A Margin Loan is a type of secured loan that allows you to borrow against the value of the securities you already own in your M1 Individual Brokerage Account, Joint Brokerage Account, and/or Trust Account.
Margin Loans are interest bearing loans that use your underlying securities (eg. stocks, ETFs, bonds or mutual funds) as collateral to act as a flexible line of credit when you need it.
This means that your brokerage is lending you money with the understanding that your investments can be sold to cover the Margin Loan, if necessary, and you only need to pay interest on your line of credit when you use it.
All investing involves risk, including the risk of losing the money you invest. Borrowing on margin can add to these risks, and you should review the M1 Margin Loan account risk disclosures before borrowing. M1 Margin Loan available on margin accounts with at least $2,000 invested. Not available for all account types including M1 Traditional IRA, M1 Roth IRA, M1 SEP IRA, M1 Custodial, and some M1 Trust Accounts. Margin Loan rates subject to change.