The post Best Margin Trading Platforms in April 2025 by Ryan Peterson appeared first on Benzinga. Visit Benzinga to get more great content like this.
Choosing the right platform for margin trading can be a game-changer for investors looking to amplify their purchasing power. With so many options available, including Interactive Brokers and TradeZero, finding a platform that offers favorable terms, low fees and robust trading tools is crucial to managing the risks associated with borrowing to invest.
Quick Look at the Top Margin Trading Platforms:
- Best Overall Global Broker for Short Selling: TradeZero
- Best for Mobile Users: Plus500
- Best for Futures Trading: TradeStation
- Best for Options Education: tastytrade
- Best for Beginners: Robinhood
- Best for IPO Investing: SoFi
- Best for Active and Global Traders: Interactive Brokers
- Best for Trading Ideas: Public.com
- Best for Traders of All Levels: Moomoo
- Best for Active Traders: Webull
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10 Best Margin Trading Platforms
With so many platforms offering margin trading, finding the right one for your needs is crucial. Below are some top platforms that offer competitive margin rates, robust tools and excellent customer service.
1. Best Overall Global Broker for Short Selling: TradeZero
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securely through TradeZero’s
website
TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.
Best For
- Traders seeking high transparency and mobility in a stock trading program
- Those attracted to commission-free trades
- Those seeking a free version of a high-quality trading program
- 24/7 live customer support
- Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
- Mobile app allows users to access stocks and trade in real-time while on the go
- Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
- Mobile app could offer more features
TradeZero provides advanced trading tools and features for active traders. With its zero-commission structure on certain trades and competitive margin rates, it’s a popular choice among those who want a cost-effective way to leverage their investments. Margin trading on TradeZero starts at 9%.
Why We Picked It: TradeZero offers low-cost trading with access to advanced tools, making it ideal for day traders who want to take full advantage of margin trading without incurring high fees.
2. Best for Mobile Users: Plus500
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securely through Plus500’s
website
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments.
Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.
Best For
- Traders looking for a smooth mobile experience
- Great mobile app
- Low spreads and commissions
- Unlimited demo account
- Only derivatives are available
- Not open to U.S. residents
Plus500 is a global multi-asset fintech group that operates trading platforms globally, offering a range of trading products, including CFDs, share dealing and futures trading (US).
Highlights of the platform include:
- Quick onboarding
- Simplified mobile trading
- Easy-to-use platform
- CFDs for indices, ETFs, shares, forex, commodities, options and cryptocurrency
- Free deposits and withdrawals
- $100 minimum investment
- 0.7% currency conversion fee per transaction, when the currency in your account is different from those traded
However, Plus500 is not a platform for novices as it solely makes money from spreads and does not charge a commission. You may start trading Plus500 right away, leverage your experience, expand your portfolio and start making money right away.
Why We Picked It: Benzinga enjoys how Plus500 helps investors build multi-asset portfolios that can be tasked to save for the future, produce income now or something in between, including its intuitive interface and rich cache of information.
3. Best for Futures Trading: TradeStation
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website
TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.
Best For
- Advanced traders
- Options and futures traders
- Active stock traders
- Comprehensive trading platform and professional-grade tools
- Wide range of tradable securities
- Fully-operational mobile app
- Confusing pricing structure to leave new traders with a weak understanding of what they pay
- Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
TradeStation is a well-established platform that offers professional-grade tools for active traders. It supports margin trading with competitive rates and provides educational resources for those looking to sharpen their trading skills. Margin rates are quite high at 12.5% to start.
Why We Picked It: TradeStation’s powerful tools and comprehensive educational offerings make it a top choice for serious traders who want to maximize their potential through margin trading.
4. Best for Options Education: tastytrade
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website
tastytrade and tastylive, Inc. (“tastylive”) are separate but affiliated companies.
tastytrade is a sophisticated options and futures broker aimed toward experienced traders. The platform was designed by the founders of thinkorswim with functionality and precision for complicated options trades and strategies. tastytrade offers stocks and ETFs to trade too, but the main focus is options.
Options on tastytrade are only charged a 1-way, $1 commission — far cheaper than almost all competitors. Commissions on futures and micro futures are also affordable, and there’s no minimum required to open a cash account. It’s $2,000 if you want to use margin.
