Marginable / Non-marginable List:
| Q1 What is Share Margin Financing? |
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Share Margin Financing is a facility that allows you to increase your financial power and boost your investments in stocks and shares. All you need to do is to place either cash and/or marginable securities as collateral for the credit facility applied for.
| Q2 How much collateral must I place? |
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You only need to place a minimum initial cash deposit of S$5,000 or S$10,000 worth of marginable securities.
| Q3: How much can I buy? |
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You may buy up to 3.5 times the amount of cash deposit or 2.5 times the amount of marginable securities.
| Q4: What shares can I buy or pledge as collaterals in the Share Margin Financing account? |
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You may buy or pledge most of the securities and warrants (with more than a year to expiry) listed on the
Singapore Exchange and more than 100 securities listed on
Bursa Malaysia.
Q5:
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Can I buy foreign currency denominated shares and settle in that foreign currency? |
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You may only buy foreign currency denominated shares listed on the Singapore Exchange or Bursa Malaysia, subject to LTS's marginable securities list. Settlement must be in Singapore dollars at LTS's prevailing board rates.
Q6:
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Do I enjoy Interest Free Period? |
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You will enjoy 10-calendar days interest-free financing commencing from the due date of any purchase. Interest will commence from the 11th day at the prevailing interest rate of 6% p.a., and subject to change from time to time.
Q7:
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Can I drawdown in my Share Margin Financing account to pick up shares purchased in my cash trading account?
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Yes, you must inform us latest by the due date of the purchase contract. Margin percentage must be at least 140% after taking in the value of the purchases and interest is payable immediately.
Q8:
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How long does it take to open a Share Margin Financing account? |
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Share Margin Financing account will be opened within 2 working days from the date you sign the margin documents. You may commence to trade upon deposit of cash and/or transfer of marginable securities into your margin account.
Q9:
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What is the margin percentage to be maintained? |
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You must maintain a margin percentage of at least 140%. No new purchases are permitted unless additional collateral is furnished to bring the margin percentage to not less than 140%.
The margin percentage is computed as follows:
Definition:
Equity refers to the market value of share collateral + market value of shares financed by & custodised with LTS + (market value of outstanding purchase contracts - market value of outstanding sales contracts)
Total Amount Financed is the amount of financing utilised + outstanding purchase contracts + interest accrued + all other related expenses - cash collateral - outstanding sales contracts.
| Q10: |
Can I withdraw cash from my Share Margin Financing account? |
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You may withdraw cash when you sell your shares or when there is a credit balance in your account. Margin percentage must be at least 140% after cash withdrawal.
| Q11: |
When is margin call made?
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A margin call is made when the margin percentage falls below 140%.
| Q12: |
When do I need to top-up my Share Margin Financing account?
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You need to top-up your margin within two market days from the date of notice e.g. if the margin call is made on a Monday, you will need to top-up by Wednesday.
| Q13: |
How do I top-up my Share Margin Financing account?
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You will need to provide additional margin of cash and/or marginable securities to bring the margin percentage to not less than 140%
| Q14: |
What happens if I am unable to top-up?
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LTS shall have absolute discretion and without further notice to you, liquidate the margin account including the shares deposited as collateral to bring the margin percentage to not less than 140% if the margin requirement is not met within two market days of margin call.
| Q15: |
When will force-selling take place? |
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Force-selling shall take place when the margin percentage falls below 130%. LTS has the right to liquidate the margin account to bring the margin percentage to not less than 140%. In a volatile market, you are required to monitor your position closely and if you do not wish to be sold-out, you are required to top-up with cash by 12 pm on the force-selling day.
| Q16: |
Are there any administrative charges?
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There is no processing fee to open a Margin account. Charges by CDP are maintenance fees for your Depository Agent (DA) Sub-Account on a quarterly basis and fees for share transfer between your Global Securities Account (GSA) and DA Sub-Account. The maintenance fees may be waived depending on the amount traded for that quarter. Charges by LTS include handling fees for dividend distribution.
Please click
here to download a copy of the Schedule of Charges.
| Q17: |
Am I still entitled to dividends, rights and bonus on my shareholding?
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Yes, these will be credited to your margin account. For rights issue, you will be informed of the details by mail.
| Q18: |
How will I be notified of my trades?
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Contract notes will be sent to you by CDP. LTS will send you a monthly statement, reflecting all share transactions and movements in your account, shareholdings at the close of that month and debit/credit entries for interest/fees charged and dividends received respectively.
| Q19: |
Do I earn interest if the net balance in my Share Margin Financing Account is in credit?
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Yes, the interest rate will be based on an overnight deposit rate given by the bank and will be subject to change daily. There will however, be a monthly administrative charge, subject to the lower of the interest earned or $1/- for the month.
| Q20: |
What is Margin Refinancing?
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Margin Refinancing is the facility that allows you to pay off your existing margin account balance with another financial institution and transfer the balance and marginable securities to LTS. (Standard Share Margin Financing Account Terms & Conditions apply.)
| Q21: |
How do I apply for Margin Refinancing?
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All you have to do is to open a Margin Financing Account with LTS and instruct us on the refinancing. The whole process will take no longer than 3 working days. At the time of Margin Refinancing, the margin percentage must be at least 140%. (The above Q4 to Q18 are also applicable for Margin Refinancing.)
| Q22: |
Who can I contact for assistance? |
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You can contact your Trading Representative, our Helpdesk on +65 6799 8188/180 or Margin Department on +65 64370139/120/147/165.
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