ID: @349vshmi
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- Share Financing
Share Financing
Why Us
SGD, USD, HKD, JPY, MYR, AUD, GBP, CAD, EUR & CNY
SGD, USD, HKD, JPY, AUD, GBP, CAD, EUR & CNY
Why trade with Margin
-
To make larger investments
which can potentially lead to higher returns. -
To make a positive carry;
where your dividends or coupon are higher than the cost of borrowed funds. -
To hold shares longer and take advantage of an uptrend.
-
With financing available in 9 currencies; taking financing in traded currency can be used as a natural currency hedge.
Make Larger Investments with the Same Amount of Capital
With leverage, you will have access to a larger amount of investment capital which can potentially lead to higher returns.
At the same time, with leverage, you may experience higher loss.
Scenario 1 | Trade with Cash
Assume you have S$10,000 cash and purchased S$10,000 “71% Financing” shares at S$1.00. You sold S$10,000 “71% Financing” shares at S$1.20.
Your gross gain is S$2,000^
20%
Scenario 2 | Trade with Margin
Assume you have S$10,000 cash (up to 3.5 times leverage) and purchase S$35,000 “71% Financing” shares at S$1.00. You sold S$35,000 “71% Financing” shares at S$1.20.
Your gross gain is S$7,000^
70%
Scenario 1 | Trade with Cash
Assume you have S$10,000 cash and purchased S$10,000 “71% Financing” shares at S$1.00. You sold S$10,000 “71% Financing” shares at S$0.80.
Your gross loss is S$2,000^
20%
Scenario 2 | Trade with Margin
Assume you have S$10,000 cash (up to 3.5 times leverage) and purchase S$35,000 “71% Financing” shares at S$1.00. You sold S$10,000 “71% Financing” shares at S$0.80.
Your gross loss is S$7,000^
70%
With leverage, you will have access to a larger amount of investment capital which can potentially lead to higher returns.
Scenario 1 | Trade with Cash
Assume you have S$10,000 cash and purchased 10,000 “71% Financing” shares at S$1.00. You sold S$10,000 “71% Financing” shares at S$1.20.
Your gross gain is S$2,000^
Scenario 2 | Trade with Margin
Assume you have S$10,000 cash (up to 3.5 times leverage) and purchase 35,000 “71% Financing” shares at S$1.00. You sold 35,000 “71% Financing” shares at S$1.20.
Your gross gain is S$7,000^
At the same time, with leverage, you may experience higher loss.
Scenario 1 | Trade with Cash
Assume you have S$10,000 cash and purchased 10,000 “71% Financing” shares at S$1.00. You sold 10,000 “71% Financing” shares at S$0.80.
Your gross loss is S$2,000^
Scenario 2 | Trade with Margin
Assume you have S$10,000 cash (up to 3.5 times leverage) and purchase 35,000 “71% Financing” shares at S$1.00. You sold 10,000 “71% Financing” shares at S$0.80.
Your gross loss is S$7,000^
^Returns shown here are for illustration purposes only. Returns may vary and do not take into consideration any transaction and financing costs.
Positive Carry
Based on the dividend yield of 6% p.a. and 3.28%* financing charge, Initial Investment: S$50,000,
Total purchased based on margin multiplier:
S$50,000 x 3.5
=S$175,000
Outlay
Financing
Estimated annual yield: S$175,000 x 6% = S$10,500
Estimated cost: (S$175,000-S$50,000) x 3.28% = S$4,100
Net annual yield: S$10,500 – S$4,100 = S$6,400
Disclaimer:
#ROE calculation above does not take into account potential capital gain or loss.
#ROE shown here is for illustration purpose only. All calculations have been rounded to one decimal place. Dividends may vary; computations do not take into consideration any transaction costs, dividend handling fee, time value of money & such other costs customers may incur. Financing charges shown here are for illustration purpose only, actual charges may vary based on the compounding of financing charges. Phillip Securities Pte Ltd accepts no liability whatsoever from customers relying on any calculations provided here. Customers may incur capital losses which may be magnified as a result of leverage.
Short-term Borrowing
The image above shows the price of a stock example for illustration
For example, if 1,000 shares were bought at S$22.00, the financing cost is just S$1.80 per day (1,000 shares at S$22 x 2.99%/365).
Traded Currency Financing
Margin (M) Account offers financing in 9 Different Currencies namely SGD, USD, HKD, JPY, AUD, GBP, CAD, EUR & CNY.
