Want to learn more about how to use non-registered investment margin accounts to your advantage? Read Understanding Margin Accounts.
| Security | Margin Required1 |
|
| Equities | Long | Short |
| CDN Eligible for reduced margin | 30% | 150% |
| All other eligible CDN Securities ($5.00 and over) |
50% | 150% |
| U.S. securities eligible for reduced margin | 30% | 150% |
| All other U.S. securities ($5.00 and over) |
50% | 150% |
Other Equities |
||
| $3.00 - $4.99 | 75% | 175%* |
| $2.99 and under | 100% | Not eligible |
|
IPOs listed on TSE/NYSE/ME/AMEX |
||
| $5.00 and over | 50% | |
| $3.00 - $4.99 | 75% | |
| $2.99 and under | 100% | |
|
Rights & Warrants |
||
| $5.00 and over | 50% | 150% |
| $3.00 - $4.99 | 75% | 175% |
| $2.99 and under | 100% | Not eligible |
|
Mutual Funds |
||
| Trading above $2.00 | 50% | |
|
Money Market Funds |
||
| Money Market Funds Note: provided they are qualified by prospectus and filed in any province in Canada |
10% | |
| Gold & Silver | ||
| Gold & Silver | 25% | |
| Labour Sponsored Investment Funds (LSIF) | ||
| LSIF | 100% | |
| Debt | ||
| Coupon Bonds | 21% of market value | |
| Corporate Bonds or Debentures (not convertible or in default) |
20% | |
| Municipal Bonds | 20% | |
| GICs | 20% | |
| Provincial Bonds | 10% | |
| Corporate Paper | 10% | |
| Government of Canada Bonds | 7% | |
| US Government Bonds | 7% | |
| Government of Canada treasury bills | 7% | |
| Convertible Bonds | (see table below) | |
| Canada Savings Bond | 100% | |
| * Issues listed on TSXV or CSE are not marginable. | ||
Margin on Convertible Bonds
| Description | Margin Required |
| Priced above par | 50% |
| Priced at $50 to Par | 50% |
| Priced less than $50 | 100% |
Maximum Loan Values
| Description | Margin Required | Maximum Loan Value (CAD) |
| Security Eligible For Reduced Margin | 30% or less | $400,000 |
| Security Not Eligible For Reduced Margin ($5.00 and over) | 50% or more | $200,000 |
| Security Not Eligible For Reduced Margin ($3.00 - $4.99) | 75% or more | $100,000 |
| Total Maximum Loan Value | $2,500,000 |
View Legal Disclaimer
1 RBC Direct Investing can change or revoke a margin rate without notice, as indicated in our Operation of Account Agreement and our Margin Agreement.
RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence. © Royal Bank of Canada 2019. All rights reserved.