International share trading

Questions

Answers

  • How do I access international shares?

    All new and existing CMC Markets Stockbroking accounts which have a linked cash account have this feature enabled by default and can be traded on our desktop platforms and mobile apps.

    Please note, this feature is not available to phone only or margin lending accounts.

  • What’s changed on the standard platform?

    To accommodate the addition of international shares to our standard platform, we have made some changes to the way you navigate the standard platform and some of our platform features. These changes include:

    • A dropdown menu in the top right-hand side of the homepage, which lists the available country views. After you select a country, it will then only show stock information relevant to that market
    • A new ‘Products’ menu, which replaces the previous ‘Markets’ menu
    • A new and intuitive search feature where you can filter queries by keywords, code, company name and much more
    • The ability to create and save queries for future use, as part of the new search feature
    • The potential to add domestic and international stocks to the same watchlists (available on standard, pro and mobile app)
    • The ability to view the FX rate and FX buffer from a Buy ticket when you purchase a foreign stock (available on standard, pro and mobile app)

     Please note, this feature is not available to phone only or margin lending accounts

  • How do I place an international shares order?

    Placing an international shares order is much like placing one for domestic shares.

    To place an international shares order, open an order ticket in the usual way, enter the stock code, select either Buy or Sell and fill in the required information as you would for domestic stocks.

    This function is available on both our standard and Pro platforms. For further assistance you can contact our Client Services support team online with live chat.

  • Which exchanges can I trade on?

    Our international shares offering gives you access to trade on major exchanges in eleven different countries, including the US, Canada, UK, Japan, Swiss and Germany.

  • Do I need to create a new account to trade international shares?

    No, international shares are available and automatically enabled for all new and existing CMC Markets Stockbroking clients. Simply log in to the platform and search for an international stock.

  • What is a W-8BEN form?

    Applicable if you invest in US shares, the W-8BEN form is a legal document required by the IRS (Internal Revenue Service) in order to declare your tax status. It’s only required if you’re a non-U.S. resident and by completing the form you may be able to claim a reduced rate of withholding tax.

    If you do not complete the form, you may be subject to the US Treasury withholding tax on US investments held on your share trading account.

  • Why do I need to complete a W-8BEN form when I place an order on a US exchange?

    A W-8BEN is a US Treasury form that allows foreign investors to claim special tax treaty benefits, including a reduced rate of withholding tax. It is valid until 31 December; three years from the year, you signed the form.

  • Who are my international orders executed with?

    All international share orders placed on our stockbroking platforms are executed by Morgan Stanley.

  • How are my international securities held?

    International securities are held on your behalf by CMC Markets Stockbroking’s appointed sub-custodians detailed on this page.

     

      Local Jurisdiction                                         Specified Sub-Custodian         

             Belgium                                    BNP Paribas Securities Services, Brussels/Paris

              Canada                                                RBC Investor Services, Toronto

              France                                            BNP Paribas Securities Services, Paris

            Germany                                        BNP Paribas Securities Services, Frankfurt

       Hong Kong SAR                                 BNP Paribas Securities Services, Hong Kong

               Japan                                 Hong Kong and Shanghai Banking Corp Limited, Tokyo

          Netherlands                                  BNP Paribas Securities Services, Amsterdam/Paris

            Singapore                                        BNP Paribas Securities Services, Singapore

          Switzerland                                           BNP Paribas Securities Services, Zurich

      United Kingdom                                        BNP Paribas Securities Services, London

                 USA                                                          BNP Paribas, New York

  • Why would I get charged a custody fee?

    A custody fee is for:

    • Holding your international shares and maintaining a consolidated international portfolio on your behalf
    • Issuing distributions that result from mandatory corporate action events for your shares (such as dividends and bonus issues); and
    • Providing statements that reflect these events

    A fee of 0.50% p.a. is applied monthly based on your foreign asset holdings value excluding cash. This fee is waived for clients in the Active Investor or Premium Investor tier or if the account has placed a trade on International Securities in the previous 12 months.

  • What is the minimum number of shares per order?

    The minimum number of shares per order can vary across different markets; if an order is unacceptable to the relevant exchange, you will be notified on the order ticket of the changes you need to make to process the order.

  • What is the exchange rate for my international trade?

    The exchange rate for international transactions is calculated at the time of execution and is based on the best available bid/offer exchange rates, plus a spread of just 0.60%.

  • What is an FX buffer?

