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CFDs Trading Conditions

Competitive Bid/Ask spreads

When trading Index-Tracking CFDs with Galt & Taggart you do not pay a separate commission. The only cost you will incur is the bid/ask spread.

See minimum spreads for each Index-Tracking CFD under "Contract details".

Fixed Spreads on CFD Index Trackers

The Bid/Ask spread will be equal to the minimum target spread in approx. 99% of the quote updates, during the opening hours of the underlying cash market.

This gives clients an improved trading experience and a high degree of certainty with regards to trading costs associated with entering and closing CFD Index Tracker positions.

Please note that Fixed spreads are available for selected CFD indices only under normal market conditions up to the trade amounts listed in the table below.

North America

Index Tracker Name Symbol Trade Aamount (Contracts)*
US 500 US500.I 100


Europe

Index Tracker Name Symbol Trade Aamount (Contracts)*
EU Stocks 50 EU50.I 100
France 40 FRA40.I 10
Germany 30 GER30.I 10
Netherlands 25 NETH25.I 10
Spain 35 SPAIN35.I 20
Sweden 30 SWE30.I 100
Switzerland 20 SWISS20.I 10


Asia / Pacific

Index Tracker Name Symbol Trade Aamount (Contracts)*
Australia 200 AUS200.I 10
Japan 225 JPY225.I 1,000
Hong Kong 50 HK50.I 25

* Based on the Bid/Ask spread of all CFD index trackers (with fixed spreads enabled) during trading hours. Measured on 01/09/2016. Please note that fixed spreads only apply under normal market conditions and up to a certain trade size.

Short Selling

Short selling of Index-tracking CFDs is fully supported with Galt & Taggart.

Order Types

Limit, Market, Stop, Stop Limit and Trailing Stop orders are supported. In addition you are able to place conditional If Done and One Cancels Other (OCO) orders.

A Stop Order to sell your position is triggered on the bid price and Stop Orders to buy are triggered on the ask price.

Italian Financial Transaction Tax

The tax will be applied to all Italian Derivatives whose underlying assets are equity instruments issued by Italian companies.

The Italian FTT for Derivatives applies irrespective of the location of the client or the jurisdiction of the transaction, so everyone trading Italian Derivatives will have to pay new Italian FTT for Buys and Sells.

Index Tracker: Italy 40 (ITALY40.I)

Notional Value (EUR) 0-2.5k 2.5-5k 5-10k 10k-50k 50-100k 100-500k 500-1,000k Over 1,000k
Tax (EUR) 0.25 0.5 1 5 10 50 100 200

CFD Bid / Ask spreads & Commissions

Single Stock CFD follows a price of an underlying Stock, hence the bid/ask spread of the CFD equals the spread of the underlying Stock.

When trading Single Stock CFDs with Galt & Taggart a fixed commission in percent is charged on the notional value of the trade with a minimum for small trade sizes. For North American exchanges commission is calculated as cents per contract.

Live Exchange Data

Trading Cash Stock CFDs on live streaming prices with Galt & Taggart requires a subscription to the relevant exchange data.

Order Management

Market, Limit and Stop orders are supported. Stop Limit and Trailing Stops (the order moves in line with the market) are also available. You can place conditional 'If Done' and 'O.C.O.' (One Cancels Other) orders as well.

Market Orders

Galt & Taggart may choose to convert Market orders into aggressive Limit orders. This will be to comply with exchange restrictions and internal compliance.

Market orders may also be subject to a conversion by our executing brokers for the same reasons.

Please note that it is the client's responsibility to check if the order is filled in the market after order entry. Galt & Taggart will not be responsible for missing fills due to this.

US - American Stock Exchange (AMEX)
Due to a limited order book on the American Stock Exchange (AMEX), Galt & Taggart does not support Market orders on this exchange. Clients should use Limit orders instead.

Should you experience or suspect any errors with your orders, contact Galt & Taggart immediately.

Limit Orders

A Limit order is an order to buy a Stock at no higher than a predefined price or to sell a Stock at no less than a predefined price.

