Margin accounts

What is a margin account?

The margin account takes the form of a credit facility made available to you by Keytrade Bank. This credit facility means you can invest the borrowed amount in financial instruments of your choice.

Which customers is the margin account aimed at?

The margin account is aimed at customers with an existing, diversified securities portfolio, primarily in EUR.

In which currency is the margin account available?

The margin account is only available in euros. Any exceeding of the credit facility in any other currency is deemed to be an unauthorised exceeding of the facility.

How often do I have to pay off the amount used under the credit facility?

The amount borrowed using a margin account must be paid off at least once within a five-year period.

What instruments are taken into account when calculating hedging?

Certain products (options, turbos, etc.) are excluded, and for other instruments and currencies, there is a reduction in the initial NAV (net asset value).

Can I make transfers from my margin account?

The margin account is a collateral account. Any transfer from your securities account to another accounts must be approved by Keytrade Bank. Of course, you can carry out stock market transactions in your Keytrade Bank portfolio.

What is the purpose of the margin account?

The Keytrade Bank margin account is an overdraft facility that only allows you to trade stock market instruments with leverage.

How can I cancel my margin account?

If you wish to cancel your margin account, you need to send us a signed cancellation letter and ensure that the full amount of the credit facility is available in your securities account.

Please note:

This product is intended for experienced, knowledgeable investors only. Due to its nature, this product may generate significant financial losses. Therefore, extreme caution is recommended. Please carefully read the information below regarding the risks. Please note that borrowing money also costs money.

What are the risks?

Use of credit and specific risks associated with the use of credit for the purchase of financial instruments

Customers are advised that the Bank is not required to verify, and will not verify, whether use of the credit facility complies with the purpose of the credit facility declared by the Customer to the Bank. The Customer alone is responsible for the use they make of the credit facility and, where applicable, for any use of the credit facility for a purpose other than that declared to the Bank.

The Customer is free to use the credit facility as he/she wishes, within the limits provided for in this agreement. However, the Customer’s attention is drawn to the fact that financing the purchase of financial instruments using credit entails specific risks, and in particular those outlined below (list not exhaustive):

please be aware that the leverage resulting from purchases of financial instruments using credit generates greater sensitivity to price fluctuations, and therefore presents a greater chance of gains, but also a greater risk of losses.  The risks associated with such purchases increase with the level of leverage. Losses incurred on financial instruments purchased using the credit facility may exceed the initial investment, and may make it difficult for the Customer to repay the amount borrowed, interest and fees. Fluctuations in prices of pledged financial instruments may also have an adverse impact on the Customer’s ability to repay the amount borrowed, interest and fees.

As indicated above, additional collateral may be required if the Account Value is lower than the required hedging. If the Customer is unable to provide additional collateral, the Bank may be required to sell the assets in the Account (including, where applicable, those financed using the credit facility), at an unfavourable price or time.

This (non-exhaustive) list of specific risks associated with the purchase of financial instruments using a credit facility is not intended to replace the Overview of the essential characteristics and risks of financial instruments, which the Customer acknowledges having received, read and understood, and which remains fully applicable.