When it comes to margin trading in 2025, every percentage point in interest rates directly impacts your returns. With margin rates varying dramatically across brokers—from competitive rates around 4.45% to over 13%—choosing the right platform can save you hundreds or thousands of dollars annually.
Public.com offers some of the most competitive margin rates in the industry, with tiered pricing that gets even better as your account grows. Here’s how we compare to the competition and what it means for your trading costs.
Risk Warning: Margin trading involves substantial risk and can result in losses exceeding your initial investment. This information is for educational purposes only and does not constitute investment advice.
Key Takeaway: Public.com offers competitive base rates for margin investing and industry-leading tiered rates amongst leading US brokerages, with potential savings of 7-8% annually compared to some of the traditional brokers.
What Are Margin Rates and Why They Matter
Margin rates represent the annual interest you pay when borrowing money from your broker to purchase securities. When you trade on margin, you’re essentially taking a loan using your existing investments as collateral.
The Real Cost Impact
Small differences in margin rates create significant cost differences over time:
Annual Interest on $10,000 Borrowed:
- Public.com (5.40%): $540
- Traditional broker (13.20%): $1,320
- Your savings: $780 per year
Annual Interest on $100,000 Borrowed:
- Public.com (5.00% tiered rate): $5,000
- Traditional broker (12.57%): $12,570
- Your savings: $7,570 per year
How Interest Accrues
Margin interest is calculated daily and charged monthly:
- Daily Rate: Annual rate ÷ 365 days
- Daily Interest: Your margin balance × daily rate
- Monthly Charge: Sum of daily interest for the month
Example with Public.com’s 5.40% rate:
- $25,000 margin balance
- Daily interest: $25,000 × (5.40% ÷ 365) = $3.70
- Monthly cost: ~$111
Why These Savings Matter
- Compound Growth: Money saved on margin interest can be reinvested, potentially compounding your returns over time.
- Strategy Flexibility: Lower rates make certain margin strategies more viable and profitable.
- Risk Reduction: Lower costs provide more cushion for market volatility and unexpected events.
Getting Started with Margin Trading on Public.com
Application Process:
- Signup for a Public.com brokerage account
- Go to Settings → Margin Account
- Complete the quick application
- Get approval notification (usually instant)
- Start trading on Public with increased buying power
Key Benefits:
- Industry-leading rates: 5.40% base rate, tiered down to 4.45% for larger balances
- Advanced options strategies: Access Level 3+ options like spreads and iron condors
- No commission: $0 commission stock and ETF trades
- Real-time monitoring: Track margin usage and buying power instantly
Ready to start saving on margin costs? Apply for margin trading on Public.com and start taking advantage of our competitive rates and modern trading features.
