MARGIN LENDING
Harness the power of margin lending
As an investor, you want your money to work harder for you. Enabling margin lending is a simple way to maximise your buying power when you invest in stocks and ETFs.
Boost your buying power
With margin lending, you can increase your exposure with up to 4x leverage on stocks and ETFs.
Simple credit facility
Put your portfolio to work by using your cash and eligible assets as collateral for a margin loan, whenever you need it.
Keep more of your returns
Save with our low margin lending rates and competitive commissions starting at USD 1.
What is margin lending?
Low margin lending rates
| Classic | Platinum | VIP | |
|---|---|---|---|
| Benchmark rate | + 2.0% | + 1.5% | + 1.0% |
More about margin lending
Margin lending lets you borrow money for investing in a wide range of securities such as stocks and ETFs by putting up eligible assets in your account as collateral. This means that you can add leverage to your investing and take positions larger than your current cash balance and/or holdings.
In short, margin lending increases your buying power when investing in eligible securities. The margin loan acts as a simple credit facility, where the amount you can borrow is determined by your financial situation and the collateral value of the eligible assets in your account.
If you already have an account, you can enable margin lending in the trading platform, under My Profile > Your account > Margin lending.
Your buying power is the amount of money available for investing.
Saxo allows a percentage of your investment in eligible assets to be used as collateral to borrow money for increasing the size of your position. That way, your buying power increases. It is calculated as a function of your available cash and the collateral value of eligible assets in your account.
The collateral value of an eligible asset depends on the risk rating of the individual instrument. You can find the collateral value of eligible assets under Trading Conditions > Instrument or in the Collateral column available on the platforms. You can also see the collateral value of a specific instrument on the trade ticket in the platform.
When a trade is funded by a loan (whether wholly or partially), you will be charged a margin lending interest rate for the borrowed amount. The loan amount is assessed daily based on the net cash balance on each margin lending account in the respective currency. The loan interest is calculated daily, and will start accruing from the settlement date of the margin position, and is booked to the loan amount at the start of each calendar month.
As an illustration1 of a $100,000 loan and an interest rate of 2%:
| Loan amount | Daily Interest Calculation | Accrued interest (not booked) | |
|---|---|---|---|
| 27 Jan 2024 (Day 1) | $100,000 | 2% / 365 x $100,000 = $5.48 | $5.48 |
| 28 Jan 2024 (Day 2) | $100,000 | 2% / 365 x $100,000 = $5.48 | $10.96 |
| 29 Jan 2024 (Day 3) | $100,000 | 2% / 365 x $100,000 = $5.48 | $16.44 |
| 30 Jan 2024 (Day 4) | $100,000 | 2% / 365 x $100,000 = $5.48 | $21.92 |
| 31 Jan 2024 (Day 5) | $100,000 | 2% / 365 x $100,000 = $5.48 | $27.40 |
| 01 Feb 2024 (Day 6) | $100,027 | 2% / 365 x $100,000 = $5.48 | $5.48 |
You can find the Margin Lending Interest Cost under Trading Conditions > Trading rates on eligible assets. Furthermore, you will be able to find a breakdown of the charges to your account in the Margin Lending Interest Details report available within the platform.
Do note that you will be charged interest on any outstanding margin loan, even if the aggregate cash balance on all your sub-accounts is positive.
1This is for illustrative purposes only and is without prejudice to any of Saxo’s rights under the Margin Lending Terms and/or General Business Terms. In the event of any inconsistency, the provisions of the Margin Lending Terms and/or General Business Terms shall prevail.
Before placing any order via the Trading Platform, you should carefully select the sub-account that the order is to be placed under. Our competitive conversion rate will apply to any trades that are placed in a different currency than the account currency of the sub-account used. You can find more information about our currency conversion fee here and more information about opening a currency sub-account here.
Do note that you will be charged interest on any outstanding margin loan, even if the aggregate cash balance on all your sub-accounts is positive.
The total amount you can borrow depends on the collateral value of eligible assets in your account.
Each eligible asset has a risk rating from 1 (lowest assessed risk) to 6 which is used to determine the collateral value of the asset. As an example, a stock rated 1 can be collateralised for 75% of the market value of the position. You can find the risk rating and associated collateral value of eligible assets under Trading Conditions > Instrument or in the Collateral column available on the platforms.
In general, you need to monitor and ensure that your “margin and loan utilisation” remains below 100% at all times to avoid a “margin call”. A “margin call” is an automated stop-out where Saxo cancels open orders and closes open positions in your account(s).
You can see your “margin and loan utilisation” in the platform in account details. You will start receiving alerts once your “margin and loan utilisation” reaches 50% (or higher).
The ”margin and loan utilisation” reflects the higher of the “margin utilisation” and “collateral utilisation” ratios of your margin account(s). During a “margin call”, Saxo may close different types of positions on your account depending on whether your “margin utilisation” ratio or “collateral utilisation” ratio (or both) has exceeded 100%.
For more information, please refer to the Margin Lending Terms or visit our support centre.
220,000+
Daily trades
1,200,000+
Clients
115+ bn
USD client assets
15+ bn
USD daily trade volume