Intro and winners
Find below the pros of best brokers offering the most competitive margin rates in the United States, updated for 2023:
- Interactive Brokers - best broker for margin trading in 2023. Low trading fees and high interest (up to 4.83% for USD) on cash balances. Wide range of products. Many great research tools.
- moomoo - Commission-free stock and ETF trading. Fast and easy account opening. Quality analytical tools and excellent education services.
- eToro - Free stock and ETF trading. Seamless account opening. Social trading.
- Alpaca Trading - Great API trading service. Free stock & ETF trading. Fantastic charting tools.
- TradeZero - Real stocks and ETFs are commission-free. Quick and easy account opening. Excellent education and customer support.
- Webull - Free stock/ETF trading and high 5% interest on uninvested cash. Fast and easy account opening. Great trading platforms.
- SoFi Invest - Free stock and ETF trading. Fast and fully digital account opening. Great customer support.
- Zacks Trade - Low fees. Extensive stock and ETF selection. Great customer service.
- tastytrade - Low trading fees. Great educational materials. Good research tools.
- ChoiceTrade - Commission-free listed stock and ETF trades. Fast and easy account opening. User-friendly mobile trading platform.
- Intro and winners
- Overview of the best brokers for margin trading
- Stock trading fees
- Non-trading fees
- Can I trust these brokers for margin trading?
- What is a margin rate?
- Interactive Brokers
- moomoo
- eToro
- Alpaca Trading
- TradeZero
- Webull
- SoFi Invest
- Zacks Trade
- tastytrade
- ChoiceTrade
- Didn't find the best broker?
- How did BrokerChooser select the best brokers for margin trading?
Overview of the best brokers for margin trading
While many online brokers offer an excellent service, the ones in our toplist go the extra mile. Check out the interactive table below and select the services that are most important to you.
| Broker | Minimum deposit | Time to open account |
|---|---|---|
| Interactive Brokers | $0 | 1-3 days |
| moomoo | $0 | 1-3 days |
| eToro | $10 | 1 day |
| Alpaca Trading | $0 | 1 day |
| TradeZero | $250 | 1 day |
| Webull | $0 | 1 day |
| SoFi Invest | $0 | 1-3 days |
| Zacks Trade | $0 | >3 days |
| tastytrade | $0 | 1 day |
| ChoiceTrade | $100 | 1-3 days |
Margin rates at the top brokers
Our analysts collected the margin rates these brokers charge for various currencies. Check the interactive table below to compare the rates and see whether they are considered high, average or low in the brokerage industry.
| Broker | USD margin rate | GBP margin rate |
|---|---|---|
| Interactive Brokers | 6.8% | 6.7% |
| moomoo | 6.8% | - |
| eToro | 8.3% | - |
| Alpaca Trading | 8.5% | - |
| TradeZero | 9.0% | - |
| Webull | 9.5% | - |
| SoFi Invest | 9.5% | - |
| Zacks Trade | 9.8% | 9.7% |
| tastytrade | 11.0% | - |
| ChoiceTrade | 11.5% | - |
Popularity of the best brokers for margin trading
Interested in what others think? Here's how many people chose these brokers at BrokerChooser in the last 6 months.
Stock trading fees
| Broker | US stock | German stock |
|---|---|---|
| Interactive Brokers | $1.0 | $3.2 |
| moomoo | $0.0 | - |
| eToro | $0.0 | $0.0 |
| Alpaca Trading | $0.0 | - |
| TradeZero | $0.0 | - |
| Webull | $0.0 | - |
| SoFi Invest | $0.0 | - |
| Zacks Trade | $1.0 | $12.8 |
| tastytrade | $0.0 | - |
| ChoiceTrade | $0.0 | - |
Non-trading fees
| Broker | Account fee | Inactivity fee |
|---|---|---|
| Interactive Brokers | ||
| moomoo | ||
| eToro | ||
| Alpaca Trading | ||
| TradeZero | ||
| Webull | ||
| SoFi Invest | ||
| Zacks Trade | ||
| tastytrade | ||
| ChoiceTrade |
Can I trust these brokers for margin trading?
Yes, BrokerChooser exclusively recommends legit brokers, overseen by at least one globally acknowledged regulator. We track more than 20,000 brokers and trading platforms that we don't recommend. To be sure that a broker is reputable and reliable, use Scam Broker Shield tool.
