Ameritrade Margin Interest Rates

TD Ameritrade Margin Interest Rates (2024)


Current TD Ameritrade margin account rates: interest fees charged on margin loan. TD Ameritrade margin requirements, base lending rate (BLR), leverage, and broker lending cost.


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TD Ameritrade Margin Accounts, Rates, and Requirements


Are you looking for the latest TD Ameritrade margin account rates, details, and requirements? If so, you've come to the right place. In this article, we cover everything you need to know about TD Ameritrade margin accounts and the rates that you will pay.

Keep reading to learn more.


TD Ameritrade Margin Rates


The margin account rates at TD Ameritrade are competitive with many other top brokers in the industry. Margin rates are calculated based on the amount of capital in an investor’s account, market activity, market conditions, and industry-standard base rates. Current TD Ameritrade base rate is 13.50%.

Debit Balance Margin Interest Rates
above $499,999 call 800-655-4777
$250,000 - $499,999 12.75%
$100,000 - $249,999 13%
$50,000 - $99,999 13.25%
$25,000 - $49,999 14.25%
$10,000 - $24,999 14.5%
under $10,000 14.75%


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TD Ameritrade Margin Account Details


TD Ameritrade offers several account types, many of which can utilize the broker’s margin services. With a margin account at TD Ameritrade, you can borrow funds from the broker to either enhance your buying power in the stock market or leverage the margin funds for other purposes.

Another important benefit of a margin account is that trades settle instantly. That means you never have to wait for funds to ‘settle’ after a trade has been closed as you would in a cash account.

As long as your margin account meets the minimum requirements, the following services are available to you:

  • Increase buying power for securities
  • Sell stocks short
  • Borrow funds to use as you see fit
  • Access advanced investing strategies


Account Types


Depending on your needs and goals, you will want to access TD Ameritrade’s margin account features with an account type that meets your trading style and expectations. Here are the types of accounts that you can open at TD Ameritrade:

  • Standard Investment
  • Margin Trading
  • Education
  • Retirement
  • Custodial
  • Enterprise


Tradable Securities


Using margin, you can include a range of investment vehicles into your strategy and portfolio.

Margin accounts have multiple tiers that investors should be aware of. A basic margin account allows for stock purchases, basic options strategies, and the lending program. As you obtain higher levels of margin approval, you can build complex options strategies using short options positions, trade futures contracts, and other highly levered products.


TD Ameritrade Margin Account Requirements


To take advantage of margin at TD Ameritrade, there are some margin account requirements to keep in mind.

To use margin at TD Ameritrade, you will need to maintain a minimum account balance of at least $2,000, at all times. If the total value of your investment account dips below the minimum, borrowing on margin is no longer available.

It is important to note that the account minimum is calculated by adding the cash balance to the value of the securities and open positions in the account.

It is also a requirement to always have at least 30% of the account balance in cash.


Activate Margin Trading


Before using margin at TD Ameritrade, you will need to make sure margin is active in your account. You can find the options related to your account under ‘Client Services’ and then ‘Profile’.


TD Ameritrade Margin Account Settings


If you need to activate margin trading, simply select ‘edit’ and an application for margin will populate on the next screen. After filling in all the necessary information related to your financial situation, TD Ameritrade take a short time to review your application. Once approved, your margin settings screen will indicate that you are able to trade with margin.


TD Ameritrade Margin Account Approved


What Can I Do With a Margin Account?


There are many things that you can do with a margin account. Most notably, you can borrow funds from a broker to increase your purchasing power. It is also possible to take loans from a broker. For most advanced trading strategies, a margin account is a requirement.


Does TD Ameritrade Offer Margin Loans?


Yes, TD Ameritrade does offer margin loans. With a fully funded margin account, investors can borrow funds from the broker using their account balance and allowable margin, up to 50% of the account balance, as collateral.





Can I Buy Penny Stocks on TD Ameritrade?