For example, a Buy Limit order can only be executed at the Limit price or lower. A Sell Limit order can only be executed at the limit price or higher. The advantage here of course is that a trader is able to put a minimum control on the order.

Stop Orders

A Stop order is by definition an order to get out of (sell stop) or into (buy stop) a position immediately. Galt & Taggart uses the Smart Order Routing process for CFDs to execute these emergency orders with access to the best available liquidity across venues at the time the order is sent. Stop orders are commonly used to exit positions and to protect investments in the event that the market moves against an open position.

Stop orders are placed Stop order to SELL Stop order to BUY
Stops on Single Stock CFDs are executed the stop price is traded the stop price is traded

US Stop (and Market) orders

For US markets, Galt & Taggart uses sweep algorithms to add liquidity from more venues than the primary exchange. This implies that orders can be filled before trading commences on the primary exchange.

Market orders placed after 09:30 EST will not be filled before the Stock is crossed on the primary exchange. Stop orders are triggered on the primary market price feed and follow the routing rules listed above for market orders. As some stops are handled manually delays can sometimes occur.

Partial Fills

Partial fills may occur on Limit orders and the remaining amount stays in the market as a Limit order and may be filled within the order duration. Market orders can be filled at numerous levels, the price paid will be the volume weighted average price of all the fills.

Algorithmic orders

Algorithmic orders are available for both Cash Stocks/ETFs and Single Stock/ETFs CFDs. Essentially, Algorithmic orders provide clients with the opportunity to trade through various strategies with larger ticket sizes that may otherwise impact the market price. They can also break down an order in smaller bites to avoid showing the full size of their order. This may be of particular interest for clients trading Stocks/ETFs and Single Stock/ETFs CFDs outside of the most liquid names.

  • VWAP
  • TWAP
  • With Volume
  • Implementation Shortfall
  • Pre-Market Limit
  • Iceberg
  • Reload
  • Dark
  • Liquidity Seeking
  • Market on Close
  • Limit on Close

Algorithmic orders are supported markets:

APAC EMEA North America
Hong Kong














Austria 
Belgium
Denmark
Finland
France
Germany
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom

United States
Canada













 

Short Selling CFDs

When short selling a CFD, you will be subject to the rules for the Stock market in that particular market. For example, when short selling CFDs, you may experience forced closure of a position if your CFDs get recalled. This may happen if the underlying Stock becomes hard to borrow due to corporate events such as take overs, dividends, rights offerings (and other merger and acquisition activities) or increased hedge fund selling of the Stock.

Please note that short sell orders with "Good-Til-Canceled" (G.T.C.) or "Good-Til-Date" (G.T.D.) duration may be cancelled if borrow availability ceases. We recommend that you monitor short sell orders entered outside market hours or running across multiple days closely.

You may experience limitations on the amount of CFDs you can short trade in a single day due to limited borrowing availability in the underlying market.

Local Short Selling Restrictions

Due to market conditions, a number of financial authorities are announcing rule changes that affect short-selling of physical Stocks. These rule changes are put in place to protect the integrity and quality of the securities market and strengthen investor confidence. As a consequence, the changes may affect short-selling of related CFDs.

It is the client’s responsibility to keep informed about which markets apply restrictions in short-selling. This can be done by contacting local authorities.

Borrowing costs on Short CFDs

A borrowing cost will be applied to your short Cash Stock CFD positions held overnight. This borrowing cost is dependent on the liquidity of the Stocks and may be zero (0) for high liquidity Stocks. More details on the borrowing cost are available in the "Single Stock CFDs and ETF/ETC CFDs" section under Investment Products, CFDs, Financing.

Corporate Actions

Even though clients owning Single Stock CFD positions do not own the underlying Stock, the value of their positions is still affected by corporate actions. In general, positions and prices are automatically adjusted to reflect corporate actions. Details on all corporate actions applied to CFDs by Galt & Taggart can be found in the Corporate Actions menu.

Financing overnight debit / credit

As Single Stock CFDs at Galt & Taggart are a margined product, you finance the traded value through an overnight credit/debit charge. Details are available in the "Single Stock CFDs and ETF/ETC CFDs" section under Investment Products, CFDs, Financing.