Best For
- Options traders
- Futures traders
- Advanced traders
- Powerful platform inspired by thinkorswim
- Multiple order types and strategies
- Cheap options commissions
- Advanced platform could intimidate new traders
- No demo or paper trading
tastytrade is known for its innovative approach to trading. Its platform focuses heavily on options and futures. With competitive margin rates and a wealth of educational content, it’s a favorite among options traders who want to explore the potential of margin trading. Margin rates on tastytrade start at 8%.
Why We Picked It: tastytrade stands out for its focus on options trading and its educational resources, making it ideal for traders who want to leverage options strategies with margin.
5. Best for Beginners: Robinhood
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securely through Robinhood’s
website
Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.
Best For
- Beginners looking for simplicity
- Mobile-first investors
- Commission-free trades
- User-friendly mobile app
- Instant double
- Cash management
- Access to cryptocurrencies
- Limited research tools
- No mutual funds available
- Basic customer support options
Robinhood popularized commission-free trading and has since expanded its offerings to include margin trading through its Robinhood Gold service. The platform is user-friendly and attractive to newer investors looking to explore margin trading with minimal fees. Rates are as low as 5.70%.
Why We Picked It: Robinhood’s ease of use and low-cost structure make it an accessible entry point for novice investors interested in margin trading.
6. Best for IPO Investing: SoFi
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website
Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.
Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual
circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage andActive investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).
There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options
Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser.
Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment
when using margin. Please see: https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information
Probability of Member receiving $1,000 is a probability of 0.028%
Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.
For full promotion terms please visit: https://www.sofi.com/acatoffer. SoFi does not accept cryptocurrencies and has limitations on some mutual funds and OTC stocks. Brokerage and Active Investing Products offered by SoFi Securities, LLC, Member FINRA/SIPC.
SoFi®’s mission is simple: to help reach clients like you reach their financial independence and realize their ambitions. SoFi knows that this independence comes from making decisions that help your money start to work for you in the long run. The brand helps individuals make these decisions through personal financial products such as personal loans, student loans and automated and active investing.
The brand additionally provides in-person experiences such as educational and networking events, personalized guidance from experienced financial planners. SoFi’s services have been highlighted in outlets such as Forbes, Medium, and CNBC’s Make It.
Best For
- IPO Investing
- Investors
- No Contract Fees
- Highly-rated mobile app for iPhone and Android
- No account fees; Transfer and Inactivity Fees are easily avoided
- More than most tradable securities included alternative asset funds
- Only available in the U.S.
- Limited selection of research and tools.
SoFi is a financial services company that offers a range of products, including investment accounts with margin trading capabilities. Known for its customer-centric approach, SoFi provides competitive rates and no account minimums, making it an appealing option for investors who want flexibility.
Why We Picked It: SoFi’s customer-friendly policies and flexible margin trading options make it a great choice for those who want a simple yet effective trading platform.
7. Best for Active and Global Traders: Interactive Brokers
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securely through Interactive Brokers’s
website
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
Interactive Brokers is renowned for its low margin rates and access to various global markets. It’s a platform designed for more experienced traders who require advanced tools and the ability to trade on margin across different asset classes and international exchanges. Margin rates are as low as 6.17%.
Why We Picked It: Interactive Brokers’ unmatched margin rates and global market access make it the go-to platform for seasoned traders looking to leverage their investments.
8. Best for Trading Ideas: Public.com
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securely through public.com’s
website
Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.
Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research.
Best For
- Stock and ETF investors
- Crypto investors
- Investors looking to diversify with alternative assets or bonds and options
- Commission-free stock and ETF trading
- Fractional share investing
- Advanced data, tools, and insights with Public Premium
- You can’t transfer crypto to another wallet
- No mutual funds or precious metals
- At this time, only offers individual brokerage accounts and not IRAs
At Public, stock and ETF trades are commission-free, offering $0 commission trading on self-directed individual cash brokerage accounts that trade U.S. listed securities placed online. While trades are free of commissions, other fees may apply, such as regulatory fees, subscription fees, wire transfer fees and paper statement fees. Public also provides users the option to voluntarily tip to support its mission of offering commission-free trades without accepting any payment for order flow (PFOF).