    Buy orders will also incur an additional 2% buffer from the time of order placement as a protection against currency movements. Any excess buffer will be unlocked on order execution.

    This ensures that you will have sufficient funds in your account to cover any foreign exchange fluctuations from the time your order is placed to when it is filled in the market.

    Please note that we will only debit the final foreign exchange amount from your account once the order has filled in the market.

    *The FX buffer currently applied to international share orders is 2% of the trade value and is subject to change.

  • What is the minimum transfer amount for international shares?

    The minimum transfer amount for international shares is AU$10,000.

    If you currently hold international shares with another broker, we can transfer those shares to your CMC Markets account if the value of the shares are over AU$10,000.

  • Can I transfer in my share certificates?

    All share certificates will need to be dematerialised (where physical records are replaced with a paperless computerised system) prior to being transferred in. We cannot accept share certificates.

  • What are the relevant brokerage rates for international share trading?

    US and Canadian listed products Online Orders

    Value Of Shares (AUD)                                                                   Brokerage fee/rate (AUD)

    $0-$5,000                                                                                                          $19.95

    $5,001-$10,000                                                                                                  $29.95

    Over $10,000                                                                                                      0.31%

     

    Online orders for listed products outside Australia, US and Canada

    Value Of Shares (AUD)                                                                   Brokerage fee/rate (AUD)

    All*                                                                                                    $59.95 or 0.59%

           *Brokerage is the greater of the dollar value or the percentage amount shown

  • What exchange fees will be shown on the order ticket?

    Exchange fees - will show on Order ticket

    Country                Transaction Tax                Stamp Duty        Trading Fee        Clearing Fee       GST

    USA                                     -                               -                          -                           -                     -

    UK                                       -                         0.5% - Buys only         -                          -                     -

    Singapore                             -                                -                    0.0075%                0.0325%            7%

    Hong Kong                      0.0027%                       0.1%                   0.005%                        -                    -

    Germany                               -                                -                         -                            -                    -

    Canada                                 -                                -                      0.15%                       -                    -

    France                                  -                                -              0.3% - Buys only               -                    -

    Belgium                                -                                -                         -                            -                    -

    Switzerland                           -                                -                         -                            -                    -

    Netherlands                           -                                -                        -                            -                    -

    Japan                                    -                                -                        -                            -                    -

  • What other fees are involved when trading international shares?

    Service                                                                                                  Fees & Charges (Including GST)

    Electronic transfer (in)                                                                                   $20 per holding

    Physical transfer (in)                                                                                     $50 per holding

    Transfer (out)                                                                                                $100 per holding

    Custody Fee                                                                                                 0.50% p.a. minimum $10

    Currency Conversion                                                                                     Displayed on platform

    FX spread                                                                                                     Up to 0.60%

    FX buffer on buy orders                                                                                  2% or as displayed on the platform

    "Account documentation fee                                                                     

    (applied to relevant accounts

    that have not supplied a W-8 or W-9 form. "                                                     $50

    US Markets SEC fee                                                                                      0.00231% on sell Orders

    Stamp Duty                                                                                                   Displayed on the platform if applicable

  • Do any exchanges break during lunch hours?

              Exchange                                 Code                                        Local time at exchange

    Hong Kong Stock Exchange                  HKEX                                                  12:00 – 13:00

        Singapore Exchange                          SGX                                                   12:00 – 13:00

      Tokyo Stock Exchange                         TSE                                                   11:30 – 12:30

  • What else should I know about International share trading?

    Please click here to view other helpful information about International share trading.

  • How do I complete the W-8BEN form?

    You can now complete the W-8BEN and other US tax forms on the platform. Simply navigate to the ‘US Tax Forms’ page from the ‘Support’ dropdown menu. If you are an eligible account owner, you will be able to update and lodge the form. To view eligibility requirements, visit the US tax forms page on the platform.

    Our US tax form solution is provided by Thompson Reuters.

  • Are there different US tax forms for different account types?

    Yes, we provide four different forms through our online solution. Depending on your account type and your responses to initial questions, Thompson Reuters will automatically select the appropriate form.

    W-8BEN – to be completed by individuals.  A separate form is required for each account owner in the case of joint accounts.

    W-8BEN-E – to be completed by a company,  complex trusts (e.g. superfund accounts) where the recipient entity is the beneficial owner of the dividend.

    W-8IMY – to be completed by entities where investment income is received in an intermediary capacity and is subsequently distributed to beneficiaries (e.g. Discretionary trusts).   

    W-9 – to be completed by US Persons.

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