Accessing your assets

to help move toward your goals

 

An immediate source of cash, a margin account provides a line of credit allowing you to borrow against existing eligible assets within your Raymond James account at competitive interest rates. The account can increase your buying power for other personal or investment needs, including securities.

Your particular rate will vary with the size of your average debit balance according to the following schedule:

Debit Balance

Annual Interest Rate

$10 million and above

Base Rate less 1.25%

$5 million - $9,999,999.99

Base Rate less 1.00%

$1 million - $4,999,999.99

Base Rate less 0.75%

$500,000 - $999,999.99

Base Rate less 0.50%

$250,000 - $499,999.99

Base Rate less 0.25%

$100,000 - $249,999.99

Base Rate less 0.75%

$50,000 - $99,999.99

Base Rate less 1.50%

$25,000 - $49,999.99

Base Rate less 2.50%

Under $25,000

Base Rate less 2.75%

The Base Rate is an internal Raymond James rate based on a spread over the 30-day London Interbank Offered Rate (LIBOR) published on the prior business day in the “Money Rates” section of The Wall Street Journal. If the index is not ascertainable from the Money Rates column, firm management may designate a substitute rate.

As of April 30, 2015, Base Rate equals 5.50%.

Comparing Margin and Securities Based Line of Credit Accounts

Features

Margin

Securities Based Line of Credit

Minimum market value of pledged assets

$2,000

$100,000

Minimum initial withdrawal

N/A

$55,000

Pricing structures

Rate on loan debit balance

Rate on market value of pledged assets plus net value of Capital Access

Reference Rate

Raymond James base rate

One month LIBOR

Payments

Flexible payment schedule

Flexible payment schedule

Fees/points

None

None

Loan intent

Any

All purchases, except securities1

Borrowing power on diversified portfolio

Example: up to 50% equities

Example: up to 65% equities

Access to funds

Capital Access, ACH, wire

Securities Based Line of Credit check, ACH, wire

Overdraft protection for Capital Access

Yes

N/A

Approval process

New account form

Single application/agreement

 

1A Securities Based Line of Credit may not be suitable for all clients. Borrowing on securities-based lending products and using securities as collateral may involve a high degree of risk. Market conditions can magnify any potential for loss. If the market turns against the client, he or she may be required to deposit additional securities and/or cash in the account(s) or pay down the loan. The securities in the pledged account(s) may be sold to meet the collateral call, and the firm can sell the client’s securities without contacting them. The interest rates charged are determined by the market value of pledged assets and the net value of the client’s Capital Access account.

Borrowing on margin and using securities as collateral may involve a high degree of risk and may not be appropriate for all investors. Market conditions can magnify any potential for loss. If the market turns against the investor, he or she may be required to deposit additional securities and/or cash into the account. The securities in the account may be sold to meet the margin call, and the firm can sell investors’ securities without contacting them.

 

 

β€œAn investment in knowledge pays the best interest.”

– Benjamin Franklin