Lowest Margin Rates in Canada for 2026

Margin Rates Canada 2026: Every Broker Sorted by Rate

This table lists the 10 brokers that publish a CAD margin rate, lowest first, followed by the three that do not. The rate shown is the one for the lowest tier under $100,000. Interest assumes the balance stays the same for 365 days and is paid each month, so it does not compound. Prime-based rates use a prime rate of 4.45%.

Reading the $50,000 column. Where a broker sets a different rate by band, we apply the rate for the band a $50,000 balance falls in to the whole balance. Only Scotia iTRADE changes band between $10,000 and $50,000, from 6.10% to 6.05%. Wealthsimple’s rate depends on your total assets, not the loan, so the Core rate is shown in both columns. National Bank Direct Brokerage and CIBC Investor’s Edge tie at 6.25%.

Margin Account Canada Master Comparison Table

Use the search box and column sorting to filter the table. “Not published” means the figure was not on the provider’s own pages when we checked. Figures in brackets are our arithmetic from a published formula, using a CAD prime rate of 4.45% and a USD prime rate of 7.00%.

The cash and margin sub-score. This column is one of the six factors in our overall broker score. It gives up to 2.5 points for a CAD margin rate under $100,000 (2.5 at 4% or less, 2 up to 5%, 1.5 up to 6%, 1 up to 6.5%, 0.5 above 6.5% or not published) and up to 2.5 for interest on uninvested cash. Our broker rating methodology lists every rule.

The 10 Brokers With Published Margin Rates, Lowest First

Each card shows the rate that sets the broker’s place, what $10,000 and $50,000 cost for a year, the tiers and the account details that matter to a borrower. The overall score is shown for context and does not change the order.

Brokers That Do Not Publish Margin Rates

These three brokers offer margin accounts, but their margin rates were not on the pages we could open on October 22, 2026. Our methodology scores an unpublished rate the same as a rate above 6.5% (0.5 points), so each scores 0.5 for cash and margin rates.

1. How We Sorted Margin Rates

The stated metric. This page orders brokers by one number: the published CAD margin rate for the lowest tier under $100,000. That is the rate a new borrower with a smaller balance starts at, and it is the figure this page compares when it looks for the lowest margin interest rate in Canada. Lower is better. It is a sort on a published figure, not a WealthScale score.

Why the overall score is shown too. A broker with a low margin rate can still cost more in commissions or account fees. Our overall score weighs cost 35%, account types 15%, US investing 15%, platform 15%, cash and margin rates 10% and safety 10%. We show it beside each rate so you can see the whole broker. Questrade, for example, has the highest margin rate but an overall score of 4.3 / 5, first in our overall ranking.

“From” rates and tiers by assets. moomoo publishes only a starting rate (“from 3.85%”), so we list it at that rate and flag that yours may be higher. Wealthsimple’s rate depends on your total assets, so we list its Core rate (4.95%), which a new client with under $100,000 pays. Even at its Generation rate of 3.95%, Wealthsimple would stay third.

Ties and gaps. National Bank Direct Brokerage and CIBC Investor’s Edge both publish 6.25%; their order does not mean one is cheaper. TD Direct Investing, RBC Direct Investing and BMO InvestorLine offer margin accounts but did not publish rates on the pages we could open, so they are listed separately rather than guessed.

Dates matter. Every rate was checked on October 22, 2026. Interactive Brokers’ rate table is undated, moomoo’s rate is dated November 3, 2025, and Qtrade’s schedule took effect October 30, 2025. Read our broker rating methodology for the full rules, and how WealthScale makes money for why no provider can pay for a position.

2. Prime-Based Pricing: How Margin Rates in Canada Are Set

What prime is. Prime is the base rate a bank or dealer uses to price variable-rate loans. RBC, TD, BMO, Scotiabank, CIBC, National Bank, Desjardins and Manulife Bank all have a prime rate of 4.45%. The big banks cut prime to 4.45% effective October 30, 2025, the day the Bank of Canada’s cut of its policy rate to 2.25% took effect. The gap between the two is 2.20 percentage points.

What could move it. The Bank of Canada has held its policy rate at 2.25% at every decision since: December 10, 2025, and January 28, March 18, April 29, June 10, July 15 and September 2, 2026. Its remaining 2026 announcements are on Wednesday, October 28 and Wednesday, December 9, at 9:45 a.m. ET. When prime moves, every prime-linked margin rate below moves with it.

