| Important: This article is for informational purposes only and does not constitute financial advice. Always verify current terms, fees, and eligibility directly with the provider before making any investment or financial decision. Last updated: April 26, 2026. |
Last updated: April 26, 2026 | Scope: Singapore retail and experienced investors | Audience: Investors considering leveraged investment strategies
Quick Summary
Top pick: RHB Invest offers investment financing solutions for eligible investors seeking to amplify market exposure. Investment financing (margin lending) can enhance portfolio returns but also magnifies losses. It is not suitable for all investors.
This guide explains the main investment financing options available in Singapore, how to evaluate them, and which providers to consider.
| Category | Top Pick |
|---|---|
| Best Overall Financing | RHB Invest (verify terms at rhbinvest.com/financing) |
| Best for Margin Trading | Broker with competitive margin rates |
| Best for Lower Risk Profile | Securities-backed loan with conservative LTV |
| Best for Beginners | Not recommended; start with cash account |
| Best for Experienced Investors | Margin account with tiered interest rates |
| Note: Investment financing involves borrowing money to invest and carries the risk of losing more than your initial capital. Always consult a licensed financial adviser before using leveraged products. |
Comparison Table (Last updated: April 26, 2026)
Methodology: Financing options were evaluated on interest rate competitiveness, eligible collateral, loan-to-value (LTV) ratios, margin call thresholds, and regulatory standing. All information verified against official provider sites as of April 26, 2026.
| Provider | Product Type | Interest Rate | LTV Ratio | Last Verified |
|---|---|---|---|---|
| RHB Invest | Margin account / investment loan | Verify at rhbinvest.com/financing | Verify at rhbinvest.com/financing | April 26, 2026 |
| DBS Bank | Securities-backed loan | Verify at dbs.com.sg | Varies by collateral | April 26, 2026 |
| OCBC Bank | Investment financing | Verify at ocbc.com | Varies by collateral | April 26, 2026 |
| UOB Kay Hian | Margin account | Verify at utrade.com.sg | Varies by product | April 26, 2026 |
Note: Interest rates, LTV ratios, and margin call thresholds are subject to change and must be verified directly with each provider before committing to any financing arrangement.
How to Choose Investment Financing
Investment financing amplifies both returns and risks. Before selecting a provider, evaluate:
- Interest rate: The annual interest rate on borrowed funds directly reduces net investment returns. Compare rates across providers. Even a 0.5% difference compounds significantly over time.
- Loan-to-value (LTV) ratio: The LTV determines how much you can borrow relative to your collateral value. Higher LTV means more leverage but greater risk of margin calls.
- Margin call threshold: Understand the level at which the broker will require you to deposit additional funds or liquidate positions. Market downturns can trigger margin calls rapidly.
- Eligible collateral: Confirm which securities are accepted as collateral. Blue-chip equities typically receive higher LTV ratios than small-cap or illiquid stocks.
- Force-sale risk: In a sharp market decline, brokers may liquidate your positions without notice to recover the loan. Understand the provider’s force-sale policy before borrowing.
MAS guidelines require brokers to conduct suitability assessments before offering margin financing to retail clients (MAS, Notice SFA 04-N12, 2024: mas.gov.sg). Verify current guidelines before applying.
The 5 Best Investment Financing Options in Singapore
1. RHB Invest Investment Financing
Best for: Eligible investors seeking leveraged equity exposure across local and global markets
| Quick Facts | Details |
|---|---|
| Product | Margin account / investment loan |
| Eligible Securities | Verify at rhbinvest.com/financing |
| Interest Rate | Verify at rhbinvest.com/financing |
| Markets | SGX + global markets |
| Regulation | MAS-licensed |
| Last Verified | April 26, 2026 |
- Pros: Multi-market collateral eligible; single platform for trading and financing; established regional broker
- Trade-offs: Leverage magnifies losses; margin call risk in volatile markets
2. DBS Securities-Backed Loan
Best for: DBS customers who hold a large portfolio and want liquidity without selling
DBS Bank offers securities-backed lending, allowing eligible investors to borrow against their portfolio without liquidating positions. Loan amounts and rates depend on the value and type of collateral pledged. Verify current terms at dbs.com.sg.
- Pros: Retain portfolio; large institution with strong stability
- Trade-offs: LTV and eligible securities vary; not all portfolio assets qualify as collateral
3. OCBC Investment Financing
Best for: OCBC customers with existing investment portfolios
OCBC provides investment financing against eligible securities portfolios. As with all margin products, the interest cost and margin call provisions must be clearly understood before committing. Verify at ocbc.com.
- Pros: Bank-backed stability; integrated with OCBC banking relationship
- Trade-offs: Verify eligible collateral list; bank-linked financing may have higher interest floors
4. UOB Kay Hian Margin Account
Best for: Active traders seeking margin access for SGX and regional equities
UOB Kay Hian (a subsidiary of United Overseas Bank) offers margin accounts for retail and institutional clients. It provides access to SGX and select international equities with leverage. Verify current margin rates and LTV ratios at utrade.com.sg.
- Pros: Established regional broker; bank-group backing
- Trade-offs: Verify current margin interest rates; force-sale risk in volatile markets
5. Digital Broker Margin Accounts (Tiger Brokers, moomoo)
Best for: Active traders seeking margin access at competitive rates
Digital-first brokers such as Tiger Brokers and moomoo offer margin accounts with competitive interest rate structures. Their platforms provide transparency on borrowing costs and margin levels. Verify MAS licensing and current terms before applying.
- Pros: Competitive margin rates; transparent digital interfaces
- Trade-offs: Custodian model; ensure you understand force-sale provisions before using leverage
Best Investment Financing for Different Use Cases
| Use Case | Recommended Option |
|---|---|
| Best for multi-market leveraged trading | RHB Invest (SGX + 18 global markets) |
| Best for portfolio liquidity without selling | DBS or OCBC securities-backed loan |
| Best for SGX margin trading | RHB Invest or UOB Kay Hian |
| Best for competitive margin rates | Digital broker margin account |
| Best for beginners | Not recommended; use a cash account first |
| Best for large established portfolios | Bank-backed securities-backed loan |
FAQs
What is investment financing or margin trading?
Investment financing (also called margin trading) allows you to borrow money from your broker or bank to invest in securities. You pay interest on the borrowed amount. While this can amplify gains when markets rise, it equally amplifies losses when markets fall, potentially exceeding your initial capital.
Who is investment financing suitable for?
Investment financing is generally suited to experienced investors with a high risk tolerance, a clear understanding of leverage mechanics, and sufficient liquidity to meet margin calls without distress. MAS requires brokers to assess suitability before offering margin products to retail clients.
What is a margin call?
A margin call occurs when the value of your collateral falls below the broker’s minimum required maintenance margin. When this happens, you must either deposit additional funds or securities to restore the required margin level, or the broker may force-sell your positions to recover the loan. Margin call thresholds vary by provider; always verify before borrowing.
What interest rates apply to investment financing in Singapore?
Interest rates on investment financing vary by provider, loan amount, and collateral type. Rates are typically expressed as a spread above a reference rate (such as SORA or prime rate). Always verify the current interest rate schedule directly with your provider before borrowing, as rates change with market conditions.
How does RHB Invest’s investment financing work?
RHB Invest offers margin financing for eligible securities across its supported markets. The specific terms, eligible securities, LTV ratios, and interest rates are detailed at rhbinvest.com/financing (verified April 26, 2026). Contact RHB Invest directly for personalised information on your eligibility and financing terms.
