Stocks Trading Conditions

 

 

Stock Trading Conditions

Reuse of stock investment collateral for other investments

Saxo Bank allows a percentage of investment in certain stocks to be used as collateral 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.

Market Orders

A small number of exchanges do not support Market orders. If a client places a market order in these markets, Saxo Bank 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 Saxo Bank immediately.

Exchange​ ​
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. 

Saxo Bank will not be responsible for missing fill orders due to this.

Split Orders

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.

Dividends from stock positions

Dividend payments from stock positions will be credited to the clients account with any applicable standard withholding taxes deducted.

Saxo Bank cannot currently support or offer preferential withholding tax rates that may be available due to residency or legal status.

Transferring Stock

Read more about transferring stocks to your Saxo Bank account.

Updated 1st March, 2012

 

 

Local Market Terms & Conditions

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.

Typically the fee is deducted when dividend payments are made, however, in case 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

Saxo Bank passes on to clients the SEC Section 31 fee of $21.80 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 the U. S. Securities and Exchange Commission.

Pre-Opening Order Fills in US Markets

In US markets, Saxo Bank 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.

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.

Updated 1st March 2013