An Offshore Account is based in foreign currency and must be funded using foreign currency. There are two types of Offshore Account available. Clients may fund their Offshore Account by utilising their annual discretionary investment allowance (Offshore Allowance Account) or through the use of Velocity Trade’s Institutional Foreign Investment Allowance (Offshore Asset Swap Account).

Offshore Allowance Account:

  • Clients may use Velocity Trade’s Forex Services to convert funds where required utilising their personal allowances. Alternatively, funds already taken offshore may be used to fund an Offshore Account.
  • Shares are held offshore in the client’s own name and with no restrictions to repatriate funds to South Africa.

Offshore Asset Swap Account:

  • Clients may utilise Velocity Trade’s Foreign Investment Facility, which provides immediate access to offshore shares.
  • Shares are held on behalf of the client and must be returned to South Africa and converted into ZAR should the client wish to realise their investment and withdraw their funds.

Only international markets can be accessed from an Offshore Account and clients may choose from one of the following base currencies:

  • USD
  • GBP
  • EUR

Initial deposit and transfer limits:

  • Offshore Allowance Account: 10,000 in the relevant account currency (USD, GBP, or EUR
  • Offshore Asset Swap Account: ZAR 100,000 per transfer from your ZAR account into a foreign currency account of your choice (USD, GBP, EUR)

International Markets

Shares and ETFs

Market Exchange Symbol Commission Minimum Trade Fee
Us New York Stock Exchange NYSE and ARCA USD 0.03 per share USD 20.00
Us NASDAQ NASDAQ and NSC USD 0.03 per share USD 20.00
UK London Stock Exchange LSE_SETS 0.35% GBP 10.00
Austria Vienna Stock Exchange VIE 0.35% EUR 15.00
Belgium NYSE Euronext Brussels BRU 0.35% EUR 15.00
Denmark NASDAQ OMX Copenhagen CSE 0.35% DKK 125.00
Finland NASDAQ OMX Helsinki HSE 0.35% EUR 15.00
France NYSE Euronext Paris PAR 0.35% EUR 15.00
Germany Deutsche Borse (Xetra) DAX 0.35% EUR 15.00
Italy Milan Stock Exchange MIL 0.35% EUR 15.00
Netherlands NYSE Euronext Amsterdam (AEX) AMS 0.35% EUR 15.00
Norway Oslo Stock Exchange OSE 0.35% NOK 125.00
Portugal NYSE Euronext Lisbon LISB 0.35% EUR 15.00
Spain BME Spanish Exchanges SIBE 0.35% EUR 15.00
Sweden NASDAQ OMX Stockholm SSE 0.35% SEK 125.00
Switzerland SIX Swiss Exchange SWX and VX 0.35% CHF 25.00

CFDs

Market CFD Premium Margin Rate Minimum Premium
US Stocks 3 cents per share 5.00% USD 10.00
UK Stocks 0.15% 5.00% GBP 10.00
Belgium Stocks 0.15% 5.00% EUR 10.00
Denmark Stocks 0.15% 5.00% DKK 100.00
Finland Stocks 0.15% 5.00% EUR 10.00
France Stocks 0.15% 5.00% EUR 10.00
Germany Stocks 0.15% 5.00% EUR 10.00
Ireland Stocks 0.15% 5.00% EUR 10.00
Italy Stocks 0.15% 5.00% EUR 10.00
Netherlands Stocks 0.15% 5.00% EUR 10.00
Norway Stocks 0.15% 5.00% NOK 100
Portugal Stocks 0.15% 5.00% EUR 10.00
Spain Stocks 0.15% 5.00% EUR 10.00
Sweden Stocks 0.15% 5.00% SEK 100.00
Switzerland Stocks 0.15% 5.00% CHF 20.00
Index Margin Rate Spread
US30 (DJIA)1.00 %2
US500 (S&P)1.00 %1
USTEC (Nasdaq)1.00 %3
US2000 (Russell)1.00 %2
UK100 (FTSE 100)1.00 %2
UK250 (FTSE 250)1.00 %44
STOXX50 (EuroStoxx)1.00 %2.5
DE30 (DAX)1.00 %2.5
FR40 (CAC)1.00 %3
ES35 (IBEX)1.50%8
IT40 (MIB)1.50%14
SWI20 (SIX)1.50%4
AUS200 (ASX)1.00 %2
N25 (AEX)1.50%3
Commodity CFDs Margin Rate Spread
GOLD1.50%1
SILVER1.50%7
WTI *3.00%10
BRENT *3.00%7

*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.

FX Pairs (Most Traded) Margin Rate Spread
EUR / ZAR1.00%70
USD / ZAR1.00%40
AUD / USD1.00%3
EUR / AUD1.00%2
EUR / GBP1.00%22
EUR / USD1.00%3
GBP / USD1.00%3

Note: Non-equity instrument spreads are affected by market liquidity which varies throughout market trading hours.

Statutory Fees

Fee or Tax Type Cost
Settlement

Settlement costs are incorporated in the trade commission and minimum trade fees outlined per market.

Custody

0.10% per annum subject to a minimum monthly fee of USD/EUR/GBP 5.00.

Custody fees are based on the value of the portfolio of assets on the last day of the previous month and levied monthly in advance.

Stamp duty

UK: 0.50%

PTM* levy

£1 per trade (Only applicable on trades over £10 000 pounds for shares listed on the London Stock Exchange)

*A charge automatically imposed on investors, and collected by their brokers, when they sell or buy shares with an aggregate value in excess of £10 000. The money raised goes to the Panel of Takeovers and Mergers. The Panel writes and enforces the rules by which takeovers of companies listed on the London Stock Exchange are conducted.

Market Data

Variable Fees Cost (ex. VAT) Frequency

International

Live Level 1 – Non-Professional End User
USD 1.00Monthly

International

Live Level 1 – Professional End User
USD 80.00Monthly

Administrative Costs

Service Fee (ex VAT) Description
Withdrawals

USD 25.00

Per withdrawal (EUR/USD/GBP accounts)

Outward Portfolio Transfers (‘Exit Fee’)

- USD 25.00 for US Stocks

- USD 30.00 for Other Stocks

The fee incurred per share holding (ISIN) to transfer to another broker.

Maximum Fee Limits:

  • US Stocks: USD 100
  • Intl Stocks: USD 180.00
Transfer of Ownership

USD 25.00 per share holding

Change of beneficial ownership of shares

Interest on Negative Account Value

LIBOR plus 8.00% per annum

Your account will incur debit interest for a deficit Net Free Equity and/or Account Value.

Your account will not earn interest on positive unutilised cash balances.

Foreign Investment Facility Fee

0.50% per annum

A fee of 0.50% per annum is charged on the use of Velocity Trade’s Foreign Investment Facility (sometimes referred to as ‘Asset Swap’).

Wire Fee

R 450

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.
  • rades filled before 1400h 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 1500h GMT+2 will be adjusted using a daily FX Spot rate.
  • Trades filled after 1500h will be adjusted using a daily FX Spot rate for the following business day (South Africa).

Note: VAT is only applied to Domestic Service Fees.

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 permits an annual foreign investment allowance 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 then you can make use of Velocity Trade’s institutional foreign investment allowance.

Financing

If you keep a Cash CFD position open overnight (after 10pm GMT), we will make an interest adjustment to your account so as 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

For CFD Forex positions, we apply an adjustment overnight, which reflects the interest rate differential between the two currencies.