E*TRADE Margin Rates
If you are looking for E*TRADE margin account rates, details, and requirements, you have come to the right place. Here, we’ll cover all the details about how to use margin at E*TRADE, what the current margin account rates are, and what the requirements are to use it.
Margin account rates at E*TRADE are competitive with many of the other popular brokers. However,
there are some less expensive options available (see below).
Margin account rates are calculated by taking several data points into consideration: all of which are industry standard. The margin rates that you see result from the balance in your investment account, (current) industry-standard base rates, market activity, market volatility, geopolitical events, and some others.
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Debit Balance
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Margin Interest Rates
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$250,000 - $499,999.99
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11.70%
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$100,000 - $249,999.99
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12.20%
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$50,000 - $99,999.99
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12.70%
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$25,000 - $49,999.99
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13.20%
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$10,000 - $24,999.99
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13.45%
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$0 - $9,999.99
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13.70%
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Current E*TRADE base rate is 11.20%.
The Lowest Margin Rates
| 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 |
|
Moomoo
|
6.8%
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6.8%
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
6.8%
|
|
IBKR Lite
|
7.33%
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7.33%
|
7.33%
|
7.33%
|
7.33%
|
7.33%
|
7.33%
|
7.33%
|
7.33%
|
|
Robinhood Gold
|
7.5%
|
7.5%
|
7.5%
|
7.5%
|
7.5%
|
7.5%
|
7.5%
|
7.5%
|
7.5%
|
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E*TRADE Margin Account Details
You can open many different types of investment accounts at E*TRADE. Most of them are marginable accounts that can give investors a boost in their spending power in the markets. Access to margin also give investors more opportunities to design complex investment strategies with options, sell stocks short, and trade instruments like forex and futures.
No matter what approach you have, using margin can amplify your experience in many ways. Apart from the earning and loss potential that margin provides, margin accounts also settle trades instantly so that your funds are never tied up in processing.
E*TRADE Account Types
Being a major player in the brokerage space, E*TRADE is able to offer a long list of marginable account types that you can open. The one is best for you should meet your goals, expectations, trading style, tax preferences, and investment timeframe.
Here are the margin account options that are available at E*TRADE:
- Brokerage Account
- Custodial Account
- Coverdell ESA Account
- IRA Accounts
- Managed Portfolios
- Business Accounts
Investment Vehicles Using Margin
E*TRADE offers a range of investment vehicles to margin account holders. Depending on your needs and expectations, margin can be used in different ways.
At the most basic level, margin can be used to buy stocks, ETFs, and options. With the additional buying power that margin provides, you can bolster your positions with less capital.
As you increase your desire to see larger profits and to take on a bit more risk, you can begin shorting stocks, selling options, and taking advantage of the instant trade settlement for day trading and high frequency investment strategies.
Moving further still, margin helps you establish positions in highly levered products like futures and naked short options.
E*TRADE Margin Account Requirements
As with all brokers, E*TRADE has some minimum requirements for investors looking to take advantage of the available margin.
Best Broker Margin Rates
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or
E*Trade Margin Interest Calculator »
Using margin at E*TRADE
To use margin at E*TRADE, your account should be a Regulation T (Reg. T) margin account first and foremost. The minimum balance of that account should also be $2,000. The account minimum is comprised of the cash balance in the account and the value of any securities that you own.
If you are interested in E*TRADE’s managed Portfolio Margin account, the account balance must be no less than $100,000 at any time. This advanced level of margin also requires the highest level of options permission which embodies significant profit and risk potential.
Activate Margin Trading on E*TRADE
To get started with margin trading at E*TRADE, you should make sure that the margin options are turned on. Start by navigating to Account Preferences. You can find it by clicking on the ‘trader’ icon next to the search tool.
Scroll all the way to bottom of the account settings menu and locate, ‘ETRADE Margin Activation’. From there you can decide which options trading level works best for you, turn on futures trading, and most importantly, turn on margin.
Can I apply for Margin with an ITIN?
Yes, you can apply for a brokerage account with an ITIN. You must live in the U.S. and be authorized to work in order for the broker to accept your application.
Does E*TRADE have a stock lending program?
Yes. E*TRADE allows investors to participate in the lending program. Investors can allow E*TRADE permission to borrow their stocks in return for a daily payout.
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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.
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