Fees and Costs
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Fees and Costs
The Trading Account (ZAR) provides access to both the JSE and International markets from one account across the following asset classes:
| Instrument Class | Account Type | Currency |
| Shares | Cash | ZAR |
| ETFs & ETNs | Cash | ZAR |
| Funds | Cash | ZAR |
| Structured Products | Cash | ZAR |
| Stocks, Indices, Commodities, Treasuries (CFDs) |
Margin | ZAR |
| Margin FX | Margin | ZAR |
Uniquely, South African-based clients can gain immediate access to global securities without the need to utilise their own individual annual foreign allowance.
South African Markets
| Instrument Group | Charge | Margin Rate | Minimum Trade Charge |
| JSE Shares & ETFs | 0.5% | N/A | R200.00 |
| Top 40 | R7.00 | 3% | No Min Fee |
| ALSI Futures | R20.00 | 6% – 8% | No Min Fee |
| ALMI Futures | R10.00 | 6% – 8% | No Min Fee |
| JSE CFDs | 0.35% | 5% – 25% | R100.00 |
* All CFDs incur a premium.
* All equities exclude statutory fees.
Note: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Typically, more than 50% of retail investors lose money when trading CFDs with Velocity Trade Capital (Pty) Ltd. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Should you decide to proceed and transact in OTC derivatives with us, you hereby undertake to acknowledge this warning.
International Markets
Shares and ETFs
| Market | Exchange | Symbol | Commission | Minimum Trade Fee |
| US | New York Stock Exchange | NYSE, ARCA | 0.50% | USD 20.00 |
| US | NASDAQ | NASDAQ, NSC | 0.50% | USD 20.00 |
| UK | London Stock Exchange | LSE_SETS | 0.50% | GBP 20.00 |
| Austria | Vienna Stock Exchange | VIE | 0.50% | EUR 30.00 |
| Belgium | NYSE Euronext Brussels | BRU | 0.50% | EUR 30.00 |
| Denmark | NASDAQ OMX Copenhagen | CSE | 0.50% | DKK 30.00 |
| Canada | Toronto Stock Exchange | TSX | 0.50% | CAD 20.00 |
| Finland | NASDAQ OMX Helsinki | HSE | 0.50% | EUR 30.00 |
| France | NYSE Euronext Paris | PAR | 0.50% | EUR 30.00 |
| Germany | Deutsche Borse (Xetra) | DAX | 0.50% | EUR 30.00 |
| Italy | Milan Stock Exchange | MIL | 0.50% | EUR 30.00 |
| Netherlands | NYSE Euronext Amsterdam (AEX) |
AMS | 0.50% | EUR 30.00 |
| Norway | Oslo Stock Exchange | OSE | 0.50% | NOK 30.00 |
| Portugal | NYSE Euronext Lisbon | LISB | 0.50% | EUR 30.00 |
| Spain | BME Spanish Exchanges | SIBE | 0.50% | EUR 30.00 |
| Sweden | NASDAQ OMX Stockholm | SSE | 0.50% | SEK 30.00 |
| Switzerland | SIX Swiss Exchange | SWX, VX | 0.50% | CHF 30.00 |
CFDs
| Equity CFDs | CFD Premium | Margin Rate | Minimum Premium |
| US Stocks | 0.30% | 5.00% | USD 20.00 |
| UK Stocks | 0.30% | 5.00% | GBP 20.00 |
| German Stocks | 0.30% | 5.00% | EUR 20.00 |
| Index CFD’s | Margin Rate | Spread | Commission |
| US30 (DJIA) | 1.00% | 2.50 | ZAR 4.50 per share |
| US500 (S&P) | 1.20% | 1.00 | ZAR 2.00 per share |
| USTEC (Nasdaq) | 1.20% | 2.00 | ZAR 3.20 per share |
| UK100 (FTSE 100) | 2.80% | 2.00 | ZAR 4.00 per share |
| STOXX50 (EuroStoxx) | 2.80% | 2.00 | ZAR 3.40 per share |
| GER40 | 2.30% | 2.00 | ZAR 4.00 per share |
| FR40 (CAC) | 2.30% | 2.00 | ZAR 5.60 per share |
| AUS200 (ASX) | 2.50% | 2.00 | ZAR 3.80 per share |
| HK50 (HSI) | 6.10% | 7.00 | ZAR 2.30 per share |
| Commodity CFDs | Margin Rate | Spread | Commission |
| BRENT * | 6.20% | 7.00 | ZAR 7.60 per share |
| GOLD | 1.50% | 2.00 | ZAR 1.00 per share |
| SILVER | 1.50% | 2.00 | ZAR 5.20 per share |
| Cocoa | 3.00% | 3.50 | ZAR 21.20 per share |
| Coffee Arabica | 3.00% | 3.00 | ZAR 4.00 per share |
| Coffee Robusta | 3.00% | 3.00 | ZAR 8.00 per share |
| Cotton | 3.00% | 15.00 | ZAR 2.60 per share |
| Orange Juice | 3.00% | 12.00 | ZAR 12.00 per share |
* Important information regarding the trading of BRENT and WTI:
BRENT and WTI CFD instruments are futures contracts that expire on a monthly basis. Clients holding these instruments on expiry dates will have their positions rolled over into the new contracts.
