Margin lending
Table with the key differences
| Feature | Margin Lending (previous version) | Margin Lending 2.0 |
|---|---|---|
| Account structure | All subaccounts belong to the same group of accounts. | There are two account groups:
|
| Margin Lending feature | All sub-accounts allow margin lending feature to be utilised to purchase stocks, ETFs, bonds and options. | Margin lending can only be used in the sub-accounts under the Margin Lending 2.0 account group. |
| Collateral usage | Collateral is shared across all sub-accounts. | Collateral in the sub-accounts can only be shared within the same account group. i.e. Collateral in the “Default” account cannot be shared with the Margin Lending 2.0 account and vice versa. |
| Margin Requirement |
|
|
| Trading Products | All products that you are allowed to trade can be traded in any sub-account, as long as there is sufficient collateral. | All products that you are allowed to trade can be traded in the “Default account”. However, for the Margin Lending 2.0 account group, only cash products (stocks, ETFs, bonds) and options can be traded. |
Margin lending rates
| Classic account tier | Platinum account tier | VIP account tier | |
|---|---|---|---|
| Margin Financing Rate* | 3.13% | 2.63% | 2.13% |
More about margin lending
When a trade is funded by a loan (whether wholly or partially), you will be charged a margin lending interest rate for the borrowed amount. The loan amount is assessed daily based on the net cash balance on each margin lending account in the respective currency. The loan interest is calculated daily, and will start accruing from the settlement date of the margin position, and is booked to the loan amount at the start of each calendar month.
As an illustration1 of a $100,000 loan and an interest rate of 2%:
| Loan amount | Daily Interest Calculation | Accrued interest (not booked) | |
|---|---|---|---|
| 27 Jan 2025 (Day 1) | $100,000 | 2% / 365 x $100,000 = $5.48 | $5.48 |
| 28 Jan 2025 (Day 2) | $100,000 | 2% / 365 x $100,000 = $5.48 | $10.96 |
| 29 Jan 2025 (Day 3) | $100,000 | 2% / 365 x $100,000 = $5.48 | $16.44 |
| 30 Jan 2025 (Day 4) | $100,000 | 2% / 365 x $100,000 = $5.48 | $21.92 |
| 31 Jan 2025 (Day 5) | $100,000 | 2% / 365 x $100,000 = $5.48 | $27.40 |
| 01 Feb 2025 (Day 6) | $100,027 | 2% / 365 x $100,000 = $5.48 | $5.48 |
You can find the Margin Lending Interest Cost under Trading Conditions > Trading rates on eligible assets. Furthermore, you will be able to find a breakdown of the charges to your account in the Margin Lending Interest Details report available within the platform.
Do note that you will be charged interest on any outstanding margin loan, even if the aggregate cash balance on all your sub-accounts is positive.
1This is for illustrative purposes only and is without prejudice to any of Saxo’s rights under the Margin Lending Terms and/or General Business Terms. In the event of any inconsistency, the provisions of the Margin Lending Terms and/or General Business Terms shall prevail.
Before placing any order via the Trading Platform, you should carefully select the sub-account that the order is to be placed under. Our competitive conversion rate will apply to any trades that are placed in a different currency than the account currency of the sub-account used. You can find more information about our currency conversion fee here and more information about opening a currency sub-account here.
Do note that you will be charged interest on any outstanding margin loan, even if the aggregate cash balance on all your sub-accounts is positive.
The total amount you can borrow depends on the collateral value of eligible assets in your account.
Each eligible asset has a risk rating from 1 (lowest assessed risk) to 6 which is used to determine the collateral value of the asset. As an example, a stock rated 1 can be collateralised for 75% of the market value of the position. You can find the risk rating and associated collateral value of eligible assets under Trading Conditions > Instrument or in the Collateral column available on the platforms.
In general, you need to monitor and ensure that your “margin and loan utilisation” remains below 100% at all times to avoid a “margin call”. A “margin call” is an automated stop-out where Saxo cancels open orders and closes open positions in your account(s).
You can see your “margin and loan utilisation” in the platform in account details. You will start receiving alerts once your “margin and loan utilisation” reaches 50% (or higher).
The ”margin and loan utilisation” reflects the higher of the “margin utilisation” and “collateral utilisation” ratios of your margin account(s). During a “margin call”, Saxo may close different types of positions on your account depending on whether your “margin utilisation” ratio or “collateral utilisation” ratio (or both) has exceeded 100%.