Securities-backed line of credit rates compared across 10 major US lenders in May, including Schwab, Fidelity, Wells Fargo, Merrill, Morgan Stanley, JPMorgan, Goldman, UBS, BNY Mellon, and Interactive Brokers.
In May 2026, SBLOC rates run roughly 5.85% to 7.95% (SOFR plus a spread of 1.50% to 3.65%) across major U.S. brokers. Goldman Sachs and Morgan Stanley typically offer the tightest spreads but require $250K to $1M+ minimums. Schwab and Wells Fargo are the most accessible at $100K minimum. Fidelity uses a heavily tiered margin schedule that becomes competitive only at $1M+. Interactive Brokers margin is the cheapest at large balances. For a $500K portfolio, expect rates of 6.50% to 7.95% depending on broker.
Enter your portfolio value to see how much you could borrow and at what rate, by broker.
Estimates only. Actual LTV ratios vary by asset mix (equities vs bonds vs concentrated positions). SOFR baseline assumed at 4.30% (May 2026). Always confirm rates with your broker.
Securities-backed lines of credit (SBLOCs) let you borrow against your investment portfolio without selling your positions. Rates are set as a spread above SOFR (Secured Overnight Financing Rate), which stood at approximately 4.3% to 4.5% in May 2026. This comparison uses a SOFR assumption of 4.50%. Check the current SOFR at newyorkfed.org before you borrow, as rates adjust daily.
Fidelity publishes its spread structure directly. The spread is tiered by credit line size, based on publicly disclosed terms:
Minimum portfolio to pledge: $100,000. Maximum advance rate: approximately 65% of eligible portfolio value. Fidelity uses the 1-Month CME Term SOFR as its variable index. No application fee, no annual fee, interest charged monthly only on amounts drawn.
Schwab's Pledged Asset Line (PAL) is also tiered by loan value. Schwab publishes its rate structure at schwab.com/pledged-asset-line/rates, updated regularly. The structure is SOFR plus a spread that varies by balance, broadly comparable to Fidelity's published tiers. Schwab reserves the right to change any component of the rate. The SOFR index, the spread, or the post-demand spread. After establishment. Verify the current published rate at Schwab directly before applying, as rates are subject to change without notice.
Interactive Brokers offers margin lending rather than a dedicated SBLOC product, but the economic effect is similar. Borrowing against your portfolio without selling. IBKR's margin rates are among the lowest in the industry, with spreads as low as SOFR + 1.50% for larger balances. This makes IBKR highly competitive on rate, though the margin structure involves different risk parameters than a dedicated SBLOC. IBKR Pro accounts have access to the lowest rates; IBKR Lite accounts carry higher margins.
Morgan Stanley offers SBLOCs through its wealth management platform with rates typically in the SOFR + 1.50% to 3.00% range depending on portfolio size and relationship tier. Minimum portfolio requirements are generally $250,000 or higher. Morgan Stanley's SBLOC is available through financial advisors rather than online self-service. Access typically requires an existing wealth management relationship.
Goldman Sachs GS Select is the firm's primary SBLOC product for clients with investment accounts. Minimum portfolio: $75,000. The application process is described as taking "generally no more than several days." Goldman Sachs does not publish a public rate schedule. Rates are set individually based on portfolio composition, size and client relationship. Expect rates broadly in line with Fidelity and Schwab for equivalent portfolio sizes, with potential relationship pricing for larger accounts.
Wells Fargo's Priority Credit Line (PCL) is the firm's securities-backed line of credit product, available through Wells Fargo Advisors. Minimum portfolio: $100,000. Spread structure prices SOFR + 1.50% to 3.50% depending on balance tier and relationship status, putting all-in rates at approximately 5.80% to 7.80% in May 2026.
The PCL competes directly with Schwab PAL on minimum threshold and rate. Wells Fargo's pricing tends to run 5 to 25 basis points tighter than Schwab at equivalent balance tiers for borrowers with an existing Wells Fargo banking or brokerage relationship. The trade-off is application friction. The PCL must be opened through a Wells Fargo Advisors representative rather than a fully online self-service flow.