Key criteria determining a broker's trustworthiness are: regulation, availability of investor protection, as well as a long and spotless track record. Explore the interactive table below, encompassing this array of vital data.
| Broker | Top-tier regulators | Trusted broker |
|---|---|---|
| Interactive Brokers | FCA in the UK, SEC in the US, and ASIC in Australia | |
| moomoo | SEC and FINRA in the US | |
| eToro | FCA in the UK, SEC in the US, and ASIC in Australia | |
| Alpaca Trading | SEC and FINRA in the US | |
| TradeZero | SEC and FINRA in the US, CIRO in Canada | |
| Webull | SEC and FINRA in the US | |
| SoFi Invest | SEC and FINRA in the US | |
| Zacks Trade | SEC and FINRA in the US | |
| tastytrade | SEC and FINRA in the US | |
| ChoiceTrade | SEC and FINRA in the US |
What is a margin rate?
As a trader, you can borrow money from your broker to buy stocks, ETFs or options. These funds don't come free, you will have to pay interest to the broker for lending them to you. Margin rates are the interest rates charged by brokerage firms on this borrowed money.
When you use borrowed funds from your broker (in addition to your own capital), you are trading on margin. Why is this good? Because it allows you to open larger positions by investing a larger amount - or as they say in brokerage lingo - by increasing your buying power.
Each brokerage sets its own margin rates, which will vary depending on the currency in which the funds are borrowed and the actual amount of the money you are lent. Margin rates tend to move in tandem with the benchmark interest rate of the currency in which you borrow. If your broker lends you USD, the margin rate will most often be the US benchmark interest rate plus a markup that the broker adds.
Trading on margin
In order to trade on margin you will need to open a special trading account at your broker, often called a margin account. In addition, you are required to deposit a certain percentage of the total investment value as collateral, which is known as the margin requirement. The remaining portion is funded by the broker.
At brokers regulated in the United States, the mandatory minimum deposit for margin accounts is $2,000. Regulations require margin traders to meet an initial margin requirement of 50% for most stocks. This means that investors must provide at least 50% of the purchase price in cash, while the remaining 50% can be borrowed from the broker.
Pattern day traders (those who execute four or more day trades within a five-business-day period) must maintain a minimum equity balance of $25,000 in their margin accounts.
Make sure you check the margin rates your broker applies, as higher rates can significantly impact your overall trading cost and potentially erode your investment gains. Additionally, you need to be aware of the risks associated with trading on margin, as losses can also be magnified in the same way that gains can be amplified.
Interactive Brokers (IBKR) is highly recommended for those seeking a broker with all-round great services at low fees.
It has an unrivaled selection of all asset types from exchanges across the globe, and offers many trading platforms with great functionality and advanced research.
The IBKR Global Trader app is a great way, even for beginners, to start trading stocks, ETFs, options and cryptos. Meanwhile, more experienced users can enjoy the complex capabilities of Trader Workstation at the other end of the spectrum.
Among the broker's drawbacks, account opening is long and tedious, some platforms may be too complex for beginner traders, and customer service can be busy.
In all, IBKR tops our list of brokerages: it is the highest-rated broker at BrokerChooser.
Recommended for traders looking for broad market access and a professional trading environment
moomoo, a relative newcomer on the US stockbroker market, provides commission-free US stock, ETF and options trading with no inactivity fees. Its value proposition is backed up by high-quality research and educational tools.
On the downside, some popular asset classes such as bonds or mutual funds are not available at moomoo. Like many similar US brokers, moomoo doesn’t offer convenient deposit/withdrawal methods such as credit/debit cards or electronic wallets.
Recommended for investors and traders looking for zero-commission trading and focusing on us markets.
eToro is an excellent choice for those interested in low-cost stock, CFD, forex and crypto trading on an outstanding mobile app. It offers free stock and ETF trading, easy account opening, and one of the best crypto selections in the industry.
Its biggest appeal is copy trading, where you can track the trades and portfolios of other users, while its trading platforms are also intuitive and easy to use, making it suitable for beginners.
It does disappoint in some areas, however: it has high non-trading fees (for withdrawal and currency conversion), inflexible account plans and an elusive customer service.
Note that eToro USA LLC does not offer CFDs, only real crypto assets are available.
Recommended for traders interested in social trading (i.e. copying other investors’ trades) and zero-commission stock trading
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal
Alpaca Securities LLC is US-based broker providing commission-free API stock trading.
Alpaca Trading provides great API tools for algorithmic trading, zero-commission stock and ETF trading, and great charting tools through a web platform. Users dedicated to learning how to use the API and the programs will find that Alpaca provides a unique service. It is a good choice for beginner investors.
On the other hand, Alpaca Trading relies heavily on its GitHub/Slack/other community forums for user support, as there is only extremely limited customer service. Furthermore, deposit or withdrawal is only possible via bank transfer. Finally, the product selection covers only US stocks, ETFs and crypto.
BrokerChooser gave Alpaca Trading a 4.7/5 rating based on analyzing 500+ criteria and testing via opening a live account.
