Best Margin Trading Platforms & Exchanges of November 2024

Margin trading offers online traders with the ability to trade with more capital than they have in their balance. The best margin trading platforms are those that provide competitive fees while following trading regulations.

Below you will fine the top brokers for margin trading in various markets such as stocks, futures, ETFs, CFDs and forex.

What is Margin Trading?

Margin trading is an efficient way to increase returns and grow your portfolio. Whether you trade cryptocurrencies, stocks, ETFs, commodities, or currencies, you can increase the dollar value of your positions by borrowing money from your broker. For example, when using 2:1 leverage (50% margin), you can open up a $10,000 trading position with only $5,000 of your own funds.

How Does Margin Trading Work?

To enjoy the benefits, you first need to open up a margin-eligible account. Thereafter, you can borrow funds from your broker (which is easily done using any of the above brokers’ online platforms) and use the financing to purchase nearly any asset.

Remember though: if your position increases in value, the return is much higher than an all-cash purchase. However, if your equity value falls below the brokers’ maintenance margin (often 25% to 35% of the total position), the broker can issue a margin call and ask you to deposit more money. If you don’t, the broker has the right to sell all of your holdings.

Is There Much Risk Involved In Margin Trading?

Yes, there is a significant amount of risk involved in margin trading. Margin trading allows traders to use borrowed funds to increase their trading position, which can amplify potential profits but also increases the risk of losses.

One of the biggest risks of margin trading is the potential for margin calls, which occur when the value of the assets being traded falls below a certain level. When this happens, the broker may require the trader to deposit additional funds into their account to cover the loss or risk the liquidation of their position.

Additionally, margin trading can be more volatile and unpredictable than traditional trading, as the use of leverage can result in large swings in profit or loss in a short period of time.

Margin trading can be a useful tool for experienced traders who are able to manage their risks effectively, but it is not recommended for beginners or those who are not comfortable with taking on additional risk. It is important to thoroughly understand the risks involved in margin trading and to use it judiciously and with caution.

Top Margin Trading Platforms Reviewed

Separating the wheat from the chaff, it takes more than a pretty face to make our list of the best margin trading platforms. Excelling in everything from margin limits, financing rates, account fees, and platform features, our nine candidates continue to outperform the competition.

1. Plus500 – The Best Broker for Margin Trading CFDs

Plus500 is the best margin trading platform for CFDs. Offering a $100 account minimum and no withdrawal fees, Plus500 offers 30:1 leverage (3.33% margin) on nearly all of its tradable assets. What’s more, if you become a Professional Client, you can increase your maximum leverage to up to 300:1 (0.33% margin). However, to qualify, you must meet the following requirements:

• Maintain sufficient trading activity over a 12-month period
• Have a portfolio of at least €500,000

To support advanced trading strategies, Plus500 offers a free paper trading account that can be used to trade with up to $50,000 in virtual funds. Users can switch between live and demo trading easily and the demo account provides access to the entire Plus500 trading platform.

Likewise, all of Plus500’s platform features work seamlessly on Apple iOS and Android devices. This makes it a suitable option for active traders who are looking to manage their portfolio on the go.

80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. eToro – Overall Best Margin Trading Exchange

Whether it’s currencies, commodities, ETFs, or cryptocurrencies, eToro can finance your positions with the maximum available leverage. Far and away from the best margin trading platform, not only are eToro’s margin limits exceptional, but the broker strictly adheres to regulations set forth by the European Securities and Markets Authority (ESMA). The overall features, safety, and regulation also make it a site for beginner traders.

See for yourself:

• 30:1 leverage for major currency pairs (3.33% margin)
• 20:1 leverage for non-major currency pairs, gold, and major indices (5% margin)
• 10:1 leverage for commodities (ex. gold) and non-major equity indices (10% margin)
• 5:1 leverage for CFDs, stocks, and ETFs (20% margin)
• 2:1 leverage for cryptocurrencies (50% margin)

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

In addition, not only does eToro provide access to more than 2,400 stocks and 17 international markets with trades that always execute commission-free, but overnight lending fees are calculated using a standardized formula. More than just lip service, instead of surprising you with hidden charges and random fees, eToro clearly displays all charges BEFORE you finalize your trade.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Note: Only cryptocurrencies eToro customers in the United States will be able to trade on the platform will be Bitcoin, Bitcoin Cash, and Ethereum.

