Mutual Funds Margin Requirements

Mutual Funds Margin Overview

Europe Mutual Fund Margin Requirements


For residents of the United States trading mutual funds:

  • Rules-based margin

The complete margin requirement details are listed in the sections below.



The following calculations apply only to Margin and Cash Accounts.

The following table shows mutual fund margin requirements for initial (at the time of trade) and maintenance (when holding positions).


 Margin Account:
Initial Margin		 Margin Account:
Maintenance Margin		 Reg T End of Day Cash Accounts
Mutual Fund Long Position
First 30
days:		 100% * Net Asset Value 100% * Net Asset Value 100% * Net Asset Value 100% * Net Asset Value
After 30 days: 25% * Net Asset Value 25% * Net Asset Value
 50% * Net Asset Value 100% * Net Asset Value
Money Market Fund Long Position
1% * Net Asset Value 1
Cannot borrow against for 30 days (no debit balance)		 1% * Net Asset Value 1
Cannot borrow against for 30 days (no debit balance)		 1% * Net Asset Value 1
Cannot borrow against for 30 days (no debit balance)		 100% * Net Asset Value
Short Positions
N/A N/A N/A

  • "Non-US funds" available with the following restrictions: U.S., Canada, Iran, North Korea, Libya, Syria and U.S. territories Puerto Rico, U.S. Virgin Islands, American Samoa and Northern Marianas Islands.
  • Margin Requirements and info the same as US ones


Mutual Funds - Non-US Residents

Market Center Details Products Hours
Euronext Mutual Funds1 Mutual Funds
 07:15 - 19:00 Mon - Fri CET
Fidelity Advisor World Funds2,3 Mutual Funds
 01-02
Investec Asset Management2 Mutual Funds
 9:30 - 15:59 ET

On some exchanges, different products have different trading hours.



Additional Europe Margin Requirements

For Residents of the United States:

Use the following links to view other margin requirements:

Stocks

Options

Futures & FOPs

SSF - Single Stock Futures

Fixed Income


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Further Reading


To learn more about trading on margin, go to our Education Center:

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Disclosures
  1. Euronext funds are not available to residents of the U.S., Australia, Hong Kong, Singapore and Canada.
  2. Funds are not available to residents of the U.S., Canada, Iran, North Korea, Libya, Syria and U.S. territories Puerto Rico, U.S. Virgin Islands, American Samoa and Northern Marianas Islands.
  3. Please contact Fidelity at 877-836-4829 to obtain the necessary selling agreement. FAWF Selling Agreements are only eligible for FINRA registered broker/dealers.
  • Margin requirements quoted in US Dollars may also be satisfied with a Non-USDollar equivalent.
  • Mutual Funds market value is always included in Equity with Loan Value.
  • 30-day initial margin requirement does not apply to funds that are transferred from another broker (e.g. ACATs).
  • Net Asset Value is computed once per day at closing by the funds at which time your margin requirement and equity will be updated.
  • Interactive Brokers Australia currently offers margin lending to all clients EXCEPT Self- managed Superannuation Fund account holders ("SMSF"). Click here for more information. For clients of Interactive Brokers Australia who are classified as retail, margin loans will be capped at AUD $50,000 (subject to change in IBKR Australia’s sole discretion). Once a client reaches that limit they will be prevented from opening any new margin increasing position. However, how much a client can borrow depends on a number of factors, including: the value of the money or assets contributed by the client as security; which financial products the client chooses to invest in, as we lend different amounts for different products under our risk-based model; and the maintenance margin requirement for the client’s portfolio. Once a client reaches their borrowing limit they will be prevented from opening any new margin increasing position. Closing or margin-reducing trades will be allowed. Refer to this link for information regarding margin accounts offered by IBKR Australia.
  • IBKR house margin requirements may be greater than rule-based margin.