Trading example

Long Single Stock CFD trade

When you expect the price of a stock to go up, you can choose to take a long position in a Single Stock CFD.

In this example you expect the Barclays Bank share price to RISE from its current mid-price of £1.72. You have £10,000 to place on margin. With Galt & Taggart you have a 10:1 leverage on this instrument, meaning you only have to place 10% of the trade amount on margin.

You decide to buy 50,000 CFDs at the offer price of £1.73 which gives you a position of (50,000*£1.73) £86,500 in notional value.

Each day you hold the long position open you pay financing cost on the notional opening value of the position.

The interest rate used is LIBOR+3.50% (0.27144%+3.50% = 3.77144%). 10 days later, the Barclays price has risen and you sell the 50,000 CFDs at £1.85.

The trade details are:

Opening the position How to calculate Amount (GBP)
Margin Available £10,000 x 10 100,000
Notional Transaction Value 50,000 x £1.73 86,500
Margin used £86,500 x 0.10 8,650
Commissions on the trade £86,500 x 0.10% -86,50
Stamp Duty   n/a
Financing of position    
Financing of margin 3.77144% x 10 days x £86,500 / 360 90.62
Borrowing costs   n/a
Closing of position    
Notional Transaction Value 50,000 x £1.85 92,500
Commission on the trade £92,500 x 0.10% -92.50
Profit / Loss    
Profit on trade £92,500 - £86,500 6,000
Total Cost £86.50 + £90.62 + £92.50 269.62
Total Profit £6,000 - £269.62 5730.38


Short Single Stock CFD trade

When you expect the price of a Stock to fall, you can choose to take a short position in a Single Stock CFD.


In this example you expect the Barclays Bank share price to FALL from its current mid-price of £1.72. You have £10,000 to place on margin. With Galt & Taggart you have a 10:1 leverage on this instrument, meaning you only have to place 10% of the trade amount on margin.

You decide to sell 50,000 CFDs at the offer price of £1.71 which gives you a position of (50,000*£1.71) £85,500 in notional value.

Each day you hold the short position open you receive financing cost on the notional opening value of the position.

The interest rate used is LIBID – 3.00% (0.26561%-3.00% = -2.73439%). Since the rate is negative you effectively have to pay 2.73439% overnight financing. 10 days later, the Barclays price has fallen and you sell the 50,000 CFDs at £1.65.

The trade details are:

Opening the position  How to calculate  Amount (GBP)
Margin Available £10,000 x 10 100,000
Notional Transaction Value 50,000 x £1.71 85,500
Margin used £85,500 x 0.10 8,550
Commissions on the trade £85,500 x 0.10% -85,50
Stamp Duty   n/a
Financing of position    
Financing of margin 2.73439% x 10 days x £85,500 / 360 64.94
Borrowing costs No borrowing costs on Barclays n/a
Closing of position    
Notional Transaction Value 50,000 x £1.65 82,500
Commission on the trade £82,500 x 0.10% -82.50
Profit / Loss    
Profit on trade £85,500 - £82,500 3,000
Total Cost £85.50 + £64.94 + £82.50 232.94
Total Profit £3,000 - £232.94 2767.06

Local Trade Restrictions

Local trade restrictions may apply to CFDs.

Tracks the price of the underlying Futures contract

When trading Commodity CFDs with Galt & Taggart a commission is not charged, but there is a bid/ask spread included in the price Galt & Taggart derives for each CFD.

This derivation means that whilst the CFD prices track the underlying Futures spread will be slightly wider. Commodity CFDs at Galt & Taggart are priced as the market spread on the underlying Futures contract plus a fixed mark-up. See a full list of Commodity CFD Spreads under "Commodity CFD spreads" under Investment Products, CFDs, Spreads and Commissions.

Minimum Trade size - fraction of a Future contract

Whilst all Commodity CFDs are priced in single units, often a minimum trade size will apply. Commodity CFDs are denominated in smaller lots than the underlying Futures contract. For example, the US Crude CFD is 25 barrels of oil, rather than 1,000 barrels. Each CFD is quoted as 1 unit of the underlying contract (e.g., 1 barrel), but there will be a minimum trade size. You are also able to reduce an open CFD position to below the minimum trade size. Should you be left with such a position then it should be closed via either the Account Summary or by contacting the dealing desk.

