Stock and ETF trading conditions
Order types and Order handling
Algorithmic orders
Algorithmic orders are available for both Cash Stocks and Single Stock CFDs. Essentially, Algorithmic orders provide clients with the opportunity to trade through various strategies with larger ticket sizes that may otherwise impact the market price. They can also break down an order in smaller bites to avoid showing the full size of their order. This may be of particular interest for clients trading Stocks and Single Stock CFDs outside of the most liquid names. The following ‘Algo’ order types are offered:
- VWAP
- TWAP
- With Volume
- Implementation Shortfall
- Pre-Market Limit
- Iceberg
- Reload
- Dark
- Liquidity Seeking
- Market on Close
- Limit on Close
Supported markets:
| APAC | EMEA | NORTH AMERICA |
|---|---|---|
| Australia Hong Kong Japan Singapore | Austria Belgium Denmark Finland France Germany Ireland Italy Netherlands Norway Portugal South Africa Spain Sweden Switzerland United Kingdom | Canada United States |
Market Orders
Certain exchanges do not support Market orders. If a client places a market order in these markets, Quantum 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 Quantum Bank immediately.
Exchange
- American Stock Exchange (AMEX)
- Oslo Stock Exchange (OSE)
- 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.
Quantum Bank will not be responsible for missing fills due to this.
Market Orders placed during closed markets
Quantum Bank supports the placement of market orders while the market is closed. As the market may open at a very different price from where it closed, this could lead to shares being bought for more cash than is available in your account.
To minimize this risk, the system will calculate an additional cash buffer that must be available in order to place market orders to buy shares. Should the order placement be rejected a limit order may be attempted instead as the limit price will provide a maximum purchase price.
Order Routing during US Market Open
In general, Quantum Bank consolidates liquidity from a number of sources in addition to the primary exchange to improve the execution price for our clients. However, when there is a delay in the opening of a listing on the primary exchange, orders sent prior to the opening uncross will only participate on the primary exchange until trading commences. Other sources of liquidity (secondary venues, dark pools, MTFs etc.) are utilized post primary market open.
Please note, you may see streaming prices inside the trading platform before the primary exchange is open depending on your data subscription. However, market orders, stop orders or aggressive limit orders submitted prior to the open, will not be filled until the opening print from the primary exchange.
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.
Exchange and market specific conditions
Chinese A-shares - Stock Connect (HK-Shanghai/Shenzhen)
When trading Chinese A-shares listed on the Shanghai and Shenzhen stock exchanges via the Hong Kong Stock Connect the following fees apply;
| Stamp Duty (charged by SAT, only for seller) | 0.05% |
| Handling Fee (charged by SSE/SZSE) | 0.00341% |
| Securities Fee (charged by CSRC) | 0.002% |
| Transfer Fee (charged by ChinaClear / HKSCC) | 0.004% |
| Portfolio fee, based on value slab (Charged by CCASS) | 0.008% to 0.003% |
Please note that the following trading conditions for the North Bound Stock Connect (Hong Kong — Shanghai/Shenzhen) apply:
| Trading Currency | CNH (RMB) |
| Order Types | Limit orders only, throughout the day (day order) |
| Order Price Limits) | Typically ± 10% Last Close Price |
| Max order size | 1 Million Shares |
| Lot size | Buy (100) Sell (1) |
| Tick Size | CNH 0.01 |
| No amendment of orders | Orders must be cancelled and re-entered |
| Day Trading | Not permitted – Anything bought on T can only be sold on or after T +1 |
| Sell only | Some symbols are categorized as sell only on certain dates by exchange |
| Daily Quota | Click here for more information |
Please note that Northbound Trading is closed the day before a Public Holiday in Hong Kong.
Click here to view the monthly HKEX calendar.
For more information and details please visit the dedicated HKEx Stock Connect website.
Taxation by market
Taxation on French Stocks
For French large cap stocks a Financial Transaction Tax (FTT) of 0.40% applies to all buy trades. The full list of stocks can be found in the official application decree (in French).
Taxation on Hong Kong Stocks
Sales or purchase of Hong Kong stocks are subjected to stamp duty at 0.10% and to other charges at 0.0085%. Note: Automated trading from 09:30-16:00 HKT with a break between 12:00-13:00 HKT.
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 Malaysian Stocks
The clearing fee for Malaysian stocks is 0.03% (max MYR 1,000) and a stamp duty of 0.10% (i.e., MYR 1.00 for every MYR 1,000 of value of shares traded with max MYR 1000) will be charged for all stocks.
Taxation on Singapore Securities
A clearing fee for trading Singapore listed securities is payable at 0.0325% of contract value.
SGX listed securities also incur a trading fee of 0.0075% of the traded value, in addition to our regular commissions and fees.
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 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 1.5 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.
Corporate action handling
ADR/GDR termination and conversion
Termination: For securities classified as “depository receipts” conversion and termination events are announced as per information from the agent. As per event terms, client’s holding depository receipt are given opportunity to convert their holdings into common shares to the subjective issuer.
These events are offered in specific markets as per service terms where applicable. However, the event will only be offered for participation in supported markets. In such cases, where the conversion into common shares are not offered, the information will be included in the event notification. To participate in the event, clients should consult with their financial advisor.
Conversion: Corporate actions offer only final conversion opportunity (termination event) to clients.
Bonus Issues
Additional Stocks are allocated on the Ex-date.
Capital gain distribution
Cash payment is allocated on Ex-date for value Pay date.
Currency options
Currency options are not extended to clients. When a currency option is announced within the framework of an event, the payment will be processed as per the denominated currency of the security listing.
Depositary Receipt fees
It is standard practice for US depositary receipts to charge an annual administration fee per depository receipt, depending on the issuing depositary bank. The intention of the fee is to cover costs for banks that take on 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 Stocks held.
Saxo will look to pass on these fees once the fee structure is applied.
Dividend option / Dividend reinvestment
Some issuers offer an alternative to cash by way of a dividend reinvestment plan (DRIP) or scrip issue of shares.
DRIPs are a reinvestment of the cash dividend and the price can only be calculated on the actual date of purchase. Distribution of stock takes place later. DRIPs are subject to commissions and other market charges. Clients will be offered options according to the agent. Based on the offered options, clients may elect to have their dividends reinvested or to receive the dividends in the form of cash. Partial elections cannot be accepted.
Cash entitlements are booked on pay date.
Stock entitlements can take up to 10 business days after the cash pay date to be received. The number of additional shares will be calculated as follows:
- The number of shares elected multiplied by net dividend rate (gross rate – applicable tax) divided by Reinvestment Price.
Cash will be paid in lieu of fractional shares if applicable.
Share premiums
Cash payment is allocated on Ex-date for value Pay date.
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