![[Guide] All you need to know about using FSMOne Margin Facility | Open a FREE FSMOne account and manage all your investments conveniently in ONE place](https://secure.fundsupermart.com/fsm/ext/feature/299400_20240808_yZcHULXC.jpeg)
Your Seamless Journey to Margin Facility Enrolment
1.0 Getting Started
FSMOne is offering product financing on an extensive list of marginable products including Unit Trusts, Bonds, Stocks, ETFs and Cash or Auto-Sweep holdings.
No Minimum AUA Requirement! Whether you’re just starting out or a seasoned investor, you’re eligible as long as you meet the margin account eligibility.
2.0 Margin Account Eligibility
Who is eligible?
Find out more on your eligibility status
3.0 Instant Opt-In
Effortless access to FSMOne Margin, just select your account and click “Opt-In-Now” to activate your Margin Facility in seconds. No extra paperwork e.g. NOA/payslips/pledging agreements or unnecessary waiting time—it's that simple!
Opt-In Steps
(FSMOne Application -> “Holdings” -> “Margin Facility Enrolment” -> Opt-In”)
If your Opt-in status is Active, it means that you have successfully opted in for the facility.
4.0 Account Collateral Assessment
Once you’ve opted in, FSMOne will automatically assess your portfolio and compute your collateral value & Maximum Margin based on your current FSMOne holdings.
Understand Your Loan-to-Value (LTV)
LTV is your key to understanding how much you can borrow. For instance, with a 70% LTV, you can borrow 70% of your asset’s value—leaving just 30% as your capital. On the other hand, the LTV also defines the haircut percentage applied on the market value of the asset you hold to derive the collateral value.
The LTV of each asset are easily accessible and can be found under the product highlights of each asset.
Essentially, the lower the LTV, the lower the leverage multiplier. (Financing LTV are to be determined time to time).
How much can I buy on margin?
Margin Purchasing Power is the additional buying power you possess based on the current collateral value of your portfolio. Think of it as your investment power boost!
Your Actual Margin Purchasing Power depends on the i) Product LTV that you are buying and ii) credit limit FSMOne has granted.
Let’s refer to illustration below:
5.0 Unified Purchasing Power
Once your account collateral assessment is completed (instantly), you will be able to see a unified purchasing power, allowing you to invest into a diverse range of products (UTs/ Stocks/ Bonds/ ETFs).
Margin Payment Method
Traditionally, margin is only utilised when the cash balances are depleted in the margin account. However, FSMOne is the first in industry that offers a “Margin” payment method that separates your cash balances from the margin facility, allowing you to retain your cash balances while enjoying the full flexibility of utilising margin.
6.0 Margin Maintenance
Margin Ratio
Margin Ratio is a measure of the amount of equity you need to maintain in your account compared to the total value of your outstanding loan balances. Think of it as a balance you need to keep in check to ensure everything runs smoothly!
This value should always be below 100%; otherwise, a margin call will be triggered. An additional haircut of 20% will be applied to non-Singaporean Citizens/Permanent Residents (PR), which they will be required to meet the maintenance ratio at 80% instead of 100%.
Margin Call
Margin Call will be triggered if Margin Ratio exceeds the allowable limit i.e. ≥100%. This means that your account’s collateral value is decreasing relative to your loan balance. To address the margin call, you must either repay the loan or increase your account’s collateral value within two (2) Market Days, commencing from the date of initial call.
Loan Repayment
Loan repayment serves as one of the methods for clients to effectively reduce the outstanding loan to bring down the margin ratio or in addressing margin call. FSMOne clients have the flexibility of using same currency cash account or different currency cash account to repay the loan.
At the loan repayment confirmation page, clients will be able to look at the change in the margin ratio after the repayment has been initiated.
There is no fixed loan tenure or monthly repayment obligations. Therefore, clients are able to repay at any point in time.
Repayment Steps
(FSMOne App -> “Holdings” -> “Margin Summary” -> Loan Repayment”)
Margin Risk Management
Management of margin risk can seem daunting, but FSMOne has you covered. This risk level is always visible through FSMOne Web/App portals in Margin Summary page. In addition, you may customize Margin Ratio Alerts (App> Menu> Notification Centre> Margin Call Alert) to notify you via Email and App notification when your margin ratio crosses a threshold between 50% to 75% so you can stay ahead and take pre-emptive actions to lower your risk level.