Advance rates align with industry standards: 50% to 70% for diversified equity, 75% to 85% for investment-grade bonds, 90% to 95% for U.S. Treasuries. No annual fee, interest charged monthly only on drawn amounts.
Bank of America's wealth subsidiary, Merrill, offers the Loan Management Account (LMA) through Merrill Lynch Wealth Management. Minimum eligible collateral: $100,000. Spread structure prices SOFR + 1.65% to 3.70% in May 2026, producing all-in rates of approximately 5.95% to 8.00%.
Merrill's LMA competes most effectively when the borrower has an existing Merrill brokerage and a Bank of America banking relationship. Relationship pricing typically reduces the spread by 25 to 50 basis points vs the rack rate. Without the relationship, Schwab and Wells Fargo are more competitive at the $100K to $500K tier.
One distinctive feature: the LMA can be linked directly to Bank of America checking for instant draws by check or debit card, which is operationally convenient for ongoing standby use.
JPMorgan Private Bank's Premier Line of Credit is positioned for the high-net-worth segment. Minimum portfolio: $500,000. Spread structure prices SOFR + 1.70% to 3.85%, producing all-in rates of approximately 6.00% to 8.15%.
The Premier Line's pricing is not particularly competitive on rate alone. The product wins on relationship integration: a single private banker manages your investments, your line of credit, your mortgage, and your business banking. For ultra-high-net-worth clients who value consolidation under one institution, the Premier Line is the default. For pure rate-shoppers, Goldman GS Select and Morgan Stanley LAL offer tighter spreads.
JPMorgan Securities (the self-directed brokerage arm, formerly You Invest) does not offer a comparable SBLOC product. Access to the Premier Line requires moving assets to JPMorgan Private Bank under managed-account terms.
UBS Wealth Management USA offers a securities-backed credit line through its advisor channel, with minimums starting at $250,000 for Premier clients and higher tiers above. Spread structure prices SOFR + 1.40% to 3.30% in May 2026, producing all-in rates of approximately 5.70% to 7.60%.
UBS competes head-to-head with Morgan Stanley at the wirehouse tier. Pricing is broadly comparable, with the differentiation coming from advisor relationship quality and the specific cross-border services UBS offers for clients with international assets. For US-only borrowers, Morgan Stanley typically wins on platform familiarity; for clients with European or Asian wealth components, UBS's global integration may justify the relationship.
| Lender | Min Portfolio | Spread Above SOFR | All-In Rate (May 2026) | Application |
|---|---|---|---|---|
| Goldman GS Select | $1,000,000 | +1.30% to +3.00% | 5.60% to 7.30% | Via advisor |
| UBS Credit Line | $250,000 | +1.40% to +3.30% | 5.70% to 7.60% | Via advisor |
| Morgan Stanley LAL | $250,000 | +1.50% to +3.00% | 5.80% to 7.30% | Via advisor |
| Wells Fargo PCL | $100,000 | +1.50% to +3.50% | 5.80% to 7.80% | Via advisor |
| Schwab PAL | $100,000 | +1.55% to +3.65% | 5.85% to 7.95% | Online, days |
| Merrill LMA | $100,000 | +1.65% to +3.70% | 5.95% to 8.00% | Via advisor |
| JPMorgan Premier | $500,000 | +1.70% to +3.85% | 6.00% to 8.15% | Via private banker |
| Fidelity Margin ($1M+) | No minimum | Tiered base rate | 4.83% (over $1M) | Online, same day |
| Interactive Brokers Margin | No minimum | +1.50% (large balances) | 5.80% to 7.83% | Online, same day |
| BNY Mellon Wealth | $2,000,000 | +1.35% to +2.95% | 5.65% to 7.25% | Via private banker |
The tightest published spreads in the U.S. market sit at Goldman GS Select, BNY Mellon Wealth, and UBS Credit Line, all gated behind $1M to $2M minimums. For self-directed retail borrowers with $100K to $1M to deploy, Schwab PAL and Wells Fargo PCL offer the best combination of accessible application flow and competitive pricing.
