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(17-01-2022, 10:15 PM)Choon Wrote: With the increasing number of financial frauds and the recent OCBC fiasco, I am thinking to switch my margin financing account.
Currently I am with DBS Margin Financing. But have always felt that it is quite manual and not a SOLIDLY SECURE platform. I can only view my loan and collateral position at the end of each month when I receive the monthly statement. When I wish to utilise the cash in the account to pay down my margin loan position, I also have to go through a dedicated staff via WhatsApp and call.
Any recommendations for an alternative margin platform? My first and foremost consideration would be that the platform would NEVER collapse in the face of a financial crisis (as my shares are being held by that platform in its name). That was why I had chosen DBS.
1. If the utmost concern is about the safety of the bank, then DBS will be hard to beat. Look at what happen to SIA - if DBS also gets into trouble of that scale, i think T prob will do the rights and even MCB route. Anyway, the assets prob are ringfenced with another custodian. (Does DBS store the assets with itself or another custodian bank?)
2. If it is regarding financial fraud+Phishing - what is the maximum damage a hacker can do to your DBS Margin account?
a. the fella can transfer out your cash - but i suppose one safeguard is to not leave a huge amount of idle cash in that account+transfer limits.
b. the fella can sell your shares and then xfer out the cash - but settlement will take a few days and by then you will prob have realised something is wrong and done something.
If the concern is about efficiency of the platform, then it's a diff story of cos. But that have to be balanced/tradeoff with safety which seems to be your primary concern.