Current TradeStation margin interest rates on brokerage trading account for loaned funds.

Margin Accounts and Rates at TradeStation

TradeStation customers can open both cash and margin accounts with the brokerage firm. Large traders can get some really good deals, and both large and small traders have access to advanced trading tools.

Overview of Margin at TradeStation

A TradeStation account can be opened either as a margin or cash account. The latter variety requires every purchase to be fully paid for at the time of purchase. TradeStation does not permit the purchase of assets with unsettled funds in cash accounts, and this is really important to take note of as other brokerage firms do provide this service. What TradeStation’s policy means is that margin capability is more important on this issue because margin accounts automatically can trade with unsettled funds.

Although a TradeStation IRA can’t borrow money to buy securities (per industry regulations rather than TradeStation’s rules), it can be margin-enabled, and that means it can trade with unsettled funds. Thus, it can day trade.

Taxable accounts that are margin accounts can purchase securities with borrowed funds, which is typically the big reason to add margin to an investment account. But margin is required in several other situations, including shorting stocks and trading some option spreads.

Under industry regulations, there is a $2,000 account minimum to use margin. This rule applies to both long and short positions. This is an industry requirement and not a TradeStation one.

Cash can be withdrawn from a TradeStation account using positions as collateral. This means the cash will be taken out on margin and charged at the broker’s interest rates. These can change after a margin debit is made. Because the rate is variable, it’s important to keep an eye on it if you have a large margin balance.

Applying for a Margin Account at TradeStation

Applying for a margin account at TradeStation is very easy. Just head over to the broker’s home page and click on the blue Open Account button that appears at the top of the site. On the online application page, be sure to select margin account and not cash account.

Cost of Margin at TradeStation

There is no extra charge at TradeStation for a margin account. Furthermore, the broker uses the same commission schedule for both cash and margin accounts, so both account types pay the same trading fees, which can be $0 in some cases.

TradeStation charges margin interest on a tiered schedule, which means larger balances will receive lower rates.

TradeStation Margin Interest Rates

Debit Balance Margin Rate
under $25,000 9.50%
$25,000 - $49,999.99 9.50%
$50,000 - $499,999.99 8.75%
$500,000 - $999,999 8.75%
$1,000,000 - $1,999,999 5.50%
above $2,000,000 3.50%


Open TradeStation Account

Cash bonus up to $150 for depositing funds into TradeStation.

Open Tradestation Account

Margin Requirements at TradeStation

Long and short positions on stocks and ETFs have the same margin requirements at TradeStation. For overnight leverage, this is 2:1 leverage. For day trading, it’s 4:1 leverage. Cash accounts of course have no leverage.

Some securities have special margin requirements that are higher from those just described. These can range from 50% margin requirement all the way up to 100%.


TradeStation Margin Account


TradeStation Margin in Futures Accounts

So far, we have been looking strictly at securities accounts. TradeStation also has futures accounts, and they have their own margin numbers.

In a futures account, margin works a little differently. It is the amount of money an account must have to maintain a futures contract. The requirement is different pretty much for every contract. Here are a few examples at TradeStation:

ProductInitial MarginOvernight Margin
E-MINI S&P 500 $5,775 $11,550
EURO-OAT € 3,230 € 3,230
SHORT GILT FUTURES £ 858 £ 858
LUMBER (CME) $20,900 $20,900

Tracking Margin Balances

The margin balance of an account can be tracked on TradeStation’s software platforms. These include the broker’s website, browser platform, mobile app, and desktop program.

On the mobile app, balance details show up on the overview page, which is displayed immediately after logging in. On the browser platform, balance details are shown underneath the Balances tab, which by default is in the upper-right corner. This tab can be moved around, though.

Examples of margin details shown include overnight buying power and day trading buying power.

Margin Trading Education

TradeStation’s website has brief articles on margin topics, including buying stock on margin and how to handle a margin call. The amount of information on margin trading is rather limited, which is one weakness in this category.

Day Trading and Spread Trading

TradeStation specializes in day trading, so obviously margin accounts have the ability to day trade within U.S. regulations. The company’s browser platform displays the number of day trades an account has until reaching pattern-day trading status.

Option spreads that require margin can easily be traded using the broker’s software platforms. All three trading programs (browser, mobile app, and desktop platform) have integrated spreads, which makes order entry really easy.

Open TradeStation Account

Cash bonus up to $150 for depositing funds into TradeStation.

Open Tradestation Account

Updated on 6/25/2022.


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