How to get Low Rate Margin Loans
by Lonnie Best
What are margin loans?
There will be times, as an investor, that you'll come across a stock that you feel so confident about that you're willing to borrow more money than you currently have to invest in it.
When you borrow money for investment in a stock it is called "buying on margin", and this type of loan is called a margin loan.
Who lends Margin Loans?
Usually, your stock broker is the one who makes arrangements for you to buy stock with a margin loan from a bank of his choice.
How Do Stock Brokers Make Money
off of My Margin Loans?
The stock broker acquires the loan on your behalf at close to the prime interest rate, he'll add his own commission (perhaps 4% or more) to the interest rate you pay on the marginal loan.
For example, at the time of this article, prime rate is 4.5%. Many stock brokers double this rate and you'll ultimately pay close to 8.5% on your margin loan.
How to Avoid High Rate Margin Loans
Some Swiss Banks have brokers who are able to transfer your stock investments to their banks, and they're able to provide margin loans for:
Prime Rate + 1%
If you are interested in transferring your stock portfolio to a Swiss Bank and using a Swiss Broker, or if you simply want more information about Swiss banking. Fill out the form located at:
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