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Margin Loans

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Get access to cash by borrowing against the securities in your portfolio. The money can be used to purchase securities or for a variety of personal financial needs.

Schwab offers competitive rates and a flexible, convenient line of credit. Once the margin feature is in place on your account, you can borrow at any time with no additional paperwork. When used correctly, margin loans can help you execute investment strategies and can serve as a source of flexible borrowing for other lending needs.

Learn about margin loans and how they can be a solution to your short-term financial needs, take a look at the Margin Loan Brochure.

How margin works.

The margin feature on your Schwab brokerage account allows you to access your available margin cash by placing a trade or withdrawing cash. Higher balances may be eligible for lower interest rates.

How much can you borrow?

The amount you can borrow depends upon the type and value of securities in your account.

  • To begin borrowing at Schwab, you must have at least $2,000 in cash or marginable securities1 in your account.
  • The amount of money you can borrow on margin toward the purchase of securities is typically limited to 50 percent of the value of marginable securities in your account. However, it is prudent to borrow less to minimize risk.
  • Once you borrow on margin, you are required to maintain a certain amount of equity in your account, depending on the securities you hold. Typically, the equity maintenance requirement is at least 30% of the total account value, but it 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.

Margin borrowing is not for everyone. Make sure you understand the benefits and risks, which you can find in the tabs above.

Margin Interest Rates

Debit Balance Margin Rate Effective Rate
$0-$24,999.99 Base Rate + 1.825% 8.325%
$25,000-$49,999.99 Base Rate + 1.325% 7.825%
$50,000-$99,999.99 Base Rate + 0.375% 6.875%
$100,000-$249,999.99 Base Rate + 0.325% 6.825%
$250,000-$499,999.99* Base Rate + 0.075% 6.575%
*For balance tiers $500K and above, call 877-752-9749 for more information about our latest rate offers.

Base Rate = 6.50%.
Schwab’s base rate was last changed on 3/23/2020 and is subject to change without notice.

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To understand what margin is and how it works, download the Schwab Guide to Margin.