Stocks
Maximise your trading opportunities and potentially, reap greater returns when you open a margin
facility with us. Our margin facilities have been designed to suit different investment styles
and investing needs.
Trade with direct access to multiple key financial markets. In addition, you can choose between
transacting online, via our trading representative or a combination of both. Rest assured, you
have one of the best customer service in the market on your side.
Choose between flat or grade-based interest rates (applied according to the types of securities
in your portfolio). Take control of your foreign exchange exposure with competitive debit
interest rates on multiple currencies, computed on a daily rest basis. Enjoy up to 3.5 times
leverage and 7 days interest-free period, and much more. For the full list of benefits, please
visit the FAQs section on this page.
While trading with a margin facility can potentially help you reap greater returns using the same capital, you may decide to trade without margin. We are here to serve every investment need.
You have SGD10,000 for share trading.
The following table shows an example of how it works.
| Capital Outlay S$10,000 | Without Margin (Able to purchase S$10,000 worth of shares) | With Margin (Able to purchase S$35,000 worth of shares) |
|---|---|---|
|
Capital Gain* (assuming share price increases by 10%) |
S$1,000.00 | S$3,500* |
| Margin Financing Charge @2.80% | S$0.00 | S$700 |
|
Net Return* (after margin financing charge)* |
S$1,000.00 | S$2,800.00* |
| Effective Rate of Return* | 10% | 28%* |
*For illustration purposes only. Trade commissions and other fees were not included in the calculations.
Margin calls are issued once the total collateral in the margin account falls below a minimum percentage of the total amount financed called the margin ratio.
The example below shows a SGD750,000 bond purchased with a deposit of SGD250,000 cash as collateral.
| Day 1 | Day 2 (Assuming the value of bonds drops 10%) | ||
|---|---|---|---|
| Value of cash pledged | SGD250,000 | - | |
| Value of bonds bought | SGD250,000  3 = SGD750,000 |
SGD675,000 | |
| Amount of financing | SGD500,000 | SGD500,000 | |
| Margin Ratio | SGD750,000  (SGD750,000 - SGD250,000) = 150% |
SGD675,000 SGD500,000 = 135% |
|
If margin ratio falls below 140%
You are required to provide additional cash (in this case, SGD17,858), marginable securities or
liquidate positions within 5 market days, failing which we will liquidate the required amount of
securities to bring the margin ratio to 140% or above.
If the OTC bond position has to be liquidated, it will be liquidated per tranche of either
SGD250,000 for SGD issues or USD200,000 (or equivalent) for other currency issues. No partial
amount per tranche can be liquidated.
If margin ratio falls below 130%
At our discretion, we may liquidate positions to cover the minimum margin ratio without
notification. No deposit of marginable shares is allowed for forced selling.
*Examples, definitions and summaries included on this page are intended for illustrative
purposes only, and are not to be relied upon as advice or interpreted as a recommendation.
Maybank Securities will not be liable to you or anyone else, for any damages whatsoever and
howsoever caused (including direct, indirect, incidental, special, consequential, exemplary or
punitive damages) arising out of or in connection with any errors in or omissions in the
illustrations, definitions and/or summaries provided here, even if Maybank Securities has been
advised of the possibility of these damages.
With our Grade Based Interest Rate Scheme*, you can now leverage your high quality securities to enjoy lower margin financing rates and build your investment portfolio.
We classify more than 900 equity and debt securities as Grade 1 securities, which you can pledge or buy and enjoy financing rates as low as 3.8% p.a. Learn more about corresponding interest grades and valuation percentages of various securities in multiple markets.
| Grade of Marginable Securities | Interest Rate (p.a.) | ||
|---|---|---|---|
| SGD | USD | HKD | |
| Grade 1 | 3.80% | 5.00% | 4.00% |
| Grade 2 | 5.00% | 6.00% | 5.20% |
| Grade 3 | 7.10% | 7.50% | 7.30% |
Refer to Interest Calculator to check if your
investment portfolio will benefit from our Grade Based Interest Rate Scheme.
The interest will be calculated based on Grade 1 interest rates until the maximum loan amount
supported by the Grade 1 securities is used up, then based on Grade 2 interest rates and finally
based on Grade 3 interest rates.
*Interest rates subject to change and may not reflect the latest rates.
To Enjoy a Low Interest Rate of 3.8% :
Pledge/transfer Grade 1 securities and you can buy any type of security up to the maximum loan
amount supported by the collateral value of Grade 1 securities.
The more Grade 1 securities you pledge, the higher the loan amount you can enjoy at 3.8%
regardless of what securities you intend to buy.
Want to borrow more than the loan amount supported by Grade 1 securities? Simply transfer in
more Grade 1 securities to enjoy the low rate! You can do this by depositing cash and buying
Grade 1 securities.
