Margin lending

Key Points

  • Margin lending can provide a credit line based on certain securities in your Ameriprise® Brokerage and SPS Advantage Accounts.
  • Borrowers should consider the risks unique to margin lending
  • Certain restrictions and requirements apply to margin lending

A margin account allows us to extend credit to you backed by eligible securities held in your Ameriprise Brokerage or SPS Advantage Accounts.

Proceeds can be used to buy additional securities (i.e. stocks, bonds, etc) or as a source of cash for other personal and business reasons including a bridge loan, personal credit, small business capital needs, etc.

Using margin loans as a source of cash is typically best used as a short to intermediate term solution.

Margin lending advantages

  • Convenient, easily accessible line of credit
  • Competitive rates and easy setup
  • No closing costs or application fees
  • Not reflected on credit reports
  • No set repayment schedule
  • Margin interest can be tax deductible, but may be limited to your net investment income (consult your tax advisor)

Margin lending risks

Margin loans through Ameriprise Financial carry certain risk. They include, but are not limited to:

  • Potential to increase investment losses
  • You can lose more money that you deposit in a margin account
  • Risk that you could be forced to sell investments if maintenance requirements are not met
  • Ameriprise can sell securities (with or without advance notice to the client) to meet margin calls at our discretion
  • You are not entitled to an extension of time to meet any margin calls
  • Ameriprise reserves the right to change margin maintenance requirements at any time
  • Please review Important information about borrowing on margin (Form 200252) for more information about the risks associated with margin borrowing.

Additional information

  • Margin lending requirements are set by Ameriprise Financial in accordance with guidance from The Federal Reserve and FINRA.
  • Only certain nonqualified accounts are eligible for margin lending.
  • The minimum equity required to open a margin account is $2,000.
  • Margin loan terms and policies are subject to change.

Take the next step

To find out more about margin lending, contact your Ameriprise financial advisor or locate an advisor near you.