Trading on credit

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  • BenutzernameMoneyland User Questions
  • Status Member
  • Registriert seit1/27/17
  • Beiträge2142

I am interest in stock and currency trading using borrowed money. Has anyone here traded on credit in Switzerland? I'd appreciate any information you can offer: experiences, tips, loan comparisons...

 
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  • BenutzernameMoneyguru von moneyland.ch
  • OrtSchweiz
  • Status Expert
  • Registriert seit8/4/15
  • Beiträge4002

Hi there,

Most brokers give you the option of "leveraged" trading. In this setup, part of the assets invested are provided by you while your broker provides the rest as a loan. For example, a broker may lend you an amount equal to 10 times the amount you invest. Usually a margin is required to secure the loan.

Another option is to use a lombard loan to finance your investments. This type of loan is secured by the securities you purchase (assuming the securities retain enough value to cover your debt). You can get an overview of lombard loans offered by Swiss brokers here.

Best regards from Moneyguru

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