Unlike most online brokers, Public does not participate in payment for order flow on equities trades. PFOF typically involves brokers routing trades to market makers for execution, potentially creating a conflict of interest between the broker and the investor. Public eliminates this conflict by routing all orders directly to exchanges and other execution venues, prioritizing transparency and alignment with its users.
For those looking to expand their portfolios, Public offers access to over 300 select over-the-counter (OTC) stocks, primarily focusing on large-cap international companies. Each stock page on Public includes additional research, data and company-specific analysis, empowering investors to make informed decisions. The platform’s suite of tools is designed to enhance your trading strategies, with features like customizable recurring investments, built-in price alerts and extended-hours trading to provide greater control over your investments.
Public also supports a variety of other investment options, including ETFs, options, bonds and cryptocurrencies, making it a versatile platform for a wide range of investment strategies.
Why We Picked It: Public.com’s focus on transparency and fair trading practices makes it a solid choice for those who want to engage in margin trading while staying connected with a community of like-minded investors.
9. Best for Traders of All Levels: Moomoo
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securely through Moomoo’s
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Investing is a long-term journey, and moomoo can help guide investors of all levels every step of the way. Utilized by over 21 million users worldwide – including in the US, Singapore, Australia, Japan, Malaysia and Canada – moomoo is an investment and trading platform that empowers investors with pro-grade, easy-to-use tools, data and insights.
moomoo provides advanced charting tools, technical analytics and Level 2 data for funded accounts, so investors have the resources to make more informed investment decisions. Users can access educational materials and interactive events, as well as share and learn through the inline community.
With a low-cost, competitive fee structure, moomoo can work for all investors.
Best For
- Novices
- Intermediate and advanced traders
- Active traders
- Equity and index options trading
- Commission free trading for US options, stocks and ETFs and 6.8% margin rate
- Wealth of free options tools and features, including customizable options chain, options calculator, unusual options activity, implied volatility analysis, 13 options strategies and 0 days to expiration (0DTE) options by volume
- Free Level 2 data for funded accounts
- Advanced charting tools with 100+ indicators, 37+ drawing tools and 20 candle patterns
- No minimum deposit to open an account
- 24/7 online chat support
- 5.1% APY in Cash Sweep program for new and qualified users
- Does not support crypto
- Does not support retirement accounts or mutual funds
Moomoo offers a feature-rich trading platform with advanced charting tools and low-cost margin trading. It’s particularly popular among tech-savvy traders who value the platform’s powerful analytical tools and access to real-time market data. Moomoo margin rates are as low as 6.8%.
Why We Picked It: Moomoo’s robust platform, with competitive margin rates and advanced tools, makes it an excellent option for traders who want to leverage technology to enhance their margin trading strategies.
10. Best for Active Traders: Webull
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securely through Webull’s
website
Webull is a commission-free trading platform designed with both beginner and advanced investors in mind. Offering an extensive range of assets like stocks, ETFs, and futures, Webull makes it easy for users to manage their investments through a highly intuitive interface. With educational resources, paper trading options, and no minimum account balance required, Webull caters to those looking to start investing without high upfront costs. The platform’s mobile app ensures that users can trade anytime, anywhere, making it a flexible choice for those with busy lifestyles. Webull’s customer service options are limited, and the platform may feel overwhelming to those completely new to investing.
Best For
- Commission-free trading
- Mobile and desktop trading
- Beginners and experienced traders alike
- No commissions on trades
- Extensive range of tradable assets
- Easy-to-use mobile app
- Limited customer service options
- Learning curve for complete beginners
Webull is a commission-free trading platform that provides users with a comprehensive suite of tools for margin trading. Known for its sleek interface and advanced charting capabilities, Webull appeals to novice and experienced traders looking to maximize their investment potential. The current margin rate is 5.74% to 9.74%.
Why We Picked It: Webull’s user-friendly interface and powerful trading tools make it a standout choice for those looking to engage in margin trading without incurring high costs.
What is Margin Trading?
