Margin
If you borrow money in a margin account to buy stocks, keep in mind that this is not "free" money. The collateral for borrowing the money is the marginable securities in your Scottrade account.
You will also pay a fixed amount of interest on the borrowed money on a monthly basis.
Click to view the latest Margin and Credit Interest Rates.
The interest you pay on money borrowed from Scottrade may reduce your overall returns when you look at the net cost of the transaction.
Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Scottrade's margin agreement, available at scottrade.com or through a Scottrade branch office, contains the Margin Disclosure Statement and information on our lending policies, interest charges and the risks associated with margin accounts.
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