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Margin Lending Question

Discussion in 'Shares' started by vandalic, 26th Jun, 2007.

  1. vandalic

    vandalic Active Member

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    Location:
    Brisbane, QLD
    For those who have a margin loan do any of you have your margin loan with a bank other than the bank you have your online broking account with?

    I use Westpac Broking for my share investing and want to stay with them, they get their margin loans through BT Financials, though I can get better margin loans through other providers in terms of options and less interest. However, nobody else links directly with Westpac so I wouldn't see the margin loan within my online broking account.

    So the main question - how much of a hassle is it to have a margin loan with one provider and then buy shares using that margin loan with another bank's online broking services? Is it possible? If so, how do you pay into your online broking account?

    Looking forward to your feedback.
     
    Last edited by a moderator: 26th Jun, 2007
  2. willy1111

    willy1111 Well-Known Member

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    Location:
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    You may not be able to do it online. ie you may have to make telephone orders.

    ANZ have a couple of margin loan options. With the main margin loan you can use etrade, but you have to do phone orders. They allow you to have managed funds and options as security with this option.

    One of the other options is an online margin lending which you can trade online (probably similar to Westpac and BT) but they don't allow you to have managed funds and options with this account. (they say they are working on that though).

    My full service broker uses Etrade as the buy/sell platform and Macquarie for the margin loan.
     
  3. bundy1964

    bundy1964 Well-Known Member

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    IMHO I would stick with an all in one soloution.

    You may have to do transfers into their cash management account to settle trades, then posiably fill in transfer papers to have the shares transfered into your margin loan. I know the Commonwealth Banks online broking will let you settle from another margin loan with increased transaction costs.
     
  4. vandalic

    vandalic Active Member

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    I've rung around most places and it seems my best options are moving everything to a completely integrated margin lending/online broking solution to avoid large brokerage fees, an inconvenient setup etc.

    Given the interest rates, ease of setup and fantastic customer service I'm moving to Commsec.
     
  5. DaveA

    DaveA Well-Known Member

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    really??? this is one reason im thinking about moving away from comsec

    id be happy to pay a little more in interest to not site on the phone waiting for 40 minutes to answer questions...

    it does depend on the time of day you call but anytime after 10am i found it to be really poor...

    also i dont think comsec share trading accounts are all that useful (limited reseach, graphs and layout) but maybe thats just my opinion
     
  6. bundy1964

    bundy1964 Well-Known Member

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    Limited in what you can buy on Comsec too and only a 5% buffer, if I was with them I would be up a certain creek without a paddle.
     
  7. vandalic

    vandalic Active Member

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    Warranted feedback.

    I don't plan on ringing them too much, so if I got a once off great customer service experience that should be ok.

    I find Commsec's research info (for what I need) great compared to what some of the other online brokers I've used have available, all of my shares are listed as being able to leverage and what I'd want to buy are available.

    In terms of 5% buffer, I factor my own buffer in anyway and would rather keep my portfolio more conservative at say 55-55% LVR on mostly 70-75% allowable LVR.

    I'll see how it goes...beats having the margin loan and online broking completely seperate - that would become such an inconvenience.
     
  8. Bantam Roosta

    Bantam Roosta Well-Known Member

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    Location:
    Canberra, ACT
    I'm with Commsec and certainly have no intention of leaving them. True comments about phone times. Longest I've had is 10 minutes but I've also gotten through almost instantly at times too. I don't use their research tools so can't comment on them. Good fees and rates.

    BR
     
  9. vandalic

    vandalic Active Member

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    Location:
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    Great to hear BR :)