Understanding margin rates is essential before using borrowed funds to trade securities. Whether you're a day trader looking for extra buying power or a long-term investor hedging positions, the margin interest rate you pay directly affects your net returns — and choosing the right platform matters.

Key Takeaways

• Margin rates represent the annual interest charged on funds borrowed from a brokerage to purchase securities.

• Webull offers a flat 8.74% margin rate for Standard accounts and tiered rates starting at 5.20% for Webull Premium members.

• Interest accrues daily and is charged monthly, typically between the 15th and 18th of each month on Webull.

• Webull margin accounts provide up to 4x day-trade buying power and 2x overnight buying power.

• A minimum of $2,000 in equity is required to use margin at Webull.

• Hard-to-Borrow (HTB) fees apply separately on certain short positions.

Part 1. What Are Margin Rates and How Do They Work?

1.1 The Definition of a Margin Rate

A margin rate is the interest rate applied to the funds you borrow from your brokerage when trading on margin. When you open a margin account, you gain the ability to purchase securities beyond what your cash balance alone would allow — effectively taking out a loan from your broker.

Brokerage firms charge margin rates the same way banks charge interest on loans — as compensation for credit risk and the cost of capital. The rate is expressed as an annual percentage but accrues on a daily basis.

Under Federal Reserve Board Regulation T, brokerages can lend investors up to 50% of the purchase price of eligible marginable securities. This is called the initial margin requirement.

SoFi — https://www.sofi.com/learn/content/margin-rates/

1.2 How Margin Interest Accrues and Gets Charged

Margin interest accrues every calendar day you maintain a debit balance — including weekends and holidays. It is then charged monthly, typically appearing as a debit in your account statement.

The longer you hold a margin position, the more total interest you pay. For short-term trades — especially intraday positions closed before end of day — margin interest may be minimal or even zero, depending on your broker's policy.

Most US brokerages calculate daily interest by dividing the annual margin rate by 360 (the industry standard for a trading year).

SoFi — https://www.sofi.com/learn/content/margin-rates/

1.3 Factors That Influence Margin Rates

Several factors determine the margin rate a brokerage sets:

• Broker call rate: The rate banks charge brokerages for the funds used to finance margin loans. Higher broker call rates typically lead to higher margin rates for clients.

• Your margin balance: Many brokerages apply tiered pricing — the larger your debit balance, the lower your effective rate.

• Inflation and monetary policy: Rising interest rate environments generally push margin rates higher across all brokerages.

• Supply and demand: High demand for margin borrowing can push rates upward.

SoFi — https://www.sofi.com/learn/content/margin-rates/

Part 2. Webull Margin Rates: Tiered Pricing and the Premium Plan

2.1 Webull Standard Margin Rates

Webull offers two distinct margin rate structures depending on whether your account is enrolled in Webull Premium.

For Standard (non-Premium) accounts, Webull charges a flat 8.74% annual margin rate across all balance tiers. This flat structure means every dollar borrowed — from the first to the last — is subject to the same rate, regardless of account size.

Rates shown are as of March 31, 2026, and are subject to change.

Webull — https://www.webull.com/trading-investing/margin

2.2 Webull Premium Margin Rates

Webull Premium members benefit from a tiered margin rate schedule that can significantly reduce borrowing costs at higher balances. The current Premium rates are:

Rates vary by service provider; please refer to the latest pricing. Webull — https://www.webull.com/pricing

2.3 Buying Power and Leverage Offered

A Webull margin account provides:

• 4x day-trade buying power (DTBP): For eligible traders, intraday buying power is up to four times your account equity value.

• 2x overnight buying power (ONBP): Positions held overnight are limited to two times your equity value.

Note: If you are classified as a Pattern Day Trader (PDT), your equity must remain above $25,000 at all times to continue day trading. Falling below this threshold may trigger an Equity Maintenance (EM) call.

Webull — https://www.webull.com/trading-investing/margin

Part 3. How Webull Margin Interest Is Calculated

3.1 The Daily Average Method

Webull calculates margin interest using a daily average debit balance method. Each day's closing debit balance is recorded and accumulated over the billing month. The monthly average is then used as the principal on which interest is charged.

The closing debit balance is based on the settlement of positions opened — not necessarily your real-time cash balance. If a trade hasn't settled yet, it may still affect your debit balance calculation.

Webull — https://www.webull.com/pricing

3.2 The Margin Interest Formula

Webull uses the following formula to calculate monthly margin interest:

Monthly Margin Interest = Average Daily Debit Balance × (Annual Interest Rate ÷ 360) × Number of Days in Period

Example: If your average daily debit balance is $10,000 over a 30-day period, and your annual rate is 8.74%:

• Daily rate: 8.74% ÷ 360 = 0.0243%

• Monthly interest: $10,000 × 0.0243% × 30 = $72.83

Intraday positions opened and closed on the same day do not accrue margin interest.

Webull FAQ — https://www.webull.com/pricing

3.3 Short Selling Fees and Hard-to-Borrow (HTB) Rates

Short selling involves borrowing shares before selling them. Webull charges a separate stock loan fee for short positions, calculated as:

Daily Short Interest = Daily Market Value of Borrowed Shares × Stock Loan Rate ÷ 360

Stock loan rates and availability change daily based on market supply and demand. For stocks with limited borrowing availability, an additional Hard-to-Borrow (HTB) fee applies.

HTB Fee Calculation:

Step 1 — Per-share collateral: Multiply the prior closing price by the industry convention rate (e.g., 1.02), then round up to the nearest dollar. Example: $13.00 × 1.02 = $13.26, rounded to $14.00.

