A woman looking out a window while thinking

Schwab margin rates and requirements.

Current margin rates

Schwab's current base rate is 9.50% and is subject to change without notice. Last changed on 09/23/2022.

  • Debit Balance
  • Margin Rate
  • Effective Rate
  • Debit Balance
    $0-$24,999.99
  • Margin Rate
    Base Rate + 1.825%
  • Effective Rate
    11.325% 
  • Debit Balance
    $25,000-$49,999.99
  • Margin Rate
    Base Rate + 1.325%
  • Effective Rate
    10.825% 
  • Debit Balance
    $50,000-$99,999.99
  • Margin Rate
    Base Rate + 0.375%
  • Effective Rate
    9.875% 
  • Debit Balance
    $100,000-$249,999.99
  • Margin Rate
    Base Rate + 0.325%
  • Effective Rate
    9.825% 
  • Debit Balance
    $250,000-$499,999.99*
  • Margin Rate
    Base Rate + 0.075%
  • Effective Rate
    9.575% 

Your interest rate depends on your debit balance and Schwab's base rate. Interest accrues daily and is posted monthly. 

Before you begin using margin, you should read Schwab's Margin Borrowing Overview and Disclosure Statement.

* For balance tiers $500K and above, call 877-752-9749 for more information about our latest rate offers. 

It is important to keep in mind the following: 

  • It is possible that margin interest rates may fluctuate during the time you have an outstanding loan. 
  • Interest is calculated daily on the amount borrowed and posted to the account on a monthly basis. 
  • Like any other loan, you must repay your margin loan along with interest, regardless of the underlying value of any securities you might have purchased with margin. 
Maintenance Icon

Margin requirements

• To begin margin borrowing against securities in a Schwab brokerage account, you need at least $2,000 in cash or marginable securities.1

  • To begin margin borrowing against securities in a Schwab brokerage account, you need at least $2,000 in cash or marginable securities.1
  • The amount you can borrow on margin is typically limited to 50% of the value of marginable securities in your account. 
  • Once you borrow on margin, you are required to maintain a certain amount of equity Tooltip in your account, depending on the securities you hold.
  • The typical equity maintenance requirement Tooltip is at least 30% of the total account value but can be higher for certain securities or accounts.
  • Schwab calculates your buying power and cash available for withdrawal and provides the information with your Schwab brokerage account.
  • In certain instances, Schwab may impose higher maintenance requirements Tooltip to protect clients from greater exposure to market risk.
  • Day traders Tooltip are subject to a number of stricter requirements Tooltip .
Laptop showing Schwab’s platform and a section showing Margin available in the Buying Power

Combined requirements

Listed below are combined requirements for buying and borrowing against securities in a margin account based on Federal Reserve Board Regulation T ("Reg T"), FINRA regulations, and Schwab rules. 

Combined requirements

Equities table
Long: Common, Non-Leveraged ETFs/ETNs, Preferred & Warrants Initial Min Equity Req. Schwab Initial Req. Schwab Maintenance
≥ $3.00 per share Lesser of $2,000 or 100% market value  50% of cost 30% of market value
< $3.00 per share 100% market value 100% of cost 100% of market value
Short Sale: Common, Non-Leveraged ETFs/ETNs, Preferred & Warrants Initial Min Equity Req. Schwab Initial Req. Schwab Maintenance
> $16.66 $2,000 50% net proceeds 30% short market value
$5.00–$16.66 $2,000 50% net proceeds $5 per share
$2.50–$4.99 $2,000 50% net proceeds 100% short market value
< $2.50 $2,000 50% net proceeds $2.50 per share
Other Equity Types/Positions Initial Min Equity Req. Schwab Initial Req. Schwab Maintenance
Mutual Funds1 Lesser of $2,000 or 100% market value  50% of cost 30% of market value
Money Market Funds1 Lesser of $2,000 or 100% market value  10% of cost 10% of market value
Boxed Positions $2,000 10% of market value  10% of market value
Long: Leverage ETFs/ETNs Initial Min Equity Req. Schwab Initial Req. Schwab Maintenance
2X Leveraged ETFs/ETNs Lesser of $2,000 or 100% market value  50% of cost 50% of market value
3X Leveraged ETFs/ETNs Lesser of $2,000 or 100% market value  75% of cost 75% of market value
Short Sale: Leveraged ETFs/ETNs Initial Min Equity Req. Schwab Initial Req. Schwab Maintenance
2X Leveraged ETFs/ETNs
> $8.33/share $2,000 60% of net proceeds 60% of net proceeds
$5.00–$8.33/share $2,000 $5.00/share $5.00/share
$2.50–$4.99/share $2,000 100% 100%
< $2.50/share $2,000 $2.50/share $2.50/share
3X Leveraged ETFs/ETNs  Initial Min Equity Req. Schwab Initial Req. Schwab Maintenance
> $5.55/share $2,000 90% of net proceeds  90% of net proceeds 
$5.00–$5.55/share $2,000 $5.00/share $5.00/share
$2.50–$4.99/share $2,000 100% 100%
< $2.50/share $2,000 $2.50/share $2.50/share
Options table
Options - Long Initial Min Equity Req. Schwab Initial Req. Schwab Maintenance Req.
Equity Option 

