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Non-U.S. persons are generally asked to complete the relevant W-8 form during the account opening process. This form is used to certify the client’s non-U.S. tax status and, where applicable, claim benefits under an income tax treaty.In general, non-U.S. persons are not subject to U.S. tax on capital gains from trading U.S. stocks, provided they are not considered U.S. tax residents and no specific exception applies. However, U.S.-source dividends are generally subject to U.S. withholding tax. The standard withholding rate is 30%, but a lower rate may apply if the client is eligible for treaty benefits. Clients may still be subject to tax reporting and taxation in their country of tax residence. Tax treatment depends on the client’s personal circumstances, tax residence, account type and applicable local rules. Clients should consult a qualified tax adviser for guidance on their specific situation.

Having a Margin account does not necessarily mean that the client is currently borrowing funds. The client is generally using margin when the account has a negative cash balance, meaning that funds are being borrowed and interest may apply. A simple way to check is to review the cash balances in the account. If the aggregate cash balance is negative, this usually indicates that the client is borrowing funds. However, in some cases, a margin loan may still exist even if the aggregate cash balance appears positive, due to currency balances, account segment netting, settlement timing or other timing differences. Clients can review their cash balances, margin requirements and interest details from the Client Portal, trading platform and account statements.

Research and market data subscriptions are billed on a monthly cycle in advance and if you manage a subscription for any period (even less than a full day) during the month, you will be obligated to pay as if you were subscribed for the entire month. Note that exchanges do not prorate subscription fees for mid-month elections nor do they offer refunds for subscriptions cancelled mid month.If you cancel a subscription mid-month, however, you will continue to receive the service for the month in which you are billed for the service.Additional information on market data fees can be found on our website.

Commissions are based on product type and listing exchange and do not vary by the client's country of residence. For an overview of commission structures by asset class, please refer to our website under the Pricing menu followed by Commissions.

When a client holds a position that pays a dividend, the dividend may be subject to withholding tax. The applicable withholding tax depends on several factors, including the country of the issuer, the client’s tax residence, the type of instrument, the applicable tax treaty and the tax documentation available on the account. For example, dividends paid by U.S. companies to non-U.S. persons are generally subject to U.S. withholding tax. A valid tax form may allow a reduced treaty rate where a tax treaty applies and the client is eligible. In some cases, withholding tax is applied at source by the issuer, paying agent, custodian or other withholding agent before the dividend is credited to the account. Where tax is withheld at source, it may not always be possible to apply a reduced treaty rate directly through the account. Clients who believe too much tax has been withheld, or who wish to claim a refund, should consult a qualified tax adviser or the relevant tax authority in the applicable jurisdiction.

Clients can download account statements from the Client Portal under Reports > Statements. Daily activity statements are generally available online for the past 4 years, monthly activity statements for the past 60 months, and annual statements for the past 5 years. Older statements may be available for an additional period in electronic format, subject to availability and applicable fees. Requests for archived statements that are no longer available online should be submitted to MEXEM Client Services.

Clients who wish to reclaim withholding tax applied to dividends from French stocks may need to complete the relevant French tax reclaim forms, including Form 5000 and Form 5001. Form 5000 is generally used to certify the client’s tax residence, while Form 5001 is generally used to calculate and request the repayment of withholding tax on dividends. The forms and supporting documentation may need to be completed in accordance with the instructions provided by the French tax authorities.

When a client sells a stock short, shares must be located and borrowed so they can be delivered at settlement. Whether there is a cost to borrow the shares depends on market supply and demand. Stocks that are harder to borrow generally have higher borrow costs. Clients can use the following tools in TWS to estimate the borrow cost before placing a short sale order: - Shortable column: this column shows whether shares may be available to short, the estimated number of shares available and the projected borrow rate for the stock being monitored. - SLB Rates tool: this tool allows clients to search for stock loan borrow rates and review recent historical rate information. It can be opened from the Analytical Tools menu in TWS. - Borrow rates and short availability are indicative and can change during the day based on market conditions, supply and demand. The actual borrow cost is determined after the borrow has been sourced and may differ from the rate shown before the order is submitted. A stock being shown as shortable does not guarantee that shares will remain available at settlement. If shares cannot be borrowed or maintained, the short position may be subject to a forced close-out.

When securities are transferred into the account, the original acquisition date and purchase price may not be available immediately. In some cases, the delivering broker may send the cost basis information after the transfer has settled. Until the official cost basis information is received, transferred positions may be shown with default cost basis values. For example, the acquisition date may be set as the transfer date and the cost may be based on the closing price of the security on the transfer date. Clients can update cost basis information for transferred positions from the Client Portal by going to the Reports or Tax section and opening the Cost Basis area for transferred positions. From there, clients can review eligible transfers and enter the relevant acquisition date, quantity and cost basis for each tax lot. If the position is classified as covered under applicable U.S. tax reporting rules, the cost basis may later be updated automatically when the official information is received from the delivering broker. In that case, the official information may replace the client’s manual entry. Clients should verify all cost basis information against their own records and consult a qualified tax adviser if they are unsure how to report transferred securities for tax purposes.

