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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.

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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

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Add margin to an account

If you don’t already have an Credence Global Bank Invest account, you can apply for a margin account in our Credence Global Bank Invest application. If you have an Credence Global Bank 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.

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Borrow

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.

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Buy

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.

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 Credence Global Bank Invest account, you can apply for a margin account in our Credence Global Bank Invest application. If you have an Credence Global Bank 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.

Learn more about margin requirements

Borrow

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.

Buy

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.

Potential returns or losses.

See an example of margin trading in action.

Purchase Price = $30/share

 

Using your own money, you could purchase 1,000 shares at $30 per share. If you use margin, you can increase the number of shares you can buy. Let’s say you buy 1,500 shares. At this point your total portfolio with margin would be $45,000, instead of the $30,000 you could’ve bought with just your money.

Stock price increases to $50/share

 

The value of the stock you bought goes up to $50. With the 1,500 shares you bought on margin, your total portfolio is worth $75,000. If you decide to sell at this point, you still have to pay back the $15,000 loan but your gains would be $10,000 more than if you had only used your money instead of margin.

Stock price decreases to $20/share

 

The value of the stock you bought goes down to $20. With the 1,500 shares you bought on margin, your total portfolio is worth $30,000. If you decide to sell at this point, you still have to pay back the $15,000 you borrowed, so you’re actually left with $15,000. If you hadn’t borrowed on margin, you’d have $20,000 of your money left.

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 the prevent a margin call.

Keep in mind

Because the market values of stock frequently change, both up and down, there is alwyas 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

Explore margin account rates.

Our margin account rates are tiered, so the higher your loan amount, the lower your interest rate.

MARGIN BALANCE Credence Global Bank INVEST TD AMERITRADE E*TRADE WELLS TRADE
$1,000,000+ 5.00% 7.00% 7.75%
$500,000 - $999,999 5.75% 8.25% 8.00% 8.25%
$250,000 - $499,999 6.25% 8.25% 8.50% 8.75%
$100,000 - $249,999 7.25% 8.50% 9.00% 9.25%
$50,000 - $99,999 8.50% 8.75% 9.50% 9.75%
$25,000 - $49,999 9.25% 9.75% 10.00% 10.25%
$10,000 - $24,999 9.50% 10.00% 10.25% 10.75%
$.01 - $9,999 9.50% 10.25% 10.50% 10.75%

View Details and Disclosures

Straight Talk Fees Guide

Learn more about margin requirements

Learn even more about margin accounts.

An informed trader is a smarter trader.

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Long Common Stock on Margin

Day Trading Rules and Leverage

Short Selling Explained: An Introduction

View all Credence Global Bank Invest Education

6 Things to Know Before You Trade

Long Common Stock on Margin

Day Trading Rules and Leverage

Short Selling Explained: An Introduction

View all Credence Global Bank Invest Education

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Straight Talk Fees Guide

With any investing approach, high expenses can have a big impact on your returns. That's why we have affordable, competitive fees and low commissions that won't get in the way of your financial goals.

Regulatory Fees

  • SEC

    $0.0218 per $1,000 principal (sells only)

  • ORF (Options Regulatory Fee)

    $0.0381 per contract (buys and sells)

  • TAF (Trading Activity Fee)

    $0.000119 per share (equity sells)

  • TAF (Trading Activity Fee)

    $0.002 per contract (option sells only)

Financial Industry Regulatory Authority (FINRA) transaction fee (TAF) This fee is charged on all stock and ETF sales at a rate of $.000119 per share with a minimum charge of $0.01 and a maximum charge of $5.95. This fee is rounded up to the nearest penny. Bonds are also subject to a TAF fee and can be charged up to $0.75 per bond traded, regardless of the bond's par value.

Credit Interest

Cash balances do not currently earn interest. You may request that your account be enrolled in an interest-bearing Federal Deposit Insurance Corporation (FDIC) insured deposit sweep program. See current yield and additional information

Individual Retirement

  • IRA Annual Fee

    None

  • IRA Transfer Fee

    $50.00

  • IRA Closure Fee

    IRA closure fee is charged for full IRA distributions and full ongoing account transfers.

