Public App Margin Account Rates
Public.com now offers margin accounts, but interestingly, there are no interest rates because you cannot borrow money. Margin in this context is only for trading with unsettled cash.
If you're interested in borrowing funds from a broker for trading or investing, consider Webull, a $0-commission brokerage with competitive margin rates:
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Debit Balance
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Margin Rate
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under $25,000
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9,24%
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$25,000.01 - $100,000
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8,74%
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$100,000.01 - $250,000
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8,24%
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$250,000.01 - $500,000
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7,74%
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$500,000.01 - 1,000,000
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6,74%
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1,000,000.01 - 3,000,000
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6,24%
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>3,000,000.00
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5,24%
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Margin Accounts at Public
If you're looking to trade on margin at Public, it's important to know that this brokerage only offers individual taxable accounts without margin capabilities. They don’t have any other types of accounts either. So, with Public, your only option is an individual account without margin.
Margin Alternatives
Since Public doesn't offer margin accounts, using options could be a workaround for leveraging trades without needing margin. However, Public currently doesn't support options trading, so this isn't a viable solution here.
Why Margin Matters
Margin can be beneficial for several reasons. Firstly, it allows you to buy more securities than you could with cash alone. For instance, with a cash account, you need $10,000 to buy $10,000 worth of securities. With a margin account, you only need $5,000, as the other $5,000 can be leveraged through margin. This $5,000 could even be in existing investments rather than cash. Essentially, margin lets you trade using a loan, so you don’t need the full amount in cash upfront.
Another advantage of margin is the ability to buy securities immediately and deposit the cash later. With a cash account, you need to have the money in your account and wait for the funds to settle before making a purchase. In a margin account, you can buy first and pay later. If you have at least $2,000 in account equity, you can use initial leverage to trade up to 50% of your equity. You can then deposit cash after the trade goes through to avoid any interest charges.
Finally, a margin account allows you to take out a loan using your securities as collateral, a feature many brokerage firms offer to their clients.
Other Brokers Offering Margin Accounts
While Public doesn’t provide margin accounts, brokers like Firstrade and Robinhood do. Both of these brokers also offer mobile apps and allow for fractional-share trading, making them good alternatives if you need margin capabilities.
Updated on 10/2/2024.
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