Share Trading Account Australia

Share Trading Accounts Australia

Macquarie Prime

Using the Macquarie Prime program, it becomes possible to make use of a single online platform to complete trades of CFDs, ETFs, and shares in an integrated fashion. You may also borrow for your investments (at a rate of only 8.70% p.a.).  

If you happen to be waiting to develop your next investment, you may even earn an additional 4.25% p.a. for cash that you park in your account during that period of time. Macquarie Prime also includes outstanding tools for risk management, and allows you to chart your investments with the most up-to-date financial analysis available. Best of all, you have access to all of these services on a single internet platform that requires the use of only one security pass code.

COMPANY	ONLINE ASX TRADES	MIN/MAX TRADES	MIN DEPOSIT	MARGINS	OPTIONS	INTERNATIONAL TRADES	Apply
Macquarie Prime	Trade from as little as $20.00 per trade^^ - CFD's and Margin Lending available		$5,000	-	-	-

Shares Management

With Macquarie Prime you can complete internet trades on a platform that allows for access to more than two thousand securities that are listed on the ASX.

When you purchase shares, they fall under name-registration to be maintained in your HIN. This allows you to get the rights of your ownership of the share, which may include dividends, the right to vote on corporate decisions, or franking credit.

In fact, there is a table listing the shares available, demonstrating both the presently available shares and any pertinent margins to be considered… for example, whether you can order a Stop Loss, or whether you can create a short position.

What Gearing Is Offered?

One additional exciting option with Macquarie Prime is that it offers you the opportunity to borrow money for investment, known as “gearing.” This is not mandatory, of course, and you can choose to turn the loan option off or on, according to your needs and desires. Macquarie Prime is able to provide loans for as many as 750 securities found on the ASX.

One of the biggest benefits to this strategy is that the level for gearing varies, meaning that if you choose to use loaned assets to purchase shares you can also make a choice regarding how much of your own money you wish to utilise. This very practical option allows you to make the best choice regarding what level of gearing will make the most sense for your personal situation. You may personally select any gearing level between 0% and roughly 95%.

Variable Rates on Margins

When a “Guaranteed Stop-Loss” (or GSL) is used, the requisite margin to protect a position may be as small as 1.0 percent.

Shorting Available

If a client wishes to have a stock included on the Macquarie shorting list, an email can simply be sent to us at prime@macquarie.com.au. Of course, it must be noted that the shorting list for shares may change from time to time. If there are any queries regarding the shorting list or other related information, clients may feel free to contact us.

Note that clients’ maximal gearing rates will be eligible for the required margin related to a specific position, and there could be variances according to the share itself.

The Transfer of Current Shares and Loans

Potential clients who wish to transfer their current portfolio to a Macquarie Prime account will find that it is not a difficult task to accomplish. Even in the event that you currently have an investment loan pending with another portfolio, it is possible to apply for Macquarie loan refinancing as you move your portfolio into your Macquarie Prime account.

“Contract For Difference” (or CFDs)

An increasing number of investors use Contract for Difference (or CFDs) to be their tool for hedging. This is happening because of the special benefits that CFDs can provide, including an uncomplicated structure in addition to excellent abilities with management of risk.

Integration Using Macquarie Prime

CFDs with Macquarie are completely included as an integral part of the Macquarie Prime product. This means that you are provided with comprehensive services for all of your internet trading, tools for risk management, gearing, and cash management. Your CFDs and share positions can be held and transacted right there, on one handy platform. This integration offers you the advantage of margin offset.

Offset the Margins

The use of CFDs offers clients the opportunity to protect positions on shares using “short CFDs.”  This means that in the event that you have a long share positioned in your portfolio, then it allows you to hedge your position utilising a trade with a short CFD. In fact, that hedge can be custom fit to match the precise number of owned shares.

In most cases, you do not even need any additional margin deposit as a result of the short CFD transaction. That is the case because of “cross-margining,” which allows your owned shares to serve as the margin for the position of a “short CFD.”

The “Direct Market Access” (or DMA) Model

You will find that Macquarie offers CFDs through the model known as Direct Market Access (or DMA). We choose this model because we are convinced that DMA provides our clients with the clearest methods for structuring costs and understandable pricing.

Protection through “Guaranteed Stop Loss” (or GSL)

The excellent protection provided by Macquarie’s Guaranteed Stop Loss (GSL) plan protects clients from unpleasant surprises that could occur with share pricing changes throughout a GSL time period. When you have a GSL in place, this functions as a guarantee that you will have a “worst case scenario” price for the sale of a CFD position. This offers clients some terrific protection, showing how GSL time lets clients optimise the leverage of their portfolio.

