Almost a month ago, I went down to Maybank Kim Eng Customer Service Centre at Beach Road (Gateway West) to open a margin trading account. It was a struggle for me as I have given them a wrong CDP account (last digit typo) which leads to some administrative issues with getting the margin account setup. Just when I thought that the worst was over after the administrative hassle over phone calls and emails, I received news that some value-added services will no longer be free and become chargeable from August 1st, 2019 onwards.
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| Extract from Maybank Kim Eng Website |
The main attraction originally was the low financing cost of 3.5% per annum as well as the free dividend handling charges coupled with no maintenance fees. But this has since changed with handling fees also for dividends. When I last checked with the Customer Service Officer, Maybank Kim Eng may waive off any custodian charges if there is active trading.
Since I figured that the terms have changed to mediocre, there is no longer any incentive to commence trading with Maybank Kim Eng. I called up my usual trading representative in UOB Kay Hian for help with regard to their higher 5% margin financing relative to Maybank Kim Eng and DBS Vickers. I was surprised that her management at UOB Kay Hian is willing to offer a concessionary rate (subject to some additional conditions to manage their credit risk) in view of my long trading history with them. So moral of the story I learned is that you never know if you never ask.
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