US Stock Baskets

FXCM’s Stock Baskets contain a number of individual stocks relating to a specific sector. 

At the time of the baskets inception, each stock was given a value in $ terms. The baskets will from that point forward measure the collective performance of each of the correlated components. 

For example: 
FAANG’s original price was $2,000
and Netflix represented $400 of that $2,000
If today that same amount of Netflix shares that were worth $400 is now worth $415, that stocks contribution to FXCM’s FAANG price will be 415.
The contribution of each of
the stocks will formulate the current rate of a Stock Basket.

Margin Requirements

Margin Requirements are updated daily during the market break.

Most Stock Baskets are leveraged at approximately 20:1 and the new margin requirement will be the equivalent of approximately 5% of the notional value of 1 contract

For E.G if the FAANG rate is 2000.00 during the market break, the Margin Requirement for one contract will be updated to $100.00 USD

Note: CANNABIS currently requires approximately 15% and ESPORTS requires approximately 10%.

Trading Hours

Please click here for trading hours.

Please note, however, that hours are subject to change based on Daylight Savings Time. Also, FXCM’s Stock Baskets do not expire, but will not be open for trading during holidays in which the reference markets are closed.

Maximum Contract Size

The maximum number of contracts per click (trade) for all Stock Baskets is 200.

Minimum Pip Cost (Value)

Stock Baskets have minimum value of $1 per point (Your per point value may be different if your account is denominated in a different currency. Please refer to the Simple Dealing Rates Window in Trading Station for this value). The pip/point location is shown below.

Rollover

Stock Baskets do have financing cost (Rollover).
For more information on financing costs, please refer to:
http://help.fxcm.com/markets/Product-Guide/Overview/CFD-Trading/874064721/What-is-the-CFD-financing-cost.htm

Dividends and Withholdings

Dividend adjustments will apply on the eve of the ex-dividend date of the constituent members of the relevant Basket. The adjustment will appear on your statement and the amount of the adjustment per contract can be seen in the simple dealing rates window of the Trading Station platform in the day prior to the debit/credit.

As per Section 871 of the US tax code. A 30% tax applies on dividend adjustments to traders of equity derivatives of US stocks. In accordance with FXCM’s obligation under this US tax regulation, 30% of all Dividend credits are withheld and passed on by FXCM to the IRS.

When your account is debited, you are debited the full amount. However FXCM subsequently pass on 30% of that debit to the IRS.*

* This tax treatment is applied by default to all positions and may be subject to change in the future. Rebates may be available depending on your individual tax and residency circumstances, or may differ based on the respective jurisdiction. Please contact FXCM support if you believe you may be entitled to a rebate for additional information you will need to provide. This information is for references purposes only, and reliance on the information contained herein is not an alternative to legal advice from an attorney or other professional legal/accounting services provider. This information is not intended as a financial or an investment advice and must not be construed as such. Seek advice from a separate financial advisor. FXCM assumes no liability for errors, inaccuracies or omissions; does not warrant the accuracy, completeness of the information or other items contained within these materials.

https://help.fxcm.com/markets/Product-Guide/Overview/CFD-Trading/2044644323/Stock-BasketDividends-and-Witholdings.htm

Other Information

In the event that one of the individual components of a Basket does not receive a price update for 1 minute, the Basket will become temporarily untradeable. This may result in hanging orders on TS2 or Rejected orders on MT4. We recommend trading with caution around any period of low liquidity.

In the event of significant drawdown of one of the components or a corporate action, the Baskets may require a periodic rebalancing. In the event of a rebalancing all open positions may be closed with little or no notice.

Withholding Rebates

As per Section 871 of US tax code, a withholding tax applies on dividend adjustments to traders of equity derivatives of US stocks.

In accordance with FXCM's obligation under these US tax rules, 30% of all credited Dividend adjustments on SSCFDs or Stock Baskets are withheld and passed on by FXCM to the IRS.

If you are a taxpayer in a jurisdiction where a tax treaty exists that permits a lower withholding percentage and you qualify for the treaty benefit, you can submit a W-8BEN form (or other W-8 form based on your entity type) and FXCM will provide an adjustment to your account in the form of monthly rebate.

How to submit?

  • Log into MYFXCM.
  • Select “Upload Documentation” from the “My Info” dropdown.
  • Choose “Other” and Provide details that you are “submitting W-8 for a reduction in withholdings.”

Please Note:

1. FXCM will confirm to you via email that your form has been processed.

2. Rebates for the previous month will generally be credited within 2 weeks of the end of the month.

3. FXCM Customer service staff are unable to provide you tax advice based on your individual circumstance or location.

4. Your details will remain valid for 3 years unless your tax or residency circumstances change, however eligibility may be subject to change without notice.