Compare the spread, not just the rate. Because most rates share the same prime, the spread over prime is what stays fixed between brokers. Spreads run from prime minus 0.5% at Wealthsimple Generation to prime + 4.25% at Questrade. A change in prime moves them all together, so the gap between brokers stays the same: Questrade will cost 3.75 points more than Wealthsimple Core at any prime rate.

Interactive Brokers uses its own benchmark. Its CAD rate is its benchmark plus 1.5%, and it pays cash interest at the benchmark minus 0.5% (1.675%). Both figures point to a benchmark of 2.175% (our arithmetic), well below prime. It will move with that benchmark, not with bank prime.

Each 0.25-point move costs $25 a year per $10,000. On a $50,000 balance that is $125.00 a year ($50,000 x 0.25%). If you borrow for the long term, plan for rates that can rise as well as fall.

3. Margin Rate Tiers: Lower Rates on Larger Balances

How tiers work. Most brokers cut the spread once a balance passes a threshold, usually $100,000. The published rate details we checked do not say whether each band refers to the amount you borrow or the account’s value, except at Wealthsimple, where your tier depends on total assets. They also do not say whether a lower rate applies to the whole balance or only to the part above the threshold. Ask your broker both questions if you are near a threshold.

Tiers rarely change the order. Questrade’s lower tier (7.70%) is still above every other broker’s entry rate. Webull’s lower tier (6.45%) is above most entry rates on the list. A large balance at a high-spread broker usually costs more than a small one at a low-spread broker.

Where tiers matter most. CIBC’s rate falls 1.50 points at $1,000,000, and Desjardins’ falls 1.25 points to prime at $500,000. At those sizes, the prime-linked bank and cooperative rates get close to the low-cost brokers. At $500,000 Desjardins charges 4.45%, against 3.175% at Interactive Brokers above CAD 130,000.

Status-based tiers. Qtrade’s Investor Plus status cuts its spread by 0.30 points under $100,000. Wealthsimple’s tier counts almost all your Wealthsimple accounts and can combine a household’s assets, so moving savings or a spouse’s account can lower the margin rate without borrowing more. Section 10 covers how that works.

4. What Margin Interest Costs on $10,000 and $50,000

The method. Interest = balance x annual rate x days / 365. For a full year we assume the balance stays the same and you pay the interest each month, so it does not compound. Wealthsimple states that its margin interest accrues daily and is charged monthly. If you leave interest unpaid, it adds to the loan and next month’s interest is charged on the larger balance.

The spread in dollars. On $10,000, the gap between the lowest and highest published rates is $502.50 a year ($870.00 – $367.50). On $50,000 it is $2,512.50 ($4,350.00 – $1,837.50). That gap usually dwarfs any difference in stock commissions, so a borrower should weigh the margin rate first.

Short loans still cost. Even 30 days on $10,000 costs between $30.21 and $71.51. If you use margin to bridge a few days until a deposit or sale settles, the cost is small; if a short-term loan quietly becomes permanent, it adds up.

Your own numbers. Use the margin interest calculator above for any amount and number of days, or enter a rate a broker quotes you. Compare total trading costs on our commission-free trading platforms page.

5. USD Margin Rates

Why USD margin costs more. USD margin is priced off a USD prime rate of 7.00%, against a CAD prime of 4.45%, a gap of 2.55 points. TD’s US prime has been 7.00% since September 18, 2026, Questrade’s USD prime is 7.00% (as of September 17, 2026), and Wealthsimple also lists a USD prime of 7%. A broker that adds the same spread to both currencies will charge 2.55 points more on USD.

The trade-off. At every broker in this table that publishes both a CAD and a USD figure, the USD margin rate is the higher of the two, because USD prime (7.00%) is above CAD prime (4.45%). Before you borrow in US dollars, check whether the account you plan to use can hold US dollars and what the broker charges on US trades.

US commissions matter too. A low USD margin rate does not help much if each US trade costs $9.99. Wealthsimple, Questrade, Qtrade, National Bank, Desjardins, BMO and Webull list $0 commissions on US stocks, while Interactive Brokers charges USD 0.005 a share with a USD 1 minimum. Our how to buy US stocks in Canada guide walks through the steps from opening the account to placing the trade.

