Oct 26th 2011, 10:59 NBC Nintai Brokerage Corp.
by Cecil Niosaki
(NBC) Reminder! We offer Margin Accounts and Reserve Sales of IPOsWith all of the recent IPOs and SPOs going on, I thought it was a great time to remind everyone that Nintai Brokerage Corporation offers Margins Accounts!
Not only can users make their money earn more with these accounts, but they can also make reserve purchases for IPOs!
~~~Margin Account Description~~~
Margin accounts are similar to taking a loan from a broker. You know those times that you wish to buy stock, have the money, but don't want to leave it sitting in a limit buy order? Instead of having your money sit there, the broker will put his money up, and then when the sale goes through you pay the broker the cost plus a fee. It's a great way to make sure that your money isn't sitting there not earning!
~~~Margin Account Terms~~~
Because of the risk for the brokerage in doing a margin account, terms are less favorable for those without a portfolio held with the brokerage. Those without a portfolio held may make a limit buy of up to 1000L. Clients that currently have a portfolio with the brokerage may make limit buys of up to 60% of their portfolio held with the brokerage. Note that in the event that a limit buy remains unfulfilled for one month, the brokerage will inquire of the client if they wish to leave this limit buy up. If they chose to do so, the client must pay a fee of 50L for every 1000L in the buy order.
Once the limit buy is fulfilled, the client must pay the brokerage the loan value plus 2% within 10 business days. Failure to pay this loan will lead to seizing of all portfolio assets of the client in addition to being added to a brokerage blacklist.
Once this fee has been paid, there are two options for the client:
-The client can trade and sell this stock via the brokerage service
-The client can request that the stock be traded to their personal account. In the event of this option, the client will be required to pay a 5% fee to the brokerage plus any associated exchange fees.