Register Your Interest Now
Smarter way to manage your trades.

Trade now, settle later with
Discretionary Financing!

Discretionary Financing (DF) is a trading facility that allows you to buy shares and settle them any time up to T+7. This gives you significantly more flexibility compared to the Normal Trading cycle, which settles at T+2. With DF, clients will have a longer period to settle for the stocks purchased and the flexibility in terms of trading strategy and portfolio management. Fees incurred on DF are generally lower than brokerage fees incurred on multiple purchases and sales contracts.

The Benefits

Longer Settlement Period

  • Gain greater flexibility for your trading strategy and portfolio management.

Potential Lower Cost

  • Fees incurred on DF can be generally lower than the brokerage fees incurred on multiple purchases and sales contracts.

  • Enjoy potential Total Cost Savings compared to Normal Trading.

The Features

Acceptable Collaterals

Cash deposit & listed shares approved by the Bank. Non-acceptable stocks are PN17 Stocks, Warrants, Loan Stocks and RHB Capital shares.

Settlement

Settlement is by way of contra or cash. The settlement date is T+7, and forced selling takes place on T+8.

Rates

Please contact your dealer or remisier for the latest rates.

Normal Trading vs Discretionary Financing Trading

Normal Trading

for holding the position to >T+6
(Contra Period T+2)

  • Cost incurred on 3 BUYS & 3 SELLS contracts as illustrated below.
  • Buy and sell prices are subject to market fluctuation.

Discretionary Financing Trading

(Contra Period T+7)

  • Cost incurred on 1 BUY & 1 SELL contracts as illustrated below.
  • With DF, you only lock-in 1 BUY price

Normal Trading

Discretionary Financing Trading


Note: 1 DF Trading Cycle = 3 Normal Trading Cycles
In Normal Trading (T+2), if you do not settle your position by T+2 but wish to hold the same stock longer, a force-sell will be triggered on the existing contract, and you must buy it again at the prevailing market price. Each rollover beyond T+2 creates a new Buy and Sell contract, resulting in multiple Buy/Sell cycles (e.g., 3 Buys and 3 Sells) and higher trading costs.

Example

RM90,000 trading value.

(brokerage at 0.6% per transaction, DF fees at 0.3%, DF interest at 8% per annum, 5-day holding period)

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

Normal Trading

Brokerage
(0.6% x 6 Transactions x RM 90,000)

RM 3,240
Total Cost RM 3,240
Discretionary Financing Trading

Brokerage
(0.6% x 2 Transactions x RM 90,000)

RM 1,080

DF Fees
(0.3% x RM 90,000)

RM 270

DF Interest
(RM 90,000 x 8% x 7 days / 365)

RM 138.11
Total Cost RM 1,488.11

Total cost saving with DF : RM1,751.89

Maximize your success with Discretionary Financing! Get the savings and flexibility you need to execute your strategies with confidence. Fill in the form below or speak to your Dealer's Representative for more details.

Don't have a trading account yet?

Please fill out the form below to begin your investment journey.
A representative will contact you to help you get started.

Are you an existing share trading client?

Full name*

Contact number*

Email address*

Please select your preferred branch*