3. Libertex – Best Margin Trading Platform for US Professional Investors

Clearly in the running for the best online broker for margin trading, Libertex ensures that all clients that are active traders can trade with maximum leverage. Providing access to online stocks, ETFs, commodities, currencies, CFDs, and cryptocurrencies, Libertex makes margin trading a breeze.

Like eToro, its margin limits are as follows:

• 30:1 leverage for major currency pairs (3.33% margin)
• 20:1 leverage for minor currency pairs, gold, and major indices (5% margin)
• 10:1 leverage for commodities other than gold and minor indices (10% margin)
• 5:1 leverage for individual equities and other reference values (20% margin)
• 2:1 leverage for cryptocurrencies (50% margin)

What’s more, if you become a Professional Client – which requires that you make an average of 10 trades per quarter, have a portfolio value of more than €500,000 and/or have at least one year of experience in the financial services industry in a professional role – you can access leverage of up to 600:1 (0.167% margin).

Libertex is unavailable to US and UK traders.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

4. Robinhood – Best Margin Trading Exchange for American Depositary Receipts (ADRs)

With no account minimum and 0% commissions, Robinhood is home to quality execution, transparent fees, and the highest security standards. Case in point: while the broker is a member of the Securities Investor Protection Corporation (SIPC) – which protects accounts up to $500,000 (including $250,000 for claims for cash) – Robinhood also insures 100% of direct losses that occur due to unauthorized account activity.

In addition, because best-in-class security is embedded on one of the best margin trading platforms, managing your investments on Robinhood never felt so good when you open a brokerage account with them.

Regarding margin limits, Robinhood adheres to the U.S. Federal Reserve Board’s Regulation T – which requires a $2,000 minimum account balance and allows for 2:1 leverage (50% margin). And while Robinhood’s maintenance margin – the equity value of your position that needs to be maintained at all times – varies depending on “volatility and market liquidity,” typical percentages range from 25% to 35%.

There is no guarantee that you will make money with this provider. Proceed at your own risk..

5. TD Ameritrade – Best US Margin Trading Broker for Advice and Support

Increasing your buying power with more leverage than a standard margin account, TD Ameritrade is one of the best margin trading platforms and stock brokers in the USA.

Dubbed ‘portfolio margin’, TD Ameritrade uses -15% and +15% risk bands for stocks and options and -12% and +10% risk bands for large and small-cap broad-based indices. Doing a little math, this works out 6.7x leverage for stocks and options, and 8.33x to 10x leverage for large and small-cap indices. However, to qualify for portfolio margin, you must have a minimum account balance of $125,000 and maintain a 30% maintenance margin at all times.

For accounts that are less than $125,000, TD Ameritrade adheres to the U.S. Federal Reserve Board’s Regulation T, which again, requires a minimum account balance of $2,000 and allows for up to 2:1 leverage (50% margin).

On TD Ameritrade’s platform, you can trade stocks, ETFs, bonds, CDs, options ($0.65 commission per contract), non-proprietary mutual funds, futures, and currencies. For the majority of assets, trades execute commission-free, and TD Ameritrade also provides free access to interactive courses, webcasts, and the most advanced technical analysis tools.

There is no guarantee that you will make money with this provider. Proceed at your own risk..

6. Fidelity – Best Platform for Margin Trading for Research & Analysis

Home to both standard margin and portfolio margin (for account balances of $100,000 to $150,000), Fidelity is clearly one of the best margin trading brokers in the USA and one of the best online brokers in the business.

Like Robinhood and TD Ameritrade, Fidelity adheres to the U.S. Federal Reserve Board’s Regulation T. As such, a minimum account balance of $2,000 can access up to 2:1 leverage (50% margin). However, like TD Ameritrade, portfolio margin accounts enjoy much higher leverage.

But in a unique fashion, Fidelity offers ‘limited margin’ for retirement accounts. To qualify, you need a minimum account balance of $25,000.

And instead of borrowing directly from Fidelity, the broker allows you to finance new trades with funds from unsettled transactions (which would otherwise trigger a good faith violation).

There is no guarantee that you will make money with this provider. Proceed at your own risk..