Foreign Currency Option 

Index Options(Broad-based Index and Narrow-based Index)
Lesser of $2,000 or 100% market value  100% of cost Same as Initial Requirement
Options - Short Initial Min Equity Req. Schwab Initial Req.  Schwab Maintenance Req.
Naked Calls (Broad-based Index) $25,000 Greater of:
  • 15% underlying value - out of the money amount + premium (20% for ETNs)
  • 10% underlying value + premium 
  • $100 per contract
Greater of minimum equity requirement or initial requirement
Naked 2X Leveraged ETF/ETN Calls (Broad-based Index) $25,000 Greater of:
  • 30% underlying value - out of the money amount + premium (40% for ETNs)
  • 20% underlying value + premium
  • $100 per contract
Greater of minimum equity requirement or initial requirement
Naked 3X Leveraged ETF/ETN Calls (Broad-based Index) $25,000 Greater of:
  • 45% underlying value - out of the money amount + premium (60% for ETNs)
  • 30% underlying value + premium 
  • $100 per contract
Greater of minimum equity requirement or initial requirement
Naked Puts (Broad-based Index) Lesser of $25,000 or max loss Greater of: 
  • 15% underlying value - out of the money amount + premium (20% for ETNs) 
  • 10% Contract Value + premium 
  • $100 per contract or max loss
Greater of minimum equity requirement or initial requirement
Naked 2X Leveraged ETF/ETN Puts (Broad-based Index) Lesser of $25,000 or max loss Greater of:
  • 30% underlying value - out of the money amount + premium (40% for ETNs)
  • 20% Contract Value + premium
  • $100 per contract or max loss
Greater of minimum equity requirement or initial requirement
Naked 3X Leveraged ETF/ETN Puts (Broad-based Index) Lesser of $25,000 or max loss Greater of:
  • 45% underlying value - out of the money amount + premium (60% for ETNs)
  • 30% Contract Value + premium
  • $100 per contract or max loss
Greater of minimum equity requirement or initial requirement
Straddle/Combo (Broad-based Index) $25,000 Uncovered requirements for the leg with the higher naked requirement, plus the premium of the other leg   Greater of minimum equity requirement or initial requirement
Spread (Broad-based Index) $2,000/$25,000 Credit Spread: Difference in strike prices x 100 x number of contractsDebit Spread: 100% of cost Greater of minimum equity requirement or initial requirement
Complex Spread (Broad-based Index)

Apply only to the following strategies:
  • Box Spreads
  • Butterfly Spreads
  • Condor Spreads
  • Iron Butterfly Spreads
  • Iron Condor Spreads 

