Best Brokers

cost ranking · Primary query: best brokers for margin trading

Best Brokers for Margin TradingUpdated August 2026 · 12 brokers, every figure sourced

Published
Data verified

Quick verdict

Margin interest is the largest published price difference left between US brokers. Across the eight that publish a rate card, the range runs from 3.95% to 11.825% on the same borrowed dollar. Public and Robinhood publish the lowest entry rates and quote them as a spread over the federal funds rate, so they move with the Fed rather than at the broker's discretion. Interactive Brokers publishes from 4.13%. The catch at every firm is tiering: the cheap rate belongs to the largest balances, and a retail-sized loan normally sits in the dearest band.

The ranking

Safety and regulation 30% · Fees and total cost 40% · Investment selection 12% · Account types and features 18% · Eligibility: Publishes a margin rate

Verified August 28, 2026

Positions 1–2 are a statistical tie

Fidelity, Interactive Brokers finish within 0.12 points of each other on a 10-point scale built from whole-number sub-scores. That gap is smaller than the resolution of the evidence behind it, so the order between them is not a verdict. Read their sub-scores and pick on the criterion that matters to you.

Sub-scores are integers, so the bars carry more information than the order does.

  • Safety and regulation
  • Fees and total cost
  • Investment selection
  • Account types and features

Showing 8 of 8 brokers, sorted by editorial rank.

  1. Rank 1 of 8

    Fidelity

    CRD 7784 · SIPC member

    9.1

    Strong

    • Safety and regulation9
    • Fees and total cost9
    • Investment selection8
    • Account types and features10
    Account minimum
    $0No minimums to open an account
    Stock / ETF
    $0Online US stocks and ETFs
    Options / contract
    $0.65
    Account types
    12/12
  2. Rank 2 of 8

    Interactive Brokers

    CRD 36418 · SIPC member

    Cheapest at scale

    8.9

    Strong

    • Safety and regulation9
    • Fees and total cost9
    • Investment selection10
    • Account types and features8
    Account minimum
    $0No account minimums
    Stock / ETF
    IBKR Lite $0; IBKR Pro from $0.0035/share (tiered) or $0.005/share (fixed)Pro minimum $0.35 (tiered) or $1.00 (fixed) per order, capped at 1% of trade value
    Options / contract
    $0.65 per contractIBKR Lite, first 1,000 US contracts a month. IBKR Pro tiered: $0.25 under $0.05 premium, $0.50 under $0.10, $0.65 above. Minimum $1.00 per order either way
    Account types
    8/12
  3. Rank 3 of 8

    Charles Schwab

    CRD 5393 · SIPC member

    8.6

    Strong

    • Safety and regulation9
    • Fees and total cost8
    • Investment selection9
    • Account types and features9
    Account minimum
    $0$0 account minimum, $0 opening and maintenance
    Stock / ETF
    $0Online listed stocks and ETFs
    Options / contract
    $0.65
    Account types
    10/12
  4. Rank 4 of 8

    tastytrade

    CRD 277027 · SIPC member

    7.5

    Solid

    • Safety and regulation8
    • Fees and total cost8
    • Investment selection7
    • Account types and features6
    Account minimum
    Not verified
    Stock / ETF
    $0Opening and closing
    Options / contract
    $1.00 to open, $0 to closeEquity options capped at $10 per leg. Index options $1 to open, $0 to close
    Account types
    7/12
  5. Rank 5 of 8

    Webull

    CRD 289063 · SIPC member

    7.3

    Mixed

    • Safety and regulation7
    • Fees and total cost9
    • Investment selection6
    • Account types and features5
    Account minimum
    $0No deposit minimum stated in the fee schedule
    Stock / ETF
    $0US-listed securities
    Options / contract
    $0Standard contracts. $0.50 on certain index options, $0.10 on oversized option orders
    Account types
    5/12
  6. Rank 6 of 8

    Public

    CRD 127818 · SIPC member

    Lowest published entry rate

    7.2

    Mixed

    • Safety and regulation8
    • Fees and total cost8
    • Investment selection6
    • Account types and features5
    Account minimum
    Not verified
    Stock / ETF
    $0US-listed stocks and ETFs in regular hours. Extended hours and OTC are $2.99 per trade unless you hold Premium
    Options / contract
    $0Stock and ETF options. Index options $0.50 per contract, or $0.35 with Premium
    Account types
    4/12
  7. Rank 7 of 8

