Go Back To Search Results Question Brokerage that will permit a secured loan be taken with stocks you own as collateral? i am looking for a reputable Brokerage firm, such as scottrade, fidelilty etc.. that will allow you take out a secured loan against stocks you own as collateral. dont want to sell stocks i owe and instead use as collateral for 12 month loan By Danbarroso Posted on 06/23/08 Total Answers 3 Answers- It is called margin. Min $2000 current value of stock. You can withdraw 50% cash. If your stock falls in value, you could be subject to margin call(s). You would have to put up more money immediately or the broker-dealer will force sell some of the stock to pay the current margin call. You pay monthly margin interest (rates vary by broker, and account size). Margin interest is deductible against your investment gains. You can keep the loan out forever as long as you keep a balance to pay the margin interest, and the stock doesn't tank below margin rules (below). There is no other way you can get a loan from a broker dealer. Aside from the above, there is no such thing as pledging stock as collateral from a broker dealer for a loan. Brokers are not banks. You can try a bank. The interest on a regular bank loan is not deductible however. Good Luck! Answer by : Net Advisor On Date 2008-06-23 12:27:29 and you would probably only be able to get that kind of loan from the broker you bought the stocks thru Answer by : Doctor Deth On Date 2008-06-23 12:39:18 Might get a better rate through your bank. They will normally provide a loan using stock as collateral. Answer by : muncie birder On Date 2008-06-23 12:49:22   Go Back To Search Results