Direct margin lending solutions

Margin lending is a great way for you to increase the size and diversity of your portfolio. 

Direct margin lending rate
7.05% pa

Administered by Bell Potter

Direct margin lending

With this Bell Direct integrated solution, you can place orders, settle your trades and earn a decent daily interest rate on your cash.

You get:

  • A flexible loan facility
  • Your cash and your geared shares consolidated into one trading account
  • A fully automated solution, so stock holdings immediately reflect executed trades
  • All trades administered by Bell Potter Capital using straight through processing, just like your regular Bell Direct share trading account
  • Free conditional orders
  • An extensive approved security list

How the direct margin loan works

  • Loan to Valuation Ratio (LVR) and margin loan rates are benchmarked to best in market
  • Earn a competitive interest rate on your cash (when your account has a positive balance). Alternatively, when your margin loan is drawn down you’ll pay the variable margin loan interest rate of 7.05% pa. 
  • Orders validated online as they are placed 
  • See real time data for your LVR every time you view a stock or on the order pad along with:
    • Approved security list (updated daily). Click here for recent updates to the approved security list.
    • 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    • Surplus (funds available for shares purchased or funds withdrawn) 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
  • Set email and SMS alerts to let you know if your loan is in the buffer (i.e. when the margin ratio is 100% or more) 
  • Pre-pay your interest
  • Trade on the go from your margin loan account using the Bell Direct website or your Smartphone (iPhone and Android)
Key features
Minimum initial loanNone for variable, $25,000 for fixed
Minimal loan balanceNone for variable, $25,000 for fixed
Minimum loan drawdown or repaymentNone for variable (does not apply to fixed)
Minimum call buffer10% of the geared value of the shares
Minimum loan balanceNone for variable, $25,000 for fixed

Margin lending example

The example below compares the difference in potential returns between a geared and ungeared investment.  

In this example, a 50% level of gearing has improved returns by 10%. The net investment income has increased and the exposure to the share market had doubled. 

please note: Interest rate for demonstration purposes only. 

How to apply for a direct margin loan

New clients 

For new clients, to apply for your margin lending account, all you have to do is set up a new trading account for your margin loan.

Existing clients

If you are already a Bell Direct client, please set up an additional account for margin lending here. As part of the application process you will need to complete a credit limit request form. You'll be asked about your income, expenses, assets and any debts you may currently have. You will also need to provide proof of income (e.g. your last two payslips or most recent tax return). 

As with any investment strategy there are risks, so as your first step make sure you read the product disclosure statement and the terms and conditions