Securities-backed line of credit rates by broker in 2026. Fidelity, Schwab, Morgan Stanley, and interactive comparison of SOFR spreads and minimums.
Fidelity offers a Pledged Asset Line with a typical interest rate of SOFR plus a 2-3.5% spread. The minimum portfolio requirement is $100,000. This line of credit allows investors to leverage their securities without liquidating them.
Charles Schwab provides a Pledged Asset Line with rates based on SOFR. The minimum portfolio requirement is $100,000, and rates vary by balance tier. This flexibility allows investors to access funds while maintaining their investment strategy.
Morgan Stanley offers a credit line with interest rates typically ranging from SOFR plus 1.5-3%. Most accounts require a minimum portfolio of $250,000. This option is suitable for investors with larger portfolios seeking competitive rates.
Interactive Brokers provides margin rates as low as SOFR plus 1.5%. This competitive rate makes it an attractive option for investors looking for cost-effective borrowing against their securities.
Goldman Sachs Marcus offers a limited SBLOC product. While specific rates and terms are less publicly detailed, they typically align with industry standards for high-net-worth clients.
UBS offers SBLOCs with competitive rates and terms tailored to their clients' needs. While specific spreads over SOFR are not publicly detailed, UBS typically provides personalized solutions for eligible clients.
| Broker Name | Typical Spread Over SOFR | Minimum Portfolio | Eligible Securities | Unique Terms |
|---|---|---|---|---|
| Fidelity | 2-3.5% | $100,000 | Stocks, bonds, mutual funds | Flexible credit line |
| Charles Schwab | Varies by balance tier | $100,000 | Stocks, bonds, mutual funds | Tiered rates |
| Morgan Stanley | 1.5-3% | $250,000 | Stocks, bonds, mutual funds | Higher minimum portfolio |
| Interactive Brokers | 1.5% | Varies | Stocks, bonds | Low margin rates |
| Goldman Sachs Marcus | Industry standard | Varies | High-net-worth securities | Exclusive offering |
| UBS | Competitive | Varies | Stocks, bonds, mutual funds | Tailored solutions |
An SBLOC is a loan that allows investors to borrow against the value of their investment portfolio without selling their securities.
The SOFR rate serves as a benchmark for determining the interest rate on SBLOCs, with brokers adding a spread to the SOFR rate.
Risks include potential margin calls if the value of the pledged securities falls, which may require additional collateral or repayment.
Eligible securities typically include stocks, bonds, and mutual funds, but eligibility may vary by broker.
Interest paid on an SBLOC may be tax-deductible if the funds are used for investment purposes, but it's advisable to consult a tax professional.
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