Margin Trading providers

Mrgeeth · 1 Margin Trading providers Sat Mar 26, 2011 6:32 pm

Mrgeeth

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Hi experts, I planned to register a margin trading account. I have no idea to register with whom. I know some banks ( Commercial, Seylan, DFCC, PABC and NTB) and broker firms (capital Trust, Asha phillips, Bartleets...) are giving the facility. Can any body help me, which is good to register?

ss7097 · 2 Re: Margin Trading providers Sun Mar 27, 2011 6:31 am

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Mrgeeth wrote:Hi experts, I planned to register a margin trading account. I have no idea to register with whom. I know some banks ( Commercial, Seylan, DFCC, PABC and NTB) and broker firms (capital Trust, Asha phillips, Bartleets...) are giving the facility. Can any body help me, which is good to register?

Hi Mrgeeth,

I was looking for margin trading facility and communicated different parties. Commercial is 13% and 35% of your portfolio is the max they give. Same as HNB but interest is 14%.
Asha phillips wont give Credit but they promised me from the beginning (December). Like "balakiri dose...." they told me until last Friday, they got the license and promised to give me from February onwards.... At last I'd to take a personal loan from HNB to settle 50% of my credit.

Hey guys, anyone got Margin trading from Asha phillips, please let me know.......

Mrgeeth · 3 Margin Trading providers Sun Mar 27, 2011 9:16 pm

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Hi ss 7097!
Thank you so much for your valuable idea. I also thought of opening a margin trading account with Commercial bank. However still I have some queries. For that, do I have to contact commercial bank or any broker firm. I heard Capital Trust is arranging margin trading facility from commercial bank. Which is better? Are they allowing online trading with the margin account? Are there any other limitations with Commercial bank? Idea

ss7097 · 4 Re: Margin Trading providers Sun Mar 27, 2011 9:35 pm

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Mrgeeth wrote:Hi ss 7097!
Thank you so much for your valuable idea. I also thought of opening a margin trading account with Commercial bank. However still I have some queries. For that, do I have to contact commercial bank or any broker firm. I heard Capital Trust is arranging margin trading facility from commercial bank. Which is better? Are they allowing online trading with the margin account? Are there any other limitations with Commercial bank?

Hi Mrgeeth,

Your broker arranging margin trading through commercial bank. You also can talk to them direct but has to call their corporate bank in Colombo. But that information can get from the closest commercial bank to you.
There are restrictions, but still I didn't go with Margin trading due to this red market. If you use full quota giving the bank (35% of your portfolio) and if the market come down and your original portfolio value reduced, you've to pay the additional amount you consumed for higher interest rate. I checked this with HNB and they take 22% OD interest for that amount. Best thing is to talk to Commercial bank and clarify all the issues.
You can check these things from them.

1. How you pay interest for the Margin you take from them (annually or monthly) or addting as credit to your debt portion.
2. Any barriers such as to buy shares ( I came to know they won't allow to buy Commercial bank shares from this margin facility)
3. Interest rate ( 13% or less )
4. Online trading facility ( buy & Sell )

I came to know from HNB that they give Margin facility if your portfolio is more than 10million. I'm not sure for this and you can check that too.

mark · 5 Re: Margin Trading providers Sun Mar 27, 2011 9:37 pm

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anyone knows how much credit in the market???...................... scratch

Mrgeeth · 6 Margin Trading providers Sun Mar 27, 2011 10:00 pm

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mark wrote:anyone knows how much credit in the market???......................

Hi mark,
I think that is depend on the broker's tolerance. i have no clear idea about the SEC rules about credit limit. However, I had online experience with two brokers. One broker was't allow much credit. If my credit is more than 30% of portfolio they will alert. Another broker was little bit relax. Some time I had margin about 50%. But still I didn't receive a single call from them.

san1985 · 7 Re: Margin Trading providers Wed Aug 17, 2011 9:42 pm

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Commercial Bank offered me margin trading at AWPLR+5%...

This comes to around 14.5%.

Is this on the higher side?

Gaja · 8 Re: Margin Trading providers Wed Aug 17, 2011 9:54 pm

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DFCC giving 12% to 14%

Gaja · 9 Re: Margin Trading providers Wed Aug 17, 2011 9:57 pm

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Acuity Stock brokers also giving but no idea about the interest rate

san1985 · 10 Re: Margin Trading providers Wed Aug 17, 2011 10:03 pm

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Gaja wrote:DFCC giving 12% to 14%

My PF is around 1.6m....

Is DFCC also offering floating rate or fixed rate?

Why is Commercial rate is on higher side then?

Any way thanks Gaja...

Gaja · 11 Re: Margin Trading providers Wed Aug 17, 2011 10:07 pm

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san1985 wrote:

Gaja wrote:DFCC giving 12% to 14%

My PF is around 1.6m....

Is DFCC also offering floating rate or fixed rate?

Why is Commercial rate is on higher side then?

Any way thanks Gaja...

Sometimes back one of my friend got the Margin for 1 million PF, they charge 14% at fixed rate, but not sure whether still they give it for 1 million PF, check with there head office.

And for most of the shares they gave 50%.

Commercial Bank may be high due to the floating rate

san1985 · 12 Re: Margin Trading providers Wed Aug 17, 2011 10:20 pm

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Gaja wrote:

Sometimes back one of my friend got the Margin for 1 million PF, they charge 14% at fixed rate, but not sure whether still they give it for 1 million PF, check with there head office.

And for most of the shares they gave 50%.

Commercial Bank may be high due to the floating rate

What do u think is the best way? going with floating or fixed??

I guess interest rates are expected to go down in the future right(this is what MR suggested, but actually rates should go up to control the increasing inflation right..)

BTW Com bank offer 50% for Milanka counters and 40% for others...

dinusha.kiwulegedara · 13 Re: Margin Trading providers Wed Aug 17, 2011 10:32 pm

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Hi all,

M working @ Com Bank .. We are offering Margin Trading Facility based on PLR + Margin. but this rate should be reviewing every month or three months ..( Probably One)

Good luck

san1985 · 14 Re: Margin Trading providers Thu Sep 01, 2011 2:05 pm

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dinusha.kiwulegedara wrote:Hi all,

M working @ Com Bank .. We are offering Margin Trading Facility based on PLR + Margin. but this rate should be reviewing every month or three months ..( Probably One)

Good luck

U guys don't allow to do online tradingne.....So pathetic..

I was about to go with commercial bank....But without online trading no point...

Does anyone know where i can get MT with a portfolio value of 1.6M?

Help scratch