Assume you deposit SGD10,000 cash and buy SGD35,000 worth of Grade 1 shares.
| Amount financed | SGD25,000 |
|---|---|
| Total collateral value of all Grade 1 shares (valued1 at 100%) | SGD35,000 |
| Maximum loan amount supported by Grade 1 shares |
SGD35,000 140%3 = SGD25,000
|
Therefore, the full loan amount is SGD25,000 and is chargeable at 2.8%.
Assume you pledge SGD10,000 worth of Grade 1 shares and buy SGD10,000 worth of Grade 2 shares.
| Total collateral value of all Grade 1 shares (valued1 at 100%) | SGD10,000 |
| Total collateral value of all Grade 2 shares (valued1 at 70%) | SGD7,000 |
| Maximum loan amount supported by Grade 1 shares |
SGD10,000 140%3 = SGD7,142.86 chargeable at 2.8%
|
| Maximum loan amount supported by Grade 2 shares |
SGD35,000 140%3 = SGD25,000 chargeable at 4.5%
|
| Total amount financed | SGD10,000 |
| Annual Blended Interest |
[7,142.86 2.8%] + [(10,000 - 7,142.86) 4.5%] = SGD329
|
| Annual Flat Interest |
4.8% 10,000= SGD480
|
Grade Based Financing saves you SGD151 annually!
Assume you pledge HKD100,000 of Grade 1 shares, and buy USD8,000 and SGD10,000 worth of
Grade 1 shares.
All these Grade 1 shares are valued at 100%.
Exchange rates are: USD to SGD = 1.43, HKD to SGD = 0.19.
| Collateral value of all Grade 1 shares (valued1 at 100%) |
|---|
| + SGD19,000 (HKD100,000 0.19) |
| + SGD11,440 (USD8,000 1.43) |
| + SGD10,000 |
| Total: SGD40,440 |
As the total SGD equivalent loan amount does not exceed the maximum Grade 1 loan amount of SGD28,885.71, both SGD and USD loans will be charged at their respective Grade 1 interest rates.
| Annual Grade Based Interest | Annual Flat Interest | |
|---|---|---|
| SGD | 10,000 2.8% = SGD280 |
10,000 4.8% = SGD480 |
| USD | 8,000 3.1% = USD248 |
8,000 5.1% = USD408 |
Grade Based Financing saves you SGD200 and USD160 annually!
*For corresponding valuation percentages and interest grades of various securities in
multiple markets, please click here.
**Figures are for illustration purposes only.
***140% is the minimum Margin Ratio to be maintained. Margin Ratio = Total Collateral
value Loan Amount.
Terms and Conditions for Grade Based Financing Scheme:
The Grade Based Financing Scheme shall apply only to loans utilised in Singapore Dollar,
United States Dollar and Hong Kong Dollar. Interest imposed on the amount of financing
made available to the Client's Margin Account shall be chargeable to the Client's Margin
Account on a monthly basis, computed daily according to the schedule of interest rates.
The interest rate chargeable on the Margin Account is dependent on the quality of the
Marginable Securities in the Client's margin portfolio. Maybank Securities reserves the
right to revise or vary the securities' grading based on the proprietary methodology on
a quarterly basis without notice or explanation. Maybank Securities reserves the right
to change the margin financing rates. Standard Margin Facility Terms and Conditions
apply.
Our IPO financing allows you to subscribe for up to 5 times more Initial Public Offering ("IPO") shares with just a minimum of 20% down payment. A bigger subscription amount increases the likelihood of bigger allotment of IPO shares.
The example below shows how based on an initial capital of $10,000, you could be allotted 25,000 IPO shares using our IPO financing facility (based on an allotment rate of 50%). Compare that to a non-IPO financing scenario using the same S10,00 resulting in an allotment of only 5,000 IPO shares based on the same allotment rate of 50%.
| Without an IPO Financing Facility (Subscribe to an IPO worth SGD10,000) | Using an IPO Financing Facility (Pledge SGD10,000 as collateral and subscribe to an IPO worth SGD50,000) | ||
|---|---|---|---|
| Day 1 | Client subscribes for 10,000 IPO shares @ SGD1.00 | Client subscribes for 50,000 IPO shares @ SGD1.00 | |
| Day 10 | Client gets allotted 5,000 IPO shares @ SGD1.00 | Client gets allotted 25,000 IPO shares @ SGD1.00 | |
| Day 11 | Client sells 5,000 IPO shares @ SGD1.10 | Client sells 25,000 IPO shares @ SGD1.10 | |
| Gross Gain | SGD500 | SGD2,500 | |
| Interest on Loan | - |
(SGD50,000 – SGD10,000) 5% (10365) = SGD54.80
|
|
| IPO processing fee | - | IPO processing fee | |
| Net Gain | - | SGD2,500 – SGD54.80 - SGD50 = SGD2,395.20 | |
| % Return on investment |
SGD500 SGD10,000 = 5%
|
SGD2,395.20 SGD10,000 = 23.95%
|
|
You gain 23.95% in return on investment with the 5% IPO Financing.
