Stock Trading Conditions
Reuse of stock investment collateral for other investments
Fab Investing allows a percentage of the collateral invested in certain stocks to be used for margin trading activities (Forex, CFDs, Futures and Contract Options trading). See the percentage of collateral that can be used from each stock.
Stocks used as collateral for margin trading cannot be used to cover realised/unrealised losses.
Certain exchanges do not support Market orders. If a client places a market order in these markets, Fab Investing 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 any problems with your order, you should contact Fab Investing immediately.
American Stock Exchange (AMEX)
Oslo Stock Exchange (OSE)
Athens Stock Exchange (AT)
OMX Copenhagen (CSE)
Australian Stock Exchange (ASX)
OMX Helsinki (HSE)
London International Exchange (LSE_INTL)
OMX Stockholm (SSE)
London Stock Exchange (LSE_SETS)
Singapore Exchange (SGX-ST)
In addition, some of our execution brokers may choose to convert Market orders on certain exchanges into aggressive limit orders 3% “in the money”. This is due to their internal compliance and is intended to protect clients from unintentionally moving the market.
Fab Investing will not be responsible for missing fills due to this.
In the case where an order regarding a security is split and partially filled 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.
Dividends from stock positions
Dividend payments from stock positions will be credited to the clients account with any applicable standard withholding taxes deducted.
Fab Investing cannot currently support or offer preferential withholding tax rates that may be available due to residency or legal status.
Local Market Terms & Conditions
Clearing fee for Singapore Stocks
The clearing fee for Singapore Stocks will be reduced from 0.04% to 0.0325% of contract value. The cap of SGD 600 on this fee for contracts of SGD $1.5 million or more will be removed.
Clearing fee for Hong Kong Stocks
For Hong Kong stocks, Stamp Duty and other charges apply: 0.108%
Note: Automated trading from 09:30-16:30 with a break between 12:00 - 13:30.
Taxation on Irish Stocks
- 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.
- Ireland Stamp Duty 1.0% of Transaction Value for stock purchases only.
Taxation on Italian Stocks
From 1 March 2013 the Italian Financial Transaction Tax (FTT) of 0.10% will go live on all purchases of Italian shares and Equity linked securities (i.e. depositary receipts) in listed companies that have a registered office in Italy.
Please find here the Ministerial Decree as issued by the Italian Minister of Economy and Finance.
Taxation on UK Stocks
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.
Taxation on South African Stocks
The Johannesburg Stock Exchange applies a Securities Transfer Tax (STT) of 0.25% when opening a stock position (on stock buy trades) - this tax is not applicable to Single Stock CFD trades.
Taxation on French Stocks
For French large cap Stocks a Financial Transaction Tax (FTT) of 0.20% apply to all buy trades.
The full list of the 109 affected Stocks can be found in the official application decree (in French).
Depositary Receipt fees - US
It is standard practice for US depositary receipts to charge an annual administration fee up to USD 0.05 per share depending on the issuing depositary bank.
The intent of the fee is to cover costs for the banks that take on the operational processes necessary to issue and trade the depositary receipt line.
The fee is typically deducted when dividend payments are made. However, in the case where the depositary receipt does not pay a dividend or did not include the custodial fee in their dividend events, the fee will be administered through fee-only events.
The dividend fee is stipulated in the Deposit Agreement between the depositary bank and the company based upon industry standards. The Deposit Agreement is filed with the SEC and is readily accessible by the public.
The fee per depositary receipt is not dependent on the total amount of dividend being paid but the amount of shares held.
SEC Section 31 Fees for US CFD DMA and Shares
Fab Investing passes on to clients the SEC Section 31 fee of of $18.40 per million (0.184 bps) on US exchange CFD DMA and stock SELL transactions where client orders are entered directly into the underlying market.
Regular CFDs are exempt from this charge. This fee applies only to US exchanges.
To read more about Section 31 visit: http://www.sec.gov/answers/sec31.htm
Click here to read press release from U. S. Securities and Exchange Commissions.
Pre-Opening Order Fills in US Markets
In US markets, Fab Capital Markts consolidates liquidity from a number of sources in addition to the primary exchanges.
When there is a delay in the opening of the primary exchange, orders can be filled from these other sources before trading commences on the primary exchange.