+All component option legs must have the same expiration date. 
$2,000/$25,000 Lesser of:
i) Sum of component initial naked requirements
ii) Maximum potential loss of strategy 
Greater of minimum equity
Options - Short, cont. Initial Min Equity Req. Schwab Initial Req. Schwab Maintenance Req.
Naked CallsOptions (Narrow-based Index) $25,000 Greater of:
  • 20% underlying value - out of the money amount + premium
  • 10% underlying value + premium
  • $100 per contract
Greater of minimum equity requirement or initial requirement
Naked 2X Leveraged ETF/ETN Calls (Narrow-based Index) $25,000 Greater of:
  • 40% underlying value - out of the money amount + premium
  • 20% underlying value + premium
  • $100 per contract
Greater of minimum equity requirement or initial requirement
Naked 3X Leveraged ETF/ETN Calls (Narrow-based Index)
$25,000 Greater of: 
  • 60% underlying value - out of the money amount + premium 
  • 30% Contract Value + premium 
  • $100 per contract or max loss
Greater of minimum equity requirement or initial requirement
Naked Puts (Narrow-based Index)
Lesser of $25,000 or max loss Greater of: 
  • 20% underlying value - out of the money amount + premium 
  • 10% Contract Value + premium 
  • $100 per contract or max loss
Greater of minimum equity requirement or initial requirement
Naked 2X Leveraged ETF/ETN Puts (Narrow-based Index)
Lesser of $25,000 or max loss Greater of: 
  • 40% underlying value - out of the money amount + premium 
  • 20% Contract Value + premium 
  • $100 per contract or max loss
Greater of minimum equity requirement or initial requirement
Naked 3X Leveraged ETF/ETN Puts (Narrow-based Index)
Lesser of $25,000 or max loss Greater of: 
  • 60% underlying value - out of the money amount + premium 
  • 30% Contract Value + premium 
  • $100 per contract or max loss 
Greater of minimum equity requirement or initial requirement
Straddle/Combo (Narrow-based Index)
$2,000/$25,000 Uncovered requirements for the leg with the higher naked requirement, plus the premium of the other leg Greater of minimum equity requirement or initial requirement
Spread (Narrow-based Index)
$2,000/$25,000 Credit Spread: Difference in strike prices x 100 x number of contracts Debit Spread: 100% of cost Greater of minimum equity requirement or initial requirement
Complex Spread (Narrow-based Index) 

Apply only to the following strategies: 
  • Box Spreads 
  • Butterfly Spreads 
  • Condor Spreads 
  • Iron Butterfly Spreads 
  • Iron Condor Spreads 

 +All component option legs must have the same expiration date.
$2,000/$25,000
Lesser of: 
i) Sum of component initial naked requirements 
ii) Maximum potential loss of strategy
Greater of minimum equity requirement or initial requirement
Equity
Initial Min Equity Req. Schwab Initial Req. Schwab Maintenance Req.
Naked Calls
$25,000 Greater of: 
  • 20% underlying value - out of the money amount + premium 
  • 10% underlying value + premium 
  • $100 per contract
Greater of minimum equity requirement or initial requirement
Naked Puts
Lesser of $25,000 or max loss Greater of: 
  • 20% underlying value - out of the money amount + premium 
  • 10% contract value + premium 
  • $100 per contract
Greater of minimum equity requirement or initial requirement
Straddle/Combo
$2,000/$25,000 Uncovered requirements for the leg with the higher naked requirement, plus the premium of the other leg  Greater of minimum equity requirement or initial requirement
Spread
$2,000/$25,000 Credit Spread: Difference in strike prices x 100 x number of contracts Debit Spread: 100% of cost  Greater of minimum equity requirement or initial requirement
Complex Spread 

Apply only to the following strategies): 
  • Box Spreads 
  • Butterfly Spreads 
  • Condor Spreads 
  • Iron Butterfly Spreads 
  • Iron Condor Spreads 

