Margin facility

Curious · #1 (**permalink**) 19th June 2007, 08:53 AM

I'm looking for a broker with good margin terms. Preferably one offering at leat 2 for 1 leverage. i.e. I put down 1m and they levereage up to 3m. Anyone know any decent house that offers this with reasonable terms?

whatsup · #2 (**permalink**) 26th August 2007, 05:42 PM

@ EVERYONE

does anybody know which stockbroking house offer the largest margin multiples? and ofcourse the most competitive interest rates

ie; you put up N10m and they leverage you x2, x3, x4, x5 etc...

whatsup · #3 (**permalink**) 26th August 2007, 05:55 PM

Does anybody know which stockbroking house offers the highest lerverage multiples on a margin account and a competitive interest rate?

ie; you invest N10m cash ar stocks and they leverage you x2, x3, x4, x5...etc

olusolakemmy · #4 (**permalink**) 26th August 2007, 05:58 PM

skyebank give double your shareholding, but you must be trading with PSL limited. at 19%.
you might not be able to get now as they are closing for the year, the year end is nov, my acct officer told me that loan will be available alot immediately after the year end.
UBA give 60% at 17% interest rate.
good luck

whatsup · #5 (**permalink**) 26th August 2007, 06:00 PM

Does anybody know which stockbroking house offers the highest lerverage multiples on a margin account and a competitive interest rate?

ie; you invest N10m cash ar stocks and they leverage you x2, x3, x4, x5...etc

Soweto · #6 (**permalink**) 26th August 2007, 06:24 PM

Quote:

Originally Posted by olusolakemmy

skyebank give double your shareholding, but you must be trading with PSL limited. at 19%.
you might not be able to get now as they are closing for the year, the year end is nov, my acct officer told me that loan will be available alot immediately after the year end.
UBA give 60% at 17% interest rate.
good luck

Plese Guys,I am totally lost here. What language are you speaking?. Break it down for me. do you mean 60% return on ur investiment or what. I am clueless.

whatsup · #7 (**permalink**) 26th August 2007, 06:45 PM

Thanks for the responce so far!

From what i can see, the highest multiple is coming from Skyebank.

any other takers?

Soweto · #8 (**permalink**) 26th August 2007, 06:54 PM

Quote:

Originally Posted by whatsup

Thanks for the responce so far!

From what i can see, the highest multiple is coming from Skyebank.

any other takers?

Please murtiples of what? Return on investiment or what?.

ghm · #9 (**permalink**) 26th August 2007, 09:16 PM

I think they meant 60% of your investment portfolio. i.e. if you have 10m worth of qualified stocks with them, you are allowed a margin of 6m(60% of 10m)

Also, I am aware IBTC Asset Management gives double of investible stock you have with them at about 18%. The only issue I saw with them is that not all stocks are acceptable and you can only buy from stocks recommended by them with the margin.

Soweto · #10 (**permalink**) 27th August 2007, 07:55 AM

Quote:

Originally Posted by ghm

I think they meant 60% of your investment portfolio. i.e. if you have 10m worth of qualified stocks with them, you are allowed a margin of 6m(60% of 10m)

Also, I am aware IBTC Asset Management gives double of investible stock you have with them at about 18%. The only issue I saw with them is that not all stocks are acceptable and you can only buy from stocks recommended by them with the margin.

I think the picture is a bit clear. thanks

olusolakemmy · #11 (**permalink**) 28th August 2007, 06:26 PM

[quote=ghm;5027]I think they meant 60% of your investment portfolio. i.e. if you have 10m worth of qualified stocks with them, you are allowed a margin of 6m(60% of 10m)

with skye bank, you are allow to make your choice.
my acct officer said the interest rate now at 19% will drop to 17% very soon.
the thing is if you dont trade with PSL prudent stock brokers limited, you have to transfer your shares to them, which can take a long time

Soweto · #12 (**permalink**) 29th August 2007, 12:36 PM

Thanks buddy

emmanuel ewumi · #13 (**permalink**) 11th June 2008, 04:27 PM

I have been a margin trader since June 2006 with FBN Capital,a subsidiary of First bank.It had been a profitable venture,because l was able to turn a ioan of N5 mllion naira invested in Wema bank to N20 million,because l bought it for N2.90 and some for N3.The Wema shares were sold in october 2007
for N12. After paying my broker the loan plus interest,l still made close to N14 million. I think it is high time the CBN stopped the embargo on margin trading. Government only needs to regulate it. Because margin trading takes place in all markets all over the world.Once the embargo is lifted,l think the market will become active again,since this is the time when full year results are expected.....But margin trading is not for everybody unless one understand the markrt dynamics,infact this is the best time to take position.

tonyawo · #14 (**permalink**) 17th June 2008, 11:00 PM

Hi Emmanuel,

How can i obtain loan facility for shares purchases from FBN Capital? What are the procedure(s) involved and charges attach to such facility? Kindly assist as i am in dire need of it to purchase some stocks at this very moment when the market is bearish.

olusolakemmy · #15 (**permalink**) 18th June 2008, 08:00 AM

Quote:

Originally Posted by emmanuel ewumi

I have been a margin trader since June 2006 with FBN Capital,a subsidiary of First bank.It had been a profitable venture,because l was able to turn a ioan of N5 mllion naira invested in Wema bank to N20 million,because l bought it for N2.90 and some for N3.The Wema shares were sold in october 2007
for N12. After paying my broker the loan plus interest,l still made close to N14 million. I think it is high time the CBN stopped the embargo on margin trading. Government only needs to regulate it. Because margin trading takes place in all markets all over the world.Once the embargo is lifted,l think the market will become active again,since this is the time when full year results are expected.....But margin trading is not for everybody unless one understand the markrt dynamics,infact this is the best time to take position.

yeah, margin trading is good, but remember that everything that has got positivity and be halter to show its negativity, i have also used margin from skye bank and didnt do badly with it either.

the various regulatory bodies that place a stop order on margin have all come out to either deny it or remove the stop order e.g NSE, CSCS, SEC and even CBN.

IT IS IMPORTANT TO KNOW WHAT YOU ARE DOING BEFORE USING MARGIN FUNDS.

By the way, was lien place on your shares with FBN capital?

billions · #16 (**permalink**) 18th June 2008, 09:56 AM

Quote:

Originally Posted by emmanuel ewumi

I have been a margin trader since June 2006 with FBN Capital,a subsidiary of First bank.It had been a profitable venture,because l was able to turn a ioan of N5 mllion naira invested in Wema bank to N20 million,because l bought it for N2.90 and some for N3.The Wema shares were sold in october 2007
for N12. After paying my broker the loan plus interest,l still made close to N14 million. I think it is high time the CBN stopped the embargo on margin trading. Government only needs to regulate it. Because margin trading takes place in all markets all over the world.Once the embargo is lifted,l think the market will become active again,since this is the time when full year results are expected.....But margin trading is not for everybody unless one understand the markrt dynamics,infact this is the best time to take position.

What % interest do u pay per yr on margin funds?

billions · #17 (**permalink**) 18th June 2008, 10:01 AM

people shd be careful about taking a loan.....income,stock to buy and worth of ones portfolio shd be put into consideration.