Margin Trading

Why Us

Up to 71% Financing Across 11 International Markets
Competitive Commission Rates at 0.18% for SG, US and HK M arket
Multi-currency facility:
SGD, USD, HKD, JPY, MYR, AUD, GBP, CAD, EUR & CNY
Financing available:
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^

Percentage Gain: 20%

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^

Percentage Gain: 70%

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^

Percentage Loss: 20%

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^

Percentage Loss: 70%

^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

Capital
Outlay
3.5 x
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

Return On Equity (ROE)#: S$6,400/ S$50,000 = 12.8%

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

With margin facility, you have the option to hold the shares until the end of the uptrend.

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

Bond Financing

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 icon

Trading Mode

Trade with POEMS online, POEMS Pro, POEMS Mobile and/ or broker assisted

Excess Funds Facility

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

Multi Currency Facility

SGD, USD, HKD, AUD, MYR, JPY, GBP, EUR, CNY, CAD

Securities Lending(SBL)

Securities Lending(SBL)

Custodise your shares and earn up to 4% p.a.

Leverage

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



1 Login to your POEMS Account


2 Click on ‘Acct Mgmt’ tab


3 On the left panel, select ‘Online Forms’


4 Click on ‘Margin Account Opening’ sub-tab


5 Fill up the form accordingly and click ‘Submit’

Don’t have an account?

Alternatively, visit any of our Phillip Investor Centres ot contact your trading representives.

Frequently Asked Questions

Margin Account

Those who wish to open a Margin (M) Account must be above the age of 21 years old and must not be blacklisted or found to be delinquent by the Singapore Exchange (SGX) or other securities firms.
Yes.  Please visit Phillip Investor Centre or contact Trading Representatives.
Yes.  Please visit Phillip Investor Centre or contact Trading Representatives.
No. You would have to transfer the shares into your Margin (M) Account before you can sell them.
No. You would have to transfer the shares into your Margin (M) Account before you can sell them.
You can transfer the shares by signing the relevant forms. Please contact your trading representative for a copy of the form.
It will take around two working days for the shares to be transferred into your Margin (M) Account.
Your Margin (M) Account will be ready for trading within three working days upon receiving your completed application if all the requirements are met.

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.

Yes. Custodian (C) Account can be converted into a Margin (M) Account by signing the relevant forms. Please contact your trading representative for a copy of the form.
  1. You need to be 21 years and above to open an account with us.
  2. Your account opening documents need to be certified by a public notary, commissioner of oaths, or judicial officer.
  3. You are neither a US citizen nor a bankrupt.

For documentation, please refer to https://www.poems.com.sg/open-an-account-tr/

To request for a higher credit limit, the customer is required to contact his/her Trading Representative. The Trading Representative will submit a request to the company for review. This generally takes 3-5 working days for processing. Requests for a substantially higher limit may take longer for review. Upon approval of the new credit limit, the customer will receive a notification from the company.

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

    Talk to Us Now

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    Talk to our Margin Specialist

    6531 1560
             Financing@phillip.com.sg

    Contact us to Open an Account

    Need Assistance? Share your Details and we’ll get back to you

    IMPORTANT INFORMATION

    This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

    An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

    Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

    Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

    The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

    The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

    The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

    This advertisement has not been reviewed by the Monetary Authority of Singapore.  

     

    Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
    250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
    Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com