    TradeStation

    CRD 39473 · SIPC member

    6.7

    Mixed

    • Safety and regulation8
    • Fees and total cost6
    • Investment selection7
    • Account types and features6
    Account minimum
    $2,000Stated as the minimum to open and maintain a margin position; no cash-account opening minimum published
    Stock / ETF
    $0 per shareDirect routing adds $0.0032–$0.0048 per share by volume tier
    Options / contract
    $0.50–$0.80 per contract per sideSingle-leg, by volume tier. Multi-leg $0.25–$0.40 per contract per side
    Account types
    6/12
  8. Rank 8 of 8

    Robinhood

    CRD 165998 · SIPC member

    6.6

    Mixed

    • Safety and regulation6
    • Fees and total cost8
    • Investment selection6
    • Account types and features5
    Account minimum
    $0No fees to open or maintain an account
    Stock / ETF
    $0Commission-free stocks, ETFs and their options
    Options / contract
    $0.04Equity options. Index options $0.35 for Robinhood Gold, $0.50 otherwise
    Account types
    4/12

Positions are computed from published sub-scores at build time. Fidelity, Interactive Brokers, Charles Schwab lead; their unrounded totals are 9.06, 8.94, 8.60.

Why these weights

Cost is raised to 40% because the borrowing rate is the entire question here, and safety stays at 30% because margin magnifies losses and the firm holding a leveraged position matters more, not less.

Winners by category

  • Lowest published entry rate

    Public

    3.95% at the top tier, quoted from 17 September 2026 as a formula over the federal funds rate.

  • Cheapest at scale

    Interactive Brokers

    From 4.13%, charged as a blend across balance tiers rather than a single band.

The advertised rate is usually not your rate

Every schedule here except Webull's is tiered by how much you owe, and the cheapest band belongs to the largest borrowers. TradeStation publishes 4.25%, and it applies above $2,000,000; below $50,000 the same firm charges 11.75%. Quoting the bottom of a tier table is standard practice and close to meaningless for a retail account.

The honest way to read any margin comparison is to find the tier your likely balance sits in. On $20,000 borrowed for a year, the gap between the cheapest and dearest entry tiers among these firms is roughly $1,400.

Two structures worth understanding before you borrow

Public, Robinhood and Interactive Brokers quote margin as a spread over a benchmark — for the first two, the upper bound of the federal funds target range. Their rates therefore change when the Federal Reserve moves, with no announcement from the broker. That is more transparent than a discretionary rate, and it means the number you saw at signup is not a commitment.

Webull charges 8.74% at every loan size on its standard tier, and its cheaper rates from 5.20% apply to Premium subscribers. Any comparison quoting the lower figure has to add the subscription cost back before it means anything.

Every broker in this ranking, in short

The case for and against each firm in a paragraph, with the figures that drove its score. Each links to the full review, where every number carries its source and the date it was read.

1.Fidelity

9.1/10

FIDELITY BROKERAGE SERVICES LLC · CRD 7784 · SIPC member

A full-service US brokerage with a zero-commission equity schedule and no account minimum.

Stocks and ETFs
$0
Options, per contract
$0.65
To transfer out
$0
Account types
12 published

Against it: No futures trading

Read the full Fidelity review

2.Interactive Brokers

8.9/10

INTERACTIVE BROKERS LLC · CRD 36418 · SIPC member

The widest published market access in our set, with a two-tier commission model and no account minimum.

Stocks and ETFs
IBKR Lite $0; IBKR Pro from $0.0035/share (tiered) or $0.005/share (fixed)
Options, per contract
$0.65 per contract
To transfer out
$0
Account types
8 published

Against it: IBKR Lite is restricted to US residents and to individual, joint, IRA and certain trust accounts

Read the full Interactive Brokers review

3.Charles Schwab

8.6/10

CHARLES SCHWAB & CO., INC. · CRD 5393 · SIPC member

A long-established US brokerage with $0 listed equity commissions and no account or trade minimums.

