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 9.00%.
|
Debit Balance
|
Margin Interest Rates
|
|
above $499,999
|
call 800-655-4777
|
|
$250,000 - $499,999
|
9.00%
|
|
$100,000 - $249,999
|
9.00%
|
|
$50,000 - $99,999
|
9.25%
|
|
$25,000 - $49,999
|
10.25%
|
|
$10,000 - $24,999
|
10.50%
|
|
under $10,000
|
11%
|
Open TD Ameritrade Account
Open TD Ameritrade Account
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.
Open TD Ameritrade Account
Open TD Ameritrade Account
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’.
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.
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.
Open TD Ameritrade Account
Open TD Ameritrade Account
Arthur Chachuna is professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 23 years, and has background in both applied math and programming.
Updated on 3/26/2022.
|