SHARE FINANCING ACCOUNT

Pledge your shares to increase your trading power

Why you will love this

Share financing lets you trade up to 3.5 times your original value with cash pledged as collateral and up to 2.5 times with shares pledged as collateral.

Who can apply

Anyone age 21 and above, with a Basic Trading Account

For local application

Apply at a branch with these supporting documents 

  1. For Singaporeans and Permanent Residents:

    • NRIC/SAF/SPF ID and Passport

    For Malaysians:

    • IC and Singapore Residence Pass (e.g. Employment pass) if applicable

    For Foreigners:

    • Valid Passport and Singapore Residence Pass (e.g. Employment pass) if applicable

    Note: Bring the originals of these Identification Documents (ID)

  2. Provide us with the original or electronic copy of any of the following documents reflecting your name and address:

    • Bank statement from a Monetary Authority of Singapore (MAS) licensed bank
    • Latest CPF statement
    • Latest Notice of tax assessment from IRAS

    Note: Document(s) must be dated no older than 3 months from date of application. If your mailing address is different from your residential address, please provide one document for each address.
    If you are applying for a corporate account, please call us at 1800 338 8688

For overseas application

Mail in the completed application forms with copies of:  

  1. Required for all:

    Optional Forms

  2. Provide a copy of your identification:

    For Singaporeans and Permanent Residents:

    • NRIC/SAF/SPF ID and Passport

    For Malaysians:

    • IC and Singapore Residence Pass (e.g. Employment pass) if applicable

    For Foreigners:

    • Valid Passport and Singapore Residence Pass (e.g. Employment pass) if applicable

    Bring your original ID, the photocopy and our account application form to any of the below authorised parties to witness your signature on the form and certify true copy of your ID:

    • Notary Public
    • Advocates & Solicitors
    • Singapore Embassy

    The witnessing officer should provide his/her name and contact details.

  3. Provide us with the original or electronic copy of any of the following documents reflecting your name and address:

    • Bank statement from a Monetary Authority of Singapore (MAS) licensed bank
    • Latest CPF statement
    • Latest Notice of tax assessment from IRAS

    Note: Document(s) must be dated no older than 3 months from date of application. If your mailing address is different from your residential address, please provide one document for each address.

  4. Mail it to us

    OCBC Securities Private Limited
    18 Church Street #01-00,
    OCBC Centre South,
    Singapore 049479

Grab the opportunity to trade more with your idle shares.

Features

Enjoy lower interest rates

Our Quality-Priced Loan scheme lowers your interest rates when you increase the proportion of high-quality shares in your Share Financing portfolio under our Quality-Priced Loan scheme.

Share Financing Simulator

The Share Financing Simulator on our iOCBC trading platform helps calculate your margin percentage

Save on foreign exchange conversion costs

We can finance your trades in 4 different currencies: SGD, HKD, USD and AUD. This lets you take up a loan, execute and settle your trades in multiple currencies and reduce unnecessary foreign exchange conversion costs.

View more details on our Multi-Currency Share Financing feature.

Trade beyond Singapore and diversify your asset classes

We accept over 2,500 listed securities across 5 major markets: Singapore, Hong Kong, USA, Australia and Malaysia. The marginable securities span across many different asset classes, such as Company Shares, Real Estate Investment Trusts (REITS), Bonds, Exchange-Traded funds (ETFs) and American Depository Receipts (ADRs).

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How It Works

Our Share Financing account comes with a secured credit facility. Deposit your marginable securities with us and free up your asset value to increase your share buying power.

Share as Collateral

Cash as Collateral

Leveraging trading up to 2.5 times 3.5 times
Collateral amount S$10,000

S$10,000

Purchasing amount

S$25,000 (2.5 times)

S$35,000 (3.5 times)

Margin percentage

140%
Total share value/ loan amount
(S$10,000 + S$25,000) / S$25,000

140%
Total share value/ loan amount
S$35,000 / (S$35,000 - S$10,000)

Share as Collateral

Leveraging trading up to
2.5 times


Collateral amount

S$10,000


Purchasing amount

S$25,000 (2.5 times)


Margin percentage

140%
Total share value/ loan amount
(S$10,000 + S$25,000) / S$25,000

Cash as Collateral

Leveraging trading up to
3.5 times


Collateral amount

S$10,000


Purchasing amount

S$35,000 (3.5 times)


Margin percentage

140%
Total share value/ loan amount
S$35,000 / (S$35,000 - S$10,000)

Before you apply

Eligibility requirements

Minimum age

Age 21 and above


Deposit requirements

Minimum cash deposit of $5,000 (in SGD or SGD equivalent) or deposit $5,000 (in SGD or SGD equivalent) worth of marginable securities




Disclaimer

Risk warning for Share Financing
Borrowing to finance the trading of securities (leveraging/gearing) carries a high degree of risk. If the value of the collaterals declines substantially, falling below the maintenance margin requirement, you may be called upon to deposit substantial additional funds on short notice in order to maintain your position. If you fail to comply with a request for additional funds or reduce your loan within the specified time, your position may be liquidated at a loss and you will be liable for any resulting deficit in your account.

FAQS
Frequently Asked Questions about Share Financing Account
More questions and answers
Where will the shares be custodised?

Your Share Financing account will be linked to a designated sub-account maintained by us with Central Depository (CDP). When you deposit or purchase securities listed on SGX, they will be custodised in this sub-account. For securities listed in other foreign stock exchanges, they will be custodised with an established global custody service provider.

Is contra trading allowed?
Contra trading is not allowed on a Share Financing account. Outstanding buy and sell contracts must be settled by their respective settlement dates.
How margin call works

Margin call is an industry wide practice for any form of leveraged trading. Your margin percentage is calculated as follows:

 

 

If the value of your collateral falls or if the FX rate moves against SGD, your margin percentage will fall. When the margin falls below 140%, a margin call will take place and you will need to restore it 140% by either liquidating shares or providing additional collateral.

 

If Margin Ratio falls What happens
Between 130%-140% Margin call to restore the margin percentage to 140% within 2 market days
Below 130% Margin call to restore the margin percentage within the date of notice

 

Example:
John deposits S$10,000 worth of securities. This gives him a leverage of 2.5 times. He gets to purchase an additional S$25,000 worth of shares, bringing his total collateral value to S$35,000

 

 

However during the loan period, the value of his collateral falls by S$1250, causing his margin percentage to drop to 135%

   
Here are actions he can take to restore his margin percentage to 140%
Option 1: Top up S$893 in cash
   
Option 2: Deposit additional S$1250
worth of shares
   
Option 3: Liquidate S$3125 worth of
shares (at possible loss)

 

More questions and answers
HOW TO APPLY

Open a Share Financing account today

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