    $25.00

Service Fees

  • ACAT Transfer Out

    $50.00

  • Partial ACAT Transfer Out

    $50.00

  • Outgoing Domestic Wire Transfer

    $30.00

  • Overnight Delivery

    $50.00

  • Check Withdrawal

    $5.00

  • Check Stop Payment

    $30.00

  • Returned Checks

    $30.00 Plus interest for any trades from the earlier of the settlement date or date of deposit

  • Returned ACH

    $30.00

  • Returned Wires

    Applies to attempted third-party wires

    $30.00

  • Pre Pay Settlement Fee

    $20.00

  • Stock Certificate Deposit DTC Rejection Fees

    $175.00

  • Stock Certificate Deposit Processing Fee

    Commission on stock certificate deposited into Credence Global Bank Invest will be equal to 5% of the principal amount of the trade. Stock Certificates cannot be used to fund a new account.

    $300.00 per certificate

  • Non-transferable security charge per position.

    $20.00 per month

  • Vault Fee

    Restricted certificates held for missing paperwork, certificates for securities that are not DTC eligible, etc.

    $60.00 per year charged monthly

  • Outgoing DTC

    Electronic delivery of individual certificates via Depository Trust Company

    $25.00 per position

  • DWAC Transfer Fee Per Position

    $50.00 + Any transfer agent fees up to $150.00

  • DRS Transfer Fee Per Position

    $115.00 per position

  • Paper Statements

    $4.00 per account statement

  • Phone Assisted Orders

    $20.00 + regular commission

  • Limited Trading Authorization (LTA) paper statement fee

    Required for all accounts that have LTA

    $4.00 per account statement

  • Paper Confirmations

    $2.00

  • 1099 Request for Exempt Accounts

    $50.00

  • Tax document requests by fax and regular mail

    $50.00

  • Option Exercise

    $9.95

  • Option Assignment

    $4.95

  • Option Position Management

    $100.00 + regular commission

  • Option Expiration Sellouts

    $40.00 + regular commission

  • Margin Sellouts

    $40.00 + regular commission

  • Restricted Accounts, and Broker-Assisted Trades

    $20.00 + regular commission

  • Short Stock

    Loan charges on hard to borrow stock.

    Daily charge at cost

  • Worthless Securities Processing

    $30.00 Other fees may apply

  • Reg T Extension

    $10.00 + interest to settlement date

  • Foreign Stock Transaction Fee (not ADRs)

    $50.00 + regular commission

  • Foreign Stock Incoming Transfer Fee

    $50.00 per position

  • ADR and other foreign stock semi-annual charges

    At cost

  • Voluntary Reorganization

    $50.00

  • Entity Account Opening Fee

    None

  • Entity Account Annual Fee

    None

  • Index Products

    Credence Global Bank Invest charges this additional per contract cost on certain index products where the exchange charges fees. See a full list of index options that incur additional fees.

    $0.35 per contract

  • Penny Stocks

    For stocks priced less than $2.00, there’s an additional penny per share charge and the maximum commission per order generally doesn’t exceed 5% of the trade value.

    $0.01 per share

  • OTCBB and Pink Sheet Stocks

    Minimum investment of $100 per trade

  • Unit Investment Trust

    Purchase: $0 (Subject to charges from the UIT), Sale: $9.95

Other Transfer Agent and Trade Settlement charges for certain securities may be passed through to you by our clearing firm.

Margin Account Details

The base rate of 3.75% is set at Credence Global Bank Invest Securities' sole discretion with reference to commercially recognized interest rates, such as the broker call loan rate. All rates are tiered using the Base Rate plus a standard percentage. Base rates and balance tiers are subject to change without notice.

 

Commissions and fees from published web sites as of 10/09/2019. Some brokers may offer more competitive fees than the ones published if certain balances or level of activity are met. Please contact each broker individually to confirm their commission schedule. Rates are negotiable for active traders. Contact us to learn more.

