Best Brokerage Margin Accounts With Lowest Margin Rates.



Interest rates in the United States have been at the historic lows for a few years. But while some online brokers offer their customers an opportunity to take advantage of this environment with low margin interest rates, others are still charging an arm and a leg. Below we are listing current 2016 margin rates of the major U.S. online brokerage companies for you to compare.

As you 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. It's not surprising since this deep discount broker targets as customers very active traders and hedge funds. Interactive Brokers wants as customers only experienced investors and doesn't like dealing with beginners (experience in trading is actually one of the requirements for opening an account). There is a steep $10,000 minimum to open most accounts at the firm, 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. Margin calls at the company are almost instant and merciless.

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, although unlike IB, it welcomes beginners and long-term investors. There are no account inactivity fees at the company.

Motif Investing comes in third, with rates very similar to Optionshouse's. But the company has a very unique website design and approach to investing that will not suite many traditional investors as well as active traders.

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.

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


3-star brokerage firm 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 Review

Stocks, ETFs: $4.95

Mutual Funds: $20

Options: $4.95 plus $0.50 per contract
Debit Balance Margin Rate
$0 - $49,999 6.75%
$25,001 – $50,000 6.25%
$50,001 – $100,000 5.50%
$100,001 – $249,999 5.00%
$250,000 – $499,999 4.25%
$500,000 - $999,999 3.50%
above $1,000,000 2.25%
Optionshouse
Review




Scottrade Review

Stocks, ETFs: $7

Mutual Funds: $17

Options: $7 plus
$1.25 per contract
Debit Balance Margin Rate
$0.01 - $9,999.99 7.75%
$10,000.00 - $24,999.99 7.50%
$25,000.00 - $49,999.99 7.25%
$50,000.00 - $99,999.99 6.75%
$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 8.75%
$5,000 - $9,999 7.75%
$10,000 - $24,999 7.75%
$25,000 - $49,999 7.75%
$50,000 - $99,999 6.75%
$100,000 - $249,999 5.50%
$250,000 - $499,999 4.50%
above $500,000 4.00%
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




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


4.5-star brokerage firm rating

MBTrading review 2016

Stocks, ETFs: $4.95

Mutual Funds: $9.95

Options: $4.95 plus
$0.65 per contract
Debit Balance Margin Rate
$0.01 - $4,999 8.75%
$5,000 - $9,999 7.75%
$10,000 - $24,999 7.75%
$25,000 - $49,999 7.75%
$50,000 - $99,999 6.75%
$100,000 - $249,999 5.50%
$250,000 - $499,999 4.50%
above $500,000 4.00%
MB Trading
Review




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 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 5.79%
$250,000 - $999,999.99 6.79%
$50,000 - $249,999.99 7.79%
under $49,999.99 8.79%
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 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 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 9.125%
$25,000 - $49,999.99 8.00%
$50,000 – $99,999.99 7.875%
$100,000 - $249,999.99 6.25%
$250,000 - $499,999.99 6.125%
$500,000 - $999,999.99 6.00%
$1,000,000 - $4,999,999.99 5.50%
$5,000,000 - $9,999,999.99 5.00%
above $10,000,000 4.75%
Wellstrade
Review




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 7.99%
$20,000 – $49,999 7.75%
$50,000 – $249,999 6.99%
$250,000 – $999,999 6.50%
above $1,000,000 5.25%
USAA
Review




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




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 6.75%
$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 8.75%
$10,000.00 - $49,999.99 7.75%
$50,000.00 - $99,999.99 6.75%
$110,000.00 - $299,999.99 5.50%
$250,000.00 - $499,999.99 5.00%
$500,000.00 - $999,999.99 4.50%
above $1,000,000.00 4.00%
Sogotrade
Review
Updated on 1/13/2016.




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