Let your assets work harder for you!
Transfer your cash or shares to your newly opened Phillip Investment Account – Margin (M) to enjoy exclusive rates*:
* Terms and Conditions apply
Why Phillip Investment account – Margin (M)?
- Up to 70% financing for over
- 2000 stocks across 11 international markets
- 100 bonds
Why trade with Margin?
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.
Scenario 1 | Trade with Cash
Assume you have S$10,000 cash and purchased 10,000 Grade A shares at S$1.00. You sold S$10,000 Grade A 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 Grade A shares at S$1.00. You sold 35,000 Grade A 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 Grade A shares at S$1.00. You sold 10,000 Grade A 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 Grade A shares at S$1.00. You sold 10,000 Grade A 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 3.08%* 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 3.08% = S$3,850
Net annual yield: S$10,500 – S$3,850 = S$6,650
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$1.86 per day (1,000 shares at S$22 x 3.08%/365).
Traded Currency Financing
The Phillip Investment Account – Margin 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
More facilities available with Phillip Investment Accounts
Trading Mode
Trade with POEMS online, POEMS Mercury, POEMS Mobile and/ or broker assisted
Multi Currency Facility
SGD, USD, HKD, AUD, MYR, JPY, GBP, EUR, CNY, CAD
Excess Funds Facility
Earn 0.8380% SGD p.a./ 1.0168% USD p.a. on your idle funds
(Rates updated as of 8 January 2018 , based on 1-year rolling return, NAV/NAV prices.
Past performance is not necessarily indicative of future performance. View disclaimer)
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
Step to open Phillip Investment Account – Margin for existing POEMS account holder
To find out more, chat with us using our Live Chat function.
Alternatively, you may call us at 6531 1555 or email us at financing@phillip.com.sg
Frequently Asked Questions
Available facilities:
– Margin Financing– Multi Currency
– Excess Funds Management (MMF)
– Securities Borrowing & Lending (SBL)
– Contract For Difference (CFD)
Yes. We offer financing for SStocks and Bonds when you pledge any of these assets with us. Please visit here for more information.
StocksPhillip Securities offers financing on selected Stocks, ETFs, REITS and more.
For more info, please call our Financing team at +65 6531 1560.
Bonds
Investors can take advantage of our competitive interest rate & pledge their shares and/or bonds to receive financing.
To find out more, please call our Bonds Team at 6212 1818.
The multiplier table below illustrates how much you can leverage to purchase shares, ETFs and bonds based on different types of collateral
| Step 2 | ||||
| Step 1 Step 1 |
Collateral Type (Cash, Shares, ETFs, Bonds) |
GRADE A PURCHASE |
GRADE B PURCHASE |
GRADE C PURCHASE |
|---|---|---|---|---|
| CASH ($10,000) |
$35,000 | $20,000 | $10,000 | |
| GRADE A ($10,000) |
$25,000 | $14,280 | $7,140 | |
| GRADE B ($10,000) |
$17,500 | $10,000 | $5,000 | |
|
Example 1: Client deposits $10,000 cash and wishes to purchase Grade A Shares
|
Example 2: Client deposits $10,000 cash and $10,000 Grade A Shares
|
No financing is provided for Grade C shares, you can use your Grade A or Grade B shares as collateral to purchase Grade C shares
From CDP to Phillip Investment Accounts: S$10.70.
From other financial institution to Phillip Investment Accounts: Waived
Foreign Markets
Phillip does not levy any transfer-in fees.
Investments in REITS or bonds can have achievable yields of 5% p.a. in 2017. Coupled with SBL facilities, total potential returns of a high 7% p.a. can be achieved.
With financing, the potential returns can be increase two fold.
(eg. Based on prices at 22/05/17, holding Frasers L&I shares generated approx 5.36% p.a. dividend yield for shareholders. Successful on-lending of your Frasers L&I during this period could generate an indicative additional return of 2% p.a.)
To find out more, please contact us at financing@phillip.com.sg
Opt in to SMART Park which is an Excess Funds Management facility that manages your idle cash into Phillip Money Market Funds discretionary upon opt in. Let SMART help you maximise your investment opportunities.
- Fast and simple online transfer & withdrawal
- No sales charge or administrative fees
- No lock-in period
- The largest^ retail SGD Money Market Fund in the market
^Based on Total Net Assets (TNA) figures reflected in FundSingapore.com
Terms & Conditions for Shares Financing Rate from 3.08% p.a. and 0.18% commission:
- Promotion is applicable for new Phillip Investment Accounts – Margin (M) opened from 1st September 2019 to 29th February 2020 (“Eligible Accounts”).
- For Eligible Accounts with financing (optional), promotional financing rate is 3.08% p.a. for SGD & 3.99% p.a. for HKD & USD.
- All Eligible Accounts can enjoy promotional online brokerage rates via POEMS platforms, of:
- 0.18% or S$25 minimum commission for Singapore listed shares
- 0.18% or US$20 minimum commission for US listed shares
- 0.18% or HK$100 minimum commission for Hong Kong listed shares
- Promotional rates are valid from 1st September 2019 to 29th February 2020 ; thereafter prevailing rates apply.
- For new Eligible Accounts opened, customers have to opt in for Multi-Currency facility, MMF and the opening of a Securities Borrowing and Lending account to be eligible for the promotion.
- After the promotional period, all eligible accounts will be subject to our rate renewal exercise. During this exercise, rates will be renewed based on the prevailing interest rate environment, quality of shares in your portfolio and your trading activity.
Additional waiver for Eligible Accounts
- Waiver of 1% cash dividend handling fee for SGX listed shares till 31st December 2020.
- Waiver of account management fee till 31st December 2020.
General Conditions:
- Customers with an existing Investment Account or have closed their Investment Accounts on or after 30th June 2019, are not eligible for this promotion.
- Transferring of Securities from existing Phillip Accounts to Eligible Accounts will be subject to S$64.20 handling fee per counter.
- Transferring of Securities out of Eligible Accounts during the period of 1st September 2019 to 29th February 2020 will be subject to S$64.20 handling fee per counter.
- The following persons are not eligible to participate in this promotion unless approved by the management of Phillip Securities Pte Ltd (“PSPL”):
- PSPL institutional Customers and corporate Customers
- PSPL account holders whose accounts have been suspended, cancelled or terminated
- PSPL individual Customers with single counter value of more than 2 million
- All employees of PSPL and its associated entities (e.g. Trading Representatives, Financial Advisors); PSPL and all its subsidiaries (direct or indirect) are not eligible for this promotion.
- Notwithstanding anything herein contained, PSPL reserves the right at any time in its absolute discretion to (i) amend, add and / or delete any time of these Terms & Conditions without prior notification (including eligibility and qualifying terms and criteria), and all participants shall be bound by such amendments, additions and / or deletions when effected, or (ii) vary, withdraw, or cancel any items or the promotion without having to disclose a reason thereof and without any compensation or payment whatsoever. PSPL’s decision on all matters relating to the promotion shall be final and binding on all participants.
- By taking part in this promotion, customer acknowledges that he/she has read and consented to these Terms & Conditions.
