Exchanges and commissions for equity trading
A Custody fee of 0.1% on a yearly basis is applied. The fee is calculated based on the nominal value of the client’s assets at the last working day at the corresponding month. Equities cannot be “shorted”.
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- For UK stocks a Panel for Takeovers and Mergers (PTM) Levy and Stamp Duty may be applicable. Stamp Duty is applied on all buy transactions at a rate of 0.5% of the transaction value. A PTM Levy of GBP 1 is applied to buy and sell transactions where the Gross Value of the trade exceeds GBP 10,000. Please note that for Irish registered stocks, Stamp Duty is 1% of the transaction value for purchases only. Stocks have an ITP (Irish Takeover Panel) levy charge of 1.25 Euros for stock purchases and sales, where the trade value exceeds 12,500 Euros.
- The Italian Financial Transaction Tax (FTT) of 0.10% will be levied on all purchases of Italian shares and Equity linked securities (i.e. depositary receipts) in listed companies that have a registered office in Italy. The tax affects only the companies with market capitalization exceeding 500 mln. EUR.
- For French large cap Stocks a Financial Transaction Tax (FTT) of 0.30% apply to all buy trades. The full list of the 109 affected Stocks can be found in the official application decree.
- ELANA Trading passes on to clients the SEC fee of $23.10 per million (0.218 bps) on US exchange CFD DMA and stock SELL transactions where client orders are entered directly into the underlying market. This fee applies only to US exchanges. For more information please read press release published by U. S. Securities and Exchange Commission (SEC).
- For Hong Kong stocks, Stamp Duty and other charges apply: 0.108% .
- NASDAQ OMX Copenhagen, NASDAQ OMX Stockholm и NASDAQ OMX Helsinki are available for trading only after a subscription to live market data.
Use of stocks as collateral for margin trading
ELANA Trading allows a percentage of the investment in certain Stocks to be used as collateral for margin trading activities. Up to 75% of the value of a position in a Stock or ETF with Rating 1 can be used as collateral (instead of cash) to trade margin products such as Forex, CFDs, Futures and Options. Please note that ELANA Trading reserves the right to decrease or remove the use of Stock or ETF investment as collateral for large position sizes, or stock portfolios considered to be of very high risk. The collateral value of a stock position depends on the rating of the individual stocks or ETFs – please see conversion table below.
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To avoid concentration risk where clients have a very high exposure to the same underlying stock there will be additional collateral haircut on stocks. The additional haircut is applied only in the situation where in addition to the stock a long single stock CFD position is held. The additional collateral haircut on the stock value will be equivalent to the margin requirement of the CFD position. So in practice, this means the “Not available as margin collateral” will increase by the margin requirement of the single stock CFD.
Let’ look at a stock with collateral value 75% and CFD margin requirement 10%.
Stock price is 100, client has 100 shares with a total value of 100 x 100 = 10 000 and a collateral value of 75% x 10 000 = 7 500.
Using this collateral, and assuming no unrealized p/l and no cash, if the client opens 150 CFD his margin requirement would be 150 x 100 x 10% = 1 500 and his margin utilization would be 1 500 / 7 500 = 20%. If the stock and the CFD are on one and the same company a haircut is applied and the collateral value will be reduced by 1 500 to 6 000 and the margin utilization would be 1 500 / 6 000 = 25%.
If we assume instead of opening 150 CFDs, the client rather opens 375 CFDs the margin requirement would be 375 x 100 x 10% = 3 750 and his margin utilization would be 3750/7500 = 50%. If the stock and the CFD are on one and the same company a haircut is applied and the collateral value will be reduced by 3 750 to 3 750 and hence the new margin utilization would be 3750 / 3750 = 100%
In case an order regarding a security is split, and filled partially over a period of more than one day, the total trading costs may increase. The reason for such increase is that the minimum fee may be charged more than one time based on the number of days necessary for the total execution of the order.
Certain exchanges do not support market orders. If a client places a market order in these markets, we will automatically convert the order to an aggressive limit order within a certain percentage limit “in the money”. The Percentage Limit varies between 1% and 4% depending on the exchange and the type of instrument. Please note that it is a client’s responsibility to check if the order is filled in the market after order entry. If you experience or suspect any errors with your order, you should contact us immediately.
ELANA Trading offers the option to transfer stocks to and from your trading account. Please, contact us for more information.
Additional Stocks are allocated on the Ex-date.
Cash dividends are booked on the Pay date based on the holdings as one day prior to the Ex-date. The dividends payments are booked at pay date. Dividend payments from Stock positions will be automatically credited to the clients account with any applicable withholding taxes deducted.
