How is FIIG paid for bond trades?
- FIIG acts as principal where it matches buyers and sellers in the bond market and earns its income on the difference between the buy and sell price (this is known as the margin).
- For FIIG to execute a trade it must make both the buyer and the seller happy with the price of the bonds and the corresponding returns that they will earn. So, it’s in FIIG’s interest for the trade to be executed, otherwise we don’t earn any income.
FIIG charges the following fees:
Custody Service Fee
- 0.20% p.a. for the first $500,000
- 0.14% p.a. for the next $1.5m
- 0.09% p.a. for the next $3m
- 0.06% p.a. for amounts over $5m
The Custody Service Fee is subject to a minimum monthly fee of:
- $20 if you have nominated an existing Macquarie Bank CMA or elected to establish a new FIIG Funding Account held in your FIIG account name with Macquarie Bank; or
- $30 if you have not elected to have a Macquarie Bank CMA as your FIIG Funding Account.
The Custody Service Fee is calculated daily on the value of your account holdings and charged monthly. Please note that for accounts opened on or before 30 June 2015, the Custody Service Fee will be waived until 1 January 2016.
A dishonour fee of $60 may be charged if insufficient funds are available at the time FIIG seek to charge the Custody and Service fee.
In specie transfer fee
An in specie transfer fee may be payable should you transfer existing securities between FIIG and another custodian. This fee will vary according to the complexity of the transfer and will be agreed with you prior to the transfer occurring. However, the fee will not exceed $300 per series of security transferred.
All the fees described above are inclusive of GST and will be direct debited from your FIIG Funding Account.