Margin Requirements

Long Stocks

Long Stock: Equities between $3.00 and $6.00

  • Initial and Maintenance

    50% of purchase price

Long Stock: Equities above $6.00

  • Initial

    50% of purchase price

Maintenance

30% of current market value (50% for concentrated accounts, when one security constitutes 50% or more of the account market value, 40% when one position constitutes 35-50% of the account market value and 35% when a position constitutes 25-35% of the account value).

Short Stocks

Short Stock: Equities below $5.00

Initial and Maintenance

The greater of: $2.50 per share

OR

100% of the market value + sale proceeds

Credence Global Bank Invest does not allow new short positions on stocks below $5.00.

Short Stock: Equities above $5.00

Initial

The greater of: $5.00 per share or 50% of the market value + sale proceeds

Maintenance

The greater of: $5.00 per share + 100% of current market value
OR
40% of the position market value (50% for concentrated accounts, when one security constitutes 50% or more of the account market value) + 100% of current market value

Options

Note about OEX and XAU Options American Style Cash settled options: Options trades and positions involving OEX and XAU options must be held in a level 6 approved option account with minimum account equity of $100K.

Options: Short Uncovered (Naked) CALLS

In and Out of the Money Calls

Initial and Maintenance

The greater of: 30% of the underlying MARKET price plus the premium minus any out-of-the-money amount

OR

15% of the underlying MARKET price plus the premium

Credence Global Bank Invest maintains a minimum margin requirement of $100 per uncovered short options contract.

Options: Short Uncovered (Naked) PUTS

In-the-Money PUTS

Initial and Maintenance

The greater of: 30% of the underlying MARKET price plus the premium

OR

15% of the underlying STRIKE price plus the premium

Out-of-the-Money PUTS

Initial and Maintenance

The greater of: 30% of the underlying MARKET price plus the premium minus the out-of-the-money amount

OR

15% of the underlying STRIKE price plus the premium

Credence Global Bank maintains a minimum margin requirement of $100 per uncovered short options contract.

Options: Covered Calls

Initial

Initial margin requirement on long stock (50% of long stock position). Long underlying position must be valued at lower of current market value or call exercise price for margin equity purposes.

Maintenance Margin

Maintenance margin requirement on long stock (30% of long stock position. 65% if concentrated).

Options: Covered Puts

In-the-Money PUTS

Initial

Initial margin requirement on short stock (minimum of 50% of the short stock market value plus sale proceeds, please see above for short stock requirements) + the in the money amount of the short options.

Maintenance

Maintenance margin requirement on short stock (minimum of 40% of the short stock market value plus sale proceeds, please see above for short stock requirements) + the in the money amount of the short options.

Out-of-the-Money PUTS

Initial

Initial margin requirement on short stock (minimum of 50% of the short stock market value plus sale proceeds, please see above for short stock requirements).

Maintenance

Maintenance margin requirement on short stock (minimum of 40% of the short stock market value plus sale proceeds, please see above for short stock requirements).

Options: Credit Spreads/Short Verticals

Initial and Maintenance

Difference between the strike prices multiplied by the number of contracts (x100).

Options: Short Straddles/Strangles

Initial and Maintenance

The initial margin requirement for the short put or short call, whichever is greater, plus the premium of the other option.

Options: Short Call or Put Calendar Spreads

Initial and Maintenance

Same requirements of the short call or put.

Options: Short Butterflies/Condors

Initial and Maintenance

Same requirements of the short vertical spread of the butterfly or condor.

Options: Call or Put Back Spreads

Initial and Maintenance

Same requirements of the short vertical component of the backspread.

Options: Call or Put Ratio Spreads

Initial and Maintenance

Same requirements of the quantity of short options in excess of the quantity of long options.

Options: Short Box Spreads

Initial and Maintenance

Initial margin requirement is the difference between the long and short strike prices.

Options: Short Iron Butterflies/Condors

Initial and Maintenance

Initial margin requirement is on one of the short verticals of the iron wingspread.