Fees & Interest

Fees & Interest

Will my dividend automatically convert to my base currency?

MEXEM does not act to automatically convert currency balances back to the Base Currency as this action would require assumptions as to the account holder's desired currency exposure as well as the trade price at which they would be willing to close the position.

Read More

Fees & Interest

Why was I charged a fee for a wire deposit?

Neither MEXEM or its agent bank charges for electronic deposits of any currency other than MXN. If you are being charged it is likely because your bank is using the services of a correspondent bank to effect cross-border transfers.

Read More

Fees & Interest

Who is subject to the dividend equivalent withholding tax?

The tax applies to qualifying positions held in an account of a non-U.S. taxpayer...

Read More

Fees & Interest

Where did the charge in my activity statement's Fees section for ADR Fee come from?

Central Securities Depositories collect custody fees for non-dividend paying ADRs. Fees, ranging from 0.01-0.03 USD per share, are deducted on the record date and appear in your Activity Statement's Fees section. Consult the ADR prospectus or the SEC website for further information.

Read More

Fees & Interest

When will my dividend be paid?

If you're eligible for a dividend, an accrual is posted to your account on the Ex-Dividend Date. Upon receiving funds, MEXEM will adjust your account balance. If funds aren't timely received, the dividend stays in an accrued state. Track this in the Open Dividend Accruals section of a custom activity statement.

Read More

Fees & Interest

What is the margin requirement for shorting stocks?

Find margin details on the MEXEM website (Products > Margin). Minimum margin requirement for shorting stock is 30% with a minimum account balance of 2,000 USD. MEXEM's house margins may exceed regulatory requirements. Use "Check Margin Impact" to preview requirements. Visit the Knowledge Base for more info.

Read More

Fees & Interest

What is the difference between the Fee Rate and the Rebate Rate?

Fee Rate is the interest rate clients pay to short a stock. Lender reinvests cash collateral and may provide a rebate. MEXEM passes rebates to retail accounts. Rebate Rate = Fee Rate - rebate. Negative Rebate Rate means a charge. It informs credit interest on short stock cash proceeds. More info on website.

Read More

Fees & Interest

What is the calculation used for interest?

MEXEM uses 4 steps to calculate the daily interest payable or receivable on cash balances.Interest is calculated on the end of day Settled Cash Balance. If you sell a stock short and close the short in the same trading session, borrow fees would not be applied as both the opening sale and closing purchase would settle on the same day.Information on how interest is calculated may be found on our website under Interest and Financing / Calculations.

Read More

Fees & Interest

What fees am I charged on an assignment or exercise?

Most stock option exercises/assignments have no fees. However, fees apply to Australian and Hong Kong stock options. US stock options are subject to regulatory fees. Index options have standard commissions, except US index options. Futures and future options follow standard commissions. Check MEXEM website for details.

Read More

Fees & Interest

What commissions do you charge for Mutual Funds?

North American and Global mutual funds have a transaction fee of 3% of Trade Value or $14.95. European mutual funds have Fixed (0.1% of Trade Value, min €4, max €29) and Tiered pricing (starts at 0.08% of Trade Value, min €1.25, max €29, decreases with volume). More details on our website. MEXEM also offers No Transaction Fee Funds.

Read More

Fees & Interest

What commissions do you charge for Hong Kong stocks?

MEXEM offers Fixed and Tiered commission structures. Fixed commissions are 0.08% of trade value with a HKD 18 minimum. Government stamp duty (0.1%) and SFC transaction levy (0.0027%) apply to all clients. Detailed SEHK fees and Tiered pricing information are available on our website.

Read More

Fees & Interest

Is there a fee for TWS login?

There is no TWS login fee. MEXEM does not charge for any of our trading platforms or the various tools included.For additional information on Other Fees and Required Minimum Activity, please visit the MEXEM website.

Read More

Fees & Interest

How much do you charge for options?

MEXEM offers a tiered commission structure for US options trading, starting at $0.65 per contract, with additional fees. Higher charges apply to sell orders due to transaction fees. For Europe and Asia, fixed and tiered pricing options are available, varying by exchange and product. More details on our website.

Read More

Fees & Interest

How much do you charge for futures?