New contracts have different prices from the expired contracts they are replacing. Clients holding the CFD will therefore experience a shift in their positions’ value at the time of the roll relative to the difference in contract value. These positions will then be readjusted accordingly to their natural pre-expiry value within 24 hours of contract renewal via an adjustment of the account cash balance.
| Treasuries | Margin Rate | Spread |
| Canada Bank 3 Month | 3.00% | 3.00 |
| Canada Bond 10 YR | 3.00% | 6.00 |
| Euribor | 3.00% | 2.00 |
| Japan JGB | 3.00% | 4.50 |
| US Dollar Index | 3.00% | N/A |
| Margin FX | Margin Rate | Spread | Commission |
| AUD/CAD | 1.00% | 5.00 | ZAR 76.00 per share |
| AUD/CHF | 1.00% | 3.00 | ZAR 67.00 per share |
| AUD/JPY | 1.00% | 3.00 | ZAR 43.00 per share |
| AUD/NZD | 1.00% | 2.50 | ZAR 32.00 per share |
| AUD/USD | 1.00% | 3.50 | ZAR 63.00 per share |
| CAD/CHF | 1.00% | 3.50 | ZAR 65.00 per share |
| CAD/JPY | 1.00% | 3.00 | ZAR 45.00 per share |
| CHF/JPY | 1.00% | 3.50 | ZAR 53.00 per share |
| EUR/AUD | 1.00% | 4.00 | ZAR 54.00 per share |
| EUR/CAD | 1.00% | 4.00 | ZAR 61.00 per share |
| EUR/CHF | 1.00% | 3.00 | ZAR 82.00 per share |
| EUR/GBP | 1.00% | 3.00 | ZAR 76.00 per share |
| EUR/JPY | 1.00% | 3.00 | ZAR 45.00 per share |
| EUR/PLN | 1.00% | 18.00 | ZAR 32.00 per share |
| EUR/SEK | 1.00% | 30.00 | ZAR 80.00 per share |
| EUR/USD | 1.00% | 1.00 | ZAR 45.00 per share |
| EUR/ZAR | 1.00% | 100.00 | ZAR 150.00 per share |
| GBP/AUD | 1.00% | 4.00 | ZAR 63.00 per share |
| GBP/CAD | 1.00% | 6.50 | ZAR 89.00 per share |
| GBP/CHF | 1.00% | 4.00 | ZAR 82.00 per share |
| GBP/JPY | 1.00% | 5.00 | ZAR 72.00 per share |
| GBP/NZD | 1.00% | 8.00 | ZAR 95.00 per share |
| GBP/USD | 1.00% | 4.00 | ZAR 78.00 per share |
| GBP/ZAR | 1.00% | 135.00 | ZAR 211.00 per share |
| NZD/CAD | 1.00% | 4.50 | ZAR 55.00 per share |
| NZD/CHF | 1.00% | 4.50 | ZAR 69.00 per share |
| NZD/JPY | 1.00% | 3.50 | ZAR 48.00 per share |
| NZD/USD | 1.00% | 3.00 | ZAR 47.00 per share |
| USD/CAD | 1.00% | 3.00 | ZAR 52.00 per share |
| USD/CHF | 1.00% | 3.00 | ZAR 60.00 per share |
| USD/JPY | 1.00% | 2.50 | ZAR 42.00 per share |
| USD/ZAR | 1.00% | 100.00 | ZAR 150.00 per share |
| ZAR/JPY | 1.00% | 8.00 | ZAR 20.00 per share |
*Additional instruments and markets are available on request.
Note: Non-equity instrument spreads are affected by market liquidity which varies throughout market trading hours.
