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Margin Loans Macquarie prime

Discussion in 'Finance & Banking' started by Nigel Ward, 25th May, 2007.

  1. Nigel Ward

    Nigel Ward Team InvestEd

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  2. bundy1964

    bundy1964 Well-Known Member

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    I am going to their seminar to find out more Wednessday night.
     
  3. Glebe

    Glebe Well-Known Member

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    looks interesting.. I'm suprised the interest rates are so low.

    Macquarie just can't help themselves with complicated fee strucutures though..

    Thanks for the heads up Nigel, it deserves a second look...
     
  4. Simon

    Simon Well-Known Member

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    Would you be good enough to post a bit of a summary for us outside capital cities?
     
  5. bundy1964

    bundy1964 Well-Known Member

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    I think I will be able to do that for you all.

    *If I can get my head around their fee structure*
     
  6. bundy1964

    bundy1964 Well-Known Member

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    Copy of my thoughts from another forum.

    Since a few have asked privatley about my night aout at their free info night I thought I would put a few things in I found out.

    In true MBL style there is web pages full of hard to follow info.

    Prime. Macquarie Prime Access Trading.

    Picked up from the seminar.

    You have a minimum start of 5k with 1800 ASX to choose from and gearing availabe for around 1300 top 20 will gear to 95%.

    They are trying to match CFD style features with direct share benifits. You do get franking credits, unlike CFD's you only pay interest on the loaned amount. Just like CFD's you can set a gauranteed stop loss as long as it is at 1% or more cost does vary and it lasts for 1 or 3 months and can be moved up manualy with price rises as long as you keep the same % rate. Tight stops cost more than generous ones. Can short shares or CFD's with the same account, sugested you go long with shares and short with CFD's due to the features available.

    Plus points.
    (1) High LVR's.
    (2) Cash/short positions offset your interest costs.
    (3) Web based trading with no downloaded client to use.
    (4) Stop loss system.
    (5) Can hold long shares and short them with CFD for downturns in the one account.
    (6) Interest on cash balance.
    (7) Franking credits for shares held.

    Down Points
    (1) Hard to follow fees.
    (2) New product.
    (3) No managed funds or options yet.
    (4) For info on the client you have to use the CFD examples.
    (5) Web based so prone to outside problems/internal overload can use phone trades if you have to.
    (6) GSL and short information is hard to follow on their stock list which runs by LVR for 37 pages.
    (7) MBL is missing from the list :(
    (8) Not all stocks are treated equaly for shorting or GSL, some you can do one and not the other and some you can do 95% and have no option of GSL or shorting.
    (9) No indexes.
    (10) No foreign exchanges.

    Variable rate is 8.75% or 8.5% if you transfer from another lender. Better deal for large transfers across.

    Fixed by June 30th is 7.75% bit late for this year.

    Great product on paper if you want to go hard at ramping things up, still needs work on the stock list and little details on margin calls ect.
     
  7. Glebe

    Glebe Well-Known Member

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    Thanks Bundy.

    I think I'll give this a miss for now, but should the market decide to fall 25% or so for some bizarre reason, I'd pile in asap up to 90%. At current market PE's I'm not inclined to increase my leveraged, which is already about 55%.
     
  8. FrankGrimes

    FrankGrimes Well-Known Member

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    Anyone using this product yet? How are you finding it? Thanks for the info bundy.

    EDIT - wonder why LIC LVRs are so poor? yet you can gear into individual shares at 95%!

    EDIT 2 - STW can go to 95%. What's stopping me gearing that high, using a GSL (guaranteed stop loss) if things go bad? Down side is limited and known and paid for upfront? Maybe not at the moment but if the ASX has a another correction...........

    Interesting.
     
    Last edited by a moderator: 13th Oct, 2007
  9. archangelsupreme

    archangelsupreme Well-Known Member

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    So am I, anyone going to the Melbourne Seminar at 6:00pm?

    Will not be joining but just want to go to learn and see what its all about.