E*TRADE Line of Credit

A flexible financing solution

  • Borrow against the assets you hold at E*TRADE Securities1
  • Low annual percentage rates and no hidden fees on your E*TRADE Line of Credit2
  • Transfer your existing securities-based loan to E*TRADE


minimum collateral requirement3

Borrow up to 50%

of the value of your eligible investments4

A fast, affordable source of cash when you need it

Pledge the securities in your E*TRADE brokerage account(s) as collateral for a line of credit. Then borrow money for various needs—including real estate purchases, business financing, education costs, and more. Funds cannot be used to purchase, carry or trade securities or to repay a margin loan.


Fast decision

Apply online and get your application decision within a few business days


Easy access

Request cash online and funds are sent to your designated account within two business days


Low rates

Annual percentage rates are lower than many other sources of credit, and there are no hidden fees


Flexible repayment

Choose from monthly payment options, or defer payments with interest rolling into your principal balance

An easy, efficient way to borrow

An E*TRADE Line of Credit provides access to cash for important purchases, while keeping your investment strategy intact.

  • Maintain your long-term financial strategy
  • Quickly borrow funds at low cost on short notice
  • Apply and manage your account online; request draws and submit payments at your convenience


Risks and considerations

While offering an array of benefits, borrowing against securities involves risks and important considerations.

  • If market fluctuations cause the value of your portfolio to decline, you may be required to deposit more cash or securities as collateral
  • If you fail to deposit the required collateral, some or all of your pledged securities may be sold, which may result in adverse tax consequences5
  • Borrowed funds cannot be used for purchase, carrying, or trading of securities or repayment of a margin loan
  • E*TRADE Savings Bank can call the loan at any time, and sell securities in your collateral account without first contacting you


man in a chair


Pledged Collateral Market Value Interest Rate*
Index plus Spread
$10,000,000+ 1 Month LIBOR + 2.000% 4.545%
$5,000,000 $9,999,999 2.250% 4.799%
$2,500,000 $4,999,999 2.500% 5.052%
$1,000,000 $2,499,999 2.750% 5.306%
$500,000 $999,999 3.250% 5.813%
$250,000 $499,999 3.625% 6.193%
$100,000 $249,999 4.250% 6.827%
$50,000 $99,999 4.750% 7.334%
< $50,000 5.250% 7.841%

* Your interest rate will be determined by adding the applicable margin to the value of the index. The index is the 1-Month LIBOR (London Interbank Offered Rate), as published in the Wall Street Journal, and may change weekly (every Monday, or the following business day in event of a holiday). Your interest rate will increase or decrease based on changes in the index and in the margin (which is based on the market value of your pledged collateral).

** The APR (Annual Percentage Rate) is calculated based on a 360-day year and includes both the interest rate and certain fees and other charges related to the loan. Currently, no such fees or other charges apply to the E*TRADE Line of Credit. The APRs are based on the index value published in the Wall Street Journal on 4/29/2019.

Line of Credit FAQs

See all FAQs

How is an E*TRADE Line of Credit different from Margin?

An E*TRADE Line of Credit is different in two ways – the way in which the funds are used and the interest rates on the line of credit.

  • How the funds are used:
    • For an E*TRADE Line of Credit, funds can be used for any lawful purpose, except for the purchasing, carrying, or trading of securities or repayment of a margin loan.
    • Margin can be used for any lawful purpose, including the purchasing, carrying, or trading of securities.
  • Interest rates:
    • E*TRADE Lines of Credit are tied to 1-Month LIBOR (London Interbank Offered Rate), as published in the Wall Street Journal the ("Index"), plus a spread ("Margin"). Line of credit interest rates are typically lower than Margin interest rates, and may move with changes to the 1M LIBOR rate, or fluctuations in the pledged collateral market value.
    • Margin interest rates are typically tied to the E*TRADE Base Rate, which is set at the discretion of E*TRADE Securities with reference to commercially recognized interest rates. Margin interest rates may move with changes in the E*TRADE Base Rate, or with adjustments in the debit balance.

What account types are eligible to be pledged as collateral for an E*TRADE Line of Credit?

Non-retirement accounts including individual, joint, and revocable trusts with no more than 2 trustees, inclusive of managed portfolios.

Are there restrictions on my account(s) once pledged as collateral for an E*TRADE Line of Credit?

Yes, there are restrictions on accounts pledged as collateral:

  • Margin and Options trading.  Upon being approved for an E*TRADE Line of Credit, the collateral account(s) will have margin and options trading capabilities removed (if applicable). Pledged accounts will also be prohibited from enrolling in margin and/or options trading.
  • Cash management and payment features.  Upon taking a draw from your line of credit, all cash management and payment features will be restricted [e.g., bill pay, check writing, use of debit card, electronic funds transfer (ACH), Fed wires].