective customers thinking about opening an account at IB should keep in mind. First, Interactive Brokers wants as customers only experienced investors and doesn't like dealing with beginners: minimum two years of experience in trading and account management are actually some of the requirements for opening an account at the firm. Second, there is a steep $10,000 minimum to open most accounts at the company, and $10 per month minimum commission requirement to avoid $10 monthly fee (rises to $20 monthly if account balance is less than $2,000) and $10 market data fee. And last, margin calls at the company are almost instant and merciless. Unlike many other brokers, in case of margin call there is usually no time to add funds to account to avoid position liquidation. You can read more about the broker in Interactive Brokers review here.

Optionshouse offers the second best combination of low margin rates account along with the cheap flat-rate commissions. This online broker targets as customers options traders and very active investors. Unlike Interactive Brokers, it welcomes beginners and long-term investors. There are no account inactivity fees at the company, and minimum to open is $0 for cash account and $2,000 for margin account. We discuss Optionshouse's pros and cons in more detail in Optionshouse review under this link.

The third place in our brokerage margin rates comparison goes to Motif Investing, that offers rates very similar to Optionshouse's. However, the company created a very unique and controversial website design. The firm's approach to investing will not suite many traditional investors and active traders.


Brokerage Reviews


Low margin interest rates, while important for trading, should not be the only deciding factor when choosing a brokerage firm. Make sure to read brokerage reviews containing lots of useful information before opening any brokerage account.


Brokerage Margin Interest Rates Table


Below we are listing margin interest rates for the following brokers: Interactive Brokers, Merrill Edge, TD Ameritrade, Charles Schwab, Etrade, USAA, Fidelity Investments, Scottrade, Vanguard, Motif investing, Tradeking, Optionshouse, Wellstrade/Wells Fargo, Optionsxpress, Firstrade, Capital One Investing, Sogotrade, and TradeStation.


Brokerage
Firm
Trading
Commissions
Margin Interest
Rates
Broker
Review


IB brokerage rating

Interactive Brokers review 2016

Stocks, ETFs: $0.005 per share
with $1 minimum

Mutual Funds: $14.95

Options: $0.70 per contract
plus exchange fees
Debit Balance Margin Rate
$0 - $100,000 1.86%
$100,001 - $1,000,000 1.36%
$1,000,001 - $3,000,000 0.86%
$3,000,001+ 0.50%
Interactive Brokers
Review


Optionshouse rating

Optionshouse Review

Stocks, ETFs: $4.95

Mutual Funds: $20

Options: $4.95 plus $0.50 per contract
Debit Balance Margin Rate
$0 - $49,999 7.75%
$25,001 – $50,000 7.25%
$50,001 – $100,000 6.50%
$100,001 – $249,999 6.00%
$250,000 – $499,999 5.25%
$500,000 - $999,999 3.50%
above $1,000,000 3.25%
Optionshouse
Review


Motif brokerage rating

Motif investing review

Stocks, ETFs: $4.95

Mutual Funds: N/A

Options: NA
Debit Balance Margin Rate
$0 - $49,999 6.75%
$50,000 - $249,999 5.75%
$250,000 - $499,999 4.75%
above $500,000 4.25%
Motif Investing
Review


Scottrade rating

Scottrade Review

Stocks, ETFs: $7

Mutual Funds: $17

Options: $7 plus
$0.70 per contract
Debit Balance Margin Rate
$0.01 - $9,999.99 8.00%
$10,000.00 - $24,999.99 7.75%
$25,000.00 - $49,999.99 7.50%
$50,000.00 - $99,999.99 7.00%
$100,000.00 - $249,999.99 6.50%
$250,000.00 - $499,999.99 6.25%
$500,000.00 - $999,999.99 5.75%
above $1,000,000.00 5.25%
Scottrade
Review

4.5-star brokerage firm rating

TradeKing Review

Stocks, ETFs: $4.95

Mutual Funds: $9.95

Options: $4.95 plus
$0.65 per contract

Debit Balance Margin Rate
$0.01 - $4,999 9.00%
$5,000 - $9,999 8.00%
$10,000 - $24,999 8.00%
$25,000 - $49,999 8.00%
$50,000 - $99,999 7.00%
$100,000 - $249,999 7.25%
$250,000 - $499,999 4.75%
above $500,000 4.25%
TradeKing
Review


4-star brokerage firm rating

OptionsXpress review

Stocks, ETFs: $8.95

Mutual Funds: $9.95

Options: $14.95
(1 - 10 contracts)
Debit Balance Margin Rate
$0 - $49,999 8.25%
$50,000 - $99,999 7.25%
$100,000 - $249,999 7.00%
$250,000 - $499,999 6.75%
$500,000- $999,9999 6.50%
above $1,000,000 6.00%
OptionsXpress
Review


Ameritrade brokerage rating

TDAmeritrade review

Stocks, ETFs: $9.99

Mutual Funds: $49.99

Options: $9.99 plus
$0.75 per contract
Debit Balance Margin Rate
above $999,999 6.50%
$250,000 - $999,999 7.25%
$100,000 - $249,999 7.50%
$50,000 - $99,999 7.75%
$25,000 - $49,999 8.75%
$10,000 - $24,999 9.00%
under $10,000 9.25%
TD Ameritrade
Review


Sharebuilder rating

Capital One Investing Review

Stocks, ETFs: $6.95

Mutual Funds: $19.95

Options: $6.95 plus
$0.75 per contract
Debit Balance Margin Rate
Under $10,000 7.70%
$10,001 - $25,000 7.50%
$25,001 - $50,000 7.25%
$50,001 - $100,000 6.70%
$100,001 - $250,000 6.50%
$250,001 - $500,000 5.25%
$500,001 - $1,000,000 4.90%
above $1,000,001 4.70%
Capital One Investing
Review


