The main difference is, for margin account, SJ Securities will be offering shares margin-financing facility to qualified/eligible clients to finance their purchase of securities listed on the BMSB. That means our margin clients are able to leverage their trading/investment for short/medium/long term purpose. In order to be eligible for shares margin financing facility, clients are required to pledge cash and/or shares collateral acceptable to us. Clients' trading power will depend on the amount of collateral with us from time to time and that also means secured business to SJ Securities and dealers/remisiers.

 

Margin clients will be able to hold their outstanding purchases longer than retail trading account for maximum return on their investment. Complying with the FDSS rules, SJ Securities finances and settles all outstanding purchases on behalf of clients on T+2 days. In return, SJ Securities will charge them interest for their purchase contracts under financing.

 

For all types of margin accounts, opening a SJSEC Nominees pledged securities CDS account is mandatory.

 

Margin accounts can be classified as follow:

 

1) Conventional Margin Account

 

2) Short Term Margin Account

    (i) SMT Account

  

SMT account is a short-term margin financing product. It allows clients to hold their outstanding purchase contracts up to T+11 days only with reasonably low brokerage charges. Clients can either sell to the market or make payment for their purchases on or before T+11 days. However, Levy of 0.30% will be imposed on purchase contracts if the payment is effected after T+10 days. Other than levy, there will be no other charges for contra trades up to T+11 days except brokerage rate as follows:

 

Contract Value	Brokerage Rate
Up to RM100,000 Above RM100,000	min 0.60% min 0.50%

 

Margin Call Level

Starts from 50%

 

SMT clients may enjoy up to 30% discount for their ECOS trade (orders executed through Internet) and 0.15% brokerage rate for their intra-day trades, subject to minimum brokerage as per BMSB's rules, recommendation from their dealer/remisier and approval by the Management.

 

SMT accounts are secured by clients' collateral and it offers a huge potential to remisiers as their trading limit will not be restricted by their respective level of security deposit.