Trading Commissions and Margin Rates | Fidelity (2024)

$0.00 commission applies to online U.S. equity trades, exchange-traded funds (ETFs) and options (+ $ 0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). There is an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change. Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different commission schedules.

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.

*

9.25% rate available for debit balances over $1,000,000. Fidelity's current base margin rate, effective since 7/28/2023, is 12.325%.

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses.

For iShares® ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares®ETFs and inclusion of iShares®funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares®are registered trademarks of BlackRock Inc., and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt, and is not suitable for all investors. Please assess your financial circ*mstances and risk tolerance before trading on margin. Margin credit is extended by National Financial Services, Member NYSE, SIPC.

System availability and response times may be subject to market conditions.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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Trading Commissions and Margin Rates | Fidelity (2024)

FAQs

What is the margin rate in trading? ›

Margin rates determine how much it costs to borrow money from your broker for trading. You can calculate how much a margin trade will cost you knowing just the margin rate, the total amount you want to borrow, and the number of days you plan to keep your trade open.

Which brokerage has the lowest margin rates? ›

Interactive Brokers (IBKR) has made having the lowest margin rates a key selling point. Interactive Brokers margin rates are consistently lower than the industry averages at every level.

How much are trading commissions? ›

In terms of all these costs, online trading fees can range from a few dollars to as much as $20 per trade, depending on the brokerage. These fees can be associated with stocks, mutual funds or ETFs. The typical industry standard fee for options trading is $0.65 to $1 per contract.

What is the margin percentage for brokerage? ›

Brokerage customers who sign a margin agreement can generally borrow up to 50% of the purchase price of new marginable investments (the exact amount varies depending on the investment).

Is 20% margin too much? ›

As a rule of thumb, 5% is a low margin, 10% is a healthy margin, and 20% is a high margin. But a one-size-fits-all approach isn't the best way to set goals for your business profitability.

What is Schwab's margin interest rate? ›

Review our current margin rates.
Debit balanceMargin rateEffective rate
US$0 - US$24,999.99Base rate + 1.825%13.575%
US$25,000 - US$49,999.99Base rate + 1.325%13.075%
US$50,000 - US$99,999.99Base rate + 0.375%12.125%
US$100,000 - US$249,999.99Base rate + 0.325%12.075%
1 more row
Jul 28, 2023

Who has the cheapest trade fees? ›

NerdWallet's Best Discount Brokers of June 2024
  • Robinhood.
  • Interactive Brokers IBKR Lite.
  • Charles Schwab.
  • E*TRADE.
  • Webull.
  • J.P. Morgan Self-Directed Investing.
  • SoFi Active Investing.
  • Firstrade.

Which brokerage firm has the lowest commission? ›

1) Zerodha: Zerodha is one of the leading discount brokers in India known for its low brokerage charges and advanced trading platforms. They charge a flat fee of Rs. 20 per trade across all segments without any hidden fees or minimum turnover requirements.

Which broker gives free margin? ›

Brokers offering Margin Against Shares
BrokerBrokerage (Eq Intraday)Brokerage (Eq Options)
Kotak SecuritiesFreeDelivery: Rs 20 per trade | Intraday: Free
HDFC Securities0.032%Rs 20 per trade
Motilal OswalRs 0 (Free for lifetime)Rs 20 per lot
Sharekhan0.02% on market rate or minimum 1 paisa per shareRs 20 per lot
16 more rows

What is Fidelity's margin rate? ›

Fidelity's current base margin rate, effective since July 28, 2023, is 12.325%.

How much does Schwab charge per trade? ›

Option Commissions per Executed Trade
Online$0 base commission, plus $0.65 per-contract fee
Automated Phone$5, plus $0.65 per-contract fee
Broker-Assisted$25, plus $0.65 per-contract fee

How much does Fidelity charge per trade? ›

$0.00 commission applies to online U.S. equity trades, exchange-traded funds (ETFs), and options (+ $0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients.

What are TD Ameritrade margin rates? ›

No. Margin rates for trading stocks, ETFs and other assets are high at TD Ameritrade..
CurrencyMargin rate valueIndustry average*
USD14.8%9.92%
GBP-6.97%
EUR-6.0%

How to avoid margin interest? ›

Margin calls are due immediately and in some cases securities may be sold without notification to you. It's smart to leave a cash cushion in your account to help reduce the likelihood of a margin call. Regulations require that you maintain a minimum of 25% equity in your margin account at all times.

Who has the best margin rate? ›

Best brokers for margin trading in 2024
  • eToro. Margin score: 4.2/5. ...
  • Alpaca Trading. Margin score: 4.0/5.
  • TradeZero. Margin score: 3.9/5.
  • Webull. Margin score: 3.8/5.
  • Zacks Trade. Margin score: 3.6/5.
  • tastytrade. Margin score: 3.4/5.
  • SoFi Invest. Margin score: 3.3/5.
  • J.P. Morgan Self-Directed Investing. Margin score: 3.3/5.
6 days ago

What is a good margin level in trading? ›

A good margin level is typically considered to be above 100%. A margin level of 100% indicates that a trader's equity equals the used margin, which is the minimum level required to keep positions open.

What does a 20% margin mean? ›

The profit margin is a financial ratio used to determine the percentage of sales that a business retains as earnings after expenses have been deducted. For example, a 20% profit margin indicates that a business retains $0.20 from each dollar of sales that it makes.

Is a 70% margin good? ›

Generally, a gross profit margin of between 50–70% is good and anything above that is very good. A gross profit margin below 50% is usually not desirable – though lower margins can still be sustainable for businesses with lower operating costs.

Is 30% a good margin? ›

In most industries, 30% is a very high net profit margin. Companies with a profit margin of 20% generally show strong financial health. If this metric drops to around 5% or lower, most businesses will need to make changes to remain sustainable.

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