Borrow Against the Power of Your Portfolio
Margin uses a flexible short-term financing approach to help investors quickly access additional shares and money.*
What can an Axos Invest margin account do for you?
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Help you make larger stock or ETF purchases without selling other assets.
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Low rates. No fees. That’s how smart investors build portfolios.
With straightforward pricing and rates as low as 7%,1 you have the potential to build faster and borrow more.
6 Benefits of Having an Axos Invest Margin Account.
Margin trading increases your potential investing power but has additional risks. Before starting with any margin trading service against your portfolio, you should take the time to understand your responsibilities.
Low-cost, flexible rates with no hidden fees.
Whether you buy securities or borrow cash using a line of credit, your Axos margin rate is the same. And Axos Elite members save even more.
Actively trade the stocks and ETFs of your choice.
Plus, as long as you’ve held your mutual funds for 30 days, they can be used to increase buying power. And mutual fund trading is always free at Axos Invest.
Add options
trading.
Margin accounts are also eligible to trade options. And Axos Elite members get a 20% discount (subject to approval).
Leverage the full power of Axos.
Use your margin account as a short-term line of credit, conveniently moving funds across your various Axos accounts.
Licensed, US-based support.
Margin doesn’t have to be confusing. Our Relationship Mangers are available to you at no-cost, commission free. Let’s talk. Call 888-585-4965 or email us at [email protected].
Fast access to
funds.
100% of your qualifying deposit is available to be used in your margin account within the first 24 hours. Cash infusions can help build buying power.
Competitive pricing = more value for your money.
| Debit Balances | Standard Rates | Elite Rates† |
|---|---|---|
| $2,000 - $24,999.99 | ACBR†† + 2.50% | ACBR + 2.00% |
| $25,000 - $99,999.99 | ACBR + 2.00% | ACBR + 1.50% |
| $100,000 - $499,999.99 | ACBR + 1.50% | ACBR + 1.00% |
| $500,000 - $1,000,000 | ACBR + 1.00% | ACBR + .50% |
| Over $1,000,000 | ACBR + .50% | ACBR + .25% |
What is margin trading, and is it right for you? To answer that, first consider this analogy. Margin trading is to self-directed investing as flying the space shuttle is to piloting a plane. In other words, the rewards can be out of this world, but the risks and necessary skill are also exponentially higher. Let's explore why. Margin trading essentially involves borrowing money to invest in stocks or ETFs using your cash or equities as collateral. The benefit is the ability to expand your buying power with the potential to increase your profits, assuming your stocks or ETFs appreciate. But the opposite can also be true if the market behaves unexpectedly. Then you're out not only the amount of your loan, but your own money as well. Here's a simple example. With stocks selling for $50 per share and $5,000 in your account, you could afford up to 100 shares with a straight stock purchase. But with a margin account, you could have up to $5,000 of additional buying power, $10,000 total, and by an additional 100 shares. Stocks increase, let's say to $60 per share. Your stock is now worth $12,000. Even with paying back the $5,000 plus interest, you're still ahead and leveraged extra buying power. Stocks decrease, let's say to $40 per share. It's now worth $8,000 and you still have to pay back the $5,000 in margin plus interest. As you can see, margin trading has potential for profit and losses. You will need to have more capacity for risk, more market research, additional resources in case your loan becomes due, and a commitment to keep your eyes on the market so you can quickly respond as things change. Still interested? Explore our resource on getting started with margin trading and then do your own research so you're fully informed of the risks and liabilities.
Understand the Risks;
Decide if Margin is Right for You.
Understanding your potential risk is fundamental to deciding if margin trading is right for you.
Covering Losses
A margin call happens when your equity percentage drops below a minimum 30%.3 You may then be required to deposit additional funds or liquidate securities.
Interest Due
Whether using margin to buy more securities or take money out, your margin interest accrues monthly.
Market Ups & Downs
You could stand to lose more than your original investment if the price of the securities you own on margin move against you.
Rate Fluctuations
Margin interest rates are based on the broker call rate and standard monetary policy. They’re subject to change, so your account could incur added costs.
Loan Repayment
All margin loans need to be repaid eventually, no matter how much your securities are worth. But unless you receive a margin call, the timing is up to you.
How margin trading works.
This margin trading example shows how to purchase 100 shares of a $50 stock on margin:
| You invest | $2,500 of your funds |
| You borrow | $2,500 on margin |
| Total stock purchase | $5,000 |
| Gain example | Loss example | |
|---|---|---|
| Stock performance |
Rises to $60 | Falls to $40 |
| New value for 100 shares |
$6,000 | $4,000 |
| Repayment amount** |
($2,500) | ($2,500) |
| Value remaining after repayment |
$3,500 (Profit $1,000) |
$1,500 (Loss $1,000) |
| Stock Performance | Rises to $60 |
| New Value for 100 Shares | $6,000 |
| Repayment Amount* | ($2,500) |
| Value Remaining After Repayment | $3,500 (Profit $1,000) |
| Stock Performance | Falls to $40 |
| New Value for 100 Shares | $4,000 |
| Repayment Amount* | ($2,500) |
| Value Remaining After Repayment | $1,500 (Loss $1,000) |
**Excluding interest and fees, amounts presented for purchase are based on initial purchase amounts. Market activity (gains or losses) are truly hypothetical in nature.
You can apply for margin lending on your account, but please note that margin lending is subject to approval.
Get Margin Trading with Axos Elite
Want a hands-off approach? Check out Managed Portfolios