Fees and terms of the brokerage service in the international market

Within the spectrum of brokerage services, Customers are classified as professional and non-professional (according to the Regulation N 4/07).

Professional customers are classified into 2 subgroups: Standard and VIP. Professional customers with a gross investment ranging from USD 10,000 to USD 49,999 are considered standard professional customers, whereas an investment exceeding USD 50,000 classifies an investor as a VIP professional customer.

ARARATBANK TRADING PLATFORM offers CFD-based transactions[1] which are dealt with DMA method when orders are executed directly in the market.

Forex, Commodity and Index transaction prices are defined by the spread effective at the moment of transaction in ARARATBANK TRADING PLATFORM plus ARARATBANK commission fee (Table 3).

[1] CFD is a derivative instrument, where the price ditrectly or indirectly depends on the value of an underlying asset. In particular, CFDs allow traders and investors an opportunity to profit from price movement without owning the underlying assets.

Brokerage service conditions are shown in the table below arranged according to the above classification:

Table 1



Non-professional

Professional

Standard VIP
Minimum deposit > USD 500 USD 10,000 – USD 49,999 > USD 50,000
Possible maximum leverage of securities

1։1

non- standardized

1:5

1։4

 standardized

1:5

Possible maximum leverage of non-securities (Forex, Commodity, Indexes)

1։1 non- standardized

1։100 1։100
Overnight commission fee for open position charged by partner company See Trading Platform See Trading Platform See Trading Platform
Opening a brokerage account free of charge free of charge free of charge
Cash in/Cash out to/from brokerage account free of charge free of charge free of charge
Opening and servicing securities and current accounts chargeable chargeable chargeable
Mobile application V V V
Daily messages/analysis V V V
Weekly technical analysis V V V
Investment portfolio provision monthly

-

V V
Investment portfolio provision yearly - V V
Phone service (hour/day) 10/5 10/5 24/5
Personal trading conditions/discounts - - up to 20% discount possibility
Personal consultation - - V
Acceptance of phone orders - V

V

 Table 2. Fees for transactions in securities including exchange fund shares                                    

Stock markets - Countries Minimum commission fee for the Bank customers
Belgium 0.08%, 8 EUR
Czech Republic 0.30%, 500 CZK
Denmark 0.08%, 100 DKK
Finland 0.08%, 8 EUR
France 0.08%, 8 EUR
Germany 0.08%, 8 EUR
Italy 0.08%, 8 EUR
Netherlands 0.08%, 8 EUR
Norway 0.08%, 120 NOK
Poland 0.30%, 40 PLN
Portugal 0.08%, 8 EUR
Spain 0.08%, 8 EUR
Sweden 0.08%, 120 SEK
Switzerland 0.08%, 8 CHF
Great Britain 0.08%, 8 GBP
Great Britain international/Eurobond 0.08%, 8 USD
USA 0.08%, 8 USD

 Table 3. Fees for Forex, Commodity and Index transactions 

Financial instruments Minimum commission fees for the Bank customers (pips1)
Forex pair - Forex Major group 1.8 pips
Forex pair - Forex Minor group 2.3 pips
Forex pair - Emerging group 3․2 pips
BRA Comp 132 pips
Mex Comp 132 pips
US 2000 Cash 1.5 pips
US 2000 0.9 pips
US 30 Cash 4 pips
US 30 3 pips
US 100 Cash 1.3 pips
US 100 1.4 pips
US 500 Cash 1.8 pips
US 500 0.8 pips
VOLX 0.7 pips
AU 200 Cash 4 pips
AUS 200 3 pips
CHN Comp 16 pips
HK Comp 18 pips
HK Cash 16 pips
INDIA 50 5.5 pips
JAP 225 20 pips
JA 225 Cash 16 pips
KOSP 200 0.4 pips
CHN Cash 16 pips
CZK Cash 2.5 pips
DE 30 1.2 pips
DE 30 Cash 1.2 pips
EU 50 2.6 pips
EU 50 Cash 2.5 pips
FRA 40 1.5 pips
FRA 40 Cash 1.5 pips
ITA 40 40 pips
ITA 40 Cash 20 pips
NED 25 0.4 pips
NED 25 Cash 0.4 pips
RUS 50 3.3 pips
SPA 35 6 pips
SPA 35 Cash 16 pips
SUI 20 6 pips
SUI 20 Cash 4 pips
UK 100 1.3 pips
UK 100 Cash 1.3 pips
W 20 2 pips
COCOA 10 pips
COFFEE 0.3 pips
CORN 0.4 pips
COTTUN 0.24 pips
SOYBEAN 0.8 pips
SUGUAR 0.05 pips
WHEAT 0.95 pips
NATGAS 0.021 pips
OIL 0.07 pips
WTI OIL 0.06 pips
ALUMINUM 11 pips
COPPER 23 pips
NICKEL 110 pips
ZINC 12 pips
GOLD 0.3 pips
PLATINUM 8.2 pips
SILVER 0.055 pips
BUND 10Y 0.02 pips
EMMIS 0.14 pips
SCHATZ2Y 0.08 pips
TNOTE 0.04 pips

**The fees above (Table 2, Table 3) do not include operating costs that may arise from the need for the Bank to enter into transactions with the involvement of third parties and to handle the process of clearing, in particular, commissions charged from the Bank by trading platforms and/or other intermediary parties (except for commission fees charged under contractual agreements between the Bank and the Agents). Such commissions depend on the trading platform, type and volume of the order and other circumstances. The Bank has a right to acceptance-free write off of such costs from the Customer’s account. These costs as well as charges and deductions made by the Bank for compensation therefor are represented in reports submitted to Customers.

DOCUMENTS

Procedure for providing brokerage service
Brokerage service & brokerage account agreement
Conflict of interest policy
Transaction Execution Order
Questionnaire on the Customer and the Customer’s investment knowledge, experience, qualification and investment purposes
Statement on risk awareness for leveraged transactions, including Forex trades
Fund Transfer Order
Supplementary contract on trading in financial instruments through electronic trading terminal
Statement on possible customer risks associated with operations in the financial market