Their margin rates are very high at best and potentially usury at worst. They are counting on you not using the full amount of margin on the tier you paid for and further, counting on you being too lazy to downgrade to a lower (or no) tier when you no longer need it. There was nothing I could find in the FAQ about them automatically dropping the tier as your use declined.
For comparison - and I have no vested interest here - Interactive brokers currently charges 0 - 100,000 2.41% (BM + 1.5%) and 100,000.01 - 1,000,000 1.91% (BM + 1%) on USD margin loans.
If you think you will be an active user of margin I would go elsewhere unless you can justify savings on the commission side against paying 0.005/shr elsewhere.
My Robinhood margin rate for $6,000 is only 5%/year. It also provides extended pre-market trading, after-market trading, and instant deposits. Interactive brokers charges commissions on trades. Also you don't have to use margin with Robinhood, it's not required.
That 5% rate only applies if you fully utilize the margin for the entire year. If you do not, and do not drop out of the gold tier when not using the margin, your effective rate sky rockets.
As to IB, again my point was there is a trade off between paying nothing for commissions and overpaying for margin vs paying a low commission and getting a market margin rate that only kicks in when in use.
For comparison - and I have no vested interest here - Interactive brokers currently charges 0 - 100,000 2.41% (BM + 1.5%) and 100,000.01 - 1,000,000 1.91% (BM + 1%) on USD margin loans.
If you think you will be an active user of margin I would go elsewhere unless you can justify savings on the commission side against paying 0.005/shr elsewhere.