Margin trading fees
Low margin requirements. Several complex option strategies. Make your money work harder.
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Trading with margin
With a margin account at Questrade, you can leverage your stock trading, short stocks, trade complex
Stock & options—margin requirements
The margin requirement is the minimum amount of Buying Power you need to have in your account in order to enter a position. It’s commonly expressed as a percent of the current market valuein. Certain securities may have a margin requirement higher than listed below based on an assessment of the stock by Questrade. Margin requirements are determined according to rules and guidelines set by Investment Industry Regulatory Organization of Canada (IIROC) and Questrade internal risk management protocols. The margin required for long and short positions on the same security may be different from one another.
Long positions
| Share price | Requirement |
|---|---|
| Reduced margin eligible securities* | 30% of the market value |
| Securities selling at $2.00 or more | 50% of the market value |
| Securities selling at $1.75 to $1.99 | 60% of the market value |
| Securities selling at $1.50 to $1.74 | 80% of the market value |
| Securities selling less than $1.50 | 100% of the market value |
| Short positions | |
|---|---|
| Reduced margin eligible securities* | 30% of the market value |
| Securities selling at $2.00 or more | 50% of the market value |
| Securities selling at $1.50 to $1.99 | $3.00 less the market price per share |
| Securities selling at $0.25 to $1.49 | 100% of market value |
| Securities selling below $0.25 | $0.25 per share |
Over the counter stocks are generally not eligible for margin.
*Canadian securities’ eligibility for reduced margin is determined by Investment Industry Regulatory Organization of Candebada (IIROC) on a quarterly basis. Most major US stocks with listed options are eligible for reduced margin as well. Questrade reserves the right to margin certain securities it deems risky at higher rates than listed above.
Questrade has four approval levels for option trading that require different minimum balances in your account before placing your trade. You’ll find the option strategies for each option level below.
Level 1
| Strategy | Margin Requirement |
|---|---|
| Long calls and puts | 100% of the market value |
| Long straddle/Long strangle | 100% of the option strategy’s market value |
| Short covered call (protected short) |
The value of either 1 or 2, whichever is greater:
|
| Long married put |
The value of either 1 or 2, whichever is greater:
|
Level 2
| Strategy | Margin Requirement |
|---|---|
| Long covered call |
The in-the-money amount of the call option, minus the
market value of the call option.
Plus The value of either 1 or 2, whichever is greater:
|
| Short married put (Covered put) | The normal margin requirement for the underlying short security |
| Long collar |
The value of either
1 or
2, whichever is greater:
|
| Short collar |
The value of either
1 or
2, whichever is greater:
|
Level 3b
| Strategy | Margin Requirement |
|---|---|
|
Long/short vertical call/put Long calendar call/put * Long diagonal call/put * |
100% of the market value of the spread.
Plus The value of either 1 or 2, whichever is greater:
|
|
Long butterfly Long condor |
The value of either 1 or 2, whichever is greater:
|
|
Short butterfly Short condor Short iron butterfly Short iron condor |
The value of either 1 or 2, whichever is greater:
|
|
Long iron butterfly Long iron condor |
100% of the option strategy’s market value |
*Long calendar and diagonal strategies with European options have different margin requirements. Please see level 4 for details.
Level 4
| Strategy | Margin Requirement |
|---|---|
|
Short calendar call/put
Short diagonal call/put Long/short calendar call/put with European options Long/short diagonal call/put with European options |
100% of the long option’s market value.
Plus For the short option, the value of either 1 or 2, whichever is greater:
minus Any out-of-the-money amount associated with the option or |
|
Short straddle Short strangle |
The greatest of:
A. the short put requirement B. the short call requirement C. the excess of the aggregated exercise value of the put option over the aggregate exercise value of the call option |
|---|
|
Short option (naked option) |
The value of either
1 or
2, whichever is greater:
minus Any out-of-the-money amount associated with the option or |
|---|
Changing your option level
- Log in Questrade
- Choose Accounts
- Choose Account Management
- Select Account Number
- Select Change next to Option Level
Placing a Canadian multi-leg option order
For Canadian exchanges, only two-legged option strategies are available. Option strategies with a stock leg or more than two option legs are unavailable.
Precious metals
| Metal | Margin requirement |
|---|---|
| Gold | 20% |
| Silver | 30% |
Full transparency in our fees
Nobody likes surprises— especially on their monthly statement. In the interest of being fully transparent and forthcoming with our pricing, we’re listing all the fees that you could possibly incur as a Questrade customer. The following fees are based on specific actions you take, so you may never see them—but if you do, rest assured we’re keeping them low.
