Margin lending can make the most of your savings by maximising your investment opportunities. But make sure you make the most of your margin lender. Compare the margin loan market in seconds to find the best interest rates and features to suit your investment needs.Read more
Margin loans let you borrow money to put towards an investment. You can earn more from dividends and share-price gains by effectively investing the loaned amount. However, you need to be careful as you can also lose money very quickly should your shares drop in value.
The interest rate on margin loans is generally similar to those offered on personal loans. You can choose between fixed rates, offering more certainty around your repayments, and variable rates which can be more flexible and often start lower than fixed alternatives.
It's not all about big investment gains and raking in cash when it comes to margin loans. A drop in share price will see you lose value just as quickly as you gained it. In fact, if it drops too much or too fast, you could lose your initial equity or be forced to cover the losses with further funds, so make sure you read up on the risks before signing on the dotted line!