Customers can pledge their local Singapore shares & take financing in the traded currency of foreign markets where applicable.
By taking financing in traded currency, customers can potentially minimize their forex risk.
Find out more about
Why Margin Account
Key Information
New Infosheet (Effective from 28 January 2022)Infosheet
| Margin Account | |
|---|---|
| Financing Quantum | As low as 28.57% owner’s equity (71.43% financing) |
| Margin Call Period | 3 Market Days |
| Collateral Deposit | Before trading |
| Currencies Financing Available In | SGD, USD, HKD, JPY, AUD, GBP, EUR, CAD, CNY |
| Markets Available | Singapore (SGX) United States (NASDAQ / NYSE / AMEX) Hong Kong (HKEX) China A Shares (SH-HK) Malaysia (BURSA) Canada (TSX) Germany (FWB) Japan (TSE) United Kingdom (LSE) Australia (ASX) Thailand (SET) |
More facilities available with Margin (M) Account
Trading Mode
Trade with POEMS online, POEMS Pro, POEMS Mobile and/ or broker assisted
Excess Funds Facility
Earn on your idle funds.
1 Year Rolling Return:
SGD 0.8380% p.a.* | USD 1.0168% p.a.*
Return (1 month) Annualised:
SGD 0.8380% p.a.# | USD 1.0168% p.a.#
Rates updated as of
*Based on 1-year rolling return, NAV/NAV prices.
#Based on the average rate of annualised returns over the last rolling one month.
Past performance is not necessarily indicative of future performance. View disclaimer
Multi Currency Facility
SGD, USD, HKD, AUD, MYR, JPY, GBP, EUR, CNY, CAD
Securities Lending(SBL)
Custodise your shares and earn up to 4% p.a.
Leverage
Up to 20 times leverage with Contracts for Difference (CFD) and Margin Financing
Ready to let your assets work harder for you?
Steps to open Margin (M) Account for existing account holder
Don’t have an account?
Alternatively, visit any of our Phillip Investor Centres ot contact your trading representives.
- At least 21 years of age
- Not a U.S Person (an individual who is U.S citizen or U.S resident)
- Not a bankrupt
Singaporean/ Singapore PR/ Foreigner residing in Singapore
- Singapore Identity Card (Pink or Blue)
- Bank Account Information
- Bank Account Details (DBS/POSB/OCBC/UOB/MAYBANK) OR
- TT Details (TT Bank Name, Account Number & Currency Details)
- For mailing address which is different from your Identity Card, please provide supporting document(s) issued within the last 3 months such as:
- Telephone bills/Utility bills/Bank statement OR
- Statement from any Financial Institutions in your country OR
- Correspondence from any government bodies in Singapore
All copies of documentation has to be scanned or photographed from the original document.
Malaysian
- Malaysian Identity Card
- Bank Account Information
- Singapore Bank Account Details (DBS/POSB/OCBC/UOB/MAYBANK) OR
- TT Details (TT Bank Name, Account Number & Currency Details)
- For mailing address which is different from your Identity Card, please provide supporting document(s) issued within the last 3 months such as:
- Telephone bills/Utility bills/Bank statement OR
- Statement from any Financial Institutions in your country OR
- Correspondence from any government bodies in Malaysia or Singapore
All copies of documentation has to be scanned or photographed from the original document.
Note:
All supporting documents should be in English. Otherwise, there is a need to have each of these specific documents translated and certified by a qualified translator/translation company.
Foreigner not residing in Singapore
- Passport with at least 6 month validity
- Bank Account Information
- Singapore Bank Account Details (DBS/POSB/OCBC/UOB/MAYBANK) OR
- TT Details (TT Bank Name, Account Number & Currency Details)
- Supporting document(s) for residential address issued within the last 3 months such as:
- Telephone bills/Utility bills/Bank statement OR
- Statement from any Financial Institutions in your country OR
- Correspondence from any government bodies in your country
- For mailing address that is different from your residential address, please provide additional supporting document(s) issued within the last 3 months that reflects your mailing address.
All copies of documentation has to be scanned or photographed from the original document.
Note:
All supporting documents should be in English. Otherwise, there is a need to have each of these specific documents translated and certified by a qualified translator/translation company.
Talk to our Margin Specialist
6531 1560
Financing@phillip.com.sg