Higher leverage

Commodity CFDs margin requirements are lower than those for the underlying Futures contract, offering more exposure for less. Take advantage of trading Commodity CFDs up to 100:1 leverage. See full list of margin requirements.

Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors.

Ensure you fully understand the risks involved and seek independent advice if necessary.

Expiration monthly

Like Futures, Galt & Taggart Commodity CFDs will expire each month and will be cash settled on the expiry date of the underlying future. Front month (current contract) and back month (following contract) will be offered to enable clients to manually roll positions from one contract to the next. The specific expiry date and time for individual Commodity CFDs can be found in the trading platforms on either the Trade or Order tickets plus the Instrument Information pages.

Trading will cease at the specified time listed in the Contracts Specifications table for each contract. You should pay attention to when the Last Trade Day will take place as it differs contract to contract and month to month. Any positions still open at the close of trading on the Expiry Date will be automatically closed at the closing price set by Galt & Taggart and cash settled. For trading purposes, Galt & Taggart will quote both the current expiring month's contract and the following contract, where availability and liquidity allow.

Commodity CFD Cash Settlements

Commodity CFDs give clients exposure to the underlying commodity without the confusion of physical settlement. All Commodity CFDs transactions will be cash settled.

Trading example

Below is an example to illustrate trading using Commodity CFDs.

Long Position in US Crude - Buy 100 barrels of US Crude CFDs

Day 1 – the trader is bullish and therefore wants to be long US Crude CFDs.

Trade Buy 100 CFDs at $59.90
Nominal value $5990
Margin required (5% margin for first €300k collateral on account, otherwise 10%) $299.50


Day 5 – the price has risen and the trader wishes to close their position for a profit.

Trade Sell 100 CFDs at $61.50
Profit $160
Moving in the underlying commodity ($61.50 - $59.90) / $59.90 = 2.7%

In summary the trader took advantage of the leverage that comes with Commodity CFDs. The opening trade was valued at $5,990 but the trader had to only provide a margin of 5% or $299.50. The closing trade generated a profit of $1.60 per barrel and whilst that translated to a 2.7% rise in the price of oil, the client realised a profit of $160. Clients should be reminded that while trading leverage products like Commodity CFD can bring increased profitability, they can also increase a trade’s potential loss should the market move against you.

Futures Market spread

Forex CFDs at Galt & Taggart are priced as the underlying Futures contract spread plus a fixed mark-up.

Minimum Trade size - fraction of a Future contract

Forex CFDs carry a minimum trade size of 5,000 which is significantly lower than the Future Contract it is tracking, e.g. 1 lot of Euro/US Dollar Future is EUR 125,000. Minimum trade size of the US Index is 100 units.

Expiry

Similar to Futures Contracts, FX CFDs expire and will be cash settled on the expiry date. Any positions still open at the time of expiry will be automatically closed at the market price.

Manual roll of a position from one expiry to another may be done until the time of expiry. The specific expiry date and time for individual FX CFDs can always be found in the trading platforms under CFD Commodities Trading Conditions and under Investment Products, CFDs, Spreads and Commissions.

Order Types

Limit, Market, Stop, Stop Limit and Trailing Stop orders are supported. In addition you are able to place If Done and One Cancels Other (OCO) conditional orders. A Stop Order to sell your position is triggered on the bid price and Stop Orders to buy are triggered on the ask price.

Short selling

Short selling of Forex CFDs is fully supported with Galt & Taggart.

Futures Market spread

Forex CFDs at Galt & Taggart are priced as the underlying Futures contract spread plus a fixed mark-up.

Minimum Trade size - fraction of a Future contract

Bond CFDs are denominated in smaller lot sizes than the underlying Futures contract.

For example, one Bund Futures Contract imposes a EUR 10 tick value for each increment of the Futures price (0.01). As an alternative, you can choose to take your tick value down to EUR 1 with the Bond CFD for the same price increment (0.01).

