Margin Fees

Trading on margin gives you extra buying power to get into the positions you want. If you need leverage, we can offer discounts on margin interest rates based on your margin debit balance.

Leverage can lead to large gains as well as losses. The high degree of leverage that is often obtainable in trading because of the small margin requirements can work against you as well as for you. Here are the margin rules and information you should review carefully.

Margin Fees

Trading on margin gives you extra buying power to get into the positions you want. If you need leverage, we can offer discounts on margin interest rates based on your margin debit balance.

Leverage can lead to large gains as well as losses. The high degree of leverage that is often obtainable in trading because of the small margin requirements can work against you as well as for you. Here are the margin rules and information you should review carefully.

Margin Rules & Information

  • Leverage can only be used on accounts with equity exceeding $500.
  • Accounts with $100 will be liquidated in its entirety.
  • Stocks below $2.50 require a $2.50 per share equity requirement. ($2.50 Rule)
  • For example: If you short 1,000 shares of stock valued at $1.00 per share, you will need at least $3,500 equity in your account
  • We allow 6:1 margin on Nasdaq, NYSE and AMEX stocks above $3.00. Stocks on the volatile list may not qualify for margin
  • Certain stocks may have a higher margin requirement and depending on market restrictions may not be fully marginable up to 6:1.
  • Short positions are subject to buy-ins at the discretion our Risk Team as mandated by the Clearing Firm.
  • Accounts must not exceed 2:1 margin overnight.
  • Accounts below $500 equity cannot use margin.
  • Options cannot be traded using margin.
  • Overnight margin rate is 7.5% APR.
Learn More

Margin Calls & Flags

Your account or portions of it may be liquidated, and incur a $50 [Trade Desk + Margin Call] fee if:

  • Your account is exceeding 6:1 margin during intra-day trading (9:00am - 3:30pm) EST
  • Your account is exceeding 2:1 margin beginning at 3:30pm EST.
  • If you are using margin on:
    • Options
    • Penny Stocks
    • OTCBB
    • Pink Sheets
    • Any stock below $3.00
  • Trading a sub-penny stock.
  • You are using leverage with equity of less than $500.
  • Your equity is below $100 (will be liquidated in its entirety)
  • Anytime your account margin is exceeding 6:1

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