A margin loan lets you borrow against the value of eligible investments in your brokerage account. Margin loans can be used for short-term financial needs or to support certain investing strategies by giving you additional buying power. Because margin involves borrowing against your investments, carefully consider whether it’s appropriate for your financial situation and goals.

Who is eligible for margin in a SoFi Invest account?

To be eligible for margin, you must have a SoFi Self-Directed Brokerage Account with at least $2,000 in account equity and complete a suitability questionnaire to determine whether margin is appropriate for you. To access the suitability questionnaire: 1. Go to the Invest tab. 2. Select your Self-Directed Brokerage Account. 3. Choose More on web or the gear icon in the app. 4. Select Margin Investing. 5. Click Enroll now.

What investments are eligible for margin lending?

There are a variety of factors used to determine whether a stock is marginable. You can confirm the marginability of a specific stock by looking at the quote page via the SoFi mobile app or website.

How is margin interest calculated?

Interest charges are calculated daily by multiplying the outstanding margin debit balance by the annual interest rate and dividing the result by 360. These daily figures are accrued and automatically charged to the account on a monthly basis. Your interest due is accrued on a daily basis, and deducted from your account once per month. This happens automatically and does not require you to take any action.

Are there any fees when taking out a margin loan?

There aren’t any fees when opening a SoFi margin account. However, your outstanding margin balance will accrue interest on a monthly basis.

How do I make margin loan payments?

In order to pay off your margin balance, you must repay the full amount borrowed plus interest through your Invest account on the SoFi App.

Does margin affect your credit score?

Typically, buying stocks on margin won’t affect your credit score. However, your score could be affected when you initially open a margin account.

Is there a minimum margin loan amount?

There isn’t a minimum borrowing amount per se. However, your purchasing power is based on a variety of factors, such as the securities you hold, account balance, and current equity.

What is a margin call?

A margin call is triggered when your account equity falls below your margin requirement (thereby creating a negative available margin balance). When notified of a margin call, you will be given a specified deadline to respond and rectify the deficit. This can be accomplished by either adding cash or selling securities. In extreme cases, assets may be liquidated prior to the deadline.

What are the tax implications of margin?

Borrowing on margin may allow you to access funds without selling investments, which could help defer potential taxable gains from a sale. Margin interest may also be tax deductible in certain situations, subject to applicable tax rules and limitations. Consult a tax advisor to understand how margin may affect your individual tax situation.

Margin Loans - Margin Trading Account

INVEST PRODUCTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

Brokerage and self-directed investing products and services are available to eligible residents of the 50 U.S. states and Puerto Rico through SoFi Securities LLC, Member FINRA/SIPC. For a full listing of the fees associated with SoFi Invest, see our fee schedule.

Diversification can help reduce some investment risk. However, it cannot guarantee profit nor fully protect in a down market.

This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.

Trading securities on margin loans involves high risk and costs and is not suitable for all investors. It is possible to lose more than your initial investment when using margin. Please see more details at https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf.

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