Margin trading is a powerful tool. It lets you use borrowed capital to amplify your positions and chase bigger potential returns. But the borrowed money often comes at a high cost. Traders often focus on multiplying their gains while ignoring the silent killer: The cost of borrowing. In today’s high-rate environment, the difference between a broker charging, say, a 5% margin rate and one demanding 11% can add up to thousands of dollars a year.
The good news is that the days of hidden fees and opaque structures are over. Thanks to modern, app-driven brokerages shaking things up, all brokers, even the old-school firms, have been forced to become transparent about what they charge. You can now compare margin rates across platforms instantly.
However, a low rate isn’t the whole story. Some brokers offer rock-bottom pricing, but you might find their trading tools are clunky or their support is nonexistent. So you have to research thoroughly before choosing the best among the lowest-margin-rate brokers. You have to weigh the rate competitiveness against the platform’s complete package: how good are the tools, how fast is execution, and what risk-management features do they offer?
Here are five brokers who we believe offer the best borrowing features.
Public.com
Public.com has rapidly evolved from a community-driven social investing app into a full-fledged trading ecosystem that is built for modern investors. What makes Public.com stand out among so many margin brokers is its commitment to simplicity and transparency. Public.com uses a clean, tier-based margin structure with no hidden terms and costs. Its rates generally range from 4.45% for higher balances to 5.40% for lower balances, giving retail traders and smaller investors a convenient platform for accessing leverage without worrying about complex fee breakdowns. The platform also offers a sleek, intuitive trading interface, which makes margin trading fun and easy for traders. Its mobile-first design, real-time performance insights, and educational overlays help traders make informed decisions, especially when navigating market volatility. A signature feature of the platform, Socia feed, enables traders to observe analyst insights, trending themes, and sentiment-driven discussions that can guide strategic positioning. While offering competitive rates along with advanced trading tools, it strikes a perfect balance between accessibility and affordability.
Best for: Retail investors who value transparency, mobile-first design, and affordable margin rates without complex fee structures.
Fidelity
Fidelity has maintained its position as one of the most credible full-service brokerages in the United States. Fidelity has built brand loyalty, especially among investors with high-value accounts, thanks to its competitive rates, strong research tools, highly efficient execution capabilities, and robust infrastructure. Rates start from approximately 10%-12.5% for smaller accounts. However, the tiered structure it follows rewards traders who maintain larger positions by reducing their borrowing costs, as Fidelity’s margin rates go as low as 8% for debit balances above $1 million. What sets Fidelity apart from other brokerage platforms offering margin is its combination of reliability, trust, and risk management. The platform integrates sophisticated portfolio tools, real-time risk alerts, and advanced margin calculators that help traders assess the impact of borrowings on their positions. This is vital for traders who want to balance their long-term investments with margin-driven opportunities. Traders who want premium research are also drawn to Fidelity, which provides institutional-grade data and deep charting tools to help them make informed decisions.
Best for: Experienced traders with six-figure accounts who need robust research infrastructure and comprehensive financial services alongside competitive rates at scale.
Charles Schwab
Charles Schwab is a popular name in the U.S. brokerage industry. Its pillars are customer-friendly policies, an extensive research ecosystem, and long-standing goodwill. In margin borrowing, Charles Schwab offers tier-based margin rates: 10.575% for balances between $250,000 and $500,000, and 12.325% for low balances. Schwab’s comprehensive set of trading tools, including maintenance equipment trackers, customizable alerts, and margin calculators, enables traders to anticipate risk, manage leverage more responsibly, and avoid unexpected margin calls. Thinkorswim, Schwab’s trading desktop platform, offers strategy scanners, advanced charting, and strong execution capabilities that attract both novice and seasoned traders.
Best for: Investors who prefer a full-service ecosystem with strong customer support, stability, and broad investment access, particularly those who qualify for negotiated rates.
TradeStation
TradeStation is widely recognized as one of the most powerful trading platforms for traders who rely heavily on detailed analytics and algorithmic strategies. Its margin rates for balances above $500k and below $2M are a default effective rate of 6.50%. For balances greater than $2M, the rate drops to 4.50%, making it an extremely competitive option for traders with mid- to large-sized accounts. While rates vary based on account balance and activity level, TradeStation consistently offers strong value thanks to its professional-grade tools and data-driven environment. TradeStation is appreciated by active traders for its fast execution, advanced charting, customizable indicators, and automation features that enable backtesting of sophisticated strategies. The platform offers a strong value proposition for traders who prefer institutional-grade systems.
Best for: Active and technical traders managing substantial accounts who need professional-grade analytics, speed, and customizable tools alongside competitive margin rates.
Ally Invest
Ally Invest delivers excellent value on margin borrowing, especially for its banking customers. It follows a tiered rate structure, with rates as high as 11.75% for balances under $10,000 and as low as 7.25% for margin balances above $1M. Ally Invest offers a perfect combination of cash management tools and banking services that help traders elevate their financial journey. For investors seeking a one-stop solution for both trading and personal finance, Ally offers seamless integration between banking and investment accounts. Ally Invest removes friction from the process for traders juggling multiple goals, such as maintaining emergency savings, investing for retirement, and taking advantage of short-term margin opportunities. This promotes liquidity management and margin efficiency.
Best for: Investors seeking integrated banking and trading for superior liquidity management, particularly those managing multiple financial goals simultaneously.
Margin rates matter, but they’re not the only factor. A broker offering 4.5% rates means little if execution quality costs you 10 basis points per trade, or if inadequate risk tools lead to poorly timed margin calls. The right choice depends on your specific circumstances.