Stocks and ETFs
$0
Options, per contract
$0.65
To transfer out
$50 full, $0 partial
Account types
10 published

Against it: $50 to transfer a full account out, against $0 at Fidelity

Read the full Charles Schwab review

4.tastytrade

7.5/10

TASTYTRADE, INC. · CRD 277027 · SIPC member

An options-first schedule: $1 to open, nothing to close, capped at $10 per leg.

Stocks and ETFs
$0
Options, per contract
$1.00 to open, $0 to close
To transfer out
$75
Account types
7 published

Against it: $1.00 to open a single equity option contract is expensive relative to per-contract pricing at the cheapest firms

Read the full tastytrade review

5.Webull

7.3/10

WEBULL FINANCIAL LLC · CRD 289063 · SIPC member

Zero commissions on stocks, ETFs and standard options, with a $75 charge to leave.

Stocks and ETFs
$0
Options, per contract
$0
To transfer out
$75
Account types
5 published

Against it: $75 per outgoing stock transfer — second only to Vanguard's $100 among the exit charges we recorded

Read the full Webull review

6.Public

7.2/10

OPEN TO THE PUBLIC INVESTING, INC. · CRD 127818 · SIPC member

The lowest published margin rates in our set, on the narrowest account lineup we publish.

Stocks and ETFs
$0
Options, per contract
$0
To transfer out
$100
Account types
4 published

Against it: $2.99 per trade outside regular market hours, and on OTC stocks, unless you pay for Premium

Read the full Public review

7.TradeStation

6.7/10

TRADESTATION SECURITIES, INC. · CRD 39473 · SIPC member

Volume-tiered options and futures pricing, with a $10 monthly inactivity fee if you go quiet.

Stocks and ETFs
$0 per share
Options, per contract
$0.50–$0.80 per contract per side
To transfer out
$125
Account types
6 published

Against it: $10 monthly inactivity fee unless the account meets minimum activity

Read the full TradeStation review

8.Robinhood

6.6/10

ROBINHOOD FINANCIAL, LLC · CRD 165998 · SIPC member

The cheapest published options schedule in our set, attached to the heaviest recent enforcement record.

Stocks and ETFs
$0
Options, per contract
$0.04
To transfer out
$100
Account types
4 published

Against it: Two settled 2025 enforcement matters — $29.75m with FINRA and $45m with the SEC

Read the full Robinhood review

Every sub-score and why

Each integer below has a written reason. If you disagree with a weight, the sub-scores let you recompute the ranking yourself — that is the point of publishing them.

Fidelity9 / 9 / 8 / 109.1/10Strong
Safety and regulation9/10 × 30% = 2.7
Active SEC-registered broker-dealer (8-23292), FINRA member since 1979, SIPC member. Long operating history under a single entity, with no headline retail enforcement matter identified in our sourced review.
Fees and total cost9/10 × 40% = 3.6
$0 equity and ETF commissions, $0.65 per options contract, no account minimum, no published account service or inactivity fee, and $0 to transfer assets. Options pricing is mid-pack rather than lowest.
Investment selection8/10 × 12% = 1.0
Stocks, ETFs, options, bonds, mutual funds, international equities and fractional shares are all offered. No futures, which caps the score below the multi-asset firms.
Account types and features10/10 × 18% = 1.8
Widest published lineup in our set: taxable, joint, all IRA variants, custodial, trust, solo 401(k) and HSA.

Total 9.1/10 · sum of weighted contributions, rounded to one decimal

Full Fidelity review, with every fee and source
Interactive Brokers9 / 9 / 10 / 88.9/10Strong
Safety and regulation9/10 × 30% = 2.7
Active SEC-registered broker-dealer (8-47257), FINRA member, SIPC member, and part of a US-listed group. No headline retail enforcement matter identified in our sourced review.
Fees and total cost9/10 × 40% = 3.6
IBKR Lite is $0 on US listed equities for US residents. IBKR Pro tiered starts at $0.0035 per share with a $0.35 order minimum and a 1% of trade value cap, which is the cheapest published schedule in our set for large orders. Small Pro orders hit the per-order minimum, so it is not universally cheapest.
Investment selection10/10 × 12% = 1.2
The only firm in our set with every asset class we track published on one schedule, including futures, spot currencies, bonds, mutual funds, crypto and non-US listings across the Americas, Europe, the Middle East and Asia-Pacific.
Account types and features8/10 × 18% = 1.4
Taxable, joint, IRA and trust accounts are all named in the published IBKR Lite eligibility terms. No HSA or solo 401(k) identified.