Recommended for traders interested in algorithmic stock trading
TradeZero is a global stock broker with commission-free trading. TradeZero provides mostly commission-free stock and ETF trading. Account opening is fully online, straightforward and quick. Education materials and customer service are great. It is a good choice for beginner investors. Among some negatives, there's a quite high withdrawal fee. TradeZero offers no credit/debit card option for deposit and withdrawal. In addition, its product portfolio is limited only to stocks, ETFs and options. BrokerChooser gave TradeZero a 4.3/5 rating based on analyzing 500+ criteria and testing via opening a live account.
Recommended for investors and traders interested in commission-free trading and a focus on us stocks and options.
Webull is a relative newcomer among US stockbrokers, following in the footsteps of discount brokers such as Robinhood. Like nearly all of its competitors, Webull provides commission-free US stock, ETF and options trading with no inactivity fees.
Its trading platforms are extremely user-friendly and sport many functions, making it one of the best platforms among US brokers.
Webull’s shortcomings are also very typical of young US discount brokers. Phone support is poor, the product selection lacks popular asset classes like bonds or mutual funds, and deposit and withdrawal are via bank transfer only.
Recommended for investors and traders looking for zero-commission trading and easy platforms
SoFi Invest is a discount US stockbroker regulated by the top-tier SEC and FINRA. SoFi Invest offers commission-free US stock and ETF trading without withdrawal or inactivity fees. The account opening process is seamless, fully digital and really fast. Customer support gives relevant and quick answers. It is a good choice for beginner investors. On the down side, SoFi Invest is available only for US residents. The product portfolio is limited, covering only stocks, ETFs and cryptocurrencies. Research tools are very basic. BrokerChooser gave SoFi Invest a 4.7/5 rating based on analyzing 500+ criteria and testing via opening a live account.
Recommended for beginners and investors looking for zero-commission trading, focusing on the us market
Zacks Trade is a US discount broker that also allows international clients to open an account. It is an introducing broker to Interactive Brokers, so some of its services are very similar or even the same. Zacks Trade has low fees, including low stock/ETF fees and no inactivity fee. Its stock and ETF selection is outstanding, covering many international markets. We also liked the speed and professionalism of customer support, especially live chat support. On the negative side, the desktop trading platform and research tools are complex and not suitable for beginners. During our testing, account verification was slow and the online registration process itself is cumbersome. Lastly, we note that Zacks doesn't offer futures, forex or CFDs. BrokerChooser gave Zacks Trade a 4.4/5 rating based on analyzing 500+ criteria and testing via opening a live account.
Recommended for traders and investors looking for comprehensive research tools, a wide product selection and low fees
tastytrade (formerly known as tastyworks) is a US options and stockbroker. tastytrade is great for options trading, as its trading platform is primarily designed to trade options and trading fees are low. Furthermore, great educational and research materials are on hand to support your learning and your trading efficiency.
tastytrade focuses mainly on options and futures. You can trade US stocks and ETFs as well, but the process a bit complicated compared with other brokers. The trading platform is great for options trading, but can be intimidating for a newbie, especially as there's no demo account. There is no withdrawal fee if you withdraw funds via a linked bank account.
On the downside, bank transfer (wire) withdrawal is expensive, and credit/debit card deposit is not possible.
BrokerChooser gave tastytrade a 4.7/5 rating based on analyzing 500+ criteria and testing the broker's services by opening a live account.
Recommended for options and futures traders focusing on us markets
ChoiceTrade is a US stockbroker, regulated by top-tier US authorities the SEC and FINRA. ChoiceTrade charges no commission on listed stock and ETF trades. The mobile trading platform is user-friendly. The account opening is fully digital and fast, which is rare among US brokers. ChoiceTrade withdrawal fees - at $60 for non-US citizens and $35 for US residents - are high. The $35 quarterly inactivity fee is also pricey. Withdrawal is not user-friendly as you need to contact customer support to initiate it and only bank transfer is available You can only trade stocks, ETFs and options. BrokerChooser gave ChoiceTrade a 4.1/5 rating based on analyzing 500+ criteria and testing via opening a live account.
Recommended for stock and options traders looking for low trading fees and focusing on the us market
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How did BrokerChooser select the best brokers for margin trading?
- We checked whether the broker is regulated by a trusted regulator,
- Compared stock fees (with a special focus on margin rates) and non-trading fees (e.g. currency conversion, withdrawal and inactivity),
- Compared the number of equity markets,
- Checked minimum deposit requirements,
- Opened an account and tested the platform (charting, features, usability, customer service).
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BrokerChooser evaluates 9 key areas for all brokers including fees, safety, ease of account opening, education, and trading platforms. We check more than 500 criteria for each broker and finetune our methodology every year based on our own and our users' experiences. We have more than 100 brokers reviewed on our site and our team of analysts examines more than 50,000 data points overall.