MEXEM offers fixed or tiered commission structures for futures and options. U.S. futures commission starts at $0.85 per contract plus additional fees. In Europe and Asia, MEXEM provides varying all-in fixed rates. More information is available on our website under Pricing then Commissions.

Read More

Fees & Interest

How much do you charge for bonds?

MEXEM uses a tiered commission structure for Fixed Income, calculated on volume plus external fees. U.S. and European rates start at 0.1% of Face or Trade Value respectively, while Asia-Pacific starts at 0.08% of Trade Value. More info on our website under Pricing then Commissions.

Read More

Fees & Interest

How is the margin requirement determined for stock carried in a Portfolio Margin account?

Portfolio Margin requires as low as 15% for diversified portfolios of low volatility securities. For a single stock, it's minimum 30%, possibly higher for high volatility or substantial price increase. Concentration charges apply for 1%+ of outstanding shares. Check margin requirements in TWS. More info on MEXEM's website.

Read More

Fees & Interest

How do I update cost basis information for transferred securities?

Cost basis of transferred positions is sent by the transferor after settlement. Until then, MEXEM classifies positions as non-covered with default cost basis. Clients can manually update the cost basis via Client Portal/Account Management. Cost basis of covered positions updates automatically. More info in MEXEM Users' Guide.

Read More

Fees & Interest

How do I determine whether there is a cost to borrow a stock before entering a short sale order in TWS?

Selling stock short with MEXEM involves borrowing shares for delivery to the purchaser. The cost to borrow depends on supply and demand. MEXEM offers tools to estimate this cost, like the Shortable column and the SLB Rates tool in TWS. These rates fluctuate daily and are finalized at day's end. More information about calculating borrowing costs can be found on our website.

Read More

Fees & Interest

How can I get old account statements?

MEXEM offers online daily activity statements for the last 4 years, monthly statements for the last 60 months, and annual statements for the last 5 years. Additional 2 years of statements are available via email for a fee. Statements for closed accounts up to 5 years old can be accessed via the Client Portal. MEXEM doesn't typically provide daily statements instead of monthly or annual ones. Payment for archived statements can be made by check for closed accounts, or deducted from the cash balance for active accounts.

Read More

Fees & Interest

How can I get back the tax on dividends on French stocks?

Clients must fill out Forms 5000 and 5001, as detailed in our Knowledge Base, then reach out to Client Services with dividend details to request service. A processing fee applies for each request.

Read More

Fees & Interest

How can I avoid the monthly activity fee?

The monthly activity fee can be waived if the account has a Net Liquidation Value over USD 100,000 or equivalent, or by generating enough commissions. This fee is waived for the first three months after a new account opening. For commission requirements, check our website under Pricing and Account Minimums.

Read More

Fees & Interest

How are withholding taxes determined on dividends?

If you hold a position over the ex-dividend date, your dividend may face withholding tax. Depending on your MEXEM account entity and your residence country, either MEXEM or our clearing agent may apply this tax. In such cases, country specific rates might not be available. For tax refund claims on a dividend, consult a tax advisor.

Read More

Fees & Interest

Am I currently using margin?

Investing on margin means borrowing funds to open a position. If an account's overall cash balance is negative, it indicates a loan subject to interest fees. Despite a positive overall balance, there could still be a loan due to balance netting or timing differences. For more info, check the MEXEM Knowledge Base article on identifying borrowed funds.

Read More

Fees & Interest

Are non-U.S. persons subject to U.S. taxes on trading profits?

Non-US applicants will be asked to submit a Form W8, indicating their tax country. If it's not the US, they aren't liable for US taxes on trading profits. However, most countries withhold taxes on dividends paid to non-residents, typically at 30%, which can be less if a tax treaty exists.

Read More

Fees & Interest

Are market data fees prorated?

Research and data subscriptions at MEXEM are billed monthly in advance. Even partial-month usage incurs a full month's fee, as exchanges don't prorate or refund mid-month changes. If you cancel mid-month, you'll still receive services for the billed month. More details on data fees are on our website.

Read More

Fees & Interest

Am I subject to the US stock commission schedule if I trade US stocks but am not a US resident?

Commissions are determined by product type and exchange, not by the client's location. For commission structures per asset class, check the "Commissions" under the "Pricing" menu on our website.

Read More

Popular FAQ Tags

Don't have an Account yet?

Open An Account