SharePower+
Are you seeking to boost your investment power? SharePower+ allows you to access 10X your monthly salary to seize the right market opportunities. What’s more, you only need to pay interest for the period of use, saving you time and money. Application is hassle-free and no upfront collateral is required.

At a glance:
  • Credit limit of 10X or 4X your monthly salary
  • No upfront collateral
  • Hassle-free account opening process
  • Loan quantum of up to S$200,000
  • Attractive interest of 0.033% per day (12% p.a.) on what you use

Pick up an application form at any of our branches or partners' offices or call 1800 747 7000

Philip Capital     Lim & Tan Securities
Next Steps
Call: 1800 789 7000
benefits
Highest credit limits2 SharePower+ gives you a credit limit of up to 10X your monthly salary (up to a maximum of S$200,000). Credit limits are adjusted on a daily basis and do not depend on actual settlement. For example, if you sell S$10,000 worth of shares today, you’ll increase your investment power by the same amount on the next trading day. You do not need to wait for actual settlement to occur.
Pay only for what you use, when you use it You’ll receive a waiver on your registration and annual fees. Your SharePower+ account is free of charges until you start to use it and when you do, you’ll only pay 0.033% per day (12% p.a.) on the amount that you use for the period that you use it.

Interest Calculation (10 Days)
You own S$5,000 worth of shares Interest at 0.033% per day x 10 calendar days = S$16.50 Your sold the same shares for S$5,500 Your profit: S$500 – S$16.5 = S$483.5
BUY Settlement Day Only S$1.65 per day SELL Settlement day  
No upfront collateral With SharePower+, there is no upfront collateral required giving you true flexibility in managing your investments. Starting to trade has never been easier
Hassle-free application process Pick up an application form, complete it in the comfort of your home or office, and mail it back at your convenience. No unnecessary trips, no waiting in line, it’s simply hassle-free.
Get XtraSaver at no additional charge With SharePower+, there is no upfront collateral required giving you true flexibility in managing your investments. Starting to trade has never been easier.
An account to suit your investment strategy We understand that everyone has different risk appetites and investment goals. It is precisely for this reason that we offer two types of account: 10X or 4X of your monthly salary. Simply select the limit that you’re most comfortable with.

SharePower+ Terms and Conditions apply
  1. Outstanding amount is on a portfolio basis
  2. As of 17 September 2007.
  3. Assuming this is the only counter you own and you have done no further trades that month.
How SharePower+ Works For You SharePower+ gives you a credit limit of either 10X or 4X your monthly salary (your choice) without any upfront collateral from you. The shares you buy will then become your collateral. When you sell the shares, the proceeds go toward reducing your outstanding loan1. Any extra cash is all yours!
Advantage over the rest SharePower+ is unlike any other share financing facility in town, offering seamless integration from trade to settlement. The best part is you don’t even have to lift a finger - just submit your order, and let SharePower+ take care of the rest.

A comparison between a typical Personal Credit Limit (PCL) and SharePower+:

You can transfer your profits from your SharePower+ investments to your XtraSaver account. Your XtraSaver MasterCard debit card is also an ATM card, allowing you to make withdrawals at over 100 ATMs islandwide. Alternatively, you can withdraw your funds with your XtraSaver cheque book.
DEFINITIONS
Pre-approved Limit:
The maximum limit that the Bank has allocated you (e.g. 10X your monthly salary).
Unutilised Limit:
In simple terms, the residual limit left to you after all your cumulative transactions.
Trading Limit (Managed by Broker):
The intra-day limit managed by your Broker for your transactions.
Examples
Interest Calculation and Billing
  • Interest Rate is at 0.033% per day or 12% per annum
  • You used S$5,000 to buy shares
  • You held your shares for 10 days past settlement day
  • Interest Charged = [0.033% of S$5,000] x 10 (Days) = S$16.50
  • Assuming this is the only transaction that you have done this month, at the end of the month: S$16.50 of interest will be debited from your account
  • Interest is calculated daily and charged monthly
Product Mechanics
Buying, Selling, and Limits
You have a S$30,000 Pre-approved Limit and no cash balance in your account.

