Margin Rates Comparison
If you are looking for the best margin rates among U.S. brokerage firms, you are in the right place. Our
list shows which brokers offer the lowest margin rates and which ones charge the most.
Best Margin Rates Brokers
Among the brokers we have reviewed, the brokerage house with the lowest margin rate is Robinhood,
which charges just 5%
on balances under $50K. This rate is available to all clients that have a Gold membership ($5 per month).
Gold members also get the first $1,000 of margin for free before interest applies above that amount. In 2026, we named Robinhood
The Best Broker For Margin Account.
You could learn more about the firm in the
Robinhood Review.
The next best margin rates are at Interactive Brokers’ IBKR Pro pricing plan. That plan,
however, comes with $0.005 per share commissions on stock and ETF trades.
Margin Rates Comparison Table
| Broker |
$0 - $4,999 |
$5,000 - $9,999 |
$10,000 - $24,999 |
$25,000 - $49,999 |
$50,000 - $99,999 |
$100,000 - $249,999 |
$250,000 - $499,999 |
$500,000 - $999,999 |
above $1,000,000 |
|
Robinhood
|
5%
|
5%
|
5%
|
5%
|
4.8%
|
4.5%
|
4.5%
|
4.5%
|
4.5%
|
|
IBKR Pro
|
5.14%
|
5.14%
|
5.14%
|
5.14%
|
5.14%
|
4.64%
|
4.64%
|
4.64%
|
4.39%
|
|
Webull Premium
|
5.2%
|
5.2%
|
5.2%
|
5%
|
5%
|
4.45%
|
4.45%
|
4.4%
|
4.2%
|
|
IBKR Lite
|
6.14%
|
6.14%
|
6.14%
|
6.14%
|
6.14%
|
6.14%
|
6.14%
|
6.14%
|
6.14%
|
|
moomoo
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
|
Webull
|
8.74%
|
8.74%
|
8.74%
|
8.24%
|
8.24%
|
8.24%
|
7.74%
|
7.24%
|
6.24%
|
|
ZacksTrade
|
8.83%
|
8.83%
|
8.83%
|
8.83%
|
8.83%
|
8.33%
|
8.33%
|
8.33%
|
8.08%
|
|
TradeZero
|
9%
|
9%
|
9%
|
9%
|
9%
|
9%
|
9%
|
9%
|
9%
|
|
Tradier
|
9.25%
|
9.25%
|
9.25%
|
9.25%
|
9.25%
|
9.25%
|
9.25%
|
9.25%
|
9.25%
|
|
SoFi
|
9.5%
|
9.5%
|
9.5%
|
9.5%
|
9.5%
|
9.5%
|
9.5%
|
9.5%
|
9.5%
|
|
tastytrade
|
10.25%
|
10.25%
|
10.25%
|
9.75%
|
9.25%
|
8.75%
|
8.25%
|
7.75%
|
7.25%
|
|
TIAA
|
10.875%
|
10.875%
|
10.375%
|
10.125%
|
9.875%
|
9.875%
|
9.875%
|
9.875%
|
9.875%
|
|
Ally Invest
|
11.25%
|
11.25%
|
11.25%
|
11%
|
10.25%
|
9%
|
8%
|
7.5%
|
6.75%
|
|
Citi
|
11.475%
|
11.475%
|
11.475%
|
10.975%
|
10.475%
|
9.975%
|
9.225%
|
8.475%
|
7.975%
|
|
J.P. Morgan
|
11.5%
|
11.5%
|
11.5%
|
11.25%
|
10.75%
|
10.5%
|
9.75%
|
9.25%
|
8.5%
|
|
TradeStation
|
11.75%
|
11.75%
|
11.75%
|
11.75%
|
10.75%
|
10.75%
|
10.75%
|
call
|
call
|
|
Fidelity
|
11.825%
|
11.825%
|
11.825%
|
11.325%
|
10.375%
|
10.375%
|
10.075%
|
7.8%
|
7.5%
|
|
Charles Schwab
|
11.825%
|
11.825%
|
11.825%
|
11.325%
|
11.325%
|
10.375%
|
10.325%
|
10.325%
|
10.075%
|
|
Firstrade
|
12%
|
12%
|
11.75%
|
11.25%
|
10.75%
|
10.5%
|
9.5%
|
9.5%
|
8%
|
|
Vanguard
|
12%
|
12%
|
12%
|
11.5%
|
11%
|
10.5%
|
10%
|
8.75%
|
call
|
|
Merrill Edge
|
12.18%
|
12.18%
|
12.18%
|
12.18%
|
12.18%
|
12.18%
|
12.18%
|
12.18%
|
12.18%
|
|
E*TRADE
|
12.45%
|
12.45%
|
12.2%
|
11.95%
|
11.45%
|
10.95%
|
10.45%
|
10.45%
|
10.45%
|
|
WellsTrade
|
12.5%
|
12%
|
11.5%
|
11.25%
|
10.5%
|
10%
|
10%
|
9.5%
|
9.5%
|
Overview of Brokerage Margin Rates
A standard brokerage account is called a cash account because securities are purchased with available cash. It is also possible to buy securities using a loan from the brokerage firm. To do this, you need a margin account, which comes with its own rules and risks, in addition to the obvious advantage of borrowing to invest.
