Costs and charges

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

We need to display transparent information on the characteristics, risks and costs related to the instrument in a Key Information Document (KID) as well as the service costs of each financial instrument. This requirement stems from the revised European Union (EU) Markets in Financial Instruments Directive (MiFID II) which aims to better inform and protect you. When you make purchasing and selling transactions on our transactional site, you will see the "Costs and charges" box.

What are the costs and charges related to the "service"?

This is an estimate of the maximum costs related to the operation in accordance with the applicable rates and taxes (such as the transaction charges - including clearing and settlement costs -, the stock exchange taxes, the exchange rate, and the custody rights).

What are the costs and charges linked to the "service"?

This is an estimate of the maximum costs related to the instrument based on an assumed holding period of the instrument of one year. These costs are already included in the price of the instrument. More information is to be found in the key information document (KID) of the financial instrument, available on the transaction site, under « Documents » of the instrument page. Note that the charges linked to the instrument are not applicable to shares, bonds and options.

What are the "inducements" costs and charges? (only for funds)

This is an estimated amount of the inducements received by Keytrade Bank based on an assumed holding period of the funds of one year. These costs are already included in the price of the fund.

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

One-off costs are charges paid at the time of the purchase or sale of the instrument, while ongoing costs are the charges to pay throughout the period of holding the financial instrument. The ongoing costs are estimated based on an assumed holding period of the instrument of one year.

Does each financial instrument have costs and charges related to the instrument itself?

No, shares, bonds and options do not have this type of costs and charges.

What does the percentage of the service fee represent?

The percentage shows the ratio of the service costs to the price of the instrument.