Margin Trading

Margin trading enables you to borrow money from BIGEIO and leverage your holdings to purchase securities. This gives you access to additional buying power based on the value of certain securities and assets in your brokerage account.

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Important Risk Disclosure

Margin trading involves unique risks, including interest charges and the potential to lose more than deposited. Before trading with margin, you should determine whether this type of trading strategy is right for your specific investment objectives, experience, risk tolerance, and financial situation. For more information please see BIGEIO Financial's Margin Disclosure Statement, Margin Agreement, Day Trading Risk Disclosure Statement and FINRA Investor Information.

Additional info: BIGEIO.com/policy

BIGEIO Margin: Simple & Straightforward Pricing

A lower margin rate means a lower cost to borrow. Our interest rates are lower based on the amount of your margin balance.

Broker ≤$25K $25K-$100K $100K-$500K $500K-$1M $1M-$10M $10M-$25M >$25M
Charles Schwab 12.95%-13.20% 12.20%-13.70% 11.20%-11.70% -- -- -- --
E*Trade 12.575% 11.125%-12.075% 10.825%-11.075% -- -- -- --
Fidelity 8.50% 8.25% 8.25% 8.25% -- -- --
BIGEIO Standard 8.74% (All Balances)
BIGEIO Premium ⭐ 5.45% 5.25% 4.70% 4.65% 4.45% 4.40% 4.15%

Increased Buying Power

BIGEIO margin accounts provide up to 4x leverage for day-trade buying power and 2x leverage for overnight buying power. You must have at least $2,000 in equity to qualify.

Extensive Product Access

With a BIGEIO margin account, you can trade stocks, ETFs, options including advanced strategies and participate in IPOs across multiple devices.

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Our dedicated team of service representatives is available to guide you through our multiple platforms and address any inquiries you may have during standard business hours.

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The benefits of a BIGEIO margin trading account

Leverage Assets to Increase Your Buying Power

Use your existing assets as collateral to increase your trading capacity and access more investment opportunities.

Ability to Short-Sell and Hedge Against a Downturn in the Market

Short-sell stocks to profit from declining prices and hedge your portfolio against market downturns.

Access Advanced Option Trading

A qualified trader with a margin account can access advanced option trading strategies for enhanced portfolio management.

Access Capital Without Liquidating Your Current Assets

Maintain your investment portfolio while gaining access to additional capital for new opportunities.

Diversify Your Portfolio with a Wider Range of Assets and Strategies

Expand your investment options and implement diverse trading strategies with increased buying power.

Increased Liquidity - Trade Freely Without Waiting for Your Trades to Settle

Trade continuously without waiting for settlement periods, enabling more flexible and responsive trading.

Understand the risks of margin trading

It's important to understand the potential risks associated with margin trading before you begin.

Potential margin calls or liquidation of securities

Short selling loss can be infinite, and the security borrowing fee can change suddenly

Margin trading is more complex and involves additional rules and regulations compared to cash trading

Trading losses may be greater than the value of the initial investment

Leveraged investments incur greater losses and risks

Additional costs from margin interest charges

How Trading Securities on Margin Works

Here is an example to help you get a better understanding of how margin may amplify your profits as well as your losses based on the directional movement of a stock's price. Additional costs arise from margin interests accrued daily.

To purchase 100 shares of a $60 stock on margin

Stock Price: $60/share
Purchase Quantity: 100 shares
Total Purchase: $6,000
Your Funds: $3,000
Borrowed Funds: $3,000

Stock Price Rises to $65

Profit Scenario
Your Funds: $3,000
Borrowed: $3,000
Total Purchase: $6,000
Total Stock Value: $6,500
Owed to BIGEIO: $3,000
Remaining Value: $3,500
Profit: $500 (16.67%)

Stock Price Falls to $55

Loss Scenario
Your Funds: $3,000
Borrowed: $3,000
Total Purchase: $6,000
Total Stock Value: $5,500
Owed to BIGEIO: $3,000
Remaining Value: $2,500
Loss: $500 (16.67%)

* The examples above do not include the cost to borrow. Please refer to https://www.BIGEIO.com/pricing for more info.

Diversify Your Investment Portfolio

While offering a wide range of investment products, including Stocks, ETFs, Options, Futures, Retirement Accounts (IRAs), and Cash Management Tools, BIGEIO supports margin trading for many of these assets. This broad selection allows investors to leverage margin trading to diversify and customize their portfolios across a variety of financial instruments.

Stock

Retirement Accounts (IRAs)

Futures

ETFs

Cash Management

Options

Getting Started with BIGEIO Margin Trading

Get Started
1

Open a BIGEIO brokerage account

Create your BIGEIO account to begin your margin trading journey.

2

Select Margin account type

When choosing an account type, select Margin to unlock leverage trading.

3

Fund your account with at least $2,000

Deposit at least $2,000 in cash or transfer the equivalent value of marginable securities.

4

Keep a minimum of 25% equity

Maintain at least 25% of your total account value as equity at all times.

FAQs

What's the difference between margin and cash accounts?

A cash account is a type of brokerage account in which the investor must pay the full amount for securities purchased. A margin account is a brokerage account which allows investors to leverage the funds and securities they already own to purchase additional securities. It provides a great opportunity to leverage your investment to help increase your return. At the same time, it has the risks of magnifying your losses.

What are the rules for margin trading?

While margin trading provides more trading opportunities, understanding the rules and potential risks is essential before you start. If you like to day trade, you probably want to keep your equity value (crypto not included) above $25,000. This is because when you're flagged as a Pattern Day Trader (PDT) and your equity value dips below $25,000, an Equity Maintenance (EM) call may occur.

Another important thing to understand is buying power. This determines how much you can spend. There are two types of buying power:

  • Day Trade Buying Power (DTBP) refers to the funds you have available to place trades on a given trading day. It is often 4x your equity value.
  • Overnight Buying Power (ONBP) refers to the funds you have available to hold positions overnight. It is often 2x your equity value.

This means you cannot use all of your DTBP and hold the position overnight. You may trigger margin calls related to buying power. Read the rest of our course to learn more about margin calls.

How do I know which stocks I can trade with leverage?

  1. Go to the "Watchlist" tab on the main screen.
  2. Look up a stock of your choice and tap on it.
  3. Check to see if there is a dollar icon on the top right.
  4. If there is, tap the icon and you will see the maximum leverage on this stock.