In a Portfolio Margin account, margin requirements are calculated using a risk-based model. The requirement depends on several factors, including the specific stock, its volatility and price movement, the size of the position, concentration risk, and the other positions held in the account. Portfolio Margin may allow lower requirements than standard margin for diversified portfolios of low-volatility securities. In some cases, the requirement may be as low as 15%. For a single stock position, the margin requirement is generally at least 30%, but it may be higher if the stock is volatile, has moved significantly, or represents a concentrated position. Additional concentration charges or house margin requirements may apply. Margin requirements can also change in real time based on market conditions, account risk and changes in the portfolio. Clients can use the Check Margin or Order Preview function in the trading platform to estimate the margin impact of a specific position or order before submitting it.

Bond commissions depend on the currency and the type of bond traded. MEXEM applies a commission based on the applicable bond fee schedule, plus any relevant exchange, regulatory or third-party costs. Minimum fees may apply per order. For example, the current bond commission schedule includes:
EUR-denominated bonds: 0.15% of trade value, minimum EUR 5 per order.
HKD-denominated bonds: 0.15% of trade value, minimum HKD 25 per order.
USD-denominated bonds: 0.15% of face value, minimum USD 8 per order.
Fees may vary depending on the product, currency, venue and applicable external costs. Clients should always review the latest fee schedule on the MEXEM website before placing an order.

Futures commissions depend on the currency, exchange and product traded. MEXEM applies a commission per contract, with a minimum fee per order. Exchange, regulatory and other external costs may also apply. For example, the current futures commission schedule includes:
USD-denominated futures: USD 1 per contract, minimum USD 1 per order.
EUR-denominated futures: EUR 1.80 per contract, minimum EUR 1.80 per order.
GBP-denominated futures: GBP 2 per contract, minimum GBP 2 per order.
AUD-denominated futures: AUD 6.25 per contract, minimum AUD 6.25 per order.
Fees may vary depending on the market, product, currency and applicable external costs. Clients should always review the latest fee schedule on the MEXEM website before placing an order.

There is no TWS login fee. MEXEM does not charge for any of our trading platforms or the various tools included.

Generally, no fees will be assessed on stock option exercise / assignment activity. Australian and Hong Kong stock options are an exception where fees will be passed through. US stock options will be subject to Section 31 and FINRA TAF regulatory fees.Index options will generally be charged standard commissions, with the exception of US index option exercise / assignment activity which will not be subject to fees.Futures and future options will be subject to standard commissions for expiration or exercise/assignments.For additional information, please refer to the Exercise and Assignment table and the Commissions page of the MEXEM website.

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, borrowing 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.

To short stocks, clients must have a margin account, the required trading permissions and sufficient equity in the account. A minimum account equity of USD 2,000 is generally required in order to hold short stock positions. The minimum margin requirement for shorting a stock is generally 30%. However, MEXEM’s house margin requirements may be higher than the minimum requirement depending on the stock, market conditions, volatility, liquidity, concentration risk and other risk factors. Before submitting a short sale order, clients should use the Check Margin Impact or Order Preview function in the trading platform to review the estimated margin requirement for the specific stock and order size.

If a client is eligible to receive a dividend, an accrual for the expected dividend amount will usually be posted to the account on the ex-dividend date. Once the dividend funds are received from the relevant depository, clearing agent or paying agent, the accrual will be reversed and the dividend will be credited to the account’s cash balance. This usually takes place on the announced payment date. However, if the funds are not received or allocated on time, the dividend may remain in an accrued state until processing is completed. Clients can track expected dividend payments by generating a custom activity statement that includes the Open Dividend Accruals section. This section shows information such as the expected payment date and dividend amount.

An ADR fee is a custody or depositary service fee charged by the depositary bank or ADR agent for administering an American Depositary Receipt. These fees may be collected through central securities depositories or other market infrastructure providers and passed through to accounts that held the ADR on the relevant record date.ADR fees are often deducted from dividend payments where the ADR pays a dividend. If no dividend is paid, or if the fee is collected separately, the fee may appear as a separate charge in the Fees section of the Activity Statement. The amount and timing of the fee depend on the specific ADR program and are usually disclosed in the ADR prospectus. ADR fees commonly range from USD 0.01 to USD 0.03 per share, but the exact amount may vary. Clients can review the charge in their Activity Statement under the Fees section on the date the fee was posted to the account.

Dividend equivalent withholding tax may apply to qualifying positions held by non-U.S. taxpayers. It does not generally apply to U.S. taxpayers. For this purpose, non-U.S. taxpayer status is generally documented through the relevant IRS Form W-8. This may apply to different account types, including individual, joint, organization and trust accounts. The tax is generally relevant to certain derivative or synthetic positions that reference U.S. equities or U.S.-source dividends. Whether a position is subject to dividend equivalent withholding depends on the instrument, account classification, tax documentation and applicable U.S. tax rules. Clients should consult a qualified tax adviser if they are unsure how these rules apply to their specific situation.

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. As this relationship is not controlled or determined by MEXEM (nor do we benefit by the fee), you would need to discuss with your bank the relationships they maintain and how that impacts your costs.

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.