Take a Closer Look at Margin Accounts
A little more knowledge goes a long way.
How Margin Trading Works
A margin account can help you get a step ahead.
This type of account allows you to borrow from your portfolio so you can get cash to seize other opportunities. We lend you the money you need using the securities in your account as collateral, which you can use to buy additional securities or withdraw the funds to pay for another expense. Like any loan, you pay us back with interest.
Weigh the risks and potential reward
Borrowing on margin amplifies the potential of return on your investment, but should stock prices take a dip, you could lose your entire investment or more. Learn more about the risks of margin trading
Add margin to an account
If you don’t already have an Ally Invest account, you can apply for a margin account in our online invest application. If you already have a margin account, give us a call or go online to request funds. If you have an Ally Invest account that doesn’t have margin, log in to your account and select All Settings from the Settings dropdown. Select Add Margin to My Account. You need to have a minimum of $2,000 in your account to borrow or buy on margin. Learn more about margin requirements
You can see how much is available for withdrawal in the Cash & Balances tab of your Holdings page. Initiate a transfer in the Transfers dropdown to move the money to another account or request a check.
When you choose to buy on margin, you simply put the money toward the securities you want. You can see how much buying power you have for stocks and options in the Cash & Balances tab of your Holdings page. When you go to purchase the securities, it will automatically be purchased on margin.
Calculate Potential Returns or Losses
See an example of margin trading in action with our margin trading calculator.
These amounts don’t include interest or fees. The example assumes you can borrow up to 50% of your account value, but the percentage can vary depending on the security.
You can mitigate these risks by borrowing in smaller amounts and by monitoring the value of the securities to prevent a margin call.
Keep in mind
Because the market values of stock frequently change, both up and down, there is always a risk that the value of the stock you use as collateral for cash or trading could dip below the amount you borrowed against. In that case, you would need to repay the difference in cash or contribute more securities to cover it.
Margin Account Rates
Our margin rates are tiered, so the higher your loan amount, the lower your interest rate.
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