With a margin account, you can borrow against the value of your investments – using margin-eligible securities in your RBC Direct Investing account as collateral for the loan.
It’s a brokerage account that lets you access additional funds by borrowing against the value of your investments. That means you have the flexibility to do more with your non-registered investments and the control to take advantage of opportunities when they arise. There’s potential for greater returns — and greater losses.
It’s important to note that there are also risksDisclaimer 1 associated with borrowing to invest.
Take advantage of competitive interest rates on margin account loans.
Access a wide selection of margin-eligible investments to use as collateral for a loan.
Not sure if a margin account is for you? Test the waters with a free Practice Account.
Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. 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.
RBC Direct Investing offers several ways to learn whether margin trading is right for you, including:
Talk to other investors and anonymously see what stocks they’re holding
Margin trading isn’t for everybody. Still, there are some investors who partake in it. Connect with other investors at RBC Direct Investing to learn how they spot opportunities and assess risk in The CommunityDisclaimer 2.
Read up on margin trading to stay in the loop on all things investing
Visit the Inspired Investor to take a deeper look at margin accounts — including how other investors are using them. Plus, get trading ideas and inspiration and keep up with the latest investing news and research.
Try a free Practice Account
At RBC Direct Investing, you can see if a margin account will work for you with a free Practice Account. It’s a risk-free way to test your strategy while trying out our tools and resources.
Short selling is the selling of borrowed stock, a strategy that comes with opportunities and risks.
Complete your application online in just minutes and have your account opened within 24 hours.