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Financial management

How to access liquidity and maintain your investment strategy

Learn how margin lending can give you access to liquidity.
2.5 minute read
  •  
May 12, 2023
Financial management
Financial wellness
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When an investment opportunity requires flexible cash borrowing, you may consider applying for a margin loan. Vanguard Brokerage offers margin lending for access to liquidity.

What is margin lending?

Margin lending is a flexible line of credit that allows investors to borrow against the securities already held in their brokerage account. This can be particularly beneficial for investors in a higher tax bracket looking for a convenient way to borrow for interim liquidity without disrupting their investment holdings.* Margin loans may help increase your trading flexibility or provide a line of credit to help meet your investment and other needs.

When choosing investment products and services, selecting a trusted provider is important. Vanguard Brokerage takes a more conservative approach to our maintenance requirements for margin accounts to better enable you to uphold your long-term investment strategy. We encourage clients to risk responsibly when investing.

Tax-advantageous loan option

A margin loan can give you access to cash without disrupting your holdings. Rather than liquidating securities in a portfolio—which may force realized capital gains and possible taxation—it might be more convenient and possibly tax-efficient to take a temporary margin loan and pay interest. The interest that accrues in your account from your loan may offset taxable income. Please consult a tax advisor about your individual situation.

Easily accessible

Margin lending may offer more favorable rates than other options, like credit cards or home equity lines. Vanguard Brokerage offers competitive rates and flexible repayment options for investors shopping for margin loans. You pay back your loan when you want to—there's no set repayment schedule if you maintain the required level of equity in the account. 

And once you're approved, no additional underwriting, personal guarantees, or credit checks are required. You'll have quick access to capital anytime.

Want to learn more about a margin account?

Consider Vanguard Brokerage if you're looking for interim liquidity. Schedule an appointment with your relationship manager for more information about margin account eligibility and flexibility.

Learn more about margin lending with Vanguard Brokerage

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*Vanguard Brokerage does not provide advice. Please consult a tax advisor when determining the tax implications of transacting in your account or the deductibility of loan interest.

Margin trading poses inherent risks to investors electing to engage in leveraged strategies. Prior to engaging in any borrowing activity, it is important to fully understand the capital risks associated with this product. For additional information about margin investing, read the Vanguard Brokerage Initial Margin Risk Disclosure Statement or visit the FINRA and U.S. Securities and Exchange Commission websites.

All investing is subject to risk, including the possible loss of the money you invest.

Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.