| Institution | Spread over SOFR | Min Portfolio | All-in Est. (SOFR 4.50%) | Application |
|---|---|---|---|---|
| Fidelity | 1.90%. 3.10% | $100,000 | 6.40%. 7.60% | Online, days |
| Charles Schwab | Tiered (see schwab.com) | $100,000 | Verify at schwab.com | Online, days |
| Interactive Brokers | From 1.50% | No minimum | From ~6.00% | Online, fast |
| Morgan Stanley | 1.50%. 3.00% | $250,000+ | 6.00%. 7.50% | Via advisor |
| Goldman Sachs GS Select | Not published | $75,000 | Relationship-based | Via advisor, days |
Three factors determine where you land in any broker's rate structure:
SBLOC rates moved violently over the past six years, primarily driven by Fed policy and the SOFR transition. Understanding the trajectory helps calibrate expectations for future moves.
| Year | Reference Index | Typical SBLOC All-In Rate | Driver |
|---|---|---|---|
| 2020 | LIBOR (transitioning) | 2.50% to 4.25% | Fed Funds at zero, COVID emergency rates |
| 2021 | LIBOR / SOFR transition | 2.50% to 4.25% | Rates held near zero through year-end |
| 2022 | SOFR (post-LIBOR) | 3.50% to 8.50% | Fed hiked 425 bps from March to December |
| 2023 | SOFR | 7.00% to 10.00% | Fed hikes continued; SOFR peaked above 5.4% |
| 2024 | SOFR | 6.50% to 9.50% | Fed paused, first cuts late 2024 |
| 2025 | SOFR | 5.95% to 8.50% | Gradual cuts brought SOFR to ~4.4% |
| 2026 (current) | SOFR | 5.80% to 7.95% | SOFR at 4.30%, Fed in pause/data-dependent mode |
The single most important rate move was the 2022 hiking cycle, which doubled SBLOC rates in 9 months. Borrowers who took out fixed-rate liabilities (mortgages, term loans) in 2020 to 2021 watched their floating-rate SBLOCs reset to materially higher costs. If the Fed resumes hiking in 2026 to 2027, SBLOC rates would track that move directly. Floating-rate exposure should be a primary input to your borrowing decision.
The headline spread above SOFR is the dominant cost, but four secondary costs can materially affect total expense.
Most major SBLOC providers (Schwab PAL, Wells Fargo PCL, Fidelity Margin) charge no origination fee, no annual fee, and no draw fee. Two exceptions: some private bank facilities (notably at JPMorgan and BNY Mellon at smaller balance tiers) charge annual maintenance fees in the $250 to $1,000 range. Always confirm fee structure before signing.
Major lenders use 1-month CME Term SOFR. Some lenders use 3-month or compound-average SOFR, which behaves differently during rate moves. In a rising-rate environment, 1-month SOFR resets faster (your cost goes up faster); in a falling environment, the opposite. Confirm which index your lender uses.
When a maintenance call is unmet and the lender liquidates pledged securities, you typically pay normal transaction commissions plus, at some lenders, a forced-sale processing fee of $100 to $500. The bigger cost is the realized capital gains tax on positions sold above cost basis (see PAL Tax Treatment 2026).
Drawing funds from an SBLOC typically uses a wire transfer ($25 to $35 outbound at most institutions). If you draw frequently in small amounts, this adds up. Some lenders waive wire fees for premium clients or for transfers to linked accounts within the same institution.
Every major SBLOC provider operates a tiered pricing structure where larger balances get materially lower spreads. The mechanics of moving into a lower tier vary by lender. Three strategies actually work.
At Schwab PAL and Wells Fargo PCL, the spread tier is determined by your total pledgeable assets in the line account, not by your outstanding draw. Pledging $750K of securities to qualify for the $500K-$1M tier saves you spread even if you only draw $200K. Move sleepy long-term holdings into the pledged account to expand your tier qualification.
Wells Fargo, Bank of America/Merrill, JPMorgan, and Morgan Stanley all offer relationship discounts of 25 to 50 basis points for clients with primary banking, mortgages, or other lending products at the same institution. The discount is rarely advertised but is consistently available on request. Always ask for it.
If your balance puts you within 10% of the next tier threshold ($450K when the next tier starts at $500K), private bankers and advisors at wirehouses have discretion to grant the lower-tier pricing as a service gesture. Ask explicitly. This rarely works at fully self-directed brokers (Schwab, Fidelity) where pricing is system-driven, but consistently works at advisor-led firms.
