Benefits of a Margin Account
A margin account is a type of brokerage account that lets you access additional funds to invest by borrowing against the value of margin-eligible investments you hold.Legal Disclaimer footnote 1
Potential for increased buying power
Act quickly on investment opportunities
There's the potential for greater returns
(but also greater losses)
Why Choose a Margin Account at RBC Direct Investing?
Expand your investing knowledge with resources designed to help you take control:
- Find in-depth guides on margin accounts and other topics like stocks, options and more in the Investing Academy
- Learn the basics you need to build your strategy with the Investor’s Toolkit
Watch educational videos and demos to see how to use our powerful trading platforms
We offer competitive interest rates on margin account loans.
The interest rate charged on borrowed funds changes over time and depends on your account's debit balance.
Filter and choose investments using:
- Powerful screeners, market research and analysis, and more
- Economic insights on current events that could impact your investments
- In-depth guides in the Investing Academy
Margin trading is an advanced strategy that involves more risk. With a Practice Account, you can practice margin trading risk-free before investing your own money. Free for RBC Online Banking and Direct Investing clients.
Enjoy benefits like real-time streaming quotesLegal Disclaimer footnote 2 and pre-market and after-hours trading at no additional cost:
- Pay just $9.95 commission per online trade with no minimum balance or activity.Legal Disclaimer footnote 3
- Use your Avion points for trade commissions or turn them into cash deposits.
Investments You Can Hold in Your Margin Account
Enjoy total freedom to research and pick the investments that meet your needs.
Stocks
ETFs
Mutual Funds
GICs
Bonds
Options
Discover More About Margin Accounts
Build Your Knowledge with Inspired Investor Trade
Check out Inspired Investor Trade and visit the Investing Academy to learn more about trading and investing in stocks, options, ETFs and more.
Open a Margin Account
Be ready to take advantage of new opportunities.
You're Protected. Get 100% reimbursement for any unauthorized transactions conducted through the Online Investing platform or the RBC Mobile app.
See the GuaranteeMargin Account FAQs
A margin account is a brokerage account that allows you to borrow money against the investments in your account.
Let's say you purchase stock in a margin account. As the buyer, you pay a portion of the purchase price and the broker lends you the difference. You pay interest on the broker's loan and it holds the security as collateral. Any income or interest earned in your account may be used to help offset the cost of borrowing.
The portion of the purchase price that you pay depends on the security. The outstanding loan value is initially determined using the purchase price of the security. However, from that point on, the outstanding loan value is generally based on the market. This means that every day, as the value of your holdings and cash balance change in your margin account, the amount you are able to borrow against them will vary.
To learn more, check out Understanding Margin Accounts.
Using borrowed money to buy securities involves greater risk than using cash resources. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
Account value is the difference between the total market value of the securities you hold in a margin account and any amount loaned to you.
The interest rate charged depends on the margin amount and the prevailing interest rate. At RBC Direct Investing it is charged directly to your account.
Interest costs may be tax-deductible in a non-registered account. Speak to your tax advisor for more information.
Learn about our competitive interest rates on borrowed funds.
To learn whether margin trading may be right for you:
- Check out Understanding Margin Accounts and other articles in Inspired Investor Trade.
- Practice margin trading in a risk-free Practice Account.
To apply for margin, download a Margin Agreement Form and an Update/Change of Client Information Form. Once completed, drop off your forms at any RBC Royal Bank branch or mail them to RBC Direct Investing using the address below. Note that a margin account works in conjunction with a cash account.
Read about the benefits of opening a margin account with us.
. You may only use your Avion points through RBC DI to: (1) pay for Canadian or U.S. equity trade commissions on your eligible RBC Direct Investing accounts; or (2) transfer points for cash contributions in CAD to your eligible RBC Direct Investing accounts. It is your responsibility to make sure you have sufficient contribution room within your registered plan when redeeming points for cash contributions in CAD to your registered accounts and/or when you use your Avion points to pay for Canadian or U.S. equity trade commissions on a registered account. The Canada Revenue Agency may apply tax penalties for over-contributions. RBC Direct Investing is not responsible for any such penalties.