Discover the potential benefits of margin borrowing

A margin loan from Schwab can provide these key advantages:

Increased investment returns: Buying on margin allows you to own more securities than you could on a cash-only basis and potentially enjoy a greater return on your investment capital. Schwab’s margin account also enables investors to sell short and potentially profit from downward price movements.

Trading flexibility: Take advantage of timely market opportunities or make investment changes when you want.

Stay invested: Keep your investment strategy on track and defer any capital gains taxes that might result from selling securities to meet your financing needs.

Portfolio diversification: If you hold a concentrated stock position, you can use margin to diversity your portfolio.

Convenience: Borrow at any time once your margin account is approved and in place. No additional forms or applications are required. Simply place a trade or withdraw funds using a Schwab One® check or Schwab One Visa debit card. Margin is not available for all account types.

Repayment simplicity: There is no set repayment schedule, as long as you maintain the required level of equity in your account.

Competitive interest rates: Margin borrowing is generally more cost-effective than many other consumer lending options, and Schwab’s rates are among the lowest available today. In addition, reduced rates may be available for qualified borrowers.

Ready line of credit: Margin can be used for most of your personal financial needs without a separate application.

Tax deductibility: Interest on margin loans may be tax deductible against your net investment income. Please consult your tax advisor about your situation.

Margin borrowing carries some risks and may not be right for everyone. It is important that you fully understand your financial situation, the rules of margin borrowing, and conditions that may affect your investments.

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