Your connected ecosystem

A Bell Potter Capital Direct Margin Loan integrates directly into your Macquarie Online Trading account, giving you real time data for credit limits, loan balances, available funds and portfolio balances.

Flexibility

A flexible loan facility where your cash and geared shares are consolidated into one trading account.

Real time updates

Real time updates of your loan-to-valuation ratio and available funds during trading hours. 

Free conditional orders

Plan for future market conditions and capitalise on potential trading opportunities.

No minimum loan balance

There is no minimum loan balance for a Bell Potter Capital Direct Margin Loan. You also won’t be charged any fees if you don’t draw on your margin loan.  

One trading account

Variable and fixed rate loans are held under the one facility. Fixed rate loans include the ability to pre-pay up to 12 months of interest.

Wide range of securities

A Bell Potter Capital Direct Margin Loan gives you access to an extensive approved securities list. You can borrow between 40% to 75% of the value of over 400 ASX traded securities and ETFs.

Real time data

Real time data

Real time data

As your Bell Potter Capital Direct Margin Loan integrates with the Macquarie Online Trading Account, you will see real time data for your loan-to-valuation ratio every time you view a stock or visit the order page. You’ll also see:

  • Approved security list (updated daily)
  • Credit limit
  • Loan balance
  • Surplus (funds available for shares purchased or funds withdrawn)
  • Portfolio holding balance – under Borrower facility – to include profit/loss by stock as well as cost price.

Your gearing levels and available funds will also move as the value of your portfolio moves and will take into account any share purchases, sales or cash transfers.

Visibility

Visibility

Visibility

Our integrated solution gives you visibility of your loan on the Macquarie Online Trading website. You’ll be able to see your loan-to-valuation ratio for every stock on the Macquarie Online Trading order pad. 

This allows you to see the geared value of each of your approved securities and how much you can borrow against any approved security.

Simplicity

Simplicity

Simplicity

Our integrated solution means that all trades administered by Bell Potter Capital use straight through processing, just like a Macquarie Online Trading account. This means your stock holdings immediately reflect executed trades.

Rates and fees

Interest rates

Rate Loan
5.45% p.a. Variable loan
3.90% p.a. 12 month prepaid loan rate (for a fixed rate loan up to $250,000)

Rates at 1 June 2020 and are subject to change.


Cash rates

Rate Amount
0.10% p.a. >$25,000
0.00% p.a. <$25,000 

 

Product details    

Transaction type Amount
Establishment fee $0 - The facility can remain undrawn until required at no cost to you
Account keeping fee $0 - The facility can remain undrawn until required at no cost to you
Minimum loan balance  Not required for variable rate loans (minimum loan of $25,000 for prepaid fixed rate loans)
Margin call buffer 10% of geared value of approved securities and ETFs

Margin lending example

Check out this case study which compares the difference in potential returns between an investment with a margin loan and without.

  Without a margin loan With a margin loan
Initial investment $30,000.00 $30,000.00
Margin loan $0.00 $30,000.00
Total investment $30,0000.00 $60,000.00
     
Dividend yield 5% 5%
Franking credit level 100% 100%
Dividend received  $1,500.00 $3,000.00
Franking credits received $643.00 $1,286.00
Total dividends received (gross) $2,143.00 $4,286.00
     
Prepaid interest rate n/a 4.75% p.a.
Interest paid $0.00 $1,425.00
     
Net investment income (before tax) $2,143.00 $2,861.00
     
Difference   $781.00

50% gearing improved investment income by 33.5%.

Please note: Dividend yields and franking credits used in this table are for demonstration purposes only. This case study does not take into account possible capital gains/losses.

Risks and benefits

Benefits 

  • Increase the potential for capital gain through gearing. 
  • Greater potential access to dividends including franking credits and deferred tax benefits. 
  • Access the value of the portfolio without realising capital gains tax. 
  • Prepay interest to provide certainty and potentially accelerate tax deductions.  

When it forms part of a comprehensive financial plan, gearing can assist to get the right balance of risk and return and to do so in a tax efficient manner.


Risks

In considering margin lending you need to consider the risks. Among these risks Bell Potter Capital highlights that: 

  • Gearing increases the risk of capital loss. 
  • If the value of your portfolio falls sufficiently, you may receive a margin call notice and must then either sell part of your portfolio, provide additional security or repay part of the loan. Margin calls must usually be met within 24 hours of receipt of notice that you are in margin call. 
  • You pay interest on the margin loan and increases in interest rates will increase the amount of interest payable. 
  • Bell Potter Capital may change the gearing ratios at any time. 
  • You may need to sell a security in your portfolio at a time which otherwise does not suit your circumstances. It may for example cause you to realise a capital gain. 
  • Tax laws may change resulting in an adverse impact on your after tax position. 
  • You are liable for the whole debt which may be more than the value of your portfolio.

Margin call

How far will my portfolio have to fall before I am in margin call?

For a facility which is fully geared (i.e. the loan = the geared value) a decline of 9.10% in the value of the portfolio will bring it into a margin call position. Please refer to a full margin call table on page 8 of the T&Cs brochure.

Offer documents

Bell Potter Capital Direct Margin Loan Offer Documents

Need more information before opening a Bell Potter Capital Direct Margin Loan? Check out the:

Document Link
Bell Potter Capital Direct Margin Loan Terms and Conditions Download PDF
Bell Potter Capital Direct Margin Loan Product Disclosure Statement  (PDS) Download PDF

Additional information

The Direct Margin Loan is issued by Bell Potter Capital Limited ABN 54 085 797 735, Australian Financial Services Licence (AFSL) 360457, and is not the product of Macquarie Bank Limited ABN 46 008 583 542.

Macquarie Online Trading is a service provided by Third Party Platform Pty Ltd (TPP) ABN 74 121 227 905 AFSL 314341, at the request of MBL. TPP is a Participant of the ASX Group. Neither TPP nor MBL are representatives of each other. Some of the fees paid to TPP for the provision of its services will be remitted to MBL. 

TPP and MBL do not provide personal financial advice in relation to Macquarie Online Trading. You should consider your own financial situation, particular needs and investment objectives before acting on any of the information available on this page.