What is the financing margin for Alliance Bank Share Margin Financing?
Alliance Bank can provide a margin of financing for up to 60% against the collateral you have deposited. Alliance Bank will allow a 65 - 70% buffer before making a margin call resulting in a requirement to add more funds or sell off your shares.
Can I choose my own broker?
You will be able to choose from a wide selection of panel investment banks/brokers that have an ongoing relationship with Alliance Bank.
What can be accepted as collateral?
Alliance Bank will be accepting these types of collateral:
| Collateral | Leverage |
| Cash | 1.5 times |
| Fixed Deposits | 2.5 times |
| Quoted Shares | 1.5 times |
| Unit Trust | 1.5 times |
Your fixed deposit account must be secured with Alliance Bank in order for it to be accepted as collateral.
What charges do I need to pay?
Opening a share margin account is RM275. You will also have to pay the interest charges on your borrowing. It is not compulsory that you pay charges every month, you can pay them in a lump sum payment at any given period.
Is there a cash advance option for this product?
Yes, there is, for up to 60% of you investment's market value, which will be credited into an Alliance Bank Saving or Current Account. Like a housing loan, your shares will be used as collateral on your cash withdrawals.
Will I be eligible for this product?
Only Malaysians who are between the ages of 21 and 70 years old can apply for a share margin account. If you are a foreigner, your application will be considered, but chances are slimmer that you will be approved.
If you fit all of the above criteria, go ahead and gather the documents listed below:
Individual:
- NRIC(both sides)
- Recent BE/EA/2 months payslip
- Latest bank statement
- and any other supporting income documents