*Do note that the alert will be re-triggered at every 5% increment based on the selected level.
Why Choose FSMOne’s Margin Facility?
Innovative Margin Payment Method: Retain your cash balances while using margin—flexibility at its finest!
Multi-Utility Account: Invest, borrow (margin), spend, convert, and withdraw all from a single FSMOne account.
Unified Buying Power: Leverage your investments across multiple products and currencies.
Ready to Maximize Your Margin Investment?
With a clear understanding of the various margin jargons and FSMOne Margin features, you’re all set to explore new investment opportunities!
👉 Opt-In Now and get started on enhancing your investment strategy with FSMOne!
Got questions? Get in touch now with FSMOne!
Disclaimer:
The use of margin involves a high degree of leverage and risk which can lead to losses as well as gains which are of a larger magnitude as compared to the movement of a security or market. You should therefore carefully consider whether such a financing arrangement and/or investment products you are purchasing is suitable for you in light of your own financial position, experience, objectives, ability to bear risks and other relevant circumstances.
Investment products involve risk, including the possible loss of the principal amount invested. Past performance is not indicative of future performance and yields may not be guaranteed. All materials and contents found in this advertisement are strictly for information purposes only and should not be considered as an offer or solicitation to deal in any capital market products. You should consider carefully if the investment products you are purchasing are suitable for your investment objective, experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of the investment product, please seek advice from a financial adviser, before making a decision to purchase the investment products.
While iFAST and/or any of its third-party providers has/have tried to provide accurate and timely information, there may be inadvertent omissions, inaccuracies, and typographical errors. Opinions expressed herein are subjected to change without notice.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
All materials and contents found in this site are strictly for general circulation and informational purposes only and should not be considered as an offer, or solicitation, to deal in any of the funds or products found/identified in this site. While iFAST Financial Pte Ltd ("IFPL") has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies and typographical errors. Any opinion or estimate contained in this report is made on a general basis and neither IFPL nor any of its servants or agents have given any consideration to nor have they or any of them made any investigation of the investment objective, financial situation or particular need of any user or reader, any specific person or group of persons. You should consider carefully if the products you are going to purchase are suitable for your investment objective, investment experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of the investment product, please seek advice from a financial adviser, before making a decision to purchase the investment product. Past performance is not indicative of future performance. The value of the investment products and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. In respect of any matters arising from, or in connection with the said research analyses or research reports, recipients of the report are to contact IFPL at 10 Collyer Quay, #26-01 Ocean Financial Centre Building, Singapore 049315, or by telephone at +65 6557 2853. Where the report contains research analyses or research reports from a foreign research house and if the recipient of such research analyses or research reports is not an accredited investor, expert investor, institutional investor or an ex-accredited investor, IFPL accepts legal responsibility for the contents of such analyses or reports to such persons only to the extent as required by law. Please note that only certain security(ies) herein are available to all investors, while the rest are only available for certain persons to invest in, such as Accredited Investors (as defined in the Securities and Futures Act) or one who invests at least S$200,000 (or its equivalent currency) per transaction. To qualify as an Accredited Investor, one needs to submit a declaration form and certain relevant supporting documents, according to iFAST’s prevailing policies and procedures.
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iFAST Financial Pte Ltd (IFPL) (registered address: 10 Collyer Quay #26-01 Ocean Financial Centre Singapore 049315, Telephone: 6557 2000) holds the Financial Advisers Licence issued by the Monetary Authority of Singapore ('MAS') to conduct regulated activities of advising on securities, marketing of collective investment schemes and arranging of any contract of insurance in respect of life policies, other than a contract of reinsurance and the Capital Markets Services Licence issued by the MAS to conduct regulated activities of dealing in securities and providing custodial services for securities. While IFPL has made every effort to ensure the independence of the report's contents, IFPL's nature of business is such that IFPL and its connected and associated entities together with their respective directors, officers and staff may be involved in providing dealing or investment-related services in the abovementioned securities, and have taken or may take positions in the securities mentioned in this report, and may also act as the principal for any buy or sell trades.