just got a sniff of a new account offering from Macquarie.
with the 1 account you can trade shares, shares with gearing and cfd`s.
all your balances will be offset for interest charges so for your long term cfd`s, this will be heaps cheaper.
I always found that the cfd providers charge far too much interest (over the entire position although margin might be 50% and even when your position rises in price)
I`m having a look at it now and will read their PDS for any hidden costs and if everything looks rosy I`ll be sure to join up. Its 85 pages long, so it might take awhile!
anybody else looking?
Last edited by yonnie; 22nd-May-2007 at 09:10 PM.
just spoke to macquarie, sounds good. key for me is you now only pay interest on difference between long positions and cash in account. If position appreciates you pay interest on ORIGINAL loan not current value - this has annoyed me for some time!
yes, it sounds very good.
even their starting rate has dropped down to 0.12% up to 500,000 turnover a month.
500,000-1 mil = 0.1% etc etc.
I suppose that is for the whole range: shares, shares on margin and cfd`s.
it looks like you dont have a cfd contract anymore but own the shares outright with gross dividends and still being able to buy them on margin like cfd`s.
the beauty is you can decide yourself how much margin you want to put up, up to a minimum ofcourse.
so if you have plenty of cash, you might want to finance the whole deal and at other times only put up the minimum.
I think the cfd providers robbed people blind on the interest charges, but no more.
Now I can go long term with maximum gearing and not having a interest charge blow out.
i agree yonnie
Just transferred my margin loan across, and am going to pre-pay interest at 7.75%, 1% lower than my current lender.
They lend on 1,000 stocks and i can transfer in all my speckies as collateral too - this is gold!
not sure about gold bigbucks, more like a good start.
Macquarie will make their money, but you still have to make the right decisions.
are you engaged by Macquarie bigbucks?
how high is the Negative Funding Interest Rate at the moment and how high the
Positive Funding Interest Rate?
from what i understand long and short positions offset eachother
Gidday yonnie, Bigbucks...& anyone else out there...I'd be interested in hearing of your opinion of Prime in operation. I've read up on it and had a chat and seems almost to good to be true....specially for someone like myself holding fair number of smallcaps. Is it as seamless as its publicity?? I get the feeling that MacBank want to give Commsec (and the others) a shakeup and are prepared to cut their margins to achieve this.
on another thread somebody mentioned that Macquarie does 1800+ shares and 500+ cfd`s.
because I`m doing penny stuff, Macquarie wouldn`t be relevant to me then.
strange that the odd broker firm doesn`t let me trade in all companies on the ASX.
if it was so, I would be joining them today
Gidday yonnie.....maybe not so beneficial for extreme small-cap players but the only leverage that I have seen available on some I hold eg,55% INL ! (got a sackful of these); 45% PEP CFU FXR. They seem less generous for small gold explorers egNAv 85% but will do like 5% on Woodside and other topshelf. Only broker that I can see that will let me free up some play money on some smallcaps I want to hold longerterm. Paying 6.25% on cash (offset) and o.12% brokerage (min$20). Must be a catch somewhere.....
Cant believe Im spruiking Maccas
BTW: in an earlier post I mentioned about Macq CFD`s only being in 500+ codes: sorry that was another cfd provider.
I doubt it yonnie....I think they just attribute a 100% weighting (ie, 0%LVR) to those...ie, they wont lend against them but free to hold them in the account. To their advantage really...in the event you need to liquidate for a margin call they are available totally. I currently hold some 0% LVR shares (eg, INL) in my Commsec ML A/c...no probs but just the disadvantage that you get hit with their additional $10 "transaction fee" on the way in and out. Easy to transfer these out at any time without affecting your collateral supporting the loan
Macquarie does talk about 1800+ shares on the ASX being available for trading and I understand that we have 2000+ companies on the ASX.
So they must leave the bottom by the road side
Followed up a bit further yonnie...& in their info pack found the following "MP gives you access to all of the shares listed on the ASX and the ability to invest with or without gearing". Seems to nail the query...
thanks Col for your help.
I`m a full time share trader and
have been very busy with end of year stuff: SMSF and profits/tax/trading vehicle.
Well its good to hear about all ASX shares being tradable.
its just that on their web site they talk about more than 1800 being available and we have more than 2000 companies on the ASX.
I ordered their info pack as well and I`ll have a quiet read
when it arrives. looks very promising
a pity their minimum commission is $ 20 and not $ 12
wonder what they will charge if an order is filled over two days: each day a minimum of $ 20?
yonnie..must admit I'm still not totally comfortable with the detail to the Prime product....have been trawling through the PDS and found a few anomalies that I want to clarify....in particular Sect 2.13...Prime operates under"Direct Market Access Model"...as explained I can see this may complicate the placing/execution of trades.....effectively it seems that you buy off/& sell to Macquarie and they do the buying & selling into the actual market (except in certain situations). It states that it is "unlikely" to accept orders placed outside 10am to 4.10pm! How can this be???
Another point - they offer GSL on certain stock....although you can choose to operate using a free stop loss (but no settable limit....will sell at market once triggered). You would have to assume they would fill GSL orders in a falling market over those where stop-loss only placed, given that they have exposure to the downside....!?
Only about a quarter of the way through the 85 page PDS....so cannot draw conclusions as yet
It certainly isn't as good as Macquarie makes it out to be. This article delves in a bit more to the product:
Macquarie Prime takes on CFD market
I reckon those shares will be in your name: how else could they claim to give you the franking credits if that was not the case.
Order acceptance: could be that you can place your order on the platform outside market hours, but it will be placed into the market later.
Could be that GSL orders are released to the market earlier, but I dont know.
Just got an email from Macquarie telling me that all the shares on the ASX are tradable. At the time they said 1800+ but that was only because there were 1800+ shares on the market at that time. So thats clearified for me and I`m just waiting now for their infopack I ordered and we can sort out what`s going on.