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Cash can be withdrawn from TradeStation using positions as collateral.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.
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 basis, which means
larger balances will get lower rates.
TradeStation Margin Interest Rates
|
Debit Balance
|
Margin Rate
|
|
under $25,000
|
11.75%
|
|
$25,000 - $49,999.99
|
11.75%
|
|
$50,000 - $499,999.99
|
10.75%
|
|
$500,000+
|
call 800-770-4049
|
Robinhood Margin Rates
|
Debit Balance
|
Robinhood Margin Rate
|
|
$0 - $50,000
|
5%
|
|
$50,001 - $100,000
|
4.8%
|
|
$100,001 - $1,000,000
|
4.5%
|
|
$1,000,001 - $10,000,000
|
4.25%
|
|
$10,000,001 - $50,000,000
|
4.2%
|
|
$50,000,000+
|
3.95%
|
Free Robinhood Account
Up to $200 free stock + 3% IRA match + transfer fee refund at Robinhood.
Open Robinhood Account
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.
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 in Futures Accounts
So far, we have focused on securities accounts. TradeStation also offers futures accounts, which have their own specific margin requirements.
In a futures account, margin works a bit differently. It is the amount of money that must be in the account to maintain a futures contract. The requirements vary for each contract. Here are some examples at TradeStation:
| Product | Initial Margin | Overnight 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
You can track your margin balance on TradeStation’s platforms, including the website, browser platform, mobile app, and desktop program.
On the mobile app, balance details appear on the overview page, which you see right after logging in. On the browser platform, balance details are under the Balances tab, which is usually in the upper-right corner but can be moved around.
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, such as buying stock on margin and handling a margin call. The information on margin trading is somewhat limited, which is a downside in this area.
Day Trading and Spread Trading
TradeStation specializes in day trading, so margin accounts can day trade within U.S. regulations. The browser platform displays the number of day trades an account has made until it reaches pattern-day trading status.
Option spreads that require margin can be traded easily using TradeStation’s software platforms. All three trading programs (browser, mobile app, and desktop platform) have integrated spreads, making order entry simple.
Updated on 1/5/2026.
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