What is margin lending?

[Chaka1988]

Hey guys

I was looking around for a stockbroker and I think that Bell Direct offer the cheapest rate of $15 for low value trades. However, they also charge $15 for margin lending. I am not sure what it is. Any ideas?

 

[Gunlom]

It basically means you have a loan with to buy shares.
Using debt to buy shares.

Don't race into it, because a mate has told you it's a great idea, and you can make alotta money....

Using debt has to be done carefully and with a plan, otherwise you can lose more than you put in. aka Storm Financial do some reading on that before thinking about using debt.

 

[Chaka1988]

Can I use them without the margin lending option?
I just want to trade normally and simply with no other options...

 

[Gunlom]

yes, easy as, just sign up, and deposit your hard earned cash, and put a buy order in, and in no time at all, you'll be the owner of some shares