Costs and charges

Why is there a new "Costs and charges" section on your transaction site?

This requirement stems from the revised European Union (EU) Markets in Financial Instruments Directive (MiFID II), which aims to better inform and protect you. Therefore, transparent information is set out about the instrument's characteristics, risks and charges via a Key Information Document (KID), if applicable, as well as the charges for the service. When you preview your purchase and sales transactions on our transaction site, you will see a new "Costs and charges" box. The questions below provide more information about this box.

What are the costs and charges for the investment service?

They are an estimate of the maximum charges for the transaction (apart from charges for the instrument) in accordance with the applicable rates and taxes. These charges include transaction fees, which include brokerage fees, any taxes, transaction taxes and foreign exchange fees, recurring charges (such as custody fees), stamp duties, and entry and exit fees paid to the fund manager.

Investment-service charges also include charges for ancillary services (such as research costs), one-off charges and marginal costs.

What are the costs and charges for the financial instrument?

They are an estimate of the maximum charges for the instrument, on the assumption that the instrument is held for a period of a year. These charges include one-off transaction charges (such as entry and exit fees, and taxes), recurring charges (such as service fees and taxes), performance fees allocated to the instrument manager, one-off charges (such as distribution fees) and marginal costs (which include performance fees).

For more information, please take a look at the Key Information Document (KID) for the financial instrument, if applicable, which is available on the transaction site under “Documents” on the instrument page.

Please note that there are no instrument-related charges for equities, bonds and options.

What are the incentive costs and charges?

They are an estimate of the total retrocessions received by Keytrade Bank based on an assumption that the fund is held for a period of a year. These charges are already included in the fund price.

What is the difference between one-off charges and ongoing charges?

One-off charges are paid when the instrument is purchased or sold, while ongoing charges are paid throughout the period when the fund is held. Ongoing charges are estimated based on an assumption that the instrument is held for a period of a year.

What are the impacts of the costs on the return?

The impacts of the costs on the return are outlined when you purchase securities. This information includes the impact of costs on the return if a security is sold after 1 year, 3 years or 5 years. The costs are estimated based on a sale of the entire purchased position with zero return.

Do the costs and charges for the instrument apply to all financial instruments?

No, the costs and charges for the instrument do not apply to equities, bonds and options.

How are the percentages featured in the report calculated?

The percentage expresses the proportion of the service charges in relation to the instrument price.

For more information on the applicable costs and taxes, please take a look at the “Tariffs, rates and taxes” section of our Documents page.