What are the costs?

October 18, 2011

Uncategorized

Margin

As the holder does not provide the full contract value a deposit needs to be paid to cover potential losses. This deposit varies but can be as low as 5% for some shares.

Corporate action

All corporate actions in the underlying instrument will be reflected. This includes dividends and share splits.

Financing

In the same way as there is a finance cost/benefit in holding an underlying instrument, this is also reflected in holding a CFD. Financing (interest) applies to positions that are held open overnight.

On long CFD positions your account will be debited (charged) interest in respect of each day that your position is held open, whereas your account will be credited with daily interest (i.e. you will receive interest) on open short CFD positions.

The rate of interest charged will depend on the notional value of the position, and the currency in which the trade is held. For share CFDs, we base the rate on SABOR and a premium of 2.5% calculated from this base depending on whether you are long or short. (The premium is added to the base rate to calculate interest charges on long positions, and subtracted from the base rate to calculate the rate of interest paid on short positions).

For non-standard local (e.g. SATOP40 micro and mini contracts), global indices and forex contracts, the overnight financing is also based on SABOR and a premium of 3% is calculated from this base depending on whether you are long or short. (The premium is added to the base rate to calculate interest charges on long positions, and subtracted from the base rate to calculate the rate of interest paid on short positions). Standard sized contracts however still enjoy the 2.5% premium.

Please note that an annualized administration fee of 0.5% will apply to all short positions on stocks. This is calculated on a daily basis and equates to approximately 0.001% on positions held overnight.

You will also earn interest on the cash surplus in your account which is calculated on a monthly basis (SABOR – 2%).

Commission

Equities 0.2% Charged on opening and closing of position.
Minimum charge of R100.
24 hour SA40 Trading no commission Standard and Mini contracts – Starts from 10 points. Widens to 30 points in out-of-hours trading.
Micro contracts – Starts from 12 points. Widens to 32 points in out-of-hours trading.

Monthly JSE royalty Fee for live prices

Non-professional user Professional user
R60.00 per month
(No cost if 1 transaction is conducted in the month)
R223.00 per month
(No cost if a minimum of 10 transactions are conducted in the month)

Advanced Charts

For access to world class technical analysis and charting built into our platform, simply activate “Advanced Charts” under the “account preferences” tab.

R300 per month (no cost if 4 transactions are conducted in the month)

Market Depth

For access to the best 5 bids and offers on a live basis, simply activate this option under the “account preferences” tab.

R20 per month (no cost if 1 transaction is conducted in the month)

 

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