Discretionary Financing

Discretionary Financing is a trading facility that allows clients to settle their outstanding purchase at any time up to T+7. With Discretionary Financing, clients have the flexibility in portfolio management where a stock can be sold at a later date to cover the cost of a stock purchase.

Fees incurred on discretionary financing are lower than brokerage fees that need to be paid to rollover a purchase contract. Collateral is in the form of shares or cash deposits.

Quick view on Discretionary Financing

Example:

Brokerage Cost & Savings

Contract Value of RM100k

Brokerage (one way)

RM100k X 0.6% = RM600

Brokerage (two ways)

RM100k x 1.2% = RM1,200

Discretionary Financing fees

RM100k x 0.3% = RM300

Cost savings

RM1,200 – RM300 = RM900

Note: The figures above are for illustration purposes only. For the exact fees, please contact your dealer or remisier.

Non-acceptable Stocks

PN17 stocks, Warrants, Loan Stocks and RHB Capital shares

Settlement

Settlement is by way of contra or cash. Settlement date is by T+7 and forced selling is on T+8.

Rates

Please contact your dealer or remisier for the latest rates.