Etrade brokerage rating

Etrade Review

Stocks, ETFs: $9.99

Mutual Funds: $19.99

Options: $9.99 plus
$0.75 per contract
Debit Balance Margin Rate
above $1,000,000 4.14%
$500,000 - $999,999.99 4.39%
$250,000 - $499,999.99 5.39%
$100,000 - $249,999.99 6.39%
$50,000 - $99,999.99 7.69%
$25,000 - $49,999.99 8.19%
under $24,999.99 8.69%
ETrade
Review


4-star brokerage firm rating

Fidelity Review

Stocks, ETFs: $7.95

Mutual Funds: $49.95 ($75 for some funds)

Options: $7.95 plus
$0.75 per contract
Debit Balance Margin Rate
above $500,000 3.750%
$100,000 – $499,999 6.575%
$50,000 – $99,999 7.075%
$25,000 – $49,999 7.575%
$10,000 – $24,999 8.075%
$0 – $9,999 8.575%
Fidelity
Review


4-star brokerage firm rating

Charles Schwab Review

Stocks, ETFs: $8.95

Mutual Funds: $76 to buy
$0 to sell

Options: $8.95 plus
$0.75 per contract
Debit Balance Margin Rate
$0 - $24,999.99 8.50%
$25,000 - $49,999.99 8.00%
$50,000 - $99,999.99 7.00%
$100,000 - $249,999.99 6.875%
$250,000 - $999,999.99 6.75%
$1,000,000 - $2,499,999.99 6.25%
above $2,500,000 6.00%
Charles Schwab
Review


3-star brokerage firm rating

Vanguard review

Stocks, ETFs: $7 - $20

Mutual Funds: $8 - $35

Options: $30 plus
$1.50 per contract
Debit Balance Margin Rate
under $19,999 7.75%
$20,000 – $49,999 7.25%
$50,000 – $99,999 7.00%
$100,000–$499,999 6.00%
$500,000–$999,999 5.75%
above $1,000,000 5.25%
Vanguard
Review


Tradestation rating

TradeStation review 2016

Stocks, ETFs: $4.99 - $9.99

Mutual Funds: $14.95

Options: $1 per contract
Debit Balance Margin Rate
under $25,000 8.50%
$25,000 - $49,999.99 8.25%
$50,000 - $249,999.99 7.75%
$250,000 - $999,999 7.25%
$1,000,000 - $9,999,999 6.75%
above $10,000,000 6.25%
TradeStation
Review


Merrill Edge brokerage rating

Merrill Edge review

Stocks, ETFs: $6.95

Mutual Funds: $19.95

Options: $6.95 plus
$0.75 per contract
Debit Balance Margin Rate
above $10,000,000 4.750%
$5,000,000 - $9,999,999 5.000%
$1,000,000 - $4,999,999 5.500%
$500,000 - $999,999 6.125%
$100,000 - $499,999 6.375%
$25,000 - $99,999 7.750%
under $25,000 8.875%
Merrill Edge
Review


3-star brokerage firm rating

WellsTrade review

Stocks, ETFs: $8.95

Mutual Funds: $35

Options: $9.95 plus
$1 per contract
Debit Balance Margin Rate
under $24,999.99 9.25%
$25,000 - $49,999.99 8.75%
$50,000 – $99,999.99 8.25%
$100,000 - $249,999.99 7.75%
$250,000 - $499,999.99 7.25%
$500,000 - $999,999.99 6.75%
$1,000,000 - $4,999,999.99 6.25%
$5,000,000 - $9,999,999.99 5.75%
above $10,000,000 5.25%
Wellstrade
Review


USAA brokerage rating

USAA Brokerage Review

Stocks, ETFs: $5.95 - $8.95

Mutual Funds: $45 minimum

Options: $5.95 or $8.95 plus
$0.75 per contract
Debit Balance Margin Rate
$0 – $19,999 8.24%
$20,000 – $49,999 8.00%
$50,000 – $249,999 7.24%
$250,000 – $999,999 6.75%
above $1,000,000 5.50%
USAA
Review


Firstrade brokerage rating

Firstrade Review

Stocks, ETFs: $6.95

Mutual Funds: $9.95

Options: $6.95 plus
$0.75 per contract
Debit Balance Margin Rate
above $1,000,000 4.50%
$500,000 - $999,999 5.00%
$150,000 - $249,999 6.00%
$100,000 - $249,999 6.50%
$50,000 - $99,999 7.00%
$25,000 - $49,999 7.75%
$0 - $24,999 7.75%
Firstrade
Review


3-star brokerage firm rating

SogoTrade review

Stocks, ETFs: $5

Mutual Funds: N/A

Options: $5 plus
$0.50 per contract
Debit Balance Margin Rate
$0.01 - $9,999.99 9.00%
$10,000.00 - $49,999.99 8.00%
$50,000.00 - $99,999.99 7.00%
$110,000.00 - $299,999.99 5.75%
$250,000.00 - $499,999.99 5.25%
$500,000.00 - $999,999.99 4.75%
above $1,000,000.00 4.25%
Sogotrade
Review

Updated on 5/26/2016.




Please share us with your friends






Copyright ©2009-2016 Brokerage-Review.com. All rights are reserved.
Brokerage-Review.com has relationships with other companies. See Terms of Use.