Margin Maintenance Requirement

The margin maintenance requirement, AKA the "minimum maintenance" AKA "maintenance requirement", has a tongue-twisting definition. Here we go: The margin maintenance requirement is the minimum amount of equity that must be maintained in an account approved for margin borrowing. Our minimum maintenance rate for a margin eligible security is 30%, with some having a higher rate depending on our criteria of perceived risk.

If the equity in an account falls below the margin maintenance requirement, then the account may be subject to the dreaded maintenance call. If this happens we'll let you know by posting an alert message on your account.

Tip: While margin can boost an investment strategy, buying securities on margin is not for everyone. Before investing on margin, please give the Margin Account Agreement the once over to review important risk disclosure information, and see our margin interest rates.