Margin trading is a strategy where investors borrow funds from a broker to buy securities, using their existing investments as collateral. This leverage can enhance buying power, allowing investors to take larger positions than they could with their capital alone. While this can lead to higher profits if the market moves in the investor’s favor, it also increases the risk of substantial losses. If the market moves against them, investors may be required to repay the borrowed funds, potentially incurring significant debt.
Margin trading involves understanding key concepts like minimum margin (the minimum amount needed to open a position), initial margin (the percentage of the purchase price that your own money must cover) and maintenance margin (the minimum equity that must be maintained in the margin account).
How Does Margin Trading Work?
When you trade on margin, you’re buying securities with borrowed money, allowing you to take larger positions than your cash balance alone would allow.
Here’s how it works: you deposit a certain amount into your margin account, which acts as collateral. Your broker then lends you additional funds to purchase more securities. The key elements of margin trading include the initial margin requirement, the percentage of the investment you must pay for with your own funds and the maintenance margin, which is the minimum account balance you must maintain. If your account falls below this level, you’ll face a margin call, requiring you to deposit more funds or sell off assets to bring your account back into compliance.
Investors must pay interest on borrowed funds, which can increase the cost of the investment and erode profits if not managed carefully.
Margin Interest Rates
Margin interest rates vary significantly between brokers, and understanding these differences can significantly impact your costs. Most brokers offer a tiered structure, where the interest rate decreases as the amount borrowed increases.
For example, a broker might charge 9% on loans under $10,000 but only 5% on loans over $100,000. Interest rates can differ based on the currency of the loan, with USD rates typically being lower than GBP rates. When choosing a margin trading platform, it’s essential to compare these rates to ensure you’re not paying more than necessary.
Stock Trading Fees
Stock trading fees can eat into your profits, especially in margin trading. Fees can be either flat or percentage-based, and while many platforms now offer commission-free trading for U.S. stocks or ETFs, fees may still apply for trading UK stocks or other international assets. Non-trading fees, such as withdrawal or inactivity, should be considered, as they can also add up over time. When evaluating margin trading platforms, it’s important to look at the complete fee structure to ensure your trading costs remain as low as possible.
Pros of Margin Trading
Margin trading offers several key benefits, including the potential for higher gains due to increased purchasing power. Using leverage, traders can take larger positions with less capital, allowing them to capitalize on market movements more effectively. Margin trading also offers flexibility in repayment schedules, which can be advantageous for managing cash flow. When used strategically, it enables traders to hedge their positions, potentially reducing risk or magnifying profits.
Cons of Margin Trading
While margin trading can amplify profits, it also significantly increases potential losses. If the market moves against your position, you could lose more than your initial investment. Margin calls are another risk, requiring you to deposit additional funds or sell assets to maintain your position. Failure to meet a margin call can result in forced liquidation of your assets, potentially at a loss. The interest on borrowed funds can accumulate quickly, eroding profits and increasing overall risk exposure.
Are You Ready for Margin Trading?
Before engaging in margin trading, assessing whether you have the experience and financial stability to manage the risks involved is crucial. Margin trading is best suited for experienced investors who understand the complexities of leverage and have sufficient cash reserves to cover potential losses. It’s also important to consider the emotional toll of margin trading, as the potential for large losses can lead to stress and impulsive decision-making. If you’re not fully prepared to handle these challenges, starting with less risky investment strategies might be wise.
The Margin Trading Broker for You
Margin trading can be a powerful tool for amplifying your investment returns, but it’s not without its risks. Before diving in, ensure you understand how margin trading works and assess whether your financial situation can handle the potential downsides. The right platform can make all the difference, offering competitive rates, robust tools and excellent customer support to help you manage your margin trades effectively. Choose wisely; margin trading could be a valuable addition to your investment strategy.
Frequently Asked Questions
Which trading platform gives the highest margin?
TradeZero is known for offering high margin limits, especially for active day traders.
Answer Link
Which brokerage account is best for margin trading?
Interactive Brokers is often considered the best due to its low margin rates and access to global markets.
Answer Link
What is the best strategy for margin trading?
The best strategy is to conservatively use margin, focusing on high-confidence trades and always being prepared to meet margin calls.
Answer Link
The post Best Margin Trading Platforms in April 2025 by Ryan Peterson appeared first on Benzinga. Visit Benzinga to get more great content like this.