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Your intermediary may charge certain fees for safekeeping shares for you. You may also be subject to certain charges if you transfer your shares to another intermediary.

Do I need to pay a fee for custody of my stocks?

Some intermediaries charge a stock custody fee for clients' stocks entrusted to them for safekeeping. In general, it is payable every 6 months (normally at the end of June and December). Some intermediaries levy a flat custody fee, while some charge the fee on the basis of the number of board lots of shares.

If you hold stocks for long-term investment, custody fee may increase the cost of your investment.

Example : Assuming you have only bought 100,000 shares of Company H during the period from January to June. Your intermediary levies a flat custody fee of $100, payable semi-annually on 30 June and 31 December for safekeeping your shares.

Then, you need to pay $100 on 30 June.

What is "Settlement Instruction" fee?

When a client transfers shares safe kept at one intermediary's account in CCASS to another, CCASS charges 0.002% of the total transaction value (minimum $2, maximum $100) in respect of each settlement instruction, plus $1 for each input instruction.

How much an intermediary charges its clients for the stock transferral depends on whether shares are transferred in or out of that intermediary. Most intermediaries only levy a charge on shares transferred out of their account but not on shares received. The settlement instruction fee - withdrawal of securities may be on a per board-lot basis or as a percentage of the value of shares.

Example: You transfer 5,000 Company J shares worth $40,000 from one intermediary to another intermediary. Assuming the receiving intermediary does not charge any fee while the delivering intermediary requires a settlement instruction fee - withdrawal of securities, equivalent to 0.002% of the transaction value (minimum: $2, maximum: $100), then, the fee you need to pay is $2.