Margin call
If your equity balance drops below your account’s total margin requirement (you have negative combined Buying Power), a margin call will be issued for your account. Questrade will give you the opportunity to satisfy the deficiency on a best effort basis. However, Questrade may liquidate or close your positions if you fail to comply with the terms of the margin call, including, in some cases, without notifying you first. The terms of a margin call are determined at the discretion of Questrade.
When a margin call occurs, you have four choices:
- Deposit more money into your account.
- Liquidate or close positions in your account.
- Cancel pending orders to open a position.
- If you have a TFSA account at Questrade, use Margin Power to link the assets in your TFSA to your margin account.
Currency exchange
In margin accounts, we won’t automatically exchange currencies. Typically, you need to initiate all conversion proceedings.
For example:
- If you buy U.S. securities and don’t have sufficient USD, you’re borrowing the money from Questrade.
- You’re charged interest on the amount you borrow.
To convert funds, log in to Questrade and make an exchange funds request.
Securities concentration
If the market value of a position in your margin account exceeds your equity, you have a concentrated position. In some cases, if you are too concentrated on a position, Questrade will increase the minimum margin requirement or request that you reduce the position.
Associated risks
There are significant risks when trading on margin. Before trading on margin please review the obligation to maintain margin under section 1.14 and margin risk disclosure under section 1.15 of Questrade's account agreements and disclosure document.
For more information on Canadian regulatory margin requirements, visit the Investment Industry Regulatory Organization of Canada (IIROC) website.
With an Forex & CFD account at Questrade, you can trade currency pairs as well as stock, commodity and index contracts for difference (CFDs).
Margin requirements
The margin requirement for an FX or CFD position is based on the real time value of your position (in the currency of the account). It’s the amount required to open and maintain a position.
Margin call
If your equity balance drops below your account’s total margin requirement (you have negative combined Buying Power), a margin call will be issued for your account. Questrade will give you the opportunity to satisfy the deficiency on a best effort basis. However, Questrade may liquidate or close your positions if you fail to comply with the terms of the margin call, including, in some cases, without notifying you first. The terms of a margin call are determined at the discretion of Questrade.
| Currency pair | CAD margin rate | USD margin rate | |
|---|---|---|---|
| AUD/CAD | 3% | 4.5% | |
| AUD/CHF | 6% | 6% | |
| AUD/CNH | 28% | 28% | |
| AUD/CZK | 28% | 28% | |
| AUD/DKK | 28% | 28% | |
| AUD/HUF | 28% | 28% | |
| AUD/JPY | 6% | 6% | |
| AUD/MXN | 6% | 6% | |
| AUD/NOK | 6% | 6% | |
| AUD/NZD | 6% | 6% | |
| AUD/PLN | 28% | 28% | |
| AUD/SGD | 13% | 13% | |
| AUD/USD | 4.5% | 3% | |
| AUD/TRY | 28% | 28% | |
| AUD/ZAR | 28% | 28% | |
| CAD/CHF | 3% | 4.5% | |
| CAD/JPY | 3% | 4.5% | |
| CAD/MXN | 3% | 4.5% | |
| CAD/NOK | 3% | 4.5% | |
| CAD/PLN | 25% | 26.5% | |
| CAD/SEK | 3% | 4.5% | |
| CAD/TRY | 25% | 26.5% | |
| CHF/CZK | 28% | 28% | |
| CHF/HUF | 28% | 28% | |
| CHF/JPY | 6% | 6% | |
| CHF/MXN | 6% | 6% | |
| CHF/NOK | 6% | 6% | |
| CHF/PLN | 28% | 28% | |
| CHF/SEK | 6% | 6% | |
| CHF/SGD | 13% | 13% | |
| CHF/TRY | 28% | 28% | |
| CHF/ZAR | 28% | 28% | |
| EUR/ AUD | 6% | 6% | |
| EUR/CAD | 3% | 4.5% | |
| EUR/CHF | 6% | 6% | |
| EUR/CNH | 28% | 28% | |
