Bell Direct online share trading

A margin loan is a way for you to borrow to invest (or gear) so you can increase your participation in the sharemarket. This wealth creation strategy has the potential to help you own a more diversified portfolio and may have tax advantages for certain investors. Of course with margin lending there is an element of risk due to the potential for loss.

No, there is no minimum balance for a Direct Margin Loan.

The gearing ratio or loan to value ratio (LVR) is the percentage we apply to the value of each holding to calculate the geared value.

The geared value is the amount we are willing to lend against your portfolio. It is calculated by applying the gearing ratio to the market value of each holding in the portfolio.

Certain individuals can claim the interest paid on their margin loan against their taxable income. Please seek professional advice.

If your loan exceeds the geared value plus the buffer, we may require you to take immediate action. We are not obliged to contact you if you are in margin call.

If your account falls into margin call, you have the option of providing us with additional security or selling down part of your existing holding (sufficient to meet the margin call) or paying cash the amount of the margin call.

Keeping the gearing to a moderate level can reduce the likelihood of being margin called. Additionally, a well diversified portfolio can help spread the risk against a sharp fall in value in one or two different stocks.

There are no setup costs.

Yes, you can elect to prepay your interest.

10% of the geared value. The buffer ensures that small fluctuations in prices will not trigger a margin call.

Often called surplus, it is the amount by which the geared value exceed the loan.

Equity is calculated as total market value of holdings less total loans.

The margin ratio is calculated as the loan divided by the geared value. Where the margin ratio exceeds 100%, the loan is in buffer. Where the margin ratio exceeds 110%, the loan is in margin call.

Minors cannot directly be the borrower or guarantor as they cannot enter into a contract. However, they can be the beneficiary of a trust where the trustee executes the documents.

Yes, at least one of the directors must provide a guarantee.

A separate fee is not charged for reviewing trust deeds.

The Approved Security List can be changed daily to reflect new issues, code changes, changes in LVR etc.

Bell Direct is part of the Bell Financial Group (BFG) which is a listed company on the ASX. BFG have been providing Broking services to retail clients for close to 40 years and has operated through many economic cycles.

Shares held to secure a loan are held in the client's name and the controlling participant is Bell Potter Capital Securities Pty Ltd (BPC), which is a wholly subsidiary of Bell Potter Capital Limited, which is the lender. In short BPC don't own the client's shares, they only control them for the purposes of securing the client's loan.

The client's shares are held 'on trust' for each client and the only rights BPC have is to sell shares to recover the loan. Any other equity or money must be returned to the client and can't be used by Bell Potter Capital in any other way.

If BPC ever went into administration or liquidation the administrator or liquidator has no greater powers than are available under the margin lending agreement. In particular, money from one client can't be used to offset losses from another.

This will be determined by the information provided on the Credit Limit Request form.

Your actual credit limit will be determined by the information provided on the Credit Limit Request form as well as the collateral lodged as security against your margin loan.

Yes, however you must ensure that your partner is listed on the new Direct Margin Loan as Borrower or Guarantor.

bellactive benefits apply. If you trade 5 times per month, you will receive free live data and access to our exclusive trading tools. Click here to learn more about bellactive.

No. Unlike some Providers, Direct Margin Loan does not have a minimum loan balance requirement.

We are happy to review your holdings and LVR's if you are able to provide us with a copy of a recent margin lending statement from your current Provider.

We do not lend 80% against any stock on our Approved Securities List as we have a 10% buffer (unlike most lenders who only have a 5% buffer).

There will be no delay when you trade directly with our integrated product. In fact margin lending trades will still qualify for our 1 second placement guarantee as long as they are at market orders.

We are happy to review your situation, please complete the Credit Limit Request form.

If you are able to provide us with a copy of your recent margin lending statement or a list of all your holdings, we will be able to get a full picture of your position and determine whether we can allocate a "special" LVR against your major holding.

We pride ourselves on being able offer a market leading competitive alternative so please let us know the details of your rate and discount so we can review your situation.

• no additional transaction costs for contract notes settling to a Direct Margin Loan ($15/transaction third party margin lending fee waived)
• a competitive headline interest rate of 5.80% (further discounting may apply for large loans)
• no minimum loan balance required (vs $20K minimum loan balance requirement with some margin lenders)
• fully integrated loan facility allowing live pricing and enabling each trade and portfolio to be reflected in real time
• available funds are adjusted for unsettled trades and open buy orders so it is easy to understand your current capacity for trading.

If you can provide us with the details, we are happy to review your situation to determine if you qualify for a family discount.

(see "Benefits of switching" above)

It is also worth switching now so your account is set up and ready to go in order to take advantage of any opportunities in the market as they arise.

Of course. You can bring across the remaining stock at any stage.

The new Direct Margin Loan account will need to be set-up online. All you have to do is add a new account to an existing login and most information will be pre-populated for you. Click here to create a Direct Margin Loan account.

A Direct Margin Loan application form will then be generated for completion and signing. This, together with the Credit Limit Request Form (if applicable), must be posted back to us.

The new Direct Margin Loan account is set-up online. All you have to do is add a new account to an existing login and most information will be pre-populated for you already. Click here to create a Direct Margin Loan account.

A Direct Margin Loan application form will then be generated for completion and signing. This, together with the Credit Limit Request Form (if applicable), must be posted back to us.

Yes, we require all pages of the original Direct Margin Loan application form, Credit Limit Request Form and copies of 2 recent payslips to be posted to us.

Some fields on the application form are essential and if not completed, will delay the account opening process. Please ensure you complete all relevant sections of the application.