Top Brokers for Competitive Margin Trading Conditions
Here are the key strengths of brokers offering the best margin trading conditions in 2025:
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Interactive Brokers – The top choice for margin trading in 2025. Low fees, a wide variety of products, and advanced research tools.
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CapTrader – Offers low stock and ETF fees, a diverse range of assets, and strong research tools.
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Alpaca Trading – Known for its robust API trading service, commission-free stock & ETF trading, and excellent charting tools.
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Zacks Trade – Features low fees, an extensive selection of stocks and ETFs, and outstanding customer support.
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MEXEM – Provides low stock and ETF fees, a wide product range, and comprehensive research tools.
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Overview of the Best Margin Trading Platforms
Margin trading, or borrowing funds from your broker to increase your market exposure, carries significant risk. Trading conditions such as fees, available products, and research tools can make a substantial impact on your results. Here’s a breakdown of how the top brokers compare in key areas.
Broker | Margin Interest Rate Class | Stock fee class |
Interactive Brokers | Low | Low |
CapTrader | Low | Low |
Alpaca Trading | Low | Low |
Zacks Trade | Average | Low |
MEXM | High | Low |
Popularity of Top Margin Trading Brokers
Curious about what others are choosing? Here’s a look at how many traders selected these brokers over the past six months on Trading Insider.
Margin Interest Rates: Who Offers the Best Deals?
Wondering who offers the best margin rates? Check out the table below to compare the rates from the top brokers across different currencies. Remember to review the fine print, as many brokers have tiered margin rates based on the amount borrowed or your account balance. Generally, the lowest rates apply when you borrow a larger amount.
Broker | USD Margin | GBP Margin Rate |
Interactive Broker | 6.1% | 6.5% |
CapTrader | 7.1% | 7.5% |
Alpaca Trading | 7.8% | - |
Zacks Trade | 8.8% | 9.5% |
MEXM | 15.3% | 15.2% |
Stock Trading Fees on Margin
When trading stocks or ETFs on margin, the trading fees will be the same as those for regular stock/ETF trades. These fees can come in the form of flat-rate commissions, percentage-based fees, or a combination of both, depending on the broker.
Brokers | US Stock/ETF Fee | UK Stock/ETF Fee |
Interactive Brokers | $1.0 | $3.8 |
CapTrader | $2.0 | $10.1 |
Alpaca Trading | $0.0 | - |
Zacks Trade | $1.0 | $15.1 |
MEXM | $1.0 | $3.2 |
Can I Trust These Brokers?
When selecting a broker for margin trading, choosing a reliable and well-established platform is crucial. The good news? All the brokers featured in our list are highly regulated and trusted, ensuring a safe and secure trading experience.
You can assess the trustworthiness of these brokers by checking their regulatory information, investor protection availability and foundation date in the table below.
Broker | Top Tier Regulator |
Interactive Broker | FCA in the UK, SEC in the US, and ASIC in Australia |
CapTrader | CBI in Ireland |
Alpaca Trading | SEC and FINRA in the US |
Zacks Trade | SEC and FINRA in the US |
MEXEM | CBI in Ireland |
What is Margin Trading?
Margin trading involves borrowing funds from your broker to buy stocks, ETFs, or options. However, just like with any loan, you’ll need to pay interest on the borrowed amount, similar to how you’d pay interest when borrowing money from a bank.
What Are Margin Rates?
Margin rates refer to the interest rate charged by your broker for borrowing funds. These rates can vary depending on the currency in which the funds are borrowed and, in some cases, on the amount you borrow.
Margin rates generally align with the benchmark interest rate of the currency you’re borrowing. For example, if you’re borrowing USD, the margin rate is typically the US benchmark interest rate plus an additional markup set by your broker.
Interactive Brokers
Recommended for traders looking for broad market access and a professional trading environment
Interactive Broker Snapshot | |
Ratings | |
Investor Protection | $500k (up to $250k on cash) to US clients. Check the description to see all protection. |
Minimum Deposit | $0 |
US Stock/ETF Fee | $1.0 |
USD Margin Rate | 6.1% |
Time to open account | 1-3 days |
For a detailed analysis of Interactive Brokers’s services, check out our full review for 2025
CapTrader
Recommended for investors and traders looking for low fees and sophisticated trading platforms
CapTrader | |
Ratings | |
Investor Protection | IBIE (parent company) has investor protection of up to €20k |
Minimum Deposit | $2,000 |
US Stock/ETF Fee | $2.0 |
USD Margin Rate | 7.1% |
Time to open account | >3 days |
For a detailed analysis of CapTrader’s services, check out our full review for 2025
Alpaca Trading
Recommended for traders interested in algorithmic stock trading
Alpaca Trading | |
Ratings | |
Investor Protection | $500k (securities up to $500k, cash up to $250k) |
Minimum Deposit | $2,000 |
US Stock/ETF fee | $2.0 |
USD Margin Rate | 7.1% |
Time to open account | >3 days |
For a detailed analysis of Alpaca Trading’s services, check out our full review for 2025
Zacks Trade
Recommended for traders and investors looking for comprehensive research tools, a wide product selection and low fees
Zacks Trade | |
Ratings | |
Investor Protection | $500k (securities up to $500k, cash up to $250k) |
Minimum Deposit | $250 |
US Stock/ETF Fee | $1.0 |
USD margin Rate | 8.8% |
Time to open account | >3 days |
For a detailed analysis of Zacks Trade’s services, check out our full review for 2025
MEXEM
Recommended for investors and traders looking for low fees and sophisticated trading platforms
MEXM | |
Ratings | |
Investor Protection | €20k |
Minimum Deposit | $0 |
US Stock/ETF Fee | $1.0 |
USD Margin Rate | 15.3% |
Time to open account | 1 day |
For a detailed analysis of MEXEM’s services, check out our full review for 2025