7. Interactive Brokers – The Best Starter Margin Trading Platform with Cheap Financing

Like TD Ameritrade and Fidelity, Interactive Brokers offers both standard margin and portfolio margin accounts. Within a standard margin account, clients are subject to the margin limits of the U.S. Federal Reserve Board’s Regulation T ($2,000 account minimum and 2:1 leverage/50% margin). Likewise, to be eligible for a portfolio margin account, you must have a minimum account balance of $110,000.

However, Interactive Brokers allows you to trade U.S. listed stocks and ETFs commission-free and you can access tradable assets on 28 exchanges across 14 countries. What’s more, while commissions on options ($0.15 to $0.65 per contract) and futures ($0.25 to $0.85 per contract) are extremely competitive, even lower margin rates make Interactive Brokers the best margin trading platform for cost-conscious investors.

There is no guarantee that you will make money with this provider. Proceed at your own risk..

8. Charles Schwab – The Best Broker for Margin Trading Futures

Also adhering to the U.S. Federal Reserve Board’s Regulation T, standard margin accounts at Charles Schwab requires a minimum deposit of $2,000 and allow for 2:1 leverage (50% margin).

However, for long positions in stocks, ETFs, preferred shares, and warrants that are priced at less than $3.00, you need to maintain a 100% maintenance margin at all times.

But still in the running for the best margin trading platform, stocks, ETFs, preferred shares and REITs always trade commission-free on Charles Schwab’s StreetSmart Edge platform, while futures ($1.50 per contract) and options ($0.65 to $1.50 per contract) are also priced competitively.

Even better, Micro E-mini futures – which are 1/10th the size of normal futures contracts – also come with lower margin requirements.

There is no guarantee that you will make money with this provider. Proceed at your own risk..

Best Margin Trading Platforms Fee Comparison

For a breakdown of our brokers’ fee structures, please see the table below:

margin interest rate of 12% and a margin interest rate of 8% for customers who subscribe to Gold

How to Get Started with a Margin Trading Broker

Easily winning the platform wars, margin trading on eToro is as easy as 1.2.3. To get started, simply follow the steps below:

Step 1: Open an Account and Submit Your ID

By clicking the “Join Now” button at the top of eToro’s homepage, you’re only a few steps away from accessing the best margin trading platform available.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Next, you’re prompted to enter a username, password, and email address. You also have to provide your first and last name, date of birth, home address, and mobile number. For security purposes, eToro also confirms your mobile number via text message.

Step 2: Confirm Your Identity

To verify your identity, you need to submit a copy of a valid driver’s license or passport, plus a utility bill or bank statement issued within the last three months. Most often, verification takes less than a few minutes and you can begin margin trading immediately.

Step 3: Deposit Funds

Requiring a minimum despot of $200, you can choose from the following U.K. payment methods:

• Debit/Credit Card (Visa, MasterCard, Maestro)
• PayPal
• Skrill
• Neteller
• UK Bank Transfer

Even better, apart from a U.K. bank transfer, the above deposit methods are processed instantaneously.

Step 4: Choose an Asset and Click TRADE

Whether it is EUR/USD, Bitcoin, or Netflix, after choosing your desired target, follow the steps below to easily finance your position:

1. Click on the asset’s logo and a popup window with the trade parameters will appear
2. Select the appropriate tab at the top for Sell (short) or Buy (long) for your trade
3. Set the amount of capital that you wish to invest and set your leverage multiplier. For example, a 2:1 leverage multiplier implies a 50% margin.
4. Set your Stop Loss and Take Profit parameters. A Stop Loss limitation is required in order to mitigate risk.
5. Click SET ORDER to place your trade. Trades are executed immediately when the market is open.

Also, be aware that leveraged trades are processed as CFDs.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Conclusion

While the marginal buyer is often viewed as the sucker in financial markets, margin trading is the exact opposite. Allowing you to increase your exposure with little upfront costs, margin trading can be a gateway to a more prosperous future.

However, before taking the plunge, it’s important to hitch your wagon to the right horse. Offering the unparalleled combination of 0% commissions, maximum leverage, cheap financing rates, and best-in-class service, if it wasn’t clear before, it should be clear now, that eToro is this year’s best margin trading platform.

What’s more, sign up is a breeze and you can begin trading with as little as $20.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Frequently Asked Questions