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 Achieve the results you desire.


boost your investment power

using cash and/or securities
   


With our margin financing services, you can now boost your investment power using cash and/or securities as collateral. Open an individual or corporate margin trading account with us for as little as a minimum initial cash deposit of $10,000 or approved securities with a market value of S$15,000 for a SMF facility of S$30,000.

Talk to Us
We look forward to sharing with you how you can maximize your investment potential.
To find out more about our margin financing services, please contact

Ms Fiona Yip at +65 6590 6310
Ms Serene Gan at +65 6590 6309
Ms Azalea Lim at +65 6590 6307



  FAQ
1. What is Share Margin Financing (SMF)?

Share Margin Financing (SMF) is a credit facility offered to clients to boost their investments in shares using cash and/or marginable securities as collateral.

 
2. What are the benefits of trading using UOBKH's SMF facility?

With UOBKH SMF facility, you can:

a) Trade up to 3.5 times of your cash deposit or 2.5 times the value of acceptable securities you furnished as collateral.
b) Enjoy the convenience of using the SMF account to trade online for SGX & selected foreign market shares via www.utrade.com.sg.
c) Enjoy interest free financing for SGX trades, for up to 10-calendar days.
d) Enjoy competitive interest rates for SGD, USD & HKD financing.
 
3. How do I apply for a SMF account?

To open a SMF account with a Dealer/Remisier, kindly contact our Client Services hotline at +65 6536 9338.

Note: To be eligible for the Share Margin Financing facility, the client must be above 21 years of age.

 
4. How does the 10-day interest free period apply?

Interest free day is applicable for SGX trades & margin financing accounts with a minimum facility limit of S$50,000. Terms and conditions apply.

 
5. How much collateral must I place?

You only need to place a minimum initial cash deposit of $10,000 or approved securities with a market value of S$15,000 for a SMF facility of S$30,000.

 
6. What shares can I invest in?

You can invest in approved shares that are included in UOBKH’s List of Marginable Securities. This comprehensive list which covers most shares listed on the Singapore Exchange also displays the category that the share falls into.

 
7. What is the counter limit per client?

The counter limit is the maximum value that you can pledge &/or trade up to per marginable security. For details, please refer to item (2) under our Basic Terms of Share Margin Facility.

 
8. What is the initial margin for the marginable securities?

Initial margin is the minimum margin required prior to buying marginable securities. For details, please refer to item (2) & (3) under our Basic Terms of Share Margin Facility.

 
9. How do I compute the security cover?

Security cover is computed by dividing Total Marginable Value ('TMV') with Total Financed ('TF').

For Example
Collateral comprises shares with margin value S$40,000. You can purchase shares of up to S$100,000 in value

TMV = S$140,000  (S$40,000 + S$100,000: assuming purchased shares are valued at 100%)
TF = S$100,000


Security Cover = (S$140,000/S$100,000) x 100 = 140%


 
10. When is a margin call made?

Margin call will be made when the security cover falls below 140%. You are required to meet your margin call within the stipulated timeframe as stated under item (4) in our Basic Terms of Share Margin Facility.

Where a margin account consists of a single security of Non-Category A and B shares and its value equals or is above 75% of the total marginable shares value, you are required to provide a security cover of 200%. Margin call will be made when the security cover falls below 183% in this case. However, this requirement is not applicable if your outstanding loan is below S$150,000.

No new transactions, other than liquidation of shares are allowed within the period of margin call. UOBKH may at its own discretion restore the required security cover by initiating the sale of margin shares in your account, in compliance with prevailing regulations.

 
11. How do I meet my margin call?

You can either deposit additional cash, marginable securities or sell shares in your existing portfolio to restore the margin ratio.

 
12. Can I contra the shares in my margin account?

Contra is not allowed for shares in the margin account.

 
13. Can I withdraw excess shares or cash from my SMF Account?

You can withdraw securities and cash if your SMF Account is in excess of the security cover of 150%.

Dividends and profits may also be withdrawn provided the security cover of 140% is maintained after the withdrawal.

For accounts that subject to the Single Counter Concentration rule, a security cover of 200% is required after the withdrawal.

 
14. What are the commission rates for trades using SMF facility?
Please refer to item (4) under our Basic Terms of Share Margin Facility.
 
15. Are there any other charges?
Yes, there are other charges imposed by our company and CDP. For details, please refer to item (6) under our Basic Terms of Share Margin Facility.
 
 


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