Money's 2024 Margin Lender of the Year
By Money Team
Leveraged Equities has been named Money's 2024 Margin Lender of the Year as part of the Consumer Finance Awards.
Experienced investors who want to speed up their wealth-creation strategies have long used margin loans to help them achieve their aims.
"Margin loans are commonly used by investors seeking to increase their market exposure," says Lily Elliott, general manager of brokerage firm Leveraged Equities.
"Typically, they'll have a higher risk appetite, a medium- to long-term investment approach and a sound understanding of the equity markets and gearing strategies."
Leveraged Equities has won the Margin Lender of the Year award five years in a row.
The broker's extensive experience and dedication has enabled it to set its offering apart from competitors by expanding its product suite, says Elliott.
"Features include the ability to utilise selected exchange-traded-options strategies on the margin loan, building investment growth through instalment gearing and introducing a loyalty program that enables customers to earn Qantas Frequent Flyer points.
"We also offer lending on a large range of international shares that are held via a number of platforms."
Borrowing to invest in exchange traded funds (ETFs) is on the rise as the popularity of these products increases, says Elliott. There is also a growing trend among self-directed investors to use margin loans, stemming from an increased awareness of wealth creation opportunities among these investors, she says.
Leveraged offers three products, the Margin Loan, the Investment Funds Multiplier, and the Direct Investment Loan.
"Each has a point of difference allowing advisers and/or investors to select the product that best aligns with their requirements," says Elliott.
"The Margin Loan is our most comprehensive product for borrowing to invest into either equities or managed funds, and the Investment Funds Multiplier allows you to borrow to invest primarily into a wide range of managed funds, with the benefit of managing the loan through a repayment plan," says Elliott.
If your loan facility requires a payment instead of triggering a margin call, you have the option to repay 1% of the outstanding amount each month until the gearing position is restored to an acceptable level, explains Elliott.
"Additionally, for self-directed investors who don't require additional features, we provide the Direct Investment Loan, which offers a lower variable rate compared to the standard margin loan.
The Leveraged team consistently evaluates its products and features by incorporating feedback from customers and partners, says Elliott.
Service is also very important to Leveraged Equities, which is owned by Bendigo and Adelaide Bank.
"At Leveraged we differentiate our offering by the service we offer and the tools available to better manage gearing levels," says Elliott.
"For example, our customers can elect to receive targeted gearing alerts if their gearing level exceeds a nominated level. "
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