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Margin Trading

Increase your buying power with margin trading†

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Margin trading graph
Margin trading graph

Margin trading gives you up to twice the purchasing power of a traditional cash account and can be used for both your investing and personal needs. Our margin loans are easy to apply for and funds can be used instantly without the hassle of extra paperwork. Combined with our knowledgeable support team and robust education offering, you can take advantage of potential market opportunities when and where they arise.

Four reasons to choose TD Ameritrade for margin trading

  • Investment products

    Extensive product access

    Margin trading is available across all of our platforms, and qualified clients can trade with unsettled funds in margin IRAs.
  • Graduation cap

    Comprehensive education

    Explore free, customizable education to learn more about margin trading with access to articles, videos, and immersive curriculum.
  • Headset

    24/7 support

    Our trade desk team of experienced traders can assist with all your margin questions 24/7 at 866-839-1100.
  • Price tag

    Straightforward pricing

    Know what you’re paying with straightforward pricing and no hidden fees

The benefits of a margin trading account

  • scale
    Leverage assets to increase your buying power
  • money
    Access funds without liquidating your current assets
  • cash
    Get a line of credit with potential payment flexibility
  • diversify portfolio
    Diversify your portfolio and market exposure
  • graph
    Increase your ability to short sell and profit from stock declines
  • Investment products
    Qualified traders can trade options and futures in margin IRA's and are able to trade funds immediately when they close a position

The risks of margin trading

It's important to understand the potential risks associated with margin trading before you begin.

  • Greater potential risk of loss from increased leverage
  • Additional costs from margin interest charges
  • Potential margin calls or liquidation of securities**

**Important information about margin calls: The firm can force the sale of securities or other assets in your account(s). The firm can also sell your securities or other assets without contacting you. You are not entitled to a time extension while in a margin call.

 

How margin trading works

Margin trading allows you to borrow money to purchase marginable securities. When combined with proper risk and money management, trading on margin puts you in a better position to take advantage of market opportunities and investment strategies.

Example of trading on margin

See the potential gains and losses associated with margin trading. For an in-depth understanding, download the Margin Handbook.

Margin trading graph

Getting started with margin trading

1. Open a TD Ameritrade account

2. Make sure the “Actively trade stocks, ETFs, options, futures or forex” button is selected

3. Fund your account with at least $2,000 in cash or marginable securities

4. Keep a minimum of 30% of your total account value as equity at all times

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Learn more about margin trading

Check the background of TD Ameritrade on FINRA's BrokerCheck

  • DOW
  • NASDAQ
  • S&P 500
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All investing involves risks, including the loss of principal. 

†Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges subject to TD Ameritrade review and approval. Carefully review the Margin Handbook and Margin Disclosure Document for more details.  

Options involve risks and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading privileges subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before trading options.

Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement prior to trading futures products.

Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC).

Futures and futures options trading services provided by Charles Schwab Futures and Forex LLC. Trading privileges subject to review and approval. Not all clients will qualify. Prior to a name change in September 2021, Charles Schwab Futures and Forex LLC was known as TD Ameritrade Futures & Forex LLC.

Charles Schwab Futures and Forex LLC, a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member. Charles Schwab Futures and Forex LLC is a subsidiary of The Charles Schwab Corporation.

Taxes related to TD Ameritrade offers are your responsibility. All Promotional items and cash received during the calendar year will be included on your consolidated Form 1099. Please consult a legal or tax advisor for the most recent changes to the U.S. tax code and for rollover eligibility rules.

TD Ameritrade was evaluated against 14 other online brokers in the 2022 StockBrokers.com Online Broker Review. The firm was rated #1 in the categories "Platforms & Tools" (11 years in a row), "Desktop Trading Platform: thinkorswim®" (10 years in a row), "Active Trading" (2 years in a row), "Options Trading," "Customer Service," and "Phone Support." TD Ameritrade was also rated Best in Class (within the top 5) for "Overall Broker" (12 years in a row), "Education" (11 years in a row), "Commissions & Fees" (2 years in a row), "Offering of Investments" (8 years in a row), "Beginners" (10 years in a row), "Mobile Trading Apps" (10 years in a row), "Ease of Use" (6 years in a row), "IRA Accounts" (3 years in a row), "Futures Trading" (3 years in a row), and "Research" (11 years in a row). Read the full article.

Market volatility, volume and system availability may delay account access and trade executions.

Morningstar® Instant X-Ray® analyzes mutual funds, U.S.-based stocks, ADRs, plus cash and bond positions when entered using a ticker CASH$ or BONDS$ respectively. All other security types are not analyzed. The Morningstar name and logo, morningstar.com, and Morningstar Tools are either trademark or service marks of Morningstar, Inc.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2023 Charles Schwab & Co., Inc. All rights reserved.