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Margin Lending

Margin Lending

Investment loan that lets you borrow money to invest in shares.

Using a margin loan to amplify your investing power can be an effective way to build wealth, diversify your portfolio and could offer tax benefits as well. However, just as it has the potential to grow your wealth, if stocks go down in value your losses will be amplified as well. It’s important to weigh up both the benefits and the risks when thinking about investing with a margin loan.

What are some of the benefits?

  • Boost your investing power - increasing the size of your investments could amplify your profits in a rising market as well as increase the size of any dividend payments
  • Diversify your portfolio - access to more funds means you could diversify across different asset classes, industries and companies. This in turn could also help reduce investment risk.
  • Potential tax advantages - depending on your circumstances you may be able to claim tax deductions for some or all of your borrowing costs.

Subject to your client status as a Professional client using a margin loan to amplify your investing power can be an effective way to build wealth, diversify your portfolio and could offer tax benefits as well. However, just as it has the potential to grow your wealth, if stocks go down in value your losses will be amplified as well. It’s important to weigh up both the benefits and the risks when thinking about investing with a margin loan.