Margin Trading
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
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 “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.
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)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.
Frequently Asked Questions
Margin Account
It takes only one day to open an account if all the required documents are submitted and no AML records are found. You can open an account via https://www.poems.com.sg/open-an-account-tr/.
If you are an existing account holder, please apply for the Margin Account via POEMS > Acct Mgmt > Stocks > online forms > Margin Account Opening. The account should be opened by the next working day.
- You need to be 21 years and above to open an account with us.
- Your account opening documents need to be certified by a public notary, commissioner of oaths, or judicial officer.
- You are neither a US citizen nor a bankrupt.
For documentation, please refer to https://www.poems.com.sg/open-an-account-tr/
For Cash Management, Custodian, Prepaid, Margin, and Cashplus accounts:
From 26 October 2020, all new accounts will be auto enrolled with this feature. An auto currency conversion process will be performed at 7.15pm based on prevailing rates to offset any currency in debit balance by utilizing currencies in credit balance according to currency hierarchy set up in our system. The hierarchy of currencies to be utilized for offsetting in descending order: SGD, USD, HKD, CNY, JPY, AUD, GBP, EUR, CAD, & MYR.
To opt in/out from this facility, please contact your Trading Representative.
For trading accounts that are not opted in for the above feature, clients are required to take the necessary steps to either transfer money into the trading account or submit a currency conversion request to avoid being charged debit interest.
Opt in to 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
To view FAQs on trading settlements on Margin Account (M) , click here
To read the general Risk Disclosure Statement, click here.
Margin Facility
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
Talk to our Margin Specialist
6531 1560
Financing@phillip.com.sg