Check here the advantages of Standard Margin Account
- Triple your capital investment.
- Trade shares, mutual funds and ETF.
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The margin is the way to measure the overall situation of your Margin Account.
To figure out the margin: (Portfolio Value + Credit Granted) / (Credit Granted + Costs Incurred).
The portfolio value = stocks and ETF value (including both purchases and the sale of stocks pending settlement) + mutual funds value + Margin Account balance margin.
The initial margin is typically 1.5 and depends on the variation of your asset portfolio (stocks, mutual funds and ETF), plus associated costs and fees.
The alert margin is 1.4 and it means there has been a devaluation of the assets, fees and associated costs. This margin also means you need to reinforce your Margin Account, as soon as possible, to recover the initial margin of 1.5.
The sales margin is 1.2 and means there has been an accentuated depreciation of your portfolio, associated costs and fees. At the point in which the sales margin is attained, Banco Best reserves the right to close the Margin Account, implying the sale of all the mutual funds, stocks and ETF, at current market conditions.
The deadline is 15 days, maximum.
The margin is determined by the appreciation of stocks, mutual funds and ETF, or their depreciation, causing the alert and sell margins.
Investing in securities using credit increases the underlying risk of such operations. Only experienced investors should use credit in order to finance their investments in stocks, mutual funds and ETF. The investments are subject to a higher level of exposure both in the case of appreciation of the assets and in the event of depreciation. The costs and capital losses that you may incur as a result of using the Margin Account may be higher than the value invested.
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The Standard Margin Account is a current account associated to a six-month line of credit, which is automatically renewed.
This account allows you to triple your investments, with credit-funded transactions.
In few words, we double your capital investment.
So, if you invest a minimum amount of €5,000, you have access to a line of credit of €10,000, allowing a total of €15,000 for investment. You may invest in stocks, mutual funds and ETF, and reinforce your Margin Account if necessary, whenever you want.
The minimum amount is €5,000 and the Margin Account can be reinforced at any time.
A fee is charged on the capital used at the 6-month Euribor rate plus a spread – which may be consulted in Banco Best price list. An unused credit fee of 0.5% will be charged on the amount of unused credit. Interest and the unused credit fee will be paid on a monthly basis, by means of a debit to the Margin Account.
Check Banco Best price list for the fees associated with dealing in securities and mutual funds.
The capital gains obtained as a result of investment in securities, mutual funds and ETF may not be sufficient in order to compensate the costs associated to the line of credit and the fees associated to the investments. In the event of capital losses these will be further aggravated by the financing costs.
Check here the advantages of Plus Margin Account
- You invest five times more your capital.
- You can trade mutual funds.
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The margin is the way to measure the overall situation of your Margin Account.
To figure out the margin: (Portfolio Value + Credit Granted)/(Credit Granted + Costs Incurred).
The portfolio value = stocks and ETF value (including both purchases and the sale of stocks pending settlement) + mutual funds value + Margin Account balance margin.
The initial margin is typically 1.5 and depends on the variation of your asset portfolio (stocks, mutual funds and ETF), plus associated costs and fees.
The alert margin is 1.4 and it means there has been a devaluation of the assets, fees and associated costs. This margin also means you need to reinforce your Margin Account, as soon as possible, to recover the initial margin of 1.5.
The sales margin is 1.2 and means there has been an accentuated depreciation of your portfolio, associated costs and fees. At the point in which the sales margin is attained, Banco Best reserves the right to close the Margin Account, implying the sale of all the mutual funds, stocks and ETF, at current market conditions.
The deadline is 15 days, maximum.
The margin is determined by the appreciation of stocks, mutual funds and ETF, or their depreciation, causing the alert and sell margins.
Investing in securities using credit increases the underlying risk of such operations. Only experienced investors should use credit in order to finance their investments in stocks, mutual funds and ETF. The investments are subject to a higher level of exposure both in the case of appreciation of the assets and in the event of depreciation. The costs and capital losses that you may incur as a result of using the Margin Account may be higher than the value invested.
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The Plus Margin Account is a current account associated to a six-month line of credit, which is automatically renewed. This account allows you to multiply your investments five times by using a line of credit.
In short, we finance your capital investment four times the amount. So, if you invest a minimum amount of €2,000, you have access to a line of credit of €8,000, allowing a total of €10,000 for investment. You may invest in mutual funds and when you reach a margin below 1.25 you must reinforce the margin immediately.
A fee is charged on the capital used at the 6-month Euribor rate plus a spread – which may be consulted in Banco Best price list. An unused credit fee of 0.5% will be charged on the amount of unused credit. Interest and the unused credit fee will be paid on a monthly basis, by means of a debit to the Margin Account. Check Banco Best price list for the fees associated with dealing in mutual funds. The capital gains may not be sufficient in order to compensate the costs associated to the line of credit and the fees associated to the investments. In the event of capital losses these will be further aggravated by the financing costs.