Hi Weng,

I'm personally using Luno Malaysia to buy cryptos. You can use my link to get RM75 free BTC when you sign up, deposit at least RM250, and make a purchase of crytos in the app!

Cheers
Gracie

Hello Vincent,

You can check it under [Performance & Reports > Reports > Other Reports > Risk > Margin]. This should give you an idea of your current stock/cash holdings vs. margin excess/liquidity.

Hope this helps!

Cheers
Gracie

Hello, i have an margin account but I'm not sure how to check at any given time, how much i borrowed...can you guide me on this? thank you in advance.

Hello XHui,

Apologies for my late reply and thank you for your patience! To change your account to "Margin", you just need to go to your Account Settings > Account Type > select "Margin" (NOT "Portfolio Margin"!!!) and they may ask you to update your Financial Status/Income Details/Wealth etc. to check if you are qualified for their Margin facility. I don't exactly know how they validate/qualify if you meet their requirements so can't help much there.

As for the "EXCESS LIQUIDITY", in simple words - think of it as your Credit Limit on your Credit Card. Use it carefully - if you over-leverage and market meltdown - the first thing they will do (once they hit the trigger) is to sell off your stocks to recoup / limit their losses. This is why I don't trade on marging - I'm simply using it to "place future orders" and top up cash if my order goes through.

Hope these helps!

Cheers
Gracie

"So please make sure to have enough buffer to cushion the market volatility (e.g. I only place "limit orders" up to ~20-40% of the excess liquidity (credit) given to me."

You're most welcomed!! ?

Thanks for the detailed explanation =) after weighting the pros and cons, i think i will stick back with cash upfront haha.

Hello Chong,

There'll be no changes on fee structures from what I'm aware - but do note on the interest levied when you use Margin to make purchases (e.g. buying stocks without funding with cash first). As for the interest rate, TSG charges IB Rate + 2.5% which will put it at approximately 4% interest rate per annum calculated on a daily rest basis (read more: https://www.tradestation-international.com/global/other-exchange-fees/).

Hence with this, assuming you do it similarly to what I described in my post (e.g. placing limit orders and "wait" for it to fill before funding my account with Cash); the days-in-between the transaction date and cash replenishment will incur interests on a daily rest basis, but I'm fine with it considering the convenience that it brings.

Another watch out point is also how IBKR handles "margin call" (i.e. only via notification in IBKR app). They do real time & daily calculation and if your EXCESS LIQUIDITY (i.e. the "extra money" that you can use without paying upfront) falls below ZERO into negatives, they will IMMEDIATELY liquidate your stocks in a way IBKR determines to be most optimal (read more: https://www.interactivebrokers.com/en/software/tws/usersguidebook/realtimeactivitymonitoring/portfolio.htm).
So please make sure to have enough buffer to cushion the market volatility (e.g. I only place "limit orders" up to ~20-40% of the excess liquidity (credit) given to me.

Hope these help!

Cheers
Gracie