Get liquidity for less

Borrow up to 50% of your portfolio’s value.

Borrow on margin

M1 Margin Rate

Fidelity

11.575%

Schwab

11%

E*Trade

10.95%

Vanguard

10.50%

Competitor effective rates shown per each brokerage’s website December 19, 2024;
loan balance determines effective rate. M1 rate as of January 2025.

Borrow instantly.
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Margin gives you a line of credit based on your brokerage account’s value. Unlike a credit card, it’s secured by investments in your portfolio. There’s no minimum payment or late fees. You’re billed for interest monthly—you can pay back the principal when you please (provided you continue to meet maintenance requirements).

M1 margin rate Avg. credit card Avg. HELOC 6.25% 24.92% APR* 9.26% APR**
M1 margin rate Avg. credit card Avg. HELOC 6.25% 24.92% APR* 9.26% APR**

Flexible funds to spend or invest

Skip the paperwork and borrow in a few taps. You can withdraw your margin loan as cash to use for almost anything. Or you can leverage margin as an investing strategy.

Invest using margin
Your margin questions, answered
Go to Help Center

A Margin Loan is a type of secured loan that allows you to borrow against the value of the securities you already own in your M1 Individual Brokerage Account, Joint Brokerage Account, and/or Trust Account. It is an interest-bearing loan that uses your underlying securities (eg. stocks, ETFs) as collateral to act as a flexible line of credit when you need it.

Any M1 client who has $2,000 or more invested in an M1 Individual Brokerage Account, Joint Brokerage Account, or Trust Account is eligible for an M1 Margin Loan. 

All M1 Individual and Joint Brokerage Accounts come with a margin feature by default. Traditional, Roth, and SEP IRAs and Custodial Accounts are not eligible for Margin Loans. Trust Accounts without a Margin and Short Agreement are not eligible for Margin Loans.1   

The portfolio line of credit is automatically available to you the next business day after you meet the eligibility requirements and there is no application process or paperwork needed.2

Always read the associated disclosures for margin lending. M1’s margin base rate is variable and tracks the Federal Funds Rate. When the Federal Funds Rate goes up or down, the M1 base rate will follow.  

If your portfolio value declines, your account can trigger a maintenance call and we may need to sell a portion of your portfolio to cover the loan. 

If you use proceeds to buy additional securities in your M1 portfolio, the potential losses in your portfolio will be magnified.  

Learn more about these and other risks in our Margin Disclosure. 

If your account value drops so that your equity value is below our maintenance threshold, M1 will issue a maintenance call. When a maintenance call is issued for your account, you will either need to deposit additional cash or sell a portion of your portfolio to resolve the maintenance call. 

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While margin can amplify your gains, it can also magnify your losses and is not suitable for all investors. Please assess your financial circumstances and risk tolerance before trading on margin.

Learn the difference between a Margin Loan and a Personal Loan: https://m1.com/margin-loan-vs-personal-loans

*Source: https://www.lendingtree.com/credit-cards/study/average-credit-card-interest-rate-in-america/

**Source: https://www.bankrate.com/home-equity/current-interest-rates/?zipCode=10025

1 M1 Margin Loans are available on margin accounts with at least $2,000 invested per account. Not all securities are available for M1 Margin Loans and the amount that may be borrowed against a security is subject to change without notice. Available margin amount(s) of M1 Margin Loans may require greater than $2,000 per Brokerage Account. Not available for Retirement and Custodial accounts. Margin rates may vary.

2 Funds available in minutes in M1 Spend or M1 Invest accounts, may take up to 6 business days in external banks.