Total 8.9/10 · sum of weighted contributions, rounded to one decimal

Full Interactive Brokers review, with every fee and source
Charles Schwab9 / 8 / 9 / 98.6/10Strong
Safety and regulation9/10 × 30% = 2.7
Active SEC-registered broker-dealer (8-16514) with one of the lowest CRD numbers in our set, indicating long registration history. SIPC member. No headline retail enforcement matter identified in our sourced review.
Fees and total cost8/10 × 40% = 3.2
$0 listed equity and ETF commissions, $0.65 per options contract, $0 account minimum and $0 opening and maintenance fees. Marked down from 9 on 30 August 2026 after we read the April 2026 pricing guide, which adds three costs the headline schedule does not show: a $6.95 OTC equity commission, $50 to transfer a full account out, and a currency conversion markup of up to 3% of principal. Fidelity charges none of the three.
Investment selection9/10 × 12% = 1.1
Stocks, ETFs, options, bonds, mutual funds, fractional shares, a dedicated global account for international equities, and futures at $2.25 per contract confirmed from the April 2026 pricing guide. Below Interactive Brokers only on spot currencies and crypto.
Account types and features9/10 × 18% = 1.6
Published lineup covers taxable, joint, all IRA variants, custodial and trust accounts, plus managed portfolios from a $5,000 minimum. No HSA identified.

Total 8.6/10 · sum of weighted contributions, rounded to one decimal

Full Charles Schwab review, with every fee and source
tastytrade8 / 8 / 7 / 67.5/10Solid
Safety and regulation8/10 × 30% = 2.4
Active SEC-registered broker-dealer (8-69649), FINRA member and SIPC member. Scored below the incumbents on operating history — its CRD number places registration in the mid-2010s — with no enforcement matter identified in our sourced review.
Fees and total cost8/10 × 40% = 3.2
Free equity trades and a $10 per leg cap that makes large multi-leg options orders unusually cheap, with nothing charged to close a position. Scored below the flat-zero firms because a single equity option contract costs $1 to open, against $0.04 at the cheapest firm in our set, and — read on 30 August 2026 — closing the account costs $75 on the way out.
Investment selection7/10 × 12% = 0.8
Stocks, ETFs, equity and index options, futures, options on futures and crypto are all published, including micro futures. No mutual funds, which rules out a common long-term building block.
Account types and features6/10 × 18% = 1.1
Taxable, joint, IRA variants, trust and margin. No custodial, SEP, solo 401(k) or HSA identified.

Total 7.5/10 · sum of weighted contributions, rounded to one decimal

Full tastytrade review, with every fee and source
Webull7 / 9 / 6 / 57.3/10Mixed
Safety and regulation7/10 × 30% = 2.1
Active SEC-registered broker-dealer (8-69978) and SIPC member. Scored below the incumbents on operating history alone — its CRD number places its registration well after the established firms — not on any enforcement matter we identified.
Fees and total cost9/10 × 40% = 3.6
$0 on US-listed stocks, ETFs and standard options contracts, with regulatory fees itemised transparently. Held off a 10 by the $75 outgoing transfer fee, which is a real switching cost.
Investment selection6/10 × 12% = 0.7
Stocks, ETFs, options and fractional shares confirmed. No mutual funds. Futures and crypto not confirmed from the fee schedule we read.
Account types and features5/10 × 18% = 0.9
Taxable, traditional, Roth and rollover IRAs plus margin. No joint, custodial or trust accounts identified.

