Margin Rates
When you think about how much you’re actually paying your broker, one of the most important things that investors and trades often overlook is how much margin interest they are paying. Take a look at the rates listed below:
| Margin Rate Tiers1 | ToledoTrade2 | TD Ameritrade | Charles Schwab | Fidelity | E*TRADE |
|---|---|---|---|---|---|
| Under $10,000 | 11.08% | 14.25% | 13.075% | 13.075% | 13.70% |
| $10,000 - $24,999 | 11.08% | 14.00% | 13.075% | 13.075% | 13.45% |
| $25,000 - $49,999 | 11.08% | 13.75% | 12.575% | 12.575% | 13.20% |
| $50,000 - $99,999 | 11.08% | 12.75% | 11.625% | 11.625%% | 12.70% |
| $100,000 - $249,999 | 11.08% | 12.50% | 11.575% | 11.575% | 12.20% |
| $250,000 - $499,999 | 11.08% | 12.25% | 11.325% | 11.325% | 11.70% |
- The tiers on which interest is based may change from time to time without prior notification to clients. Such adjustments are done periodically to adjust for changes in currency rates. ToledoTrade uses a blended rate based on the tiers indicated. For example, for a balance over 1,000,000 USD, the first 100,000 is charged at the Tier I rate, the next 900,000 at the Tier II rate, etc. ToledoTrade accrues interest on a daily basis and posts actual interest monthly on the third business day of the following month.
- The required minimum for the Trade at Cost plan is a daily average margin balance of $30,000 or a daily average cash balance of $50,000 or more that must be maintained throughout the month. If a client goes below the required minimum then the rates and commission will change to the Standard plan.
The Bottom Line:
ToledoTrade’s margin rates start lower than all of the brokers listed above. With the Trade at Cost plan, the rate is lower than the Standard plan when the daily average margin balance is maintained throughout the month. ToledoTrade will also negotiate with clients who are on the Standard plan and have a margin balance of $500,000 or more that is not maintained throughout the month. Depending on the size of your margin balance, you can save hundreds, if not thousands of dollars of margin interest by making the switch to ToledoTrade. Look at this example of a $100,000 margin balance:
Broker
Standard
Schwab
Fidelity
E*TRADE
TD Ameritrade
Rate
11.08%
11.575%
11.575%
12.20%
12.50%
Annual Cost
Savings
N/A
$2,235 or $3,235
$2,235 or $3,235
$2,910 or $3,910
$3,160 or $4,160
*Based on a $100,000 Margin Debit Balance. The calculation is based on a yearly interest charge amount and assumes that your daily balance does not fluctuate but remains constant.
Competitor commission and margin rates obtained from published websites as of 4/24/2023 are believed to be accurate but not guaranteed. Comparisons do not include competitor discounts or promotions.