Day 1:
You purchase 10,000 shares of Company A at S$1.00 each Amount financed = S$10,000

Close of Trading on Day 1:
Your Unutilised Limit will be reduced to S$20,000

Day 2:
You will have a Trading Limit of S$20,000 extended to you by your Broker

Day 3:
You BUY 5,000 shares of Company B at S$1.00 each

  • Amount financed = S$5,000
  • Trading Limit REDUCED to S$15,000

You SELL 10,000 shares of Company A at S$1.00 each
  • Proceeds = S$10,000
  • Trading Limit REMAINS to S$15,000

Close of Trading on Day 3:
Your Unutilised Limit will be [S$20,000] – [S$5,000 Buy Company B] + [S$10,000 Sell Company A] = S$25,000

Day 4:
You will have a Trading Limit of S$25,000

Read more + 		Realised Loss
You own S$15,000 worth of shares in the following breakdown:
  • Company A: 10,000 shares at S$1 each = S$10,000
  • Company B: 5,000 shares at S$1 each = S$5,000
  • Total amount financed: S$15,000
Day 1:
You decide to execute a SELL order at the following prices:

  • Company A: Falls to S$0.90 each
  • Company B: Rises to S$1.05 each
Total sale proceeds due on Settlement Day = S$14,250

Settlement Day:
You have a Realised Loss of S$750 because: [Settlement proceeds] – [Amount financed] =
[Realised Gain/Loss][S$14,250] – [S$15,000] = –S$750
Read more +
Cash Balances and Limits
You have a S$30,000 Pre-approved Limit and a cash balance of S$5,000 in your account. Available Balance = S$5,000

Day 1:
You BUY 10,000 shares of Company A at S$1.00 each
Contract amount = S$10,000

Close of Trading on Day 1:
Your Unutilised Limit will be
[S$30,000] – [S$10,000 Buy Company A] = S$20,000

Day 2:
You will have a Trading Limit of S$20,000

Settlement Day:
You BUY 5,000 shares of Company B at S$1.00 each

  • Amount financed = S$5,000
  • Available Balance = S$0

Read more + 		Margin Call
A Margin Call is triggered when 115% of the current market value is less than amount financed.

Day 1:
You own 10,000 shares of Company A at S$1.00 each

  • Amount financed = S$10,000
  • Current Market Value = S$10,000

Day 2:
Company A's shares fall in value to S$0.85 each at market close

  • Amount financed = S$10,000
  • Current Market Value = S$8,500
  • Top Up Collateral Value = 115% of Market Value = S$9,775

Amount to top up:
[Amount financed] – [Top Up Collateral Value] = S$10,000 – S$9,775 = S$225

Day 3:
A Margin Call will be issued for you to top up a minimum (it is recommended that you top up more than this to reduce the chance of repeated Margin Calls should the market move further) of S$225 within five business days.

A Margin Call is triggered when 115% of the current market value < amount financed.

Read more +
Realised Gain
You own S$15,000 worth of shares in the following breakdown:
  • Company A: 10,000 shares at S$1 each = S$10,000
  • Company B: 5,000 shares at S$1 each = S$5,000
  • Total amount financed: S$15,000

Day 1:
Share prices increase and you execute a SELL order at the following prices:

  • Company A: S$1.10 each
  • Company B: S$1.05 each
Total sale proceeds due on Settlement Day = S$16,250

Settlement Day:
You have a Realised Gain of S$1,250 because: [Settlement proceeds] – [Amount financed]
= [Realised Gain/Loss] [S$16,250] – [S$15,000] = S$1,250

Read more +		 Force Sell
You have a S$30,000 Pre-approved Limit and no cash balance in your account.

Example 2:
A Force Sell is triggered when 125% of the current market value < amount financed.

Day 1:
You own 10,000 shares of Company B at S$1.00 each

  • Amount Financed = S$10,000
  • Current Market Value = S$10,000

Day 2:
Company B’s shares fall in value to S$0.75 each at market close

  • Amount Financed = S$10,000
  • Current Market Value = S$7,500
  • Force Sell Collateral Value = 125% of Market Value = S$9,375

Day 3:
Your shares will be force sold. When a Force Sell is issued, your trading account will be suspended pending further review.

Close of Trading on Day 3:
Company B’s shares remain at S$0.75 and your shares were force sold at S$0.75 each

  • Proceeds from Force Sell = S$7,500
  • Outstanding Amount = [Amount financed] – [Proceeds from Force Sell] = S$2,500

Order of Force Sell:

  • Force Sell will be conducted on a portfolio basis
  • The order in which the counters are force sold is at the discretion of the Bank.
Read more +