50 CFDs is the minimum trade size for Bond CFDs.

Expiring CFD

Similar to Futures Contracts, Bond CFDs expire and will be cash settled on the expiry date. Any positions still open at the time of expiry will be automatically closed at the market price.

Manual roll of a position from one expiry to another may be done until the time of expiry. The specific expiry date and time for individual Bond CFDs can always be found in the trading platforms under CFD on Futures Trading Conditions.

Order Types

Limit, Market, Stop, Stop Limit and Trailing Stop orders are supported. In addition you are able to place If Done and One Cancels Other (OCO) conditional orders. A Stop Order to sell your position is triggered on the bid price and Stop Orders to buy are triggered on the ask price.

Short selling

Short selling of Bond CFDs is fully supported with Galt & Taggart.

Bond CFD Cash Settlements

Bond CFDs give clients exposure to the underlying instrument without the confusion of physical settlement. Bond CFDs transactions will be cash settled.

Volume-based commission

Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETC) CFDs are trading identical to Stocks with Galt & Taggart. These are priced as an exchange commission in percentage (%) charged on the notional value of the trade with a minimum for small trade sizes. For North American exchanges commission is calculated as cents per contract.

Live Exchange Data

Trading ETF CFDs on live streaming prices with Galt & Taggart requires a subscription to the relevant exchange data.

Order Types

Order types supported for ETFs and ETCs are similar to Single Stock CFDs.

Capital gain distribution

Cash payment is allocated on Ex-date for value Pay date.

Cash Dividends

Cash adjustments are booked on the Ex-date reflecting the market price movement on the Ex-date, but the actual value of the payment will be settled on the Pay Date. For long CFD positions, a Return Adjustment is subtracted from the Cash Adjustment. The Return Adjustment is designed to mirror the cash-flow from the default withholding tax rate in the relevant market for the underlying dividend payment.

Deletion of Open Orders as a Result of Corporate Actions

The day before a Corporate Action event is scheduled to take effect (the Ex-date), open orders are deleted for certain event types.

The following details the rules of behaviour:

Event Type Never delete orders Always delete orders Rule defined below
Tender offers x    
Stock splits   x  
Reversed stock split   x  
Bonus issues   x  
Mandatory Mergers   x  
Spin offs   x  
Ticker changes   x  
De-listings   x  
Cash dividends     x
Stock dividends     x
Optional dividends     x
Right issues     x

For dividends and rights issues, all open orders for the given instrument will be deleted if the change in the market price is calculated to be over 20% due to the Corporate Action event.

Dividend reinvestment plans (DRIP)

CFDs will receive the cash payment. The cash adjustments on CFD positions are booked on the Ex-date reflecting the market price movement on the Ex-date, but the actual value of the payment will be settled on the Pay date.

Dividends on index trackers

When any underlying stock that is part of an Index CFD goes ex-dividend, the Index CFD will be price adjusted to reflect this dividend. The weighted proportion of the applicable dividend within the Index CFD will be credited to the client's account for long positions and debited for short.

Please note that the DAX30 is a Total Return Index, meaning the index is automatically adjusted for dividends.

Index Dividend = Share Dividend * Shares in Index / Index Divisor*.

* Divisor: an amount used to stabilise the index value when its composition changes. The sum of all index members' prices is divided by the divisor to achieve the normalised index value. The divisor is adjusted when capitalisation amendments are made to the index members, allowing the index value to remain comparable at all times.

To prevent the value of an index from changing due to such an event, all corporate actions that affect the market capitalisation of the index require a divisor adjustment to ensure that the index values remain constant immediately before and after the event.

Liquidation

Holdings in the liquidated company will be removed. Liquidation proceeds, if any, will be allocated.

Mergers & Mergers with Election

For mandatory mergers, clients holding CFD positions are paid cash, new CFDs or both on the Ex-date according to the terms of the corporate action. Clients will not have the possibility to vote on mergers with elections. The default term will be elected on behalf of the client.

Mergers are paid according to the below, depending in the outcome of the event.