Penny stocks and over-the-counter stocks can be traded with a TD Ameritrade account. We’ll show you everything you need to know to get started. We’ll also suggest one alternative for the budget traders out there.


Searching for Penny and OTC Equities on TD Ameritrade’s Website


TD Ameritrade has a very thorough stock screener on its website, and even better, it’s quite easy to use. Just hover over Research & Ideas and select Stocks under the Screeners heading. This will get you the broker’s equity screener.


margin interest TD Ameritrade


There are several search criteria on this machine, and they are grouped into categories. Under the Basic category, there is exchange; and under the Price & Volume category, there is Current Price. These are the two search variables we are most interested in.

The current market price can be set to any sequrity below $5 (one of the definitions of penny stock) or a specific range (like $0.02 to $1.00). It’s possible to look on any exchange for stocks trading at defined prices, including the major exchanges like the NASDAQ or NYSE.

TD Ameritrade’s screener has two exchanges listed for the over-the-counter market: OTC BB and OTC. The former is the old Bulletin Board, which has been shut down. TD’s screener does not return any stocks for this search option. The second returns 3,852 securities, certainly not the entire OTC marketplace, but they will do.

It’s possible to use both search variables (price and OTC) if you wish. For example, it’s possible to search for over-the-counter stocks that are trading below $9. It’s also possible to add more search criteria, such as market capitalization and price-to-book ratio.


Searching for Penny and OTC Equities on thinkorswim and the Mobile Apps


TD Ameritrade’s advanced desktop platform thinkorswim has a stock screener. It can look for assets by price and exchange. To scan solely in the OTC space, click on Scan in the top menu and then select Stock Hacker. With this option selected, there’s another sub-menu. Look in it and find the field labeled Scan in. Click on this and select All OTC Stocks. There you have it.

If you want to search by price, look further down where there are drop-down menus with graphical interfaces next to them. These can be used to add a wide variety of search variables. Some of these are price criteria, such as bid and ask prices.

Although TD Ameritrade has two mobile apps, neither one of them has a stock screener. However, penny stocks and OTC stocks can be traded on the apps if you know the ticker symbols or company names.


Example of an OTC Stock at TD Ameritrade


An over-the-counter stock we found at TD Ameritrade is Ultra Electronics Holdings Plc. Trading on the Grey Market with ticker symbol UEHPF, this stock does not come with any updated price information. That’s why it trades on the Grey Market. Although TD Ameritrade’s profile does show a last trade price, it is probably months old. There is no bid-ask spread displayed.


margin rates TD Ameritrade


Ultra Electronics develops technologies for the aerospace, defense, transport, and security industries. It is based in the United Kingdom (the F in its ticker symbol means a foreign company), and has a market cap of over $2 billion. Despite the lack of price information, TD Ameritrade’s profile shows a positive earnings quarter, a P/E ratio of 21, and a quarterly dividend of $0.2191.


Example of a Penny Stock at TD Ameritrade


Using the Current Price search variable on TD Ameritrade’s stock screener, we found MVIS. This is Microvision, Inc. The company manufactures lidar sensors for autonomous vehicles.

MVIS is currently trading below $5 ($3.63 at the time of publication) on the Nasdaq. The stock has a beta of 3.52, which signifies a lot of volatility. No wonder, the average volume of MVIS is over 5 million shares daily.

Microvision pays no dividend and its most recent earnings release was negative. TD Ameritrade’s profile for the company shows mostly sell ratings from analysts. The broker’s profile does include bid and ask numbers for this stock. During our investigation, the spread was just one penny.


OTC Stock Fees at TD Ameritrade


If you’re like most traders, you’ve probably grown accustomed to zero-dollar pricing on stock trades. Well, in the case of over-the-counter stocks at TD Ameritrade, fuggedaboutit! The brokerage house charges a $6.95 commission on every OTC equity trade.


Updated on 2/5/2024.


About the Author
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com. He has been an avid investor for 25 years, and has a background in both applied math and programming.