South African Statutory Fees
| Fee or Tax Type | Cost |
| STRATE |
0.005787% (excluding VAT) based on the value of the share transaction: • The minimum is R10.19 for trades with a value up to R176,000.00 • The maximum is R73.49 for trades with a value over R1,270,000.00 This fee is for the electronic settlement of your share transactions through STRATE, the electronic settlement authority. |
| FSCA Investor Protection Levy |
0.0002% (excluding VAT) on all trades (excluding international markets) |
| Custody | 0.20% per annum (excluding VAT) levied monthly on an account by account basis: JSE Shares: • Minimum of R50.00 per month • Maximum of R200.00 per month International Shares: • Minimum of USD/EUR/GBP 5.00 per month |
| SAFEX & Clearing | SAFEX fees are based on a percentage of the closing price of the Index future. Trade fees quoted are ALL inclusive of commissions, VAT and SAFEX and Clearing fees. |
Global Statutory Fees and Taxes
| Country | Name | Tax Code | Side | Rate |
| France | Financial Transaction Tax | FRFTT | Buy | 30 bp |
| Hong Kong | Stamp Duty | HKSTAMP | 10 bp | |
| Hong Kong | Trading Fee | HKTRAD | 0.5 bp | |
| Hong Kong | Trading Levy | HKLEVY | 0.27 bp | |
| Ireland | Stamp Duty | IESTAMP | Buy | 100 bp |
| Ireland | Levy | IELEVY | Gross 12,500.00 and above: 1.25 / allocation | |
| Italy | Financial Transaction Tax | ITFTT | Buy | 10 bp |
| United Kingdom | Levy | GBLEVY | Gross 10,000.00 and above: 1.00 / allocation | |
| United Kingdom | Stamp | GBSTAMP | Buy | 50 bp |
| United States | Sec Fee | USSEC | Sell | 0.231 bp |
Administrative Costs
| Service | Fee (ex VAT) | Description |
| Withdrawals | R 25.00 R 250.00 |
Per withdrawal Per real-time withdrawal |
| Outward Portfolio Transfers (‘Exit Fee’) |
– R 50.00 for JSE Stocks – USD 30.00 for US Stocks – USD 60.00 for Other Stocks |
The fee incurred per share holding to transfer to another broker. Maximum Fee Limits: • JSE Stocks: R 450.00 • US Stocks: USD 100.00 • Intl Stocks: USD 180.00 |
| Transfer of Ownership | R 100.00 for JSE Stocks USD 25.00 per share holding |
Change of beneficial ownership of shares |
| Interest on Account Equity |
Base Rate less 2.00% | The interest earned on funds in your account. Note: If a negative Net Free Equity and/or Account Value balance occurs, interest will be charged at a rate equal to the Base Rate plus 5% per annum. |
| Foreign Investment Facility |
0. 35% per annum | A fee of 0.35% per annum is charged on the use of Velocity Trade’s Foreign Investment Facility (sometimes referred to as an ‘Asset Swap’). |
| Wire Fee | R 450.00 |
A daily Wire Fee is charged in relation to the settlement of payments to and from your trading account where a currency conversion occurs. • This fee is charged per day and not per trade. • Trades filled before 14:00pm GMT+2 will share the cost of the daily Wire Fee. |
| FX Translation | Daily FX Spot rate |
A daily FX Translation adjustment is applied to the settlement of payments to and from your trading account where a currency conversion occurs. • Trades filled before 15:00pm GMT+2 will be adjusted using a daily FX Spot rate. • Trades filled after 15:00pm will be adjusted using a daily FX Spot rate for the following business day (South Africa). |
| Admin fee | R 129.00 | Monthly account administration fee |
Note: Fees quoted in USD or foreign currency will be converted into ZAR at the prevailing USD/ZAR exchange rate and charged to the account in ZAR.
Tax Considerations
Income from Securities is credited net of any applicable statutory withholding taxes.
Note:
-
- Investors benefit from a reduction in US withholding tax from 30% to 15% on dividends earned from US shares.
-
- There is no withholding tax on UK shares.
Velocity Trade provides annual tax summaries. For any tax considerations, please consult your financial advisor or tax consultant.
Tax Clearance:
SARS grants Approval for International Transfers of R10 million for individuals, and an annual discretionary allowance of R1 million per year. The
latter does not require a tax clearance certificate.
If you have reached your individual limit for the year, you can make use of Velocity Trade’s Approval for International Transfer (AIT).
Market Data
Clients are required to nominate the market data types they require when completing an online application form. This can be adjusted at any time on
request.
| Description | Cost (ex. VAT) | Frequency |
| International Stocks – Non-Professional End User * | USD 10.00 | Monthly |
|
JSE – Non-Professional End User |
ZAR 150.00 |
Monthly |
JSE Policies can be found on the JSE website.
Financing
If you keep a Cash CFD position open overnight (after 10pm GMT), we will make an interest adjustment to your account to reflect the cost of funding your
position. The interest adjustment is based on the interbank funding rates. We debit your account if your position is long, and credit your account for a short position – if the interbank funding rate is greater than 3.00%*.
For nearly all our markets, this is calculated in the same way for CFDs. For Forex, the funding cost is calculated differently as explained below.
Daily Funded CFDs
| Long Positions | Short Positions |
| We charge 3.00%* above the relevant interbank rate, e.g. SAFEY. For example: If the relevant interbank 1-month rate is 0.50%, you would be charged 3.50% (annualised). |
You receive the relevant interbank rate, minus 3.00%*. • If the interbank rate is greater than 3.00%, we credit your account. • If the interbank rate is less than 3.00%, your account is debited. For example: If the relevant interbank 1-month rate is 0.50%, you would be charged 2.50% (annualised). |
* 3.50% on international CFD contracts
Forex Positions
| Forex Positions |
| For CFD Forex positions, we apply an adjustment overnight, which reflects the interest rate differential between the two currencies. |
Disclaimer
The fees listed are subject to the fee structures within the fee schedule and are only updated once the information is published by the provider. Due to the delay in publishing the fees, the actual fees charged may differ from the fees listed above.