  1. Cash (distributed on Pay-Date)
  2. Stocks (distributed on Ex-Date)
  3. Mix of Cash & Stocks (distributed on Ex-date)

Optional Dividends

CFDs will receive the cash payment. The cash adjustments on CFD positions are booked on the Ex-date reflecting the market price movement on the Ex-date, but the actual value of the payment will be settled on the Pay Date.

Positions in instruments that are not online tradable

It can happen that a Corporate Action involves an instrument that is not tradable online with Galt & Taggart. In that case CFD positions in new instruments that are not tradable online are, if possible, liquidated. The proceeds are paid in full to clients

Right Issues

Tradeable Rights
Rights are granted and booked in accordance with the ratio on the Effective Date (Ex-date) and automatically orders for sale of the rights are placed when the relevant market opens for trading. Following the order executions proceeds from the sold Rights are booked to the client’s account.

In case the client wishes to participate in the Rights Issue, this is possible by buying the actual Stock Rights.

Non-Tradeable Rights
New CFD positions in the original instrument are granted and booked according to the ratio and the price of the underlying rights issue on the Effective Date (Ex-date), with the value date as payment date.

Share premiums

Cash payment is allocated on Ex-date for value Pay date.

Spin Offs

CFDs positions on the underlying Stock are allocated on the Ex-date. Clients with short positions will be debited and clients with long positions credited.

Stock Dividends

CFDs are allocated on the Ex-date for value on Pay Date. Clients with short positions will be debited and clients with long positions credited.

Stock Splits / Reverse Stock Splits

New CFDs positions are allocated on the Ex-date.

Special Corporate Action Events

Special and infrequent Corporate Actions that do not come under the descriptions above may occur. Galt & Taggart will handle such Corporate Actions in the best interest of the client to the extent that time and operational procedures will allow.

Tender Offers

Clients holding CFD positions will not be given a choice to tender.

Data subscriptions for real-time prices

At Galt & Taggart all equities trade on actual market data from the stock exchanges. To receive and trade on real-time market data, you will have to subscribe to the individual exchange.

A subscription to live price data from an exchange gives you access to live prices on Stocks, Single Stock CFDs, ETFs/ETCs and CFDs on ETFs/ETCs from the particular exchange.

The subscription fee is determined by the level of data access, and whether you are a retail or professional client. These classifications are determined by the exchanges and can differ.

An Online Subscription Tool is available in the trading platform. In the tool, you will find a list of available exchanges and news services alongside the applicable monthly fees. You will be able to subscribe and unsubscribe to services of your choice. Further information can be found in the Subscription Tool guide, which is also available on the trading platform.

Level 1 or Level 2 data?

Level 1 price data refers to the first level of the order book on the exchange. With a Level 1 subscription you can see live, streaming, bid and offer prices.

With a Level 2 price data subscription you can see live, streaming prices as with Level 1 but on top of this you can see the market depth of bid/offer prices and the amounts available at each price point.

Level 1 and Level 2 Exchange Data Fees

Exchanges - CFDs and Stocks Level 1 – Private Level 1 – Professional Level 2 – Private Level 2 – Professional
Assessment for client data Free N/A N/A N/A
Australian Securities Exchange N/A N/A 20.00 AUD 108.00 AUD
Bats Europe Free 28.00 GBP N/A N/A
Hong Kong Stock Exchange 120.00 HKD 120.00 HKD 200.00 HKD 200.00 HKD
NASDAQ 1.00 USD 24.00 USD N/A N/A
New York Stock Exchange 1.00 USD N/A N/A N/A
New York Stock Exchange PROFESSIONAL INVESTORS N/A 45.00 USD N/A N/A
NYSE (AMEX and ARCA), Bats 1.00 USD N/A N/A N/A
NYSE (AMEX and ARCA), Bats PROFESSIONAL INVESTORS N/A 23.00 USD N/A N/A
Toronto Stock Exchange N/A N/A 21.00 USD 88.30 USD
Toronto Stock Exchange (incl. TSX Venture Exchange) 12.00 USD 58.30 USD N/A N/A

Neither us, nor any third party provider, accept any responsibility or liability for any direct or indirect losses due to any failure or unavailability of the Subscription Tool or the accuracy or completeness of the Services provided.

** Market data provided by Saxo Bank

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