You will be charged with interest if any of these happens:
You have negative balance in any of your currency accounts
Net negative value from the cash balance in your main account, unrealized profits or losses from open CFDs, FX and Futures in your main account and overall margin requirement for all your currency accounts. (Interest will be accrued on main currency account)
Formula: Cash balance in main account + Unrealized Profit/Loss from open Leveraged Products in main account – Any margin required for financing open positions in all currency accounts.
Result: Any negative value will result in interest accrued on main currency account.
Net negative value from the cash balance and the unrealized profits or losses from open CFDs, FX and Futures of the same currency account. (Interest will be accrued on respective currency account)
Formula: Cash balance from currency account + Unrealized Profit/Loss from open Leveraged Products in the same currency account.
Result: Any negative value will result in interest accrued to the same currency account.
Account negative balance
Some examples why you may have a negative balance in your currency account:
If you have multiple currency accounts and have sufficient funds in your overall account, you have to ensure that the currency account you have used to execute a trade has sufficient cash balance, or else you will incur interest charges when negative balance occurs. In the scenario that you have performed a trade without sufficient cash balance, check your balances after 2pm and top up your account accordingly.
Overall account cash balance: SGD 10,370 (assuming FX for USD/SGD is 1.37)
SGD account cash balance: SGD 9,000
USD account cash balance: USD 1,000
You can place a trade up to SGD 10,370 or equivalent currency amount (including cost)
You buy Stock ABC using your SGD account for SGD 10,000.
SGD account cash balance: SGD -1,000 (You will incur interest for the debit balance on your SGD account)
USD account cash balance: USD 1,000
If you purchased a leveraged product on a currency account that has insufficient funds to cover your unrealized losses and maintain your margin, it will result in a negative balance and you will incur financing charges.
You have withdrawn receivable funds that are pending for settlement. Funds from your sales transaction will be available on the settlement date. This will take up to 3 business days from the transaction date, depending on the respective exchanges. Withdrawal of funds that have not been settled will incur financing charges, given that we are required to borrow capital to finance your early withdrawal.
Debit interest fee starts to accrue from the value (settlement) date until the negative balance diminishes to zero.
Interest is calculated daily and settled monthly – within seven business days after the end of each calendar month.
For interest breakdown, please view the Interest Details report under Account > Historical reports.
Interest rate used
The interest fee is a markup to prevailing market rate. Currently, the marked up is 8% p.a..
Interest charge settlement
Interest is calculated daily until negative cash balance diminishes to zero. Interest fee will be settled monthly, within seven
Where an instrument currency is different from the account currency, currency conversion will automatically take place at the point of transaction. The trading platform will take the prevailing FX rate and markup or markdown 0.5%. The currency conversion will be carried out on the nominal amount as well as the associated trading costs such as commission and GST on commission.
If the instrument currency appreciates against your account currency you will profit. Conversely, if the instrument currency depreciates against your account currency you will incur a loss. You can find the applied opening rate and an indicated closing rate in the Position Details.
To calculate the Conversion P/L, shown in the position details, you need to do the following:
Calculate the difference between the Open and Close conversion rate
Multiply the current market value of the position (in the instrument currency) by the difference between the two conversion rates.
Conversion P/L = (RateOpen – RateClose) * value of position
Equity Options: Short option positions held overnight will be subjected to financing charge at the prevailing interest rate with a markup of 1.5% calculated daily and charged at the end of the month. However, there will not be any financing cost for covered call.
CFDs: Long CFD position held overnight will incur an interest charge at the prevailing interest rate with a markup of 3.75% accrued daily and charged at the end of the month.
Short CFD position held overnight receive a financing credit at the prevailing interest rate with a markdown of 3.75% accrued daily and charged at the end of the month. If the financing rate becomes negative, the financing credit will be a charge.
Transfer in fee:
We do not charge any fees for incoming transfers of securities from your other brokerage accounts.
Transfer out fee:
There will be an exit fee for outgoing shares transfer to other brokerages. The fees charged are as follows:
Agent Fee – EUR 50 per counter (capped at EUR 160 per request)
Handling Fee – SGD 10 per counter
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