more Saxo fees
Saxo have just announced more fees (apols if this is not new; i have not had chance to read all the posts). This is from their email:
Introduction of Carrying Cost and Holding Fee from 1 July 2017
In recent years we have seen regulators place stronger prudential rules on financial institutions to keep sufficient capital reserves and liquidity, making them more stable.
These regulatory requirements are increasing the cost of conducting business and holding our clients’ positions in certain products. Therefore, as of 1 July 2017, Saxo is introducing two charges which are applied when maintaining open positions in Futures, Listed Options and Expiring CFDs:
Carrying Cost on Futures, Listed Options and Expiring CFDs
Holding Fee on bought Listed Options (above 120 days maturity)
Carrying costs and holding fees are the costs associated with maintaining an investment position, so called because of the cost incurred by the business for ”carrying“ or holding the investments.
Carrying Cost on Futures, Listed Options and Expiring CFDs
From 1 July 2017, positions held overnight in Futures, Listed Options and Expiring CFDs will be subject to a carrying cost.
The carrying cost will be calculated on the basis of the daily margin requirement and applied when a position is held overnight. It will be charged at the end of each month.
The funding rate used for calculating the carrying cost is based on the relevant Interbank-rate + markup (150 bps).
Carrying Cost = Margin requirement * Days held * (Relevant Interbank rate + Markup) / (365 or 360 days)
Example: You BUY 1 Futures Contract in E-mini S&P 500 with a margin requirement of USD 5,500 and hold the position for 5 days.
Nominal Value 115,000 USD
Margin Requirement: 5,500 USD
Days held: 5 days
1M USD LIBOR rate: 1.00%
Markup: 1.50%
Carrying cost: 5,500 * 5 * (1.00%+1.50%) / 360 = 1.91 USD
