Saxo Bank Launches Margin Financing Accounts in Singapore

Saxo Bank has launched margin financing accounts at its Saxo Singapore unit, giving clients the ability to manage investments purchased through margin lending separately from their other holdings. This development aims to provide investors with greater flexibility and strategic control over their leveraged investments.

Alongside the new accounts, Saxo has rolled out several improvements to its margin lending services. Tiered collateral rates now offer more favourable leverage for stocks and ETFs with risk ratings between 2 and 5, helping clients optimize their trading potential. In addition, partial stop-outs replace the previous full liquidation model, allowing investors to manage risks more gradually and retain partial positions during market fluctuations.

Saxo Bank Launches Margin Financing Accounts in Singapore

Saxo first introduced margin lending in 2023, and these updates come in response to client feedback. The enhancements are designed to make the margin lending experience more transparent, flexible, and user-friendly for investors.

Mahesh Sethuraman, Singapore CEO at Saxo, said, “This launch reflects our commitment to being client-centric. We constantly listen to our clients and enhance our platform to deliver better investing and trading experiences. These enhancements give clients greater flexibility, transparency, and control, whether they want to amplify their buying power or optimize dividend income. Our goal is to help clients invest not just confidently, but with conviction.”

Moreover, Margin lending, or margin financing, allows investors to borrow funds to invest in stocks, ETFs, bonds, and other instruments. The borrowed funds are secured against the value of an investor’s existing portfolio. While it carries higher risks, margin lending can also increase buying power and improve dividend yields.

Enabling a Margin Lending Account on Saxo sets up a separate account dedicated to leveraged trades. Investors can use the margin loan for trading stocks, ETFs, bonds, and stock options, as well as to support the physical delivery of underlying instruments upon option assignment.

With these updates, Saxo Bank continues to provide tools that empower investors in Singapore to manage risk effectively while making the most of their investment opportunities.

Company Overview

Saxo Bank stands out as a premier multi-asset broker, offering exceptional research capabilities and an exceptional trading platform, along with an impressive array of over 70,000 tradable instruments, which include spot forex, FX options, NDFs, CFDs, stocks, stock options, exchange-traded funds, ETNs, futures, and 33,000 bonds. For engaged traders, Saxo Bank offers a comprehensive and immersive trading journey, boasting an extensive toolkit, research resources, and premium features.

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