Where the gap is widest. Questrade’s USD rate (11.50%) is 2.80 points above its CAD rate (8.70%), while Interactive Brokers’ USD rate (5.380%) is 1.705 points above its CAD rate (3.675%). On US$10,000 for a year, that is US$1,150.00 against US$538.00.

6. Debit Balances in Registered and Cash Accounts

How a registered account goes negative. A TFSA, RRSP or cash account is not a margin account, but it can still end up below zero: a fee charged when there is no cash, or a purchase that settles before the sale that was meant to pay for it. Brokers charge a debit rate on that negative balance, and it is often far higher than their margin rate.

The cost is real even when it is small. At National Bank, $1,000 left negative for 30 days costs $17.26 ($1,000 x 21.00% x 30 / 365). That is three times what the same balance costs at CIBC’s 7.00% ($5.75). Interactive Brokers, moomoo, Wealthsimple, Qtrade, TD, RBC and BMO did not publish a registered debit rate on the pages we checked.

Watch USD debits in registered accounts. If a registered account can hold US dollars but has none, a USD purchase can leave a USD debit, charged at the USD debit rate: 15.35% at Questrade and 9.25% at CIBC. Questrade’s registered accounts hold US dollars at no extra cost, so keeping enough cash on the USD side before a US purchase settles avoids that debit.

Linking a TFSA for buying power. Wealthsimple lets you link a TFSA to a margin account for buying power. Before you link one, ask how the TFSA’s holdings would be treated if the margin account received a margin call. Read our TFSA guide and RRSP guide for how each registered account works.

7. Margin Account Basics: How Borrowing Against Investments Works

What a margin account is. A margin account is a non-registered investing account that lets you borrow from the broker, using the investments in the account as security. You can use it like a cash account and never borrow; interest applies only to the amount you owe. Many brokers also use the margin account for short selling and for options strategies that are not allowed in registered accounts.

Loan value and buying power. Each broker decides how much it will lend against each security, under rules overseen by the Canadian Investment Regulatory Organization (CIRO). The total it will lend, added to your cash, is your buying power. Some securities may have little or no loan value, so two accounts of the same size can have very different buying power.

The margin requirement. Your own equity (account value minus the loan) must stay above the broker’s requirement. If prices fall, your equity falls faster than the account value, because the loan stays the same. When equity drops below the requirement, you get a margin call: add cash, add securities, or sell.

Account limits and restrictions. Wealthsimple lets you hold up to two personal margin accounts, one joint margin account (in beta) and one corporate margin account per corporation. Some of its clients get a restricted margin account with a $1,000 borrowing limit. Questrade offers individual, joint and corporate margin accounts, and Desjardins offers a separate “margin option” account and a short-selling account.

How interest is charged. Interest is calculated on the debit balance, and at Wealthsimple it accrues daily and is charged monthly. Rates float with prime or the broker’s benchmark. Read your monthly statement to see the interest charged, and compare it with what you expected from the rate tables on this page. For options-specific borrowing, see the best options trading platforms ranking.

8. Margin Calls and Forced Sales: The Risks

Borrowing magnifies both directions. This example is hypothetical. You invest $20,000 of your own money and borrow $10,000, buying $30,000 of investments. If they fall 20%, they are worth $24,000 ($30,000 x 0.80). You still owe $10,000, so your equity is $14,000 ($24,000 – $10,000), a 30% loss on your own money. Without borrowing, the same fall costs 20% ($20,000 to $16,000).

Interest works against you both ways. At 6.00%, the $10,000 loan costs $600.00 a year. In the falling case your loss grows from 30% to 33% ($13,400 is $6,600 below $20,000). In the rising case your gain shrinks from 30% to 27%. If the investments simply stay flat, you lose the $600.

Margin calls and forced sales. If your equity falls below the broker’s requirement, the broker can ask for more cash or securities, and it can sell positions to cover the shortfall. A forced sale can happen at a low price and at a time you did not choose, and you remain responsible for any debt left after the sale. A sharp overnight drop can leave you owing more than the account is worth.

Rates can rise while you are borrowed. Prime-linked rates move when prime moves. A 0.25-point rise adds $25 a year for every $10,000 borrowed. Borrowing that works at today’s 4.45% prime may not work at a higher one.