Special Deals from Uncle Sam
Margin interest paid to a stockbroker can be tax deductible in some situations. But the rules can be complicated, and the Tax Cuts and Jobs Act did not simplify the issue. If you are paying margin interest, it is a good idea to consult a qualified tax professional to determine whether any of that cost may be deductible on your tax return.
How Margin Interest Is Calculated
Margin interest is usually accrued each day and then posted to an account on a monthly cycle. This means that a broker calculates how much an account has borrowed, applies the daily interest method, and then adds up those charges over time. Although the margin rate is advertised as an annual figure, the brokerage firm converts it into a daily calculation to determine the interest owed.
Let’s take an example. Suppose you have $3,000 worth of Tesla stock in your Robinhood account. Using that
position as collateral, you borrow $3,000 and buy McDonald’s stock. Now, you have $6,000 worth of
securities in your brokerage account, half of which you borrowed. That borrowed $3,000 will be charged
interest based on Robinhood’s current margin schedule.
To estimate a daily charge, many brokers use a 360-day convention. Using that approach, the
interest charged per day on a small balance can be modest. Obviously, carrying a small margin balance for a few days is
a useful service that may cost very little, depending on the broker’s rate.
Eliminating Margin Charges
After creating a margin position, you will probably want to eliminate it at some point. This can be done in one of two ways. You can deposit enough cash to remove the margin debit from your account. In the above example, $3,000 was borrowed, and that amount of cash would be enough to erase the margin balance.
Another way to reduce or eliminate the margin balance is to sell securities in the account. This converts them into the cash needed to pay down the margin liability.
Tracking Margin Balances
If you are trading on margin, it is a good idea to keep track of your account balance so you know
what your buying power is, how much you are borrowing, and how close the account may be to a maintenance issue. Even if you are not intentionally using margin, it is still smart to review this information periodically because it is possible to create a margin balance by mistake.
For example, if you do not have available funds inside a cash account, a trade will usually be rejected. But if the same trade is entered inside a margin account, it could execute if the account has enough collateral. This would create an unintended margin balance.
Thanks to modern software, keeping up with this information is much easier today. Stock brokers that offer margin accounts usually show balance details for margin accounts in real time on their trading platforms. Just look in the menu for account or balance details. A margin account should automatically have entries that a cash account does not. Usually, these entries include:
- Stock buying power (this is usually higher than options buying power because options generally cannot be purchased on margin)
- Margin balance (this is the amount interest is assessed against)
- Maintenance requirement (the minimum amount of equity the account needs to hold a marginable position)
- Margin equity percentage (the amount of leverage)
Broker Margin Requirements Vary
Several institutions in America, including FINRA and the Federal Reserve Board, help regulate margin accounts. Their rules set minimum standards, and this point is worth emphasizing. Individual brokerage firms are allowed to raise these minimums, and that can lead to meaningful differences among brokers.
For example, FINRA Rule 4210 sets a $2,000 minimum equity requirement for a margin account. Some firms have previously required more than that, although many now follow the industry standard.
Maintenance margin requirements can vary from one firm to another as well. For example, although FINRA’s minimum maintenance requirement for long margin securities is generally 25%, some firms set a higher house requirement. Schwab uses 30% as its standard minimum maintenance level, while Webull keeps many long stocks above $5 at 25%.
Stock price can also affect a broker’s margin requirements. Webull’s maintenance requirement jumps to 50% for securities priced between $3 and $4.99, and then goes to 100% for securities priced below $2.99.
Short positions, leveraged funds, and bonds all have their own margin requirements, which can differ significantly from long stocks, and the differences among brokers can be large.
Upgrading to Margin Account
A cash account can be upgraded to a margin account, usually fairly easily at many of the brokerage firms in the margin-rates comparison list. This often requires only a few minutes on the broker’s website, although some firms may require additional review or approval. A phone call may also work in some cases.
Cash Account or Margin Account May Be the Only Option
Some brokerage firms offer only one version of a taxable brokerage account—cash or margin. moomoo, for example, commonly offers margin-enabled taxable accounts, while some other firms focus more narrowly on cash-only setups.
Margin-Enabled IRAs
Although the Federal Reserve Board does not permit retirement accounts to borrow funds to buy assets, an IRA can sometimes add limited margin capability in order to trade with unsettled funds. Adding this feature can allow the IRA to trade more efficiently without waiting for settlement, although the account still cannot borrow in the same way as a taxable margin account.
Updated on 4/15/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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