Interest on your main account is calculated on the Net Free Equity.
Interest on sub-accounts is calculated on the Account Value.
Since the Net Free Equity is calculated on open trade positions on all your accounts, it is important to make sure that sufficient cash is available on your main account.
Otherwise, you risk being subject to a debit interest on your main account exceeding the credit interest payable on your sub-account(s).
Net Free Equity is:
Cash collateral for margin financing used in Net Free Equity calculations may differ from the trading margin requirement. See the full list of cash collateral for margin financing used for Net Free Equity calculation.
In order to avoid paying negative interest, enough cash has to be held on your main account and sub-accounts.
NFE and interest accrued can be found on Luminor Trade platforms "Account > Interest Details".
Account value of your sub-account is:
Pay attention, that main account value is described by NFE and subaccount value is described by Account Value.
The following interest rates apply to funds deposited with Luminor Bank:
Net Free Equity or Account Value above 15 000 EUR (or equivalent):
Positive Net Free Equity or Account Value up to 15 000 EUR (or equivalent):
Negative Net Free Equity or Account Value:
Information on NFE, Account Value and interest accrued can be found in Luminor Trade platforms: Account > Interest Details
Note! For Net Free Equity/Account Value above 15 000 EUR interest is not paid, if interbank market BID rate minus 3% is negative.
Interest will be calculated daily at 17:00 New York time and settled monthly - within seven business days after the end of each calendar month.
In case account currency does not match traded instrument currency, Luminor Trade will automatically execute currency conversion.
Currency conversions of trading costs as well as profits and losses from trading activities are done using the prevailing mid-spread close rate as of 17:00 New York time, plus/minus 0.5%. For FX Options the rate is plus/minus 0.1%.
The Currency Conversion fee does not apply to margin collateral. Only settlement of actual payments to or from the trading account are included, for example, buying/selling cash Stocks, paying/receiving options premium etc.
The rate used for currency conversion of amounts booked to your account is shown in the trading platforms under the “Trades Executed” report.
In case, there will be negative cash balances in one or more trading accounts and there will be enough cash in another currency (and another account), Luminor Trade will NOT automatically execute currency conversion. See trading guidelines on avoiding negative cash balances.
Upon clients request, Luminor bank manually converts currency held in clients account as cash to other subaccounts (if such subaccounts exist). Currency conversion between client's subaccounts is executed at Luminor bank commercial conversion rate - market price plus/minus 1%. Conversion rate may be improved if converting more thank 10 000 EUR equivalent.
Fee for reporting of U.S. Source income is 90 USD. It is paid annually during Q2. Fee is debited from client's Luminor Trade account or from clients account at Luminor Bank. If client holds cash in different currency, currency conversion is executed. More information on fee for reporting of U.S. Source Income.