This page does not recommend borrowing to invest. It compares published rates and explains how margin works. Whether borrowing suits you depends on your income, your other debts and how much loss you can absorb, and nothing here is personal advice. Our editorial standards explain how we keep comparison pages to general information.

9. Is Margin Interest Tax-Deductible?

The general rule. In general terms, Canadian tax law allows a deduction for interest on money borrowed to earn income from a business or from property, such as interest or dividends, when the borrowed money is used in a non-registered account. What decides it is the use of the borrowed money, not the fact that it came from a margin account. This section describes the rule in general terms only; it is not tax advice for your situation.

What usually does not qualify. Interest on money borrowed to contribute to a TFSA or an RRSP is not deductible. Interest on money you withdraw from a margin account and spend on personal items does not qualify either, even though the loan is secured by investments. If part of a loan funds investments and part funds personal spending, only the investing part can qualify.

Keep the trail. A deduction depends on being able to show what the borrowed money bought. Keep your monthly statements showing the interest charged, and avoid mixing borrowed money used for investing with money used for anything else. A separate margin account used only for investing makes the record much simpler.

What a deduction is worth. If the interest qualifies, the deduction lowers its after-tax cost by your marginal tax rate. A deduction does not turn a losing investment into a winning one: you still pay the interest, and the investments still have to earn more than its after-tax cost.

Where to go next. The details, including how capital gains and losses on margin-funded investments are reported, depend on your full return. Please speak with a tax professional before relying on a deduction. Our capital gains tax calculator shows the tax on a sale, and our best tax software page compares the products that handle investment income.

10. Wealthsimple Margin Rates by Tier

Three rates, set by your assets. Wealthsimple sets its margin rate by how much you hold with it, not by how much you borrow. Core starts at $1 in assets, Premium at $100,000 and Generation at $500,000. Each step cuts the CAD and USD margin rates by 0.5 points, and the same rates apply to its portfolio line of credit.

What counts toward a tier. Your status is based on the higher of your net deposits or your total portfolio value. Almost all Wealthsimple accounts count, including TFSA, RRSP, RESP, LIRA, non-registered, crypto, savings and chequing. Your status changes only if both net deposits and total assets fall and stay below the threshold, and market declines do not reduce net deposits, so a market drop alone does not push you down a tier while your net deposits stay above it.

Households. Any two or more Wealthsimple clients who share a residential address can form a household, and combined household assets count toward Premium or Generation. Members choose what to share. Upgrades are automatic, take at least one business day, and new deposits can take up to 72 hours to count.

What the tiers are worth. On $50,000 of CAD margin for a year, Generation saves $500.00 over Core ($2,475.00 – $1,975.00). Even at Generation’s 3.95%, Interactive Brokers’ 3.675% is lower, by $137.50 a year on $50,000. Compare the tier perks in our Wealthsimple Core vs Premium vs Generation review and every charge in Wealthsimple fees.

Head-to-head. If you are choosing between Wealthsimple and a lower-rate broker for a margin account, see Wealthsimple vs Interactive Brokers, Wealthsimple vs Questrade and Wealthsimple vs moomoo.

11. Safety: CIRO, CIPF and Margin Accounts

Who regulates margin lending. The Canadian Investment Regulatory Organization (CIRO) oversees all investment dealers in Canada and trading on Canada’s debt and equity marketplaces. Every member of the Canadian Investor Protection Fund (CIPF) is a CIRO member. All 13 brokers on this page are CIPF members or, for National Bank Direct Brokerage and TD Direct Investing, whose own pages do not name the legal entity, operate under a bank-owned dealer on CIPF’s member list (National Bank Financial Inc. and TD Waterhouse Canada Inc.).

What CIPF covers. If a member firm becomes insolvent, CIPF covers missing cash and securities held for you, within those limits. A margin account shares the $1,000,000 general limit with your cash, TFSA and FHSA accounts at the same firm. Our CIPF vs CDIC guide explains how this protection differs from deposit insurance on bank accounts.

What it does not cover. CIPF excludes market losses, unsuitable advice, an issuer’s insolvency and crypto assets. A loss from a margin call or a forced sale is a market loss, so CIPF does not cover it, and the loan you owe the broker remains a debt.

