Online Trading

FAQ

WHAT IS A CFD?

A Contract For Difference, or CFD, is a stock derivative product that allows traders to participate in the price movement of a security or index without taking full ownership of the security/index. CFDs are traded on margin, thereby allowing you to gain exposure to particular securities using far less capital than would be required if trading on the underlying securities themselves. Although CFDs confer no ownership rights they do reflect the full performance of the underlying stock, including corporate actions.

WHEN CAN I TRADE CFDS?

CFD Trading hours mirror those of the exchange on which the underlying stock is traded.

WHAT MARKETS ARE AVAILABLE?

HMS Markets offers CFD trading on 16 different exchanges, including 10 index-tracking CFDs

WHAT ARE THE HELP-DESK HOURS?

The Help-Desk is open on Luxembourg Business week days from 08.00 CET until 18.00 CET. You can E-mail your questions to Helpdesk@hms.lu or call (+352) 45 11 1 911

WHERE IS MY ACCOUNT HELD?

Client accounts are held with a European Bank.

HOW MUCH MONEY IS REQUIRED TO OPEN A MARGIN ACCOUNT?

Our minimum opening account size for HMS Trader 2 Platform is EUR 1,000 (For Trading Forex / Futures / CFDs & Stocks).

CAN I LOSE MORE THAN I HAVE IN MY ACCOUNT?

While under normal circumstances you must maintain the margin requirement (please see margin requirements faq's) it is possible that in certain cases you can lose more than the cash balance of your account. Your loss is NOT limited to the amount of cash in your account. Due to the nature of margin trading, a relatively small deposit is required to control a much larger position. Clients can therefore lose more than the amount in their account, and will be required if necessary to pay any outstanding balances due to HMS LUX.

WHAT IS THE ROLE OF HMS LUX?

We are your broker and are committed to provide order execution software and quality back up services.

DOES HMS LUX CO-OPERATE WITH THIRD PARTY PROVIDERS?

Yes, in order to provide the best services for our clients, we use other professionals of the financial markets for order routing, clearing, settlement etc

WHAT SHOULD I DO IF I CAN NOT GET OUT OF A POSITION?

You can use the online Chat/Helpdesk Function during the Help-desk hours to chat to a member of our hepdesk staff

Otherwise you can call a member of our helpdesk staff on +352 45 111 911

HOW ARE SHARE DIVIDENDS HANDLED?

Holders of long CFD positions will, when dividends are paid on the underlying share, qualify for a proportional payout. Holders of short CFD positions will have to pay an amount equal to the full (gross) dividend paid on the underlying share.

The dividend amount will be credited/debited to the client's trading account on ex-date, except in cases where the dividend rate is unconfirmed, e.g. ADRs and where the underlying stock is converted from its natural currency. In this case the dividend would be paid the dividend on the payable date.

Dividends on CFD positions are paid and debited by the platform and not by the underlying company. Dividends paid or debited are cash adjustments reflecting corporate actions in the underlying share and as a result will not take into account special dividend taxes that may be applicable. CFD dividends may therefore differ from the dividends payable on the underlying share. Holding a CFD does not confer the rights to any dividend imputation credits.

HOW ARE CORPORATE ACTIONS TAKEN CARE OF?

As a CFD position reflects the exposure of either a purchaser or seller of shares in an underlying company, it will also reflect any capital adjustments or benefits announced by the company. Therefore:
  • Owners of CFDs will partake in corporate actions but are not entitled to any voting rights.
  • Bonus issues, rights issues and stock splits will be replicated in the CFD on the corresponding ex-date. On ex-date client positions will be adjusted to allow for the effect of the corporate action on the market price.
  • In respect of allocated rights, the platform does not provide a service to trade rights.

US RESIDENTS

Please note that HMS Markets does not accept US Citizens or Residents for the time being.