By default, all taxable investment accounts are margin accounts. This is what allows automatic access to M1 Borrow when you meet the eligibility requirements. If you’re borrowing money through Borrow, you need to be aware of your maintenance margin.
Maintenance margin is the minimum amount of equity that must be maintained in a margin position.
FINRA requires a 25% minimum on all positions, but M1 may require a higher maintenance requirement on specific stocks.
Higher maintenance requirements are the result of a position’s potential volatility. Owning positions with high maintenance requirements can reduce the amount of credit you can borrow.
You can find the maintenance requirement for a stock in the Holdings tab or your portfolio slice, in the stock details section.
Using margin involves risks: you can lose more than you deposit, you are subject to a margin call, and interest rates may change. To learn more about the risks associated with margin loans, please see our Margin Disclosure. M1 Borrow available on margin accounts with a balance of at least $5,000. This does not apply to retirement accounts.