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What is Share Margin Financing (SMF)? |
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Share Margin Financing (SMF) is a credit facility offered to clients to boost their investments in shares using cash and/or marginal securities as collateral. |
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What are the benefits of trading using UOBKH's SMF facility? |
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With UOBKH SMF facility, you can: |
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Trade up to 3.5 times the cash deposit or 2.5 times the value of acceptable securities furnished as collateral. |
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Enjoy the convenience of using the SMF account to trade online for SGX-listed shares via www.uobkayhian.com.sg. |
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Enjoy interest free financing for up to 10-calendar days. |
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Enjoy interest on your unutilised funds in the margin account. |
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Enjoy a competitive interest rate of 1% above UOB’s prime lending rate. |
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How do I apply for a SMF account? |
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To open a SMF account with a Dealer/Remisier, kindly contact our Margin Department personnel,
Ms Carmen Chuah at +65 6590 6308, Ms Fiona Yip at +65 6590 6310, Mr Alvin Chong at +65 6590 6302 or Ms Cynthia Khoo at +65 6590 6301.
Note: To be eligible for the Share Margin Financing facility, the client must be above 21 years of age. |
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How does the 10-day interest free period apply? |
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The 10-calendar days interest free period applies for margin accounts with a minimum facility limit of S$50,000. |
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How much collateral must I place ? |
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You only need to place a minimum initial cash deposit of $10,000 or approved securities with a market value of S$15,000 for a SMF facility of S$30,000. |
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What shares can I invest in? |
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You can invest in approved shares that are included in UOBKH’s List of Marginable Securities. This comprehensive list which covers most shares listed on the Singapore Exchange also displays the category that the share falls into. For financing purposes, shares are given margin values based on 100% of prevailing market prices.
UOB Kay Hian also finances warrants of acceptable securities (excluding covered warrants) with not less than 18 months to expiry. |
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What is the counter limit per client? |
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The counter limit is the maximum value that you can trade up to per marginable security. Please refer to the below table for counter limits for the different categories of marginable securities. |
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Counter Type
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Counter Limit per Client
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Category A
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S$5,000,000
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Category B
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S$2,000,000
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Category C |
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S$1,000,000
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Category D |
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S$200,000
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Category E |
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S$100,000
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Single Security |
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As above
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What is the initial margin for the marginable securities? |
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Initial margin is the minimum margin required prior to buying marginable securities. Please refer to the below table for the initial cover for different categories of marginable securities. |
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Counter Type
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Initial Margin (Cover)
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Category A
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70%(140%)
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Category B
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70%(140%)
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Category C |
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67%(150%)
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Category D |
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67%(150%)
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Category E |
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67%(150%)
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Single Security |
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50%(200%)
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What is the maintenance margin for the marginable securities? |
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Maintenance margin is the minimum margin that you have to maintain before you can buy any securities with your margin account. You can refer to the below table for the maintenance margin for different categories of marginable securities. |
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Counter Type
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Maintenance Margin
(Cover)
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Category A
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70% (140%)
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Category B
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70% (140%)
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Category C |
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70% (140%)
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Category D |
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70% (140%)
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Category E |
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70% (140%)
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Single Security |
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55% (183%)
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How do I compute the margin ratio? |
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A margin ratio is computed by dividing Total Collateral ('TC') with Total Financed ('TF').
For Example
Collateral comprises shares with margin value S$40,000. You can purchase shares of up to S$100,000 in value
TC = S$40,000 + S$100,000 (assuming purchased shares are valued at 100%)
TF = S$100,000
Margin Ratio = (S$140,000/S$100,000) x 100 = 140%
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When is a margin call made? |
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Margin call will be made when the margin ratio falls below 140%. |
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You are required to meet your margin call within the stipulated timeframe stated in the table below. |
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Share Category
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Margin Call
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Category A and B
(3 days interest free)
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Below 140% - 2 Market Days
Below 130% - Immediate
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All Marginable Shares (1)
(No interest free days)
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Below 140% - 2 Market Days
Below 130% - Immediate
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All Marginable Shares (2)
(10 days interest free)
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Below 140% - 2 Market Days
Below 130% - Immediate
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Where a margin account consists of a single security of Non-Category A and B shares and its value equals or is above 75% of the total marginable shares value, you are required to provide a security cover of 200%. Margin call will be made when the security cover falls below 183% in this case. However, this requirement is not applicable if your outstanding loan is below S$150,000.
No new transactions, other than liquidation of shares are allowed within the period of margin call. UOBKH may at its own discretion restore the required margin ratio by initiating the sale of margin shares in your account, in compliance with prevailing regulations. |
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How do I meet my margin call? |
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You can either deposit additional cash, marginable securities or sell shares in your existing portfolio to restore the margin ratio. |
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Can I contra the shares in my margin account? |
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Contra is not allowed for shares in the margin account.
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Can I withdraw excess shares or cash from my SMF Account? |
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You can withdraw securities and cash if your SMF Account is below the financing margin of 67%, or in excess of the security cover of 150%.
Dividends and profits may also be withdrawn provided the financing margin of 71%, or the security cover of 140% is maintained after the withdrawal.
Single security maintenance level at 200% is required for withdrawal of securities and cash.
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What are the commission rates for trades using SMF facility? |
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Share Category
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Brokerage Payable (Offline) |
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Brokerage Payable (Online)
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Category A and B
(3 days interest free)
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Up to S$50k – 0.5%
More than S$50k – 0.4%
More than S$100k – 0.25%
Minimum S$40
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0.275%
Minimum S$25
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All Marginable Shares (1)
(No interest free days)
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Up to S$50k – 0.5%
More than S$50k – 0.4%
More than S$100k – 0.25%
Minimum S$40
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0.275%
Minimum S$25
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All Marginable Shares (2)
(10 days interest free)
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Up to S$50k - 0.5%
S$50k or more - 0.4%
Minimum S$40
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0.4%
Minimum S$25
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Are there any other charges? |
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Yes, there are other charges imposed by the CDP. They are listed as follow: |
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There are also handling charges levied by our Custodian Department on the dividend and cash entitlement payment. |
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