On the contrary, if there is adverse movement in the share price, the loss sustained under an
IPO Financing Facility will also be greater.
Please Note: Your IPO subscription may result in full allotment, partial allotment or unsuccessful allotment of IPO shares. Regardless of your IPO allotment outcome, the financing interest, IPO processing fee and GST will still be chargeable.
Margin facility comes with advantages as well as risks. Customers should invest responsibly taking into account their financial resources.
| Grade | Market Valuation | Criteria |
|---|---|---|
| A | Up To 100% | Selected securities listed on SGX-ST except warrants, approved by Maybank Securities. |
| Constituent Stocks of Kuala Lumpur Composite Index, Hang Seng Index, S&P 500 and NASDAQ 100. | ||
| Corporate bonds issued by Singapore corporates rated Baa3 and above by Moody's, or BBB- and above by S&P, or BBB- and above by Fitch. | ||
| Bonds issued by banks with Grade A valued stocks listed on SGX. | ||
| B | Up to 85% | Selected securities listed on SGX-ST including warrants, approved by Maybank Securities |
| C | Up to 70% | All other stocks listed on SGX-ST except Grade A securities, Grade B securities, non-marginable securities and warrants, approved by Maybank Securities. |
| Selected securities listed on a recognised Group A Exchange and issued by a corporation with shareholders' funds of at least SGD200 million. | ||
| Bonds issued by corporates other than banks with Grade A valued stocks listed on SGX. |
Any securities that have been suspended for more than 5 market days will have no value in the margin account.
We reserve the right to vary the lending value for or impose a haircut or price cap on any securities.
List of Eligible Fixed Income Securities
Enjoy a special financing rate of 2.28% p.a. for margin financing of selected fixed income securities. Choose from a list of over 90 eligible fixed income securities, including those issued by financial and non-financial corporates, quasi-government organisations and REITs.
Securities Financing Availability Check
To check if your security qualifies for financing, please click here.
We reserve the right to revise or vary the interest grades without notice or explanation.
Choose between our Flat or Grade Based Interest Rate Scheme according to the types of securities in your portfolio. With the Grade Based Interest Rate Scheme, you can now leverage your high quality securities to enjoy lower margin financing rates and build your investment portfolio.
| Currency | Flat Interest Rate | Grade Based Interest Rate *** | |||
|---|---|---|---|---|---|
| All Securities | Fixed Income Securities** | Grade 1 | Grade 2 | Grade 3 | |
| SGD | 5.80% | 4.80% | 4.80% | 5.80% | 7.80% |
| USD | 7.00% | 6.00% | 6.00% | 7.00% | 8.00% |
| HKD | 6.00% | 4.50% | 4.50% | 5.50% | 7.50% |
*For corresponding interest grades and valuation percentages of various securities in multiple markets, please click here.
**Only applicable for a list of over 90 eligible fixed income securities, including those issued by financial and non-financial corporates and quasi-government organisations.
***For existing Margin clients, to opt into our Grade Based Interest Rate Scheme, please download this form and send the original back to Margin Finance Department or your Trading Representative.
Margin Ratio (MR) = [(Value of shares pledged#+ Value of shares bought using Margin Facility#) x 100%] (Amount of financing-cash collateral pledged)
#Actual value of shares priced daily at the last done price of the previous market day or at price the company determines.
| Currency | Day 1 |
Day 2 (Assuming the value of shares bought drops to SGD23,000) |
|---|---|---|
| Value of shares pledged | SGD10,000 | SGD10,000 |
| Value of shares bought | SGD 10,000 2.5 = SGD25,000 |
SGD23,000 |
| Amount of financing | SGD25,000 | SGD25,000 |
| Margin Ratio |
SGD10,000 + SGD25,000) SGD25,000 = 1.4 100% = 140% |
(SGD10,000 + 23,000) (SGD25,000) = 1.32 100% = 132% |
What Happens when the Margin Ratio is Less than 140%?
A margin call is triggered and you are required to provide additional cash, marginable shares or liquidate shares within 5 market days, failing which we will liquidate the required amount of securities to bring the Margin Ratio to 140% or above. The deposit of marginable shares can only be made on the first 4 days of the margin call in order to obtain confirmation from CDP before the market closes on the following day.
No new trades except for the liquidation of the existing positions will be allowed for the Margin Account once a margin call is made.
What Happens when the Margin Ratio is Below 130%?
At our discretion, we may liquidate securities to cover the margin without notification. No deposit of marginable shares is allowed for a force-selling call.
