More Purchasing Power
Credit Balance (Margin Account) For a credit balance account, the broker lends the investor cash to purchase securities. The brokerage firm charges interest on the borrowed cash for as long as the loan is outstanding. The investor must deposit collateral (cash or securities) as per the minimum amount required.
Steps to open a credit balance account
Open an account
Apply to open a credit balance account
Place collateral of 50%
Place collateral or (cash/securities margins) of 50% before trading stocks
Purchasing power calculation
Once margins have been placed, clients’ purchasing power calculation is:
Purchasing Power (PP) = Cash & Stock Gains + credit lines
Stock trading
Clients can trade stocks offline with our marketing officers or online via Internet Trading. Purchasing Power (PP) is applicable for stocks on our Marginable List.
Interest rates
Clients’ cash position will receive interest based on market rates as announced.
Reports for stock activities
1.Stock trading confirmation
2.Outstanding stock holdings and margin balances
3.Monthly notice on interest received on cash or interest paid on margin financing
4.Notice on any withholding taxes
How to Apply