How to Enable Margin Trading on Fidelity

Margin trading allows investors to borrow money to trade securities, increasing their potential returns (or losses). To enable margin trading on Fidelity, follow these steps:

1. Account Eligibility: Ensure you have a Fidelity brokerage account. Margin trading is not available in retirement accounts like IRAs or certain custodial accounts.

2. Application for Margin Account:

   • Log In: Sign in to your Fidelity account.
   • Navigate to Margin Account Application: Go to the "Accounts & Trade" tab and select "Margin Accounts".
   • Apply for Margin: Click on "Apply Now" to start the application process. You will need to provide personal and financial information, including your income, net worth, and investment experience.

3. Review and Agreement:

   • Read Margin Agreement: Carefully review the margin agreement and related disclosures. This agreement outlines the terms and conditions of margin trading.
   • Sign Agreement: Electronically sign the agreement to accept the terms.

4. Initial Deposit: Fund your account with the required minimum deposit. Fidelity typically requires an initial deposit of $2,000 to open a margin account, though this may vary based on your trading activity and other factors.

5. Approval and Trading:

   • Account Review: Fidelity will review your application and, if approved, your account will be enabled for margin trading.
   • Start Trading: Once approved, you can begin trading on margin. Ensure you understand the risks involved, including the potential for amplified losses.

6. Ongoing Requirements:

   • Margin Maintenance: Maintain the required margin level in your account. Fidelity will provide information on margin requirements and maintenance levels.
   • Monitor Account: Regularly monitor your account to ensure compliance with margin requirements and to manage risks.

Important Considerations:

• Risk of Margin Trading: Margin trading involves significant risk, including the potential for greater losses. Understand how margin works and the risks involved.
• Interest Rates: Margin accounts accrue interest on borrowed funds. Be aware of the interest rates and how they affect your overall costs.
• Margin Calls: If the value of your securities declines, you may receive a margin call requiring you to deposit additional funds or sell securities to meet margin requirements.

For more detailed information, visit Fidelity’s website or contact their customer service for personalized assistance.