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Margin Loans at Scottrade

Margin Loans:

Everything you need to know about opening a Scottrade margin account.

Frequently Asked Questions

Select a Question:

Q: What is a margin loan?

A margin loan is borrowing money from Scottrade using the securities you own as collateral to either buy more securities or use it as a ready source of cash.

Q: Why use margin?

Margin increases your buying power by allowing you to purchase stocks on credit so you can buy and hold more positions. You can also use a portion as a ready source of cash.

Just because you open a margin account doesn't mean you have to use it. But once you're approved, your open line of credit is always ready and waiting in case you need it.

Q: What are the risks?

One of the risks when trading on margin is the risk of losing more money than you initially deposited into your account. If you fall below Scottrade's maintenance requirement, Scottrade may require you to add additional funds to your account or may sell shares on your behalf to pay down your loan. Please read our margin agreement to learn more.

Q: What are the requirements?

Margin accounts require a minimum balance of $2,000 in cash or securities. This is called the minimum margin requirement. And because you are entering into a loan agreement, a credit check is also required before you can open a margin account.

Q: How do I apply for margin?

New to Scottrade?
Applying for margin is simple.

If you're a new Scottrade customer, just apply online when you open your account. Be sure to read the margin agreement in detail so you understand all the risks and requirements associated with a margin account.

Open An Account

Already a Scottrade customer?

If you are already a Scottrade customer, all you need to do is fill out a margin agreement and return it to your local branch office.

Download Agreement
New to Scottrade?

Open An Account

Already a Customer?

Download Agreement

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Brokerage Products and Services offered by Scottrade, Inc. – Member FINRA and SIPC.

Online market and limit stock trades are just $7 for stocks priced $1 and above.

Any specific securities, or types of securities, used as examples are for demonstration purposes only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.

Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.

Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A prospectus contains this and other information about the ETF and should be obtained from the issuer. The prospectus should be read carefully before investing.

Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. The Margin Disclosure Statement and Agreement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.

Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the Scottrade Options Application and Agreement, Brokerage Account Agreement, and by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy from your local branch office. Supporting documentation for any claims will be supplied upon request.

Investors should consider the investment objectives, risks, charges, and expenses of mutual fund carefully before investing. A prospectus contains this and other information about the fund and is available through www.scottrade.com or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.

Market volatility, volume, and system availability may impact account access and trade execution.

Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success.