Why trade fractional shares with Perception Capital HK?

Increased buying power

Trading on margin allows you to buy more securities than you could on a cash-only basis

Flexible line of credit

Borrowing on margin gives you a flexible line of credit without additional paperwork or closing fees

Low margin rates

Perception Capital HK's margin rates are among the lowest available in the industry


How Margin Loans Work

A margin loan is a flexible line of credit that allows you to borrow against the value of securities you already own. Whether you want to increase your borrowing power to purchase more securities or looking for a source of flexible borrowing for short-term financing needs, a margin loan from Perception Capital HK can help you gain access to funds. When used correctly, a margin loan can help you execute your investment strategies. Before you begin, it is important to understand and weigh both the benefits and risks associated with margin trading.

Benefits

Enjoy these benefits of margin trading accounts:

  • The ability to leverage your investments
  • The ability to short sell a stock and profit from price declines
  • Increased returns when the value of your holdings moves in your favor
  • Avoid cash account violations caused by unsettled funds
  • Diversify your portfolio by using margin buying power
  • Short-term financing option without any additional paperwork or fees
  • Interest on margin loans may be tax deductible against your net investment income (consult with your tax advisor)

Risks

Understand the potential risks:

  • Potential margin calls
  • Increased potential loss if your securities decline in value
  • Possible greater losses than your original investment
  • Rise in interest rates may increase the cost of your loan
  • The firm can force the sale of securities or other assets in your account
  • You are not entitled to choose which securities or other assets in your accounts are liquidated or sold to meet a margin call

Buy a fractional share for as little as $5

Dollar Range Above/Below Base Rate Effective Rate
$1,000,000 + -2.25% 9.75%
$500,000 - $999,999 - 1.65% 10.35%
$250,000 - $499,999 + 0.25% 12.25%
$100,000 - $249,999 + 0.50% 12.50%
$50,000 - $99,999 + 1.00% 13.00%
$25,000 - $49,999 + 1.50% 13.50%
$0 - $24,999 + 1.75% 13.75%

As of July 28, 2023, the current base rate is 12%. Subject to change without prior notice.
When setting base rates, Perception Capital HK considers indicators like commercially recognized interest rates, industry conditions related to credit, the availability of liquidity in the marketplace, and general market conditions.

Get started with margin loans

Make sure you understand the risks and benefits of using margin

Have at least $2,000 of assets in your account

Complete the Margin Application & Agreement online

Once approved, you can start enjoying the benefits and flexibility that margin offers