+All component option legs must have the same expiration date.
Lesser of $2,000 or 100% market value Lesser of: 
i) Sum of component initial naked requirements 
ii) Maximum potential loss of strategy
Greater of minimum equity requirement or initial requirement
Protective Put 
Lesser of $2,000 or 100% market value Lesser of: 
i) 10% of exercise price + out of the money amount 
ii) Long stock requirement 
Greater of minimum equity requirement or initial requirement
Protective Call
$2,000 Lesser of: 
i) 10% of exercise price + out of the money amount 
ii) Short stock requirement  
Greater of minimum equity requirement or initial requirement
Conversion
Lesser of $2,000 or 100% market value 10% of exercise price Greater of minimum equity requirement or initial requirement
Reverse Conversion
$2,000 10% of exercise price Greater of minimum equity requirement or initial requirement
Collars with Long Equity Lesser of $2,000 or 100% market value Lesser of: 
i) 10% of put exercise price + put out of the money amount 
ii) 25% of call exercise price 
Greater of minimum equity requirement or initial requirement
Cash Secured Equity Puts (CSEP) 
  • $2,000
    Account holders must hold and maintain assignment value in cash or cash equivalents:
  • Money Market Funds
  • Treasury Bills, Notes or Bonds maturing in less than a year 
Account holders must hold and maintain assignment value in cash or cash equivalents including:
  • Cash
  • Money Market Funds
  • Cash Equivalents which include:
    • Cash Deposits
    • Schwab Bank Deposits
    • Schwab Value Advantage Funds
    • Schwab Money Market Funds
    • Treasury Bills, Notes or Bonds maturing in less than a year
Account holders must hold and maintain assignment value in cash or cash equivalents including:
  • Cash
  • Money Market Funds
  • Cash Equivalents which include:
    • Cash Deposits
    • Schwab Bank Deposits
    • Schwab Value Advantage Funds
    • Schwab Money Market Funds
    • Treasury Bills, Notes or Bonds maturing in less than a year 
Debt table
Security Type Initial Min Equity Req. Schwab Initial Req.  Schwab Maintenance Req.
Corporate Bond CouponCorporate

Bond Non-Convertible 
Lesser of $2,000 or 100% market value 30% of cost Greater of 30% market value or 20% of principal, not to exceed 100% market value
Corporate Bond Convertible Lesser of $2,000 or 100% market value 50% of cost Greater of 30% market value or 20% of principal, not to exceed 100% market value
Government Agency Coupon

Government Agency StripGovernment

Agency Pass-throughGovernment

Agency CMO 
Lesser of $2,000 or 100% market value 20% of cost Greater of 20% market value or 15% of principal, not to exceed 100% market value
Municipal Bond Coupon Lesser of $2,000 or 100% market value 25% of cost Greater of 25% market value or 15% of principal, not to exceed 100% market value
Treasury Bill Lesser of $2,000 or 100% market value 10% of cost 4% market value
Treasury Coupon Lesser of $2,000 or 100% market value 10% of cost Mat < 2 yrs: 4% market value2 ≤ Mat < 5 yrs: 6% market value5 ≤ Mat < 10 yrs: 8% market valueMat ≥ 10 yrs: 10% market value 
Treasury STRIP Lesser of $2,000 or 100% market value 10% of cost 10% market value
Unit Investment Trust Not Marginable Not Marginable Not Marginable

State, Municipal and Corporate bonds, with an investment grade rating (IG) or better, are marginable.

Fixed-income investments are subject to various risks, including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. For further details, please feel free to contact a Schwab Fixed Income Specialist at 877-563-7818.

What is a margin call?

When the equity in your margin account drops below the minimum maintenance requirement (30% for most securities), it can trigger a margin call or margin maintenance call Tooltip . This means you'll have to deposit cash or securities into your account to meet the minimum equity requirement. Otherwise, Schwab may have to sell securities in your account at the current market value. 

View more details for Schwab clients

View more details for Schwab clients

Why trade margin with Schwab?

  • Education icon

    Trusted education

    Access educational resources to learn more about margin and how it might fit into your investing strategy.
     

  • Rates Icon

    Competitive rates

    Our competitive margin interest rates can make margin borrowing more cost-effective than other lending options like personal or unsecured loans.
     

  • Scheduling icon

    Flexible payment schedule 

    There is no set repayment schedule as long as you maintain the required level of in your account.

  • Computer icon

    All in one place

    As a Schwab client, you can manage your margin loan alongside your investments and other finances in a single, convenient location.

Get started with margin in three simple steps.

  • Step

    Open a brokerage account

    Open an account online, call us at 866-232-9890, or visit one of 300 local branches

  • Step

    Apply for margin

    Log in and from your Account Settings, click "Apply for margin."

  • Step

    Tap into available funds

    Once approved, you can tap into your available funds at any time by placing a trade, writing a Schwab One® check, placing a wire transfer, requesting a check, or using your Schwab One Visa® Platinum debit card. No additional forms or applications are required.

Ready to start investing?

  • Ready to start investing?

    Open a Schwab One Brokerage account and apply to add margin. 

    Already a Schwab client? 
    Log in and find out if your account is enabled for margin. 

Questions? We're ready to help.