SBLOC pricing is more negotiable than most borrowers realize, particularly at the wirehouse and private bank tiers. Three tactical moves consistently move pricing 25 to 75 basis points below rack rates.
Get a written rate quote from a competing institution (Schwab, Wells Fargo, or Morgan Stanley as applicable). Present it to your current institution's wealth manager with the explicit ask: "Can you match or beat this?" Wealth managers measure on asset retention; they have discretion to grant rate concessions to prevent client departure. Success rate on this tactic at wirehouses: roughly 60% to 75% in practice.
Offer to transfer additional brokerage assets to the institution in exchange for tighter SBLOC pricing. Even a $200K to $500K asset transfer typically unlocks a 25 to 50 bp spread reduction at relationship-based firms. The economics work for the institution because the new asset under management generates fee revenue that justifies the lending concession.
Most institutions have a tier of pricing reserved for clients above a relationship threshold (typically $1M to $3M aggregate assets) that is not published on the public website. If you qualify or are close, explicitly ask: "Am I being quoted at the premier tier rate?" If not, ask what would be required to access it. The conversation itself sometimes unlocks the better rate.
What does not work: walking in to a self-directed retail broker (Schwab, Fidelity) and asking for negotiated pricing. Those firms run system-driven tiered pricing with no advisor discretion to adjust.
Borrower has $500,000 in a diversified equity portfolio. Needs a $300,000 SBLOC for opportunistic real estate investment over a 3-year horizon.
| Path | Rate | Annual Interest | 3-Year Total Cost |
|---|---|---|---|
| Worst case: Merrill LMA at rack rate | 7.80% | $23,400 | $70,200 |
| Mid case: Schwab PAL at $500K tier | 7.05% | $21,150 | $63,450 |
| Better case: Wells Fargo PCL with relationship | 6.55% | $19,650 | $58,950 |
| Best case: Morgan Stanley LAL via advisor | 6.00% | $18,000 | $54,000 |
Spread between worst case (Merrill rack rate) and best case (Morgan Stanley advisor): $5,400 per year, $16,200 over 3 years. Shopping 3 lenders and asking for relationship pricing where applicable typically captures most of this spread. The same exercise at $500K of utilization across the full 7.95% to 5.85% rack-rate range would save up to $11,400 per year (the top-line headline gap times the draw size).
Goldman Sachs GS Select offers the tightest published spread at SOFR + 1.30% for $5M+ balances (5.60% all-in in May 2026). For more accessible balance tiers ($100K to $1M), Morgan Stanley LAL through an advisor relationship typically offers the lowest effective pricing after relationship discounts.
Yes. Each SBLOC pledges a specific brokerage account at one institution. Borrowers with assets at multiple brokers can hold multiple SBLOCs, each secured by the assets at that specific broker. This is sometimes used to access the best rate on each portion of a portfolio.
Generally no. Most major broker-dealers do not report SBLOCs to consumer credit bureaus because the loans are collateralized by securities rather than by unsecured creditworthiness. Defaults pursued through deficiency collections may be reported.
Most lenders use 1-month SOFR and reset monthly, so a Fed rate change flows through to your effective rate within 30 to 45 days. A few lenders use 3-month or compound-average SOFR, which lags somewhat. Check your loan agreement for the specific index and reset frequency.
Not at the major retail brokers. All Schwab PAL, Wells Fargo PCL, Merrill LMA, Morgan Stanley LAL, and similar products are floating-rate. Private banks occasionally offer fixed-rate term lending against securities as a separate product (not as a revolving line), but pricing is materially worse than the floating SBLOC alternative.
Depends entirely on use of proceeds. Investment use may qualify as investment interest expense (Form 4952). Business use may qualify as business interest. Personal use is generally non-deductible. See our PAL Tax Treatment 2026 guide for the full mechanics.
Disclaimer: Rate information is based on publicly available disclosures as of May 2026 and is subject to change. Always verify current rates directly with each institution before borrowing. This article is for informational purposes only and does not constitute financial advice.
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