Positions - The Long And The Short of It

Traders who are buying shares are ‘going long.’ They might have a impression that shares  with a particular company will increase in value. With that feeling, they can purchase the shares and then turn around and sell them at the new and higher price.

Sample Situation:

Let’s say you want to by ABC’s shares for $26.50 a share. You think that it is below value and that the price will go up soon. So, you opt for buying 1000 of said shares.

When you see that the price has risen a couple of dollars, you decide you want to sell your shares.

You have accomplished in acquiring a gain in your long position.

This is “Gross Gain”

• (Sale Price minus the Purchase Price) X the Quantity
• (28.50 X 26.50) X 1,000 shares
• $2,000

This example, however, does not include interest, taxes or any fees.

If you sell shares that are not yours that means you are “going short.” Traders can seize an opportunity if it arises by way of a price that has gone down using short positions. With Macquarie, you are able to take short positions in the shares through ‘borrowing’. These are Macquarie’s shares that you are allowed to sell in order to have the funds you need. If you think that a share is doing to drop then you can “short sell” the shares at their current price. You have the intention, however, of buying back the share when the price goes down in the future.

Sample Situation:

Let’s say you want to sell after closing on your long position. You see that company ABC has shares at $29.00 that are priced too high. You want to take a short position and sell your 1,000 shares of ABC. After a couple of weeks, ABC’s share price falls to $28.00 and you decide to buy the shares back. This is an illustration of your gain.

An Offset Account For You

Any gains that you have made when you sold short sold shares will generate revenue that can be placed into an account which is your “Funds Balance.” This account will allow you to reduce any interest you will have to pay if you borrow funds in order to invest in the shares.

This is highly efficient because your interest is calculated on the cash that is in your “Funds Balance” in your “Prime Account. This takes into account your long positions that have been purchased through the loan facility and the short positions.  This reduces your interest charges having both the long and short positions in your portfolio.

Refinance Your Loan

You have a lot of flexibility with Macquarie. You can transfer loans and current shares you have so you can take full advantage of any opportunities for further investment that come up. You also do not have to sell any of your existing shares. If you have a loan that is against your portfolio you can possibly refinance the loan using “Macquarie Prime Facility.”

Gearing Or Borrowing To Invest

When you ‘gear’ or borrow to invest, you can increase your wealth exponentially. This has been a popular method for doing so for a long time in the property market in Australia. For instance, you can place a deposit on a house but borrow the balance in order to make the purchase. You can do this in the financial markets, as well. Gearing is very popular and investors are able to gain exposure to a share or a security without much of their own cash.

You also have the optional loan facility. This allows you to take advantage of investing more than just the “750-ASX” securities. One of the best things about it is that the gearing is flexible. You can decide how much of your own money you want to put forward and how much you want to borrow. Your gearing level can go from nothing to up to 95%. It is up to you.

You are able to meet the necessary margin requirements by the shares that are purchased through the loan facility, but you can deposit more funds into the “Prime Account” which allows you to reduce your level of gearing. Your gearing level is calculated by the ratio of your Funds Balance” compared to the value of the long share positions you hold. During the term in which you have the GSL protection, you are protected no matter what happens to the share price.

Managing Your Risk

You are able to manage your risk substantially with the tools offered through Macquarie.

Here are some of the tools available to you:

• GSL (Guaranteed Stop Loss Orders)
  • This system protects you from any adverse movements in share prices. This guarantee gives you an agreed upon worst case exit price for a share.
  • You can also set the protection to be as close as 1% from the share’s current price. This gives you much protection against your investments. You can also reduce the collateral that is required down to as low as 1%.
  • You can change it at basically no cost. You can set it to follow the share price so you can secure profits. You can even do this online.
  • You can also reduce your loss to be as little as 1%. If your Guaranteed Stop Loss is set to 1% below the share price, then you are set to lose at the most only 1% of the price of that share.
• CFD (Contract For Difference)
  • You are able to trade shares and CFDs simultaneously. So you can use this to hedge your position. You also may be able to do this without the necessity of more “margin deposits.” You can also set it to have your gains and losses going into your account (Prime Cash Account) immediately. If you use a Contract For Difference for hedging purposes of your long share position, you can do so by enacting an equal and opposite CFD position. This CFD will counter-balance your risk by giving you an opposite exposure.

Macquarie Prime gives you the flexibility and protection you need in order to make your online trading more successful and more profitable.

 

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