Total 7.3/10 · sum of weighted contributions, rounded to one decimal

Full Webull review, with every fee and source
Public8 / 8 / 6 / 57.2/10Mixed
Safety and regulation8/10 × 30% = 2.4
Active SEC-registered broker-dealer (8-66049), FINRA member and SIPC member, with no enforcement matter identified in our sourced review. Its CRD number, 127818, is lower than those of Robinhood, Webull, tastytrade and eToro, which means the legal entity has been registered longer than the app’s launch date suggests. Still well short of the multi-decade registration records that earn a 9 here.
Fees and total cost8/10 × 40% = 3.2
$0 on US-listed stocks and ETFs in regular hours, $0 per stock and ETF options contract, and margin from 4.90% falling to 3.95% — the cheapest margin schedule we recorded, undercutting the next firm by more than six percentage points at the entry tier. Held to an 8 by three charges the headline pricing does not show: $2.99 per extended-hours or OTC trade without Premium, $100 to transfer the account out, and a 0.30% fee on currency conversion.
Investment selection6/10 × 12% = 0.7
Stocks, ETFs, equity and index options, OTC stocks, Treasuries, corporate bonds and crypto are all priced on the published schedule, and the bond range is deeper than most of the set. No mutual funds and no futures, which is the same double gap that holds the other app-first brokers at this level. Fractional shares are advertised but were not confirmed from a fee schedule or pricing table.
Account types and features5/10 × 18% = 0.9
Taxable, traditional IRA, Roth IRA, a crypto IRA and margin. No joint, custodial, SEP, solo 401(k) or HSA accounts identified; trust accounts are listed as not yet available. That rules the firm out for a large share of household situations.

Total 7.2/10 · sum of weighted contributions, rounded to one decimal

Full Public review, with every fee and source
TradeStation8 / 6 / 7 / 66.7/10Mixed
Safety and regulation8/10 × 30% = 2.4
Active SEC-registered broker-dealer (8-48711) and SIPC member with a registration history predating the newer app-first firms. No enforcement matter identified in our sourced review.
Fees and total cost6/10 × 40% = 2.4
Lowest score among the firms we publish. Share commissions are $0, but options and futures are priced per side on volume tiers that start above the flat-fee competitors, a $10 monthly inactivity fee applies unless waived, and the desktop platform with RadarScreen costs $99.99 a month for non-professionals.
Investment selection7/10 × 12% = 0.8
Stocks, ETFs, options and a deep futures range including micros. No mutual funds. Crypto and bond availability not confirmed from the pricing page we read.
Account types and features6/10 × 18% = 1.1
Taxable, joint, traditional and Roth IRAs, trust and margin. No custodial, SEP, solo 401(k) or HSA identified.

Total 6.7/10 · sum of weighted contributions, rounded to one decimal

Full TradeStation review, with every fee and source
Robinhood6 / 8 / 6 / 56.6/10Mixed
Safety and regulation6/10 × 30% = 1.8
Active SEC-registered broker-dealer (8-69188) and SIPC member, so custody protection is equivalent to the rest of the set. Scored well below its peers because of two settled 2025 enforcement matters totalling roughly $75 million, one of which involved disclosure to customers about how their orders were handled.
Fees and total cost8/10 × 40% = 3.2
$0 commissions on stocks and ETFs and $0.04 per equity options contract — the lowest per-contract fee we recorded — alongside the lowest margin rates in our set, from 5.00% down to 3.95%. Marked down from 9 on 30 August 2026 after we read the standard fee schedule, which charges $100 to move an account out, on partial transfers as well as full ones. That is the joint-largest exit charge among the firms we publish.
Investment selection6/10 × 12% = 0.7
Stocks, ETFs, options and fractional shares are confirmed. No mutual funds. Bonds, futures and crypto pricing were not confirmed from a primary source at this revision, so they are recorded as unverified rather than counted.
Account types and features5/10 × 18% = 0.9
Taxable, traditional IRA, Roth IRA and margin only. No joint, custodial, trust, SEP or solo 401(k) accounts identified, which rules it out for a large share of household situations.

Total 6.6/10 · sum of weighted contributions, rounded to one decimal

Full Robinhood review, with every fee and source

How we evaluated

Safety and regulation30%
Evidence: FINRA BrokerCheck entity record — legal name, CRD number, SEC file number and registration status — SIPC membership, and public enforcement actions from the regulator or SRO that brought them.
Fees and total cost40%
Evidence: The firm's own published commission and fee schedule, read in full.
Investment selection12%
Evidence: The asset classes named on the firm's own published pricing or product pages.
Account types and features18%
Evidence: The account types named in the firm's own published account lineup.

Not scored, and why

  • Access and eligibilityCountry-by-country onboarding terms confirmed against each firm's own account-opening documents.
  • Platform and usabilityHands-on use of a funded account on desktop, web and mobile.
  • Research and educationLogged-in access to each firm's research suite and education library.
  • Customer serviceTimed contact tests across phone, chat and email, repeated over several weeks.
  • Execution qualityAnalysis of SEC Rule 605 and Rule 606 order-execution and routing disclosures across a full quarter.