| EUR/CZK | 28% | 28% | |
| EUR/DKK | 28% | 28% | |
| EUR/GBP | 6% | 6% | |
| EUR/HKD | 13% | 13% | |
| EUR/HUF | 28% | 28% | |
| EUR/ILS | 28% | 28% | |
| EUR/JPY | 6% | 6% | |
| EUR/MXN | 6% | 6% | |
| EUR/NOK | 6% | 6% | |
| EUR/NZD | 6% | 6% | |
| EUR/PLN | 28% | 28% | |
| EUR/RON | 28% | 28% | |
| EUR/RUB | 28% | 28% | |
| EUR/SEK | 6% | 6% | |
| EUR/SGD | 13% | 13% | |
| EUR/TRY | 28% | 28% | |
| EUR/USD | 4.5% | 3% | |
| EUR/ZAR | 28% | 28% | |
| GBP/AUD | 6% | 6% | |
| GBP/CAD | 3% | 4.5% | |
| GBP/CHF | 6% | 6% | |
| GBP/CZK | 28% | 28% | |
| GBP/DKK | 28% | 28% | |
| GBP/HUF | 28% | 28% | |
| GBP/ILS | 28% | 28% | |
| GBP/JPY | 6% | 6% | |
| GBP/MXN | 6% | 6% | |
| GBP/NOK | 6% | 6% | |
| GBP/NZD | 6% | 6% | |
| GBP/PLN | 28% | 28% | |
| GBP/SEK | 6% | 6% | |
| GBP/SGD | 13% | 13% | |
| GBP/TRY | 28% | 28% | |
| GBP/USD | 4.5% | 3% | |
| GBP/ZAR | 28% | 28% | |
| NZD/CAD | 3% | 4.5% | |
| NZD/CHF | 6% | 6% | |
| NZD/CZK | 28% | 28% | |
| NZD/DKK | 28% | 28% | |
| NZD/HUF | 28% | 28% | |
| NZD/JPY | 6% | 6% | |
| NZD/MXN | 6% | 6% | |
| NZD/NOK | 6% | 6% | |
| NZD/PLN | 28% | 28% | |
| NZD/SEK | 6% | 6% | |
| NZD/SGD | 13% | 13% | |
| NZD/TRY | 28% | 28% | |
| NZD/USD | 4.5% | 3% | |
| NZD/ZAR | 28% | 28% | |
| SGD/HKD | 20% | 20% | |
| SGD/JPY | 13% | 13% | |
| USD/AED | 26.5% | 25% | |
| USD/CAD | 2.5% | 2.5% | |
| USD/CHF | 4.5% | 3% | |
| USD/CNH | 26.5% | 25% | |
| USD/CZK | 26.5% | 25% | |
| USD/DKK | 26.5% | 25% | |
| USD/HKD | 11.5% | 10% | |
| USD/HUF | 26.5% | 25% | |
| USD/ILS | 26.5% | 25% | |
| USD/JPY | 4.5% | 3% | |
| USD/MXN | 4.5% | 3% | |
| USD/NOK | 4.5% | 3% | |
| USD/PLN | 26.5% | 25% | |
| USD/RON | 26.5% | 25% | |
| USD/RUB | 26.5% | 25% | |
| USD/SAR | 11.5% | 10% | |
| USD/SEK | 4.5% | 3% | |
| USD/SGD | 11.5% | 10% | |
| USD/THB | 26.5% | 25% | |
| USD/TRY | 26.5% | 25% | |
| USD/ZAR | 26.5% | 25% | |
| ZAR/JPY | 28% | 28% | |
| XAU/USD | 21.5% | 20% | |
| XAU/GBP | 23% | 23% | |
| XAU/EUR | 23% | 23% | |
| XAU/CHF | 23% | 23% | |
| XAU/JPY | 23% | 23% | |
| XAU/AUD | 23% | 23% | |
| XAG/USD | 21.5% | 20% |
| Index Tracker | Margin Rate |
|---|---|
| METALS | |
| Gold | 6.00% |
| Silver | 10.50% |
| Platinum | 8.00% |
| Palladium | 18.50% |
| US Copper | 6.00% |
| ENERGY | |
| WTI US Crude | 10.50% |
| Brent UK Crude | 10.00% |
| Heating Oil | 10.00% |
| Gasoline US | 9.50% |
| Gas Oil | 9.50% |
| US Natural Gas | 20.5% |
| CO2 Emissions | 20.00% |
| AGRICULTURE | |
| Corn | 8.50% |
| Cotton | 9.00% |
| Wheat | 12.50% |
| Soybean meal | 7.50% |
| Soybean oil | 11.00% |
| Soybean | 9.00% |
| SOFTS | |
| NY Sugar No. 11 | 11.00% |
| NY Coffee | 9.50% |
| NY Cocoa | 11.00% |
| MEATS | |
| Live Cattle | 5.00% |
| Index Tracker | Margin Rate |
|---|---|
| NORTH AMERICA | |
| US 30 Wall Street | 10.00% |
| US 500/SPX500 | 10.00% |
| US Tech 100 NAS/NAS100 | 10.00% |
| EUROPE, MIDDLE EAST & AFRICA | |
| Belgium 20 | 20.00% |
| Denmark 20 | 20.00% |
| EU Stocks 50/ESTX50 | 20.00% |
| France 40 | 20.00% |
| Germany 30 | 20.00% |
| Germany Mid-Cap 50 | 20.00% |
| Germany Tech 30 | 20.00% |
| Italy 40 | 20.00% |
| Netherlands 25 | 20.00% |
| Norway 25 | 20.00% |
| Portugal 20 | 20.00% |
| South Africa 40 | 20.00% |
| Spain 35 | 20.00% |
| Sweden 30 | 20.00% |
| Switzerland 20 | 20.00% |
| UK 100 | 20.00% |
| UK Mid 250 | 20.00% |
| ASIA / PACIFIC | |
| Australia 200 | 20.00% |
| Japan 225 | 20.00% |
| Hong Kong 40 | 20.00% |
| Region | Margin rate as low as |
|---|---|
| NORTH AMERICA | |
| Canada | 15% |
| US | 30% |
| Europe | 50% |
| ASIA / PACIFIC | |
| Asia | 50% |
| Australia | 50% |
Full transparency in our fees
We have nothing to hide—so we give you all the information you need to understand what’s happening in your account and on your invoice.
