Securities-based lines of credit
A securities-based line of credit (SBLOC, also called a pledged asset line) is a bank loan secured by your brokerage account. You keep your investments, pay a variable rate usually tied to SOFR, and can draw cash for almost anything except buying more securities. If the account falls far enough, the bank can demand repayment or sell your holdings.
How it differs from a margin loan
| Margin loan | Securities-based line of credit | |
|---|---|---|
| Lender | Your broker | A bank, often the broker's affiliate or partner |
| Can buy securities with it | Yes; that is what it is for | No; the proceeds generally cannot buy or carry securities |
| Minimum | $2,000 of equity under FINRA Rule 4210 | $75,000 to $100,000 at the firms below that publish one |
| Rate | Broker's published schedule (compare) | SOFR or prime plus a spread, mostly not published |
| If the account falls | Maintenance call; broker can sell without notice | Collateral call; the bank can demand repayment and sell |
What the big firms publish
Only one of the seven large providers we checked prints its rates. The rest give a minimum and ask you to call.
Schwab Bank Pledged Asset Line
Rates not published. Clients with $250,000 or more in qualifying assets get 0.25% to 1.00% off. Minimum: $100,000 minimum line. Provider's page.
Fidelity securities-backed line of credit (lenders: U.S. Bank, Leader Bank)
SOFR plus a spread by line size. Fidelity says each lender sets its own tiers and spread. Minimum: $100,000 minimum line; Fidelity says clients typically pledge at least $500,000. Provider's page.
| Line size | Spread | With SOFR at 3.90% |
|---|---|---|
| $100,000 to $499,999 | SOFR + 3.10% | 7.00% |
| $500,000 to $999,999 | SOFR + 2.85% | 6.75% |
| $1,000,000 to $2,999,999 | SOFR + 2.35% | 6.25% |
| $3,000,000 and up | SOFR + 1.90% | 5.80% |
Morgan Stanley Liquidity Access Line
Rates not published; Morgan Stanley says to contact your team. Provider's page.
Merrill Loan Management Account
Rates not published. Minimum: $100,000 minimum line. Provider's page.
UBS Credit Line
UBS does not publish rates or a minimum. Provider's page.
Wells Fargo Priority Credit Line
Prime plus a spread set by household assets; spreads not published. Minimum: enough assets to support $75,000 of borrowing power, $300,000 of liquid net worth and $500,000 of net worth including real estate. Provider's page.
J.P. Morgan portfolio line of credit
Variable, based on daily SOFR; spreads not published. Provider's page.
The last column adds the spread to SOFR as published by the New York Fed for . It is arithmetic, not a quote: each lender sets its own rate and it moves daily with SOFR.
The risks regulators point to
FINRA's investor guidance makes four points. These are demand loans, so the lender can call one at any time. When the collateral falls short you may get only a few days to fix it, and lenders can often sell your securities without notice. A forced sale can bring a capital gains bill, which undoes the usual reason for borrowing instead of selling. And the firm, and sometimes your adviser, earns money when you borrow, so ask how they are paid.
Stay away from "stock loans" offered by unregistered lenders who take ownership of your shares in exchange for a non-recourse loan. FINRA has issued an investor alert on these programs. How to spot one.
Sources: FINRA and SEC investor alert on securities-backed lines of credit; FINRA, Securities-Backed Lines of Credit Explained; New York Fed SOFR; providers' pages as linked, checked 2026-10-24.