Researched but excluded

  • SoFi Invest (SOFI SECURITIES LLC, CRD 151717) — Legal entity confirmed via FINRA, but the fee page returned HTTP 403 when we attempted to read it. Re-attempted on 30 August 2026 against the published fee schedule PDF and the SoFi support articles: both returned 403 as well. Secondary summaries of SoFi’s pricing are available and we are not using them — we will not score a firm from anything but its own document.
Read the full methodology

Frequently asked questions

Which broker has the lowest margin rates?
Of the eight US brokers publishing a rate card, Public and Robinhood publish the lowest entry rates at 3.95%, and Interactive Brokers publishes from 4.13%. The highest published rates are 11.825% at Fidelity and Charles Schwab. All are tiered by balance.
Why do margin rates differ so much between brokers?
Because almost nobody shops for them. Commissions are advertised and compared; margin interest is a rate card several clicks deep, so the price competition that flattened commissions never reached it. The spread is now roughly threefold on an identical borrowed dollar.

Sources

  1. [1]Fidelity — Commissions and margin ratesRead August 28, 2026
  2. [2]FINRA BrokerCheck — Fidelity Brokerage Services LLCRead August 28, 2026
  3. [3]Interactive Brokers — Stocks, ETFs, warrants and structured products commissionsRead August 28, 2026
  4. [4]Interactive Brokers — Options commissionsRead August 30, 2026
  5. [5]FINRA BrokerCheck — Interactive Brokers LLCRead August 28, 2026
  6. [6]Interactive Brokers — Other feesRead August 30, 2026
  7. [7]Interactive Brokers — Mutual fund commissionsRead August 31, 2026
  8. [8]Interactive Brokers — Bond commissionsRead August 31, 2026
  9. [9]Interactive Brokers — Futures commissionsRead August 31, 2026
  10. [10]Interactive Brokers — Cryptocurrency commissionsRead August 31, 2026
  11. [11]Interactive Brokers — Margin ratesRead August 31, 2026
  12. [12]Interactive Brokers — Spot currency commissionsRead August 31, 2026
  13. [13]Charles Schwab — Pricing and account feesRead August 28, 2026
  14. [14]FINRA BrokerCheck — Charles Schwab & Co., Inc.Read August 28, 2026
  15. [15]Charles Schwab — Pricing Guide for Individual Investors (April 2026)Read August 30, 2026
  16. [16]Charles Schwab — Margin rates and requirementsRead August 31, 2026
  17. [17]tastytrade — Pricing and commissionsRead August 28, 2026
  18. [18]FINRA BrokerCheck — tastytrade, Inc.Read August 28, 2026
  19. [19]tastytrade — Commissions and fees (last updated 30 July 2026)Read August 30, 2026
  20. [20]Webull — Pricing and feesRead August 28, 2026
  21. [21]FINRA BrokerCheck — Webull Financial LLCRead August 28, 2026
  22. [22]FINRA BrokerCheck — Open to the Public Investing, Inc.Read August 28, 2026
  23. [23]Public — Fee schedule (last updated 14 August 2026)Read August 30, 2026
  24. [24]Public — Account types and asset lineupRead August 30, 2026
  25. [25]TradeStation — PricingRead August 28, 2026
  26. [26]FINRA BrokerCheck — TradeStation Securities, Inc.Read August 28, 2026
  27. [27]TradeStation — Service feesRead August 30, 2026
  28. [28]TradeStation — Margin ratesRead August 30, 2026
  29. [29]Robinhood — Trading feesRead August 28, 2026
  30. [30]FINRA — Robinhood ordered to pay $3.75m restitution; fines for AML, supervisory and disclosure violations (March 2025)Read August 28, 2026
  31. [31]FINRA BrokerCheck — Robinhood Financial, LLCRead August 28, 2026
  32. [32]Robinhood Financial — Standard Pricing Fee ScheduleRead August 30, 2026

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Risk warning

Investing involves risk, including the possible loss of principal. Nothing on this site is personalized investment advice, a recommendation to buy or sell any security, or a solicitation. Figures are read from public sources on the dates shown and can change without notice — verify anything you intend to act on with the provider directly. Read the full risk disclosure.