Ownership and safety scores. Our safety sub-score gives 4 points when a broker states both CIRO and CIPF membership (3.5 when CIRO membership is inferred from CIPF), plus 1 point for bank or cooperative ownership. For one broker’s full picture, see is Wealthsimple safe.

12. How to Choose a Margin Account

The lowest margin interest rate in Canada only helps if the rest of the account fits. These six steps take your own balance through the tables on this page.

1. Decide whether you will borrow at all. If you only want a margin account for options or short selling and will rarely carry a balance, the margin rate matters less than commissions and tools.
2. Estimate your balance and how long you will carry it. Enter both in the margin interest calculator to see the yearly cost at each broker.
3. Check the tiers you qualify for. Look for a threshold near your balance or assets: $100,000 at most brokers, $500,000 at Desjardins and Wealthsimple Generation, $1,000,000 at CIBC.
4. Check the USD rate. If you will borrow US dollars to buy US shares, compare the USD rates in section 5, which are higher than the same broker’s CAD rate wherever both are published.
5. Check registered debit rates. If you also hold a TFSA or RRSP at the same broker, see what a negative balance there would cost (section 6).
6. Add the other costs. Commissions, account fees and transfer fees can outweigh a small rate difference. Compare them on our best online brokers page, or on the best brokers for dividend investing ranking if you hold dividend-paying shares.

A quick shortcut by profile. For the lowest published rate on a balance under CAD 130,000, Interactive Brokers (3.675%) leads. For $0 stock commissions with a mid-range rate, Wealthsimple (4.95% on Core) and Desjardins (5.70%) cost less to borrow than Qtrade, Scotia, National Bank, CIBC, Webull or Questrade. For a very large balance, CIBC (4.75% from $1,000,000) and Desjardins (4.45% from $500,000) narrow the gap.

13. Common Margin Mistakes

Choosing a broker on commissions alone. A $0-commission broker with an 8.70% margin rate costs $870.00 a year on $10,000 borrowed. A broker charging a small commission at 3.675% costs $367.50. If you borrow, compare the rate first.

Taking a “from” rate at face value. moomoo lists margin “from 3.85%” without publishing who qualifies. Ask what rate your account will pay before you rely on it.

Leaving a debit in a registered account. National Bank charges 21.00% on registered and cash-account debits, and Questrade 12.55% in CAD. A forgotten fee or an unfunded US purchase can sit there for weeks.

Using all your buying power. The more of your buying power you use, the smaller the drop that triggers a margin call. Borrowing well below the maximum leaves room for prices to move.

Expecting a deduction that does not apply. Interest on money borrowed for a TFSA or RRSP contribution, or for personal spending, is not deductible. Keep borrowed money for investing separate from everything else.

Forgetting that prime moves. A borrowing plan built on a 4.45% prime should still work if prime rises. Recheck your costs after each Bank of Canada decision.

What You Need and What You Get

10 Ways to Pay Less Margin Interest

These are cost-control habits, not investment advice. None of them suggests borrowing more or buying any security.

Illustrative Example: Moving a $25,000 Margin Balance

Meet the Experts Behind WealthScale

Sharad Gondaliya, CPAWriter and tax reviewerCPA Ontario No. 61040184

Sharad is a CPA Ontario member (No. 61040184) and a Certified Public Accountant licensed in Washington and Montana, with more than 15 years in accounting and tax, a Diploma in Banking and Finance and a Certificate in Small Business Finance. He checks WealthScale content against primary sources. WealthScale is independent of his firm, Gondaliya CPA Professional Corporation, and provides general information only, not personal financial, investment, tax or legal advice.

• Chartered Professional Accountant, CPA Ontario
• Certified Public Accountant, Washington (No. 57629) and Montana (No. PAC-CPAP-LIC-033176)
• Writing on tax and registered accounts since 2021
• Reader’s Choice Award 2025 Winner, Best Accountant (Toronto)

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Neha Gupta, CFAFinancial ReviewerCFA charterholder

Neha Gupta is a CFA charterholder based in Winnipeg who has worked in financial markets since December 2005. She has published more than 2,600 investment articles and is Head of Operations and Finance at Whiteland Real Estate. She reviews WealthScale’s investing pages for accuracy.

• CFA charter, CFA Institute (awarded 2023)
• Post Graduate Diploma in Business Administration (Finance), 2008
• In financial markets since December 2005
• More than 2,600 published investment articles

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