Margin lending is a quick, easy way to access funds at Rockfleet. There are no applications beyond a signed Express Credit agreement, no processing delays, and no closing costs. Credit history is not reviewed. You can simply contact your financial advisor to make arrangements to receive the funds you need. Furthermore, if you have an Investment Access® Account, you can write your own loan - just by writing a check or using your Visa® Platinum Debit Card.
Typically, you can borrow up to 50% of the market value of most listed stocks, certain bonds, and mutual funds; however, Express Credit is not available in certain types of accounts.
You can pay off your balance when it is best for you:
When you decide to repay the loan or a portion of it, you have several options:
As long as you maintain minimum margin requirements, you control when you pay off your balance. And, if your portfolio increases in value while you have a loan, the interest rate charges may be offset by your portfolio gains.
When you borrow against your securities you will incur interest charges on the amount of your loan balance. The interest charges may be tax-deductible on qualified investment purchases. Rockfleet does not provide tax advice. Consult with a professional tax advisor for more information.
Express Credit is a margin product that may not be suitable for all investors because borrowing on margin and using securities as collateral involves certain risks. Market conditions can magnify any potential for loss and potential returns on investments may be negatively impacted by the costs associated with Express Credit. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and as a result, the firm can take action, such as to issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account.
Express Credit interest rate charges are determined by the amount of your loan. Before you sign a Margin Agreement, it is important that you read and fully understand the margin disclosure statement, which describes additional risks involved in trading securities on margin.
Interest will be charged to your account for any credit extended to you for the purpose of buying or trading or carrying any securities or for other purposes. The rates of interest charged to your Express Credit account will be determined in accordance with the following schedule:
| Debit Balance | Percentage +/- Base Lending Rate | Interest Rate* |
|---|---|---|
| $0 to $24,999 | +2.75% | 9.75% |
| $25,000 to $49,999 | +2.25% | 9.25% |
| $50,000 to $74,999 | +1.75% | 8.75% |
| $75,000 to $99,999 | +1.375% | 8.375% |
| $100,000 to $249,999 | +1.125% | 8.125% |
| $250,000 and over | +1.00% | 8.005% |
* Based on the 7.00% Base Lending Rate.
Your Rockfleet financial advisor is available to answer any questions you may have about accessing funds through Express Credit and can help you determine if this is a solution that fits your financing needs.