Calculating margin
The margin requirement is dynamic and updates in real time. You can view the margin requirement of a specific FX or CFD instrument on the trade ticket or by clicking Account, and then navigating to Trading Conditions on the menu and searching a specific instrument. The margin utilisation bar at the bottom of the trading platform indicates the percentage of your cash balance reserved for your margin positions.
Margin call
If your margin utilisation exceeds 100%, your account is in a margin call. To meet your margin call you need to deposit funds into your account and/or close positions. Your platform will display pop-up messages when your margin utilisation reaches 100% and 150% to remind you of your margin call.
Automatic liquidation threshold procedure
When your margin use increases past a certain threshold, Questrade will automatically liquidate your positions. This will occur automatically regardless whether you have been notified of the margin call or are waiting for your deposit to be completed into your account to satisfy the margin call. There may also be other market conditions that also require us to immediately close positions to satisfy the margin call.
If your margin utilisation exceeds 200% or your account remains in a margin call for 120 consecutive trading hours (5 consecutive trading days), all of your open positions will be closed.
Associated risks
Trading FX & CFDs on margin carries a high degree of risk because it allows you to speculate on currencies, commodities and indices on a highly leveraged basis. Before trading FX & CFDs, we strongly recommend you read more about leverage and risk.
Interest rates
When you buy securities on margin, you’ll pay back the money you borrow plus interest, which varies depending on the amount of the loan. Typically, margin interest rates are lower than credit card rates and unsecured personal loans.
| CAD Prime (as of July 13, 2023) | 7.20% |
| USD Prime (as of July 27, 2023) | 8.50% |
Debit (Payable by a customer when borrowing CAD or USD)
| $100,000 debit balance | $100,000 debit balance and above | |
|---|---|---|
| All CAD non-registered accounts | CAD prime+4.25% | CAD prime+3.25% |
| RRSP, TFSA and other registered accounts | CAD prime+8.10% | CAD prime+8.10% |
| All USD non-registered accounts | USD prime+4.50% | USD prime+3.50% |
| RRSP, TFSA and other registered accounts | USD prime+8.35% | USD prime+8.35% |
Credit (Payable to customer on cash balance. If the result of the interest rate formula is negative, the customer will receive 0% interest.)
| $250,000 credit balance | $250,000 credit balance and above | |
|---|---|---|
| All CAD non-registered accounts | CAD prime-8.50% | CAD prime-8.00% |
| RRSP, TFSA and other registered accounts | CAD prime-8.50% | CAD prime-8.50% |
| All USD non-registered accounts | USD prime-10.00% | USD prime-9.50% |
| RRSP, TFSA and other registered accounts | USD prime-10.00% | USD prime-10.00% |
How and when interest is charged
Interest is based on an annual rate, calculated daily and charged or credited to your account midway through the following month. Interest accrues on overnight debit or credit balance and is charged or credited to your account midway through the following month. Except for registered accounts, Questrade will not automatically convert currencies for you when buying securities.
Overnight balance rates
These rates apply to overnight balances and are subject to change.
| CAD Prime (as of July 13, 2023) | 7.20% |
| USD Prime (as of July 27, 2023) | 8.50% |
Things to keep in mind
- You’ll be charged interest if your amount owing is $1.00 or more for the month
- To earn interest on your cash and/or margin account, you must accrue interest of $10.00 or more for the month
- To earn interest on your registered account, you must accrue interest of $0.01 or more for the month
- Balances are calculated using the average daily debit/credit balance for the interest period
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Get answers to frequently asked questions
A spread is the difference between the bid (price someone is willing to buy at) and the ask (price someone is willing to sell at).
A margin call is when your investments drop below the minimum margin requirement. If this happens, we will notify you with steps to resolve the situation.