- How are dividends taxed?
- How are dividends calculated and paid out?
- How can I transfer my positions between my sub-accounts?
- What currencies can my funds be stored in?
- How can I change the default currency of my account?
- Who handles my tax obligations?
- What I should do to receive dividends?
- How can I monitor my activities?
- Where can I see reports?
- How do you calculate margin requirements?
- What is a Margin Call?
- What is a Margin Utilization and how is it calculated?
- Where can I track my use of margin?
- How to cover a margin call?
- How to avoid a margin call?
- How long can I use a demo account?
How are dividends taxed?
The tax on dividends is regulated according to the law of the country in which the company is registered and listed. Please note that EXANTE does not provide tax advice services.
How are dividends calculated and paid out?
To receive dividends, a client must be present on the shareholders record before a specific date called ex-date.
Usually, it goes like this:
- the company declares dividends from stock
- the company sets the record date and sends press-release to inform shareholders
- the record day comes; all shareholders on record on that date will get the dividend payment
- the next day comes. It is called the ex-date because from that date the stock trades ex-dividend (meaning everyone who buys stocks after ex-date won’t get the next payment)
- the payable date comes (normally, about one month after the record date) and clients receive dividends on their accounts.
However, in some cases, clients might receive the funds with a few days delay due to the necessary time to process the documentation.
How can I transfer my positions between my sub-accounts?
You should visit Client's area and then indicate accounts and amounts to be transferred. You can also use the desktop trading platform to transfer currencies between sub-accounts.
What currencies can my funds be stored in?
EXANTE automatically opens multi-currency client accounts. Funds can be added in EUR, USD, AUD, CAD, CHF, CNY, GBP, HKD, JPY, MXN, NOK, PLN, RUB, and SEK, and they are stored in the original currency.
You can also use an auto conversion feature to proceed with the internal payments in the currencies listed above, as well as with CZK, HUF, NZD, SGD, THB, TRY, or ZAR. That list is subject to change. Please expand the Cash branch in the Instrument Tree in the trading platform to see the full and actual list.
When requesting funds withdrawal, our clients can choose to exchange the original currency into any of the above mentioned ones at current market rates. You can also change the default currency of your account at any time.
If you trade with leverage, funds can be borrowed in any currency available on the financial markets.
The final list of available currencies depends on the account type, country you're from, and some other conditions.
How can I change the default currency of my account?
The default (basic) currency can be set in EXANTE trading platform or in the Settings section of the Client's area.
To access the menu in the Trading Platform, open the application and enter the Settings menu by clicking the corresponding icon in the upper right corner:
You can change the default currency to EUR, USD, AUD, CAD, CHF, GBP, HKD, JPY, NOK, NZD, PLN, RUB, SEK, or TRY.
Who handles my tax obligations?
It is your duty to handle your own tax obligation regardless of your tax residence country. We will provide you with all necessary reports, but you will have to communicate with your tax authorities yourself.
Please make sure that you stick to the tax requirements applied to you.
For more information on where to find the reports necessary for taxation purposes, please visit this page.
What I should do to receive dividends?
A client is entitled to receive dividends if he or she owns shares on the record date (which is set by a company). The payout date is usually set about one month after the record date. Dividends are automatically credited to the client’s account on the payout date. However, in some cases, clients might receive the funds with a few days delay due to the necessary time to process the documentation. If taxes are applied, they are debited with a separate transaction, and the details of the tax rate applied are reported in the Comment field.
How can I monitor my activities?
You can keep track of your account in several different ways.
The first and the easiest one is to visit the Account Summary section in your Client's area on EXANTE website. There you will see the main account parameters with P&L changing in real time. You can choose any date to view historic data.
The same information can be retrieved from the trading platform, Account Summary section:
The report is presented in a similar way as in the Clients area:
One more way to monitor your account is via our mobile applications. They allow you to stay up-to-date, no matter what device you are on.
Where can I see reports?
All of the reports you might need you can find in the Reports section in your Clients area on our website. You can:
- Request periodic reports
- Create a custom report for a specific period on the corresponding page
If your tax authorities require an official paper signed by the broker, please contact your account manager to request such a report.
Please note that the Account Summary takes the last mid price to calculate the P&L. If your authorities require to use any other price for the report, please contact your account manager and request the report that would strictly stick to the requirements. Please be aware that our account managers cannot assist you in finding out the tax requirements applied to you.
How do you calculate margin requirements?
In order to calculate the margin requirement of a given portfolio, EXANTE uses an in-house risk management system, a variation of SPAN®, the Standard Portfolio Analysis of Risk. The SPAN® methodology consists of a series of portfolio "what-if"-scenarios that yields the worst possible performance loss a portfolio can suffer over a specific time horizon. To do this, SPAN® uses a predefined set of parameters reflecting the market conditions of traded contracts.
What is a Margin Call?
Margin call is the term when account value (ie total deposits plus or minus any profits/losses) falls below margin requirements.
Margin call is initiated once the Margin Utilization reaches 100%. In this situation client will be prevented from opening additional new exposure but will be able to keep the existing positions as long as the margin utilization is below 100%.
Should the margin utilization exceed 100%, the client will be in breach of margin requirements and EXANTE will have rights to decrease or fully liquidate client’s open positions at any moment. It is a client’s responsibility to keep enough funds to fully cover margin requirements of open positions.
What is a Margin Utilization and how is it calculated?
Margin Utilization is the percentage of margin collateral that client is utilizing for margin products trading. If the margin utilization exceeds 100% there is a risk that margin positions will be stopped out (ie reduced or liquidated).
Margin Utilization is calculated as = (100 * Used for margin) / (Account value + Other collateral – Not available as margin collateral).
Where can I track my use of margin?
Margin report is a module in EXANTE ATP which helps you track not only the total sum and proportion of leverage, but also the entire structure of the current margin.
How to cover a margin call?
Margin call can be covered by:
- sending additional funds (cash or marginable securities)
- reducing position.
How to avoid a margin call?
Effective money management considerably decreases probability to receive Margin call.
Diversified portfolio as well as use of margin at the low end of borrowing limit is recommended. You might also consider that one of the best ways to avoid margin calls is not to use leverage at all.
Finally, it is also highly recommended to monitor account daily and thus be ready if market situation changes quickly.
How long can I use a demo account?
EXANTE demo account does not have an expiration date, so you can use it as long as you want. If you lose access to your demo, you can easily restore your credentials and re-download the application from the clients area on our website.
If you run out of virtual funds on your demo account, visit the Settings page in the Client's area.
Demo account will be available to you as soon as you sign up and set a password.