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Online Stock Broker Comparison

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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 ToledoTrade Standard2 ToledoTrade at Cost3 TD Ameritrade Charles Schwab Fidelity E*TRADE Ally Invest TradeStation Merrill Edge
Under $10,000 6.62% 5.62% 10.50% 9.575% 9.575% 10.75% 10.00% 9.50% 10.625%
$10,000 - $24,999 6.62% 5.62% 10.25% 9.575% 9.575% 10.50% 10.00% 9.50% 10.625%
$25,000 - $49,999 6.62% or ⇨ 5.62% 10.00% 9.075% 9.075% 10.25% 9.75% 9.50% 9.50%
$50,000 - $99,999 6.62% or ⇨ 5.62% 9.00% 8.125% 8.125% 9.75% 9.00% 8.75% 9.50%
$100,000 - $249,999 6.12% or ⇨ 5.12% 8.75% 8.075% 8.075% 9.25% 7.75% 8.75% N/A6
$250,000 - $499,999 6.12% or ⇨ 5.12% 8.50% 7.825% 7.825% 8.75% 6.75% 8.75% N/A6
$500,000 - $999,999 6.12% or ⇨ 5.12% 8.50% N/A4 5.50% 8.50% 6.25% 5.50% N/A6
$1 Million - $3 Million 5.62% or ⇨ 4.62% 7.75% N/A4 5.25% 7.25% 5.50% 5.50%5 N/A6
Above $3 Million 5.42% or ⇨ 4.42% 7.75% N/A4 5.25% 7.25% 5.50% 3.50% N/A6
  1. 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.
  2. Clients who maintain and average daily margin balance of $30,000 or a daily cash balance of $50,000 throughout the month are eligible for the Trade at Cost Plan.
  3. 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.
  4. For margin balances above $500,000, Charles Schwab requests to contact them.
  5. For TradeStation margin balances between $500,000 – $2 million, the margin rate is 5.50%. For balances of $2 million or more, the margin rate is 3.50%.
  6. For margin balances above $100,000, Merrill Edge requests to contact them.

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

Trade at Cost

Standard

Ally Invest

Schwab

Fidelity

Trade Station

TD Ameritrade

E*TRADE

Rate

5.62%

6.62%

7.75%

7.825%

7.825%

8.75%

8.75%

9.25%

Annual Cost

$5,620
$6,620
$7,750
$7,825
$7,825
$8,750
$8,750
$9,250

Savings

N/A

$1,000

$1,130 or $2,130

$1,205 or $2,205

$1,205 or $2,205

$2,130 or $3,130

$2,130 or $3,130

$2,630 or $3,630

*Based on a $100,000 Margin Debit Balance. 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 8/12/2019 are believed to be accurate but not guaranteed. Comparisons do not include competitor discounts or promotions.