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.

Understanding Stock Trends

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 $2,500 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

SureTrader Margin Fees

Margin trading allows you to borrow against your existing holdings, leveraging them to take additional positions. SureTrader offers low margin rates based on each client’s margin balance. You can make a great deal of money trading on margin, but you can also lose through leverage. That’s why it’s crucial to understand the benefits and risks of margin trading before using your margin trading account. It’s a powerful tool for traders when used responsibly.

Understanding Margin Trading

Trading on margin means taking out a “margin loan” against your holdings. Since the value of your holdings changes constantly, the amount you can borrow also fluctuates. If your portfolio rises, you can buy more stock. If it declines, your buying power declines. Another plus – trading on margin allows you to stick to a strategy if you require additional funds. Rather than selling stock if you need money immediately, or want to make other investments, margin trading lets you stay in the market with this leveraged money.

For example, with a typical margin agreement, you can borrow up to 50 percent of marginable stock. Borrowing that much money is usually not done, because margin trading involves risks. Using that amount as an example, if you want to purchase $100k of stock, the brokerage lends you $50k on margin to buy it. Should the stock grow to $125k and you sell, you’ve made a 50 percent ROI. If the stock falls to 75k, you’ve lost 50 percent – and you owe margin interest fees. Purchasing a winning stock on margin is a terrific investment. Purchasing a loser – not so much. With SureTrader, you can borrow up to 6 times your equity.

The Margin Call

The margin call is the risk side of trading on margin. While the term received its name because the broker would call the trader, today such notification occurs electronically. If your portfolio falls below a certain amount, known as the “maintenance margin,” the brokerage issues a margin call. That means you must add enough money to your account to meet the maintenance margin. Getting a margin call is one of those experiences you really want to avoid.

Discount Margin Interest

SureTrader offers discount margin interest rates, more competitive than other loan options. Clients with higher balances pay lower rates. While your portfolio’s value changes, the amount of your margin loan does not. Once you understand the rules and risks regarding margin trading, contact SureTrader regarding your discount margin interest rate offer.

Terms & Conditions

Use of this website is subject to your acceptance of the following terms and conditions: Terms & Conditions

Continue

By clicking the Continue button, you agree to the terms and conditions