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Direct margin loan
With this integrated solution offered by Bell Potter Capital, you can place orders, settle your trades and earn a decent daily interest rate on your cash.
You get:
- A flexible loan facility
- Your cash and your geared shares consolidated into one trading account
- A fully automated solution, so stock holdings immediately reflect executed trades
- All trades administered by Bell Potter Capital using straight through processing, just like your regular Macquarie Online Trading account
- Free conditional orders
- An extensive approved security list
How the direct margin loan works
- Loan to Valuation Ratio (LVR) and margin loan rates are benchmarked to best in market
- Earn a competitive interest rate on your cash (when your account has a positive balance). Alternatively, when your margin loan is drawn down you'll pay the variable margin loan interest rate of 8.30% pa.
- Orders validated online as they are placed
- See real time data for your LVR every time you view a stock or on the order pad along with:
- Approved security list (updated daily). Click here for recent updates to the approved security list.
- Credit limit
- Loan balance
- Surplus (funds available for shares purchased or funds withdrawn)
- Portfolio holding balance – under Borrower facility – to include profit/loss by stock as well as cost price
- Set email and SMS alerts to let you know if your loan is in the buffer (i.e. when the margin ratio is 100% or more)
- Pre-pay your interest
- Trade on the go from your margin loan account using the Macquarie Online Trading website or your Smartphone (iPhone and Android)
| Key features |
| Minimum initial loan |
None for variable, $25,000 for fixed |
| Minimum loan balance |
None for variable, $25,000 for fixed |
| Minimum loan drawdown or repayment |
None for variable (does not apply to fixed) |
| Minimum call buffer |
10% of the geared value of the shares |
| Minimum loan balance |
None for variable, $25,000 for fixed |
Interest Rates
| Direct margin loan interest rate |
Variable 8.30% |
| Direct investment account balance |
$0 to $100,000 |
0.00% pa |
| $100,000+ |
0.1% pa |
Margin lending example
| Initial contribution |
$30,000 |
$30,000 |
| Loan |
$- |
$30,000 |
| Share Portfolio |
$30,000 |
$60,000 |
| Gearing % |
0% |
50% |
| Dividend Yield |
5% |
5% |
| Franking |
100% |
100% |
| Dividend |
$1,500 |
$3,000 |
| Franking Credit |
$643 |
$1,286 |
| Grossed up dividend |
$2,143 |
$4,286 |
| Prepaid Interest |
6.4% |
6.4% |
| Interest Paid |
$- |
$1,920 |
| Net Investment Income (Pre Tax) |
$2,143 |
$2,366 |
| Difference |
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$223 |
In this example, a 50% level of gearing has improved returns by 10%. The net investment income has increased and the
exposure to the share market had doubled.
Please note: Interest rate for demonstration purposes only.
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The Direct margin loan is issued by Bell Potter Capital Limited ABN 54 085 797 735, Australian Financial Services License (AFSL) 360457,
and is not the product of Macquarie Bank Limited ABN 46 008 583 542.
Macquarie Online Trading is a service provided by Third Party Platform Pty Ltd ("TPP") ABN 74 121 227 905 AFSL No. 314341, at the
request of Macquarie Bank Limited ABN 46 008 583 542 AFSL 237502 ("MBL"). TPP is a Participant of the ASX Group. Neither TPP nor
MBL are representatives of each other. Some of the fees paid to TPP for the provision of its services will be remitted to MBL. TPP and MBL
do not provide personal financial advice in relation to Macquarie Online Trading. You should consider your own financial situation, particular
needs and investment objectives before acting on any of the information available on this website
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