Thursday, April 20, 2017

HLeBroking 1Trade - stock trading account with the best of both world

There are several types of stock trading account available for HLeBroking service provided by Hong Leong Investment Bank in Malaysia.

ValueTrade is a type of cash upfront account in which you can only buy with cash in trust account, with the advantage of low brokerage fee of 0.106% (including GST) and also interest to cash in trust account above RM1,000 at the rate of slightly lower than fixed deposit rate.

PowerTrade is a type of collaterized trading account which allows you to trade up to 2x cash in trust account and 2x share collateral value.

1Trade is a hybrid trading account that combine the best of both ValueTrade and PowerTrade. For 1Trade:

  • If your purchase contract is fully covered by cash in trust account, the brokerage fee is 0.106%, same as ValueTrade.
    • If you sell within T+3, your selling brokerage fee is also 0.106%.
    • If you sell within T+4 and T+7, your selling brokerage fee is 0.1908% if the transaction amount is above RM100k, less than that the brokerage fee is 0.4028%.
  • If you purchase without cash upfront, the brokerage fee is still 0.106% for day trading. If you don't sell within the same day, your brokerage fee will become 0.1908% (transaction amount is above RM100k) or 0.4028% (transaction amount is below RM100k). There will be force selling after T+7 if you still haven't settle the contract.
  • If you do day trading, the brokerage fee for both buy and sell transactions within the same day is 0.106%.
  • Regardless how the transaction is done, the minimum brokerage fee is RM8.48 including GST.
Therefore, with 1Trade account, you can:
  • Enjoy low brokerage rate for day trading and T+3 cash upfront buying.
  • Enjoy the flexibility of 2x trading limit like other collaterized ordinary trading account, with the trade-off of higher brokerage fee.
I would advise for you to stay disciplined with ValueTrade trading account if your overall portfolio value including cash and shares is below RM300k. If it is above and you got tendency to trade stock in amount of at least RM100k in a batch, then you can take advantage of 1Trade by converting to it.


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