SyntheticFi helps you borrow at 5.83% APR using your investments as collateral without switching to another brokerage. You can save $30K+ per year borrowing $500K on Charles Schwab while staying with Schwab.
🌟Start here or talk to us to start saving money. No credit checks involved. 🌟
Many use margin loans or a securities-backed line of credit (SBLOC) to get liquidity from their investments without selling and incurring capital gains tax.
For example:
Even Elon Musk planned to take out a $12.5B loan against his Tesla shares to acquire Twitter/X!
Additionally, securities-backed loans have no impact on your credit report.
Getting a competitive interest rate to borrow against your investments requires upending your financial life. You are forced to choose between two bad options:
A real-life example: Tony 🙋‍♂️, ex-Stripe, has personally tried to borrow against his investments to pay the downpayment on his first house.
How big is this problem?
In total, credulous individual investors overpay $32B+ in interest per year to banks and broker-dealers, fueling a $1 trillion+ market with low competition. This market is similar to the size of total outstanding credit card debt, or 2.65x the size of the HELOC market.
Registered with the SEC, SyntheticFi acts as an add-on to your current investment platform. It allows you to borrow at a base rate + 0.5%, currently 5.83%, without switching to another brokerage account.
Get liquidity in three easy steps:
How much does SyntheticFi cost?
How can you offer the cheapest margin rate on the market?
We help you enter into an exchange-traded loan contract. You can think of it as we bring your loan contract to Wall Street, where all traders compete in real time to offer you the cheapest loan.
What is the loan you trade on exchange here?
We trade a basket of options called box spreads. These options are hedged so that they do not move with the underlying. Read more about them here, and see how Reddit traders are using them.
What is the tax treatment for the loan interest?
The loan interest incurred is always tax deductible as capital losses.
How can you let me stay with my current brokerage?
Our loan contract is supported across major brokerages. We integrate with them and trade it in your account, so you don’t need to switch.
How much can I borrow against my investment?
Margin requirements from your current broker apply. Most clients should be able to borrow up to 50% of their portfolio value. Exceptions: non-liquid investments, retirement assets, or crypto assets.
What can I use my borrowed cash for?
Money borrowed from our product can be used for any purpose, including buying more stocks.
We’re Joseph and Tony (left, right), the team behind SyntheticFi. Joseph worked on similar products with financial advisors when he was the first employee who built VRGL, a series-A wealth-tech startup valued at over $100MM. That inspired us to build SyntheticFi and bring cheap securities-backed borrowing rates reserved for the ultra-rich to the average person.
[FREE DEAL] If you are currently using margins / security-backed loans:
[Introductions] If you know anyone at financial advisor platforms, independent broker-dealers, or mortgage brokers who wants to gain revenue while giving their clients better rates: