Margin Loans

Get a flexible line of credit for short-term financing needs with a margin loan from Grandwood.

The Advantages of Margin Loans

Increased buying power

Trading on margin allows you to buy more securities than you could on a cash-only basis

Flexible line of credit

Borrowing on margin gives you a flexible line of credit without additional paperwork or closing fees

How margin rates

Grandwood's margin rates are among the lowest available in the industry

How Margin Loans Work

A margin loan is a flexible line of credit that allows you to borrow against the value of securities you already own. Whether you want to increase your borrowing power to purchase more securities or looking for a source of flexible borrowing for short-term financing needs, a margin loan from Greenwood can help you gain access to funds. When used correctly, a margin loan can help you execute your investment strategies. Before you begin, it is important to understand and weigh both the benefits and risks associated with margin trading.

Guide to Margin

For more information about margin loans, refer to our Margin Education section.

Benefits

Enjoy these benefits of margin trading accounts:

The ability to leverage your investments
The ability to short sell a stock and profit from price declines
Increased returns when the value of your holdings moves in your favor
Avoid cash account violations caused by unsettled funds
Diversify your portfolio by using margin buying power
Short-term financing option without any additional paperwork or fees
Interest on margin loans may be tax deductible against your net investment income (consult with your tax advisor).

Ricks

Understand the potential risks:

Potential margin calls
Increased potential loss if your securities decline in value
Possible greater losses than your original investment
Rise in interest rates may increase the cost of your loan
The firm can force the sale of securities or other assets in your account
You are not entitled to choose which securities or other assets in your accounts are liquidated or sold to meet a margin call.

The Advantages of Margin Loans

Make sure you understand the risks and benefits of using margin

Have at least $2,000 of assets in your account

Complete the Margin Application & Agreement online

Once approved, you can start enjoying the benefits and flexibility that margin offers

Need Help? U.S. Toll Free 1.800.869.8800 Outside the US 1.718.961.6600

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Brokerage Products and Services offered by Grandwood Limited.

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Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors. An investor should understand these and additional risks before trading. Carefully consider the investment objectives, risks, charges and expenses before investing. All investments involve risk and losses may exceed the principal invested. Past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Grandwood is a discount broker that provides self-directed investors with brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice.

Options trading involves risk and is not suitable for all investors. Options trading privileges are subject to Grandwood review and approval. Please review the Characteristics and Risks of Standardized Options brochure before you begin trading options.

ETF trading involves risks. Before investing in an ETF, be sure to carefully consider the fund’s objectives, risks, charges, and expenses. Please read the prospectus carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. ETF Information and Disclosure.

Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or ETF carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A mutual fund or ETF prospectus contains this and other information and can be obtained by emailing service@grandwood.io.

Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation. For more information please see Margin Disclosure Statement, Margin Agreement, and FINRA Investor Information. These disclosures contain information on our lending policies, interest charges, and the risks associated with margin accounts.

Online trades are $0 for stocks, ETFs, options and mutual funds. See our Pricing page for detailed pricing of all security types offered at Grandwood. All prices listed are subject to change without notice.

Any specific securities, or types of securities, used as examples are for demonstration purposes only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.

This is not an offer or solicitation in any jurisdiction where Grandwood is not authorised to conduct securities transaction.

System response and access times may vary due to market conditions, system performance, and other factors.