Margin Financing

[Choon]

With the increasing number of financial frauds and the recent OCBC fiasco, I am thinking to switch my margin financing account.

Currently I am with DBS Margin Financing. But have always felt that it is quite manual and not a SOLIDLY SECURE platform. I can only view my loan and collateral position at the end of each month when I receive the monthly statement. When I wish to utilise the cash in the account to pay down my margin loan position, I also have to go through a dedicated staff via WhatsApp and call.

Any recommendations for an alternative margin platform? My first and foremost consideration would be that the platform would NEVER collapse in the face of a financial crisis (as my shares are being held by that platform in its name). That was why I had chosen DBS.

Grateful for any suggestions.

[CY09]

Suggest to stay with DBS, hard to see the bank falling.

If it is about solving your issues on the second paragraph, I can recommend Maybank Kim Eng but it is not DBS. Your issues are solved as it is all done via internet banking (EPS) and log in account can see daily balance and collateral.

[opmi]

POEMS Cashplus has no minimum commission and can do GTC orders for Margin Account.

Maybank KE cannot do GTC for Margin Account and there is minimum commission. But Maybank KE margin interest rate is lower, if using grade-based financing (They count Grade A counters first. FYI)

OCBC Sec Margin Account like very ngeow one. A lot of illiquid shares cannot margin. I have one time they cut 5% of a particular marginable stock every month. I closed my OCBC Margin account first when doing accounts cleanup.

BTW High leverage + Concentrated portfolio + Illiquid Counters = Looking for trouble.

[AQ.]

With the increasing number of financial frauds and the recent OCBC fiasco, I am thinking to switch my margin financing account.

Currently I am with DBS Margin Financing. But have always felt that it is quite manual and not a SOLIDLY SECURE platform. I can only view my loan and collateral position at the end of each month when I receive the monthly statement. When I wish to utilise the cash in the account to pay down my margin loan position, I also have to go through a dedicated staff via WhatsApp and call.

Any recommendations for an alternative margin platform? My first and foremost consideration would be that the platform would NEVER collapse in the face of a financial crisis (as my shares are being held by that platform in its name). That was why I had chosen DBS.

1. If the utmost concern is about the safety of the bank, then DBS will be hard to beat. Look at what happen to SIA - if DBS also gets into trouble of that scale, i think T prob will do the rights and even MCB route. Anyway, the assets prob are ringfenced with another custodian. (Does DBS store the assets with itself or another custodian bank?)

2. If it is regarding financial fraud+Phishing - what is the maximum damage a hacker can do to your DBS Margin account?

a. the fella can transfer out your cash - but i suppose one safeguard is to not leave a huge amount of idle cash in that account+transfer limits.

b. the fella can sell your shares and then xfer out the cash - but settlement will take a few days and by then you will prob have realised something is wrong and done something.

If the concern is about efficiency of the platform, then it's a diff story of cos. But that have to be balanced/tradeoff with safety which seems to be your primary concern.

[weii]

With the increasing number of financial frauds and the recent OCBC fiasco, I am thinking to switch my margin financing account.

Currently I am with DBS Margin Financing. But have always felt that it is quite manual and not a SOLIDLY SECURE platform. I can only view my loan and collateral position at the end of each month when I receive the monthly statement. When I wish to utilise the cash in the account to pay down my margin loan position, I also have to go through a dedicated staff via WhatsApp and call.

Any recommendations for an alternative margin platform? My first and foremost consideration would be that the platform would NEVER collapse in the face of a financial crisis (as my shares are being held by that platform in its name). That was why I had chosen DBS.

Grateful for any suggestions.

The margin financing for Singapore shares seems under-developed with high margin financing rates, promotional 2.99% for UOB Kay Hian (higher if you include other miscellaneous charges) and I will suggest you stay with DBS if safety is your utmost concern.

The below weblink recommends Interactive Brokers for competitive margin financing rates:
https://financialhorse.com/moomoo-review...investors/

Interactive Brokers' financial strength and other details:
https://www.interactivebrokers.com/en/index.php?f=2334
https://www.moneysmart.sg/online-brokera...-brokerage

[CY09]

To be honest financing rates can be negotiated. I am using Maybank Kim Eng. I am given a flat fee (non grade based margin) but given my time with them, they have offered me a single interest which is close to Hong Kong's Grade A financing rate and applies to all marginable securities. It is even lower than IB/Moomoo rates

[Corgitator]

To be honest financing rates can be negotiated. I am using Maybank Kim Eng. I am given a flat fee (non grade based margin) but given my time with them, they have offered me a single interest which is close to Hong Kong's Grade A financing rate and applies to all marginable securities. It is even lower than IB/Moomoo rates

Just curious as to what's that rate at the moment?

[CY09]

To be honest financing rates can be negotiated. I am using Maybank Kim Eng. I am given a flat fee (non grade based margin) but given my time with them, they have offered me a single interest which is close to Hong Kong's Grade A financing rate and applies to all marginable securities. It is even lower than IB/Moomoo rates

Just curious as to what's that rate at the moment?

Slightly lower than the published Hong Kong Grade A financing rate (3.2%)

[Choon]

Another greedy complaint on my part is the collateral doesn't qualify towards DBS Treasures admission amount.

Thanks all for quickly sharing your views. Much appreciated. I think on balance, for peace of mind (that my collateral doesn't disappear from the institution collapsing),  I have to stay with DBS.

[Corgitator]

To be honest financing rates can be negotiated. I am using Maybank Kim Eng. I am given a flat fee (non grade based margin) but given my time with them, they have offered me a single interest which is close to Hong Kong's Grade A financing rate and applies to all marginable securities. It is even lower than IB/Moomoo rates

Just curious as to what's that rate at the moment?

Slightly lower than the published Hong Kong Grade A financing rate (3.2%)

Not sure if I am understanding correctly, but isn't IB's margin rates for HK between 1.586% to 2.586% (depending on the volume you are doing)?

https://www.interactivebrokers.com/en/tr...-rates.php