The default payment form is cash. However, clients can elect to receive Stocks. The cash entitlements are booked at pay date based on Ex-Date holdings. The Stock entitlement will be allocated once the reinvestment rate is confirmed for value Pay Date.
Dividend reinvestment Plan (DRIP)
The default payment form is cash. However, clients can elect to receive Stocks. The cash entitlements are booked at pay date based on Ex-Date holdings. The Stock entitlement will be allocated once the reinvestment rate is confirmed for value Pay Date. For dividend reinvestments clients will be able to manually insert standing instructions at the individual security level.
Clients holding Stocks in their portfolio will have the possibility to tender prior to the deadline.
For exchange offers, clients holding a position in their portfolio will have the possibility to elect prior to the deadline.
A fractional stock is less than one full stock, and can arise as a result of a Corporate Action entitlement calculation. For the following Corporate Actions, ELANA Trading pays cash compensation for fractions whenever fraction compensation is applicable:
- Stock splits
- Reverse stock splits
- Optional dividends on stock positions
Mergers & Mergers with Elections
For mandatory mergers there are different outcomes: cash distributed on Pay-Date, stocks distributed on Ex-Date or a mix of Cash & Stocks distributed on Ex-date . For mergers with elections, clients have the possibility to elect prior to the deadline.
Stock Splits / Reverse Stock Splits
New Stock positions are allocated on the Ex-date.
Clients holding Stock positions will receive rights and can choose to sell the rights or subscribe to new Stocks. If ELANA Trading has not received a response from clients by the reply deadline date, ELANA Trading will if possible, sell the rights on behalf of our clients before they expire.If the rights are non-tradable, they will lapse and become worthless. The proceeds from the sale will be distributed to our clients, less standard commission for the account. The reason ELANA Trading carries out this action is to prevent rights from being worthless when they expire.
Australian Listed Events
For certain event types including but not limited to Non Renounceable Rights Distributions, Subscription Offers, Entitlement Offers, Rapid Offers, Retail Offers, Australian Listed Companies have the right to reduce entitlements to zero in certain circumstances and not to apply the abovementioned corporate actions.
Additional Stocks are allocated on the Ex-date for value on the Pay Date.
Taxes and Fees on Corporate actions
Taxes and fees may also occur on other corporate action other than cash dividends such as fee on a stock dividend or tax on a merger. When such taxes and fees occur ELANA Trading will debit the client’s account accordingly.
Clients holding warrants will have the possibility to exercise their warrant prior to the deadline. Warrants not sold or exercised will lapse worthless.
New Positions in non-online traded Instruments
Sometimes a Corporate Action involves an instrument that is not tradable online. Under those circumstances, positions in new instruments that are not tradable online, assigned as a result of a Corporate Action, are booked to the clients account. The instrument will be added to the client account for reporting purposes.
Client will not be entitled to vote at the Shareholders’ annual general meeting.
Capital gain distribution
Cash payment is allocated on Ex-date for value Pay date.
Special Corporate Action Events
Special and infrequent Corporate Actions that do not come under the descriptions above may occur. ELANA Trading will handle such Corporate Actions in the best interest of the client to the extent that time and operational procedures will allow.
Currency conversions of trading costs as well as profits and losses from trading activities are executed at the mid FX Spot rate when you close the position, plus/minus 0.5 %. For FX Options the rate is plus/minus 0.1 %.
The Currency Conversion fee does not apply to margin collateral. Only settlement of actual payments to or from the trading account are included, for example, buying/selling cash Stocks, paying/receiving options premium etc.
The rate used for currency conversion of amounts booked to your account is shown in the trading platforms under the “Trades Executed” report.
There is an “Inactivity” fee of 10 EUR or 10 USD, which is charged in the absence of an open position or a transaction in the platform for a period longer than 6 months. The fee is charged every month after the expiration of 6 months of inactivity. The fee is not charged in the absence of a client’s cash balance.
You must maintain the required margin collateral on ELANA Global Trader at all times. If at any time while a margin position is open, and the margin required to maintain that position exceeds the funds available for margin trading on the account, you are in breach of your contract. What happens if the required level of margin is violated?
- At 75% margin utilization – client will receive a message on the ELANA Global Trader platform informing him about the level of margin used.
- At 90% margin utilization – client will receive a message on the ELANA Global Trader platform informing him about the level of margin used and a warning that all margin positions will be closed if losses increase.
- At 100% margin utilization – ELANA Trading will, at its sole discretion and without consent from or prior notice to the client, force liquidate any of the client’s margin positions. Cash positions will not be closed.