Personal Investments • Margin account is running wild with interest on Fidelity. Personal advice.

Hello, I’m a new investor and started a Fidelity account about 5 years ago. The goal was to start a 401K and start a modest investment portfolio.

Recently after not looking at my account for about 2 years I noticed the margin account is going up quickly. The interest alone is about $1200 a month! My margin debt is $81,415.89 and my account value is $75,788.98. I’m confused by this.

Why have I not been margin called etc?


I understand two ways to get rid of margin are.

-Sell off stocks
-Add money to account’

Looking for advice on how to get myself out of this rut and gameplan moving forward. Should I just dump 3-5k a month into my account to pay this down? My account is 80% Alibaba and feel that it will come back eventually.

Does Fidelity have a freeze option to stop the interest from compounding?

Im so lost and feel sick to my stomach.

Its my fault for not checking this account and opening a margin account in the first place. I have no business opening a margin account as a novice investor.

Anyone who can help me develop a solid gameplan moving forward would be much appreciated.



Please advise,


"The fool and his money are soon parted"

Statistics: Posted by stevef22 — Thu Mar 14, 2024 12:47 am — Replies 20 — Views 1103

---