Margin loans are a fantastic way of increasing your exposure to quality, lower volatility, higher yielding stocks imho. Personally, I have had one for a number of years and if approached correctly can create a great deal of wealth for an investor.
A word of caution though, I wouldn't use this sort of product for trading purposes. From my point of view, if you have certain stocks that you wish to invest in for the long term then you can use the margin loan to increase your purchasing potential.
I treat mine like a loan in that I continually pay off principal as well as interest which, as well as reducing the risk of margin calls should one of your stocks suffer a fall, but then after some time you have the opportunity to review your holdings with the flexibility of being able to add to current positions. This means that the total value of holdings increases more over time than just the capital growth of the shares.
From an investors tax point of view, as long as you are investing in companies or funds paying dividends there is no problem in deducting the interest incurred from your taxable income on a yearly basis. Then just plough the refund back into the margin loan!
Anyway, i'm sure others can be more definitive with their experiences but i'm pretty happy and have built far more wealth using a margin loan than I would have been able to just using my own resources in the last few years, albeit with a few dud stocks on the way!