Step 2 — Trade value: Multiply per-share collateral by shares shorted. Example: $14.00 × 1,000 shares = $14,000.

Step 3 — Annual HTB fee: Multiply trade value by the annual HTB rate. Example: $14,000 × 6% = $840.

Step 4 — Daily HTB fee: Divide annual fee by 360. Example: $840 ÷ 360 = $2.33/day.

HTB fees accrue on non-trading days (weekends, holidays). The HTB rate can change daily. Whether a stock is Easy-to-Borrow (ETB), Hard-to-Borrow (HTB), or non-shortable is updated daily by Webull's clearing firm.

Webull FAQ — https://www.webull.com/pricing

Part 4. Comparing Margin Rates Across US Brokers

Understanding how Webull's margin rates stack up against other major US brokerages can help investors evaluate total cost of borrowing. The table below reflects publicly available rates.

Rates vary by service provider; please refer to the latest pricing. Rates are as of March 31, 2026, and are subject to change without notice.

Webull — https://www.webull.com/trading-investing/margin | Charles Schwab — https://www.schwab.com/margin/margin-rates-and-requirements

Important context: Margin rate comparisons should account for a broker's full fee structure, platform capabilities, account minimums, and regulatory protections. A lower rate alone does not make one platform universally suitable for all investors.

Part 5. How to Open and Manage a Webull Margin Account

5.1 Margin Account Requirements and Setup

To open a Webull margin account, you need to meet the following requirements:

• Minimum equity: $2,000 in cash or marginable securities (per FINRA regulations)

• Account type: Select "Margin" when opening a new Webull brokerage account, or upgrade an existing cash account via Account Settings → My Account → Manage My Account

• Maintenance requirement: Keep at least 25% of total account value as equity at all times

Downgrading from a margin account back to cash requires a call to Webull customer service, as it cannot be done through the app or website.

Webull — https://www.webull.com/trading-investing/margin | Brokerage Review — https://www.brokerage-review.com/online-brokers/marginrates/webull.aspx

5.2 What You Can Trade with Webull Margin

A Webull margin account supports trading across a wide range of asset classes:

• Stocks (long and short positions)

• ETFs, including leveraged ETFs (subject to higher margin requirements)

• Options, including advanced multi-leg strategies (spreads, iron butterflies, strangles, calendars)

• IPO participation

• Futures

Note: Webull does not offer limited margin for Individual Retirement Accounts (IRAs). IRAs at Webull operate on a cash-only basis and cannot be used for day trading or options spreads.

Brokerage Review — https://www.brokerage-review.com/online-brokers/marginrates/webull.aspx

5.3 Margin Requirements for Long and Short Positions

Long positions (stocks priced above $5): 

• Initial requirement: 50% of market value  

• Maintenance requirement: 25% of market value  

• Day trading requirement: 25% of market value  

Short positions (stocks priced above $16.625): 

• Initial requirement: 30% of market value  

• Maintenance requirement: 30% of market value  

• Day trading requirement: 30% of market value  

Note: Margin requirements may vary by security type and price and may change without prior notice. Check the specific security margin requirements on Webull before trading. Learn more: Margin Maintenance Requirements 

5.4 Understanding Margin Calls and Account Risk

A margin call occurs when your account equity falls below the required maintenance level. When this happens:

• You must deposit additional funds or marginable securities to bring equity back above the minimum threshold.

• Failure to meet a margin call may result in Webull liquidating positions in your account at current market prices.

• You are not entitled to an extension of time to meet a margin call.

• If liquidation proceeds do not cover your debit balance, you remain responsible for repaying the outstanding amount.

Webull — https://www.webull.com/trading-investing/margin

Key risks of margin trading include:

• Potential for losses exceeding your initial investment

• Margin calls and forced liquidation of positions

• Short selling losses that can theoretically be unlimited

• HTB fees that may change suddenly and without advance notice

• Additional costs from accruing margin interest charges over time

Margin trading is complex and involves rules and regulations beyond standard cash trading. It requires a thorough understanding of risk before you begin.

Past performance is not indicative of future results. Tax strategies discussed do not constitute tax advice, and actual results may vary by individual.

5.5 Regulation and Investor Protections

Webull Financial LLC is a member of FINRA and SIPC. SIPC protects securities customers of its members up to $500,000 (including $250,000 for claims for cash) in the event of brokerage insolvency.

Margin accounts are subject to FINRA Rule 4210, Regulation T, and Webull's internal margin policies. Webull may change its margin rate schedule at its discretion and without prior notice.

For the most current margin rates and full pricing details, visit the Webull Pricing Page.

FINRA — https://www.finra.org | SIPC — https://www.sipc.org

The Bottom Line

Margin rates directly impact the profitability of any leveraged trading strategy. Webull provides a transparent, tiered margin rate structure — with a flat 8.74% for Standard accounts and rates as low as 3.90% for Premium members with larger balances. Before using margin, carefully evaluate borrowing costs, maintenance requirements, and the full risk profile of leveraged trading. Visit webull.com/trading-investing/margin for current rates and account details.

Diversification does not eliminate the risk of experiencing investment losses. Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges are subject to Webull Financial LLC review and approval. Leverage carries a high level of risk and is not suitable for all investors. Greater leverage creates greater losses in the event of adverse market movement.

Webull Financial LLC (member SIPC, FINRA) offers self-directed securities trading. All investments involve risk. More info: https://www.webull.com/policy

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. Investing involves risk, including the risk of loss of principal.