We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Charles Schwab margin loan review

Last updated:  

Use your investment portfolio as collateral for this line of credit.

  • Best for current Charles Schwab brokerage account holders.
  • Pick something else if you don't want to use your account as collateral.

$500,000

Max. Loan Amount

8.07% to 9.82%

APR

Details

Product NameCharles Schwab Margin loan
Min. Loan Amount$1,000
Max. Loan Amount$500,000
APR8.07% to 9.82%
Interest Rate TypeFixed

Expert review

Kellye Guinan

Review by


Kellye Guinan is a writer and editor with Finder and has years of experience in academic writing and research. Between her passion for books and her love of language, she works on creating stories and volunteering her time on worthy causes. She lives in the woods and likes to find new bug friends in between reading just a little too much nonfiction.

Expert review

A margin loan can give you access to money in your Charles Schwab investment portfolio without having to sell off any of your securities. It’s ideal if you’re looking to borrow more than $100,000 — where most providers cap out their personal loans. And its flexible repayment schedule means you won’t be tied to a fixed monthly payment.

But it comes with a great deal of risk. Should the market take a hit, you might be issued a maintenance call to deposit more funds. And interest rates can change without notice.

Don’t want to use your investment portfolio as collateral? Compare unsecured personal loan options below.

First, am I eligible?

At the very minimum, you need to meet the following criteria to qualify for a Charles Schwab margin loan:

  • Have an eligible brokerage account with Charles Schwab
  • Have at least $2,000 in cash or marginable securities

Pros

  • Draw as much as you need from your portfolio — up to 50%
  • Flexible repayment schedule
  • No extra paperwork required
  • Interest may be tax-deductible

Cons

  • Must have an eligible brokerage account
  • Borrowing on margin is risky
  • May be issued a maintenance call to deposit more funds
  • Interest rate could change without notice

Compare more personal loan options

Updated November 11th, 2019
Name Product Filter Values APR Min. Credit Score Max. Loan Amount
3.84% to 35.99%
Good to excellent credit
$100,000
Get loan offers from multiple lenders at once without affecting your credit score.
5.95% to 35.99%
Fair to excellent credit
$100,000
Get personalized rates in minutes and then choose a loan offer from several top online lenders.
6.98% to 35.89%
620
$50,000
Affordable loans with two simple repayment terms and no prepayment penalties.
3.99% to 35.99%
450
$100,000
Quickly compare multiple online lenders with competitive rates depending on your credit.
6.49% to 17.99%
650
$25,000
With over 80 years of lending experience, this credit union offers personal loans for a variety of expenses.
34% to 155% (Varies by state)
550
$10,000
Check eligibility in minutes and get a personalized quote without affecting your credit score.
6.95% to 35.89%
640
$40,000
A peer-to-peer lender offering fair rates based on your credit score.
3.84% to 35.99%
550
$100,000
Get connected to competitive loan offers instantly from top online consumer lenders.
5.99% to 17.88%
680
$100,000
No fees. Multiple member perks such as community events and career coaching.

Compare up to 4 providers

How do I apply?

You can apply for a Charles Schwab margin loan by calling 877-752-9749 or visiting your local branch to speak to an investment specialist.

What information do I need to apply?

Because the margin feature is included with your brokerage account at the time of setup, you won’t need to provide any extra information to start borrowing on margin.

What happens after I apply?

You can now begin drawing from your brokerage account by using a debit card, writing a check or requesting a wire transfer. Charles Schwab requires you to maintain a minimum amount of equity in your account — typically around 30% of the total account value.

How do repayments work with Charles Schwab?

Provided you maintain minimum equity, your margin loan will be free from a set repayment schedule. However, interest will continue to accrue until your loan is repaid. Create a repayment schedule with your financial adviser in order to mitigate risks and pay off your loan if maintenance requirements or interest rates rise.

Not sure it’s right for you? You might want to compare unsecured personal loans instead. Or explore other loans available at Charles Schwab.

Frequently asked questions

Ask an expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use and Privacy and Cookies Policy.
Go to site