Copenhagen based online broker Saxo Bank has announced the launch of margin financing (also referred to as “margin lending”) accounts in its Saxo Singapore unit. With this launch, clients can now manage their investments purchased via margin lending separately from the rest of their assets.

Alongside the launch of Margin Lending Accounts, Saxo said it is also introducing a series of enhancements.

• Improved Collateral Rates: Tiered collateral rates now offer more favourable leverage for stocks and ETFs rated between risk levels 2 to 5.
• Partial Stop-Outs: To help clients manage their risks more proportionately, Saxo has implemented partial stop-outs for its Margin Lending Accounts, replacing the previous full liquidation model.

Saxo first introduced margin lending in 2023. In response to feedback gathered from clients, the company said it has implemented these enhancements to improve the overall margin lending experience.

Mahesh Sethuraman, Singapore CEO at Saxo said,

“This launch is a reflection of Saxo’s commitment to being a client-centric organisation. We are constantly listening to our clients and evolving our platform to deliver the best investing and trading experiences for our clients. The enhancements to our margin lending offering will provide greater flexibility, transparency, and strategic control, whether clients are looking to amplify their buying power or optimize dividend income. The team continues to charge forward, helping our clients not just be invested but to be invested with conviction and confidence.”

What is Margin Lending?

Margin financing, otherwise known as margin lending, is a financial service that allows investors to borrow money to invest in instruments such as stocks, ETFs, and bonds. The borrowed funds are secured against the value of the investor’s existing portfolio, which acts as collateral. While margin lending carries increased risks, it also allows you to invest more in trades you are confident in by boosting buying power and allowing you to supercharge your dividend yields.

For an example of how margin lending can improve dividend yields, see appendix A.

How it works?

When you enable “Margin Lending Account” on Saxo, a separate account called ‘Margin Lending’ is set up. Within this account, you can utilise a margin loan to support your trading of stocks, ETFs, bonds and stock options. You can also use a margin loan to support physical delivery of the underlying instruments upon option assignment.

Appendix A

*SORA offer rate used is 2.02% as of 24 June 2025. Mark up above the offer rate is 1% (VIP rate).