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Schwab margin rates and requirements.

Current margin rates

Schwab's current base rate is 6.50% and is subject to change without notice. Last changed on 03/23/2020.

Current margin rates
  • Debit Balance
  • Margin Rate
  • Effective Rate
  • Debit Balance
    $0-$24,999.99
  • Margin Rate
    Base Rate + 1.825%
  • Effective Rate
    8.325%
  • Debit Balance
    $25,000-$49,999.99
  • Margin Rate
    Base Rate + 1.325%
  • Effective Rate
    7.825%
  • Debit Balance
    $50,000-$99,999.99
  • Margin Rate
    Base Rate + 0.375%
  • Effective Rate
    6.875%
  • Debit Balance
    $100,000-$249,999.99
  • Margin Rate
    Base Rate + 0.325%
  • Effective Rate
    6.825%
  • Debit Balance
    $250,000-$499,999.99*
  • Margin Rate
    Base Rate + 0.075%
  • Effective Rate
    6.575%

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
  • 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 Laptop showing Schwab’s platform and a section showing Margin available in the Buying Power 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
Options
Debt

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.