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 brokerage margin 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 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 learn more before borrowing. M1 Borrow available on margin accounts with at least $2,000 invested. Not available for all account types including retirement, custodial and some trust accounts. Margin rates subject to change.