Product Disclosure Statement
Product Disclosure Statement Margin Foreign Exchange & C.F.D. Trading IpsomPrime Trading Co. Pty. Ltd. Address: Level 1, 309 George Street, Sydney NSW 2000 Australia Website: www.ipsomprime.com Phone: 1800 247 766 Preparation Date: 2nd February, 2015 IpsomPrime Trading Co Pty. Ltd. is a Corporate Authorised Representative of Avestra Capital, Corporate Authorised Representative number 468222. IpsomPrime Trading Co. Pty Ltd / ABN: 86 601 513 857 IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Summary Key information What are we authorised to do? Margin FX contracts a. Forced liquidation CFD contracts a. Bullion (gold and silver) b. Index CFDs c. Cash index financing adjustments d. Index dividends e. Forced liquidation Margin calls Stop and limit orders a. Buy limits b. Sell limits c. Buy stops d. Sell stops Conversion of currency Trading facilities Trading benefits Potential risks The costs of using our products How much money do you need to trade? How do we handle your money? Terms and business Tax implications Regulation What are our different roles? What should you do if you have a complaint? Glossary IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement 1. Summary Number Issue Summary 1 Who is the issuer of this PDS and the margin FX contracts and CFDs? IpsomPrime Trading Co. Pty. Ltd. Is the issuer of this P.D.S. The provider of margin FX contracts and C.F.D.’s is TF Global Markets (Aust) Pty Ltd via an integrated white label agreement. 2 What is a foreign exchange transaction? Foreign exchange is the act of exchanging one currency for another. In a foreign exchange transaction, one currency is either bought or sold in exchange for the other. 3 What financial products do we provide? Margin FX contracts and C.F.D.’s 4 What are margin FX contracts? A margin FX contract is an agreement under which you may make a profit, or incur a loss arising from fluctuations in the price of the contract. By owning a margin FX contract you are either entitled to be paid, or be required to pay an amount of money, based on the movements of the price of the contract. The amount of profit or loss made on an FX contract will be the net of: 5 What is a C.F.D.? (Contracts For Difference) The difference between the prices of the contract when the position is opened and the price of the contract when the position is closed; Any margin adjustments in respect of the contract; Any swap charges and / or swap benefits relating to the contract A CFD is a tradable instrument that mirrors the movements of a financial asset underlying it. It allows for profits or losses to be realized when the underlying asset moves in relation to the position taken, but the actual underlying asset is never owned. Essentially, it is a contract between the client and the provider. It is an Agreement to pay or receive the change in value of a share, a share index, a commodity or a foreign currency depending on whether the price rises or falls. IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement C.F.D.’s are speculative products, and their leverage places a significantly greater risk on your holdings than non-leveraged products. 6 What is a position? A position is a margin FX contract, or C.F.D. entered into by you under the terms of this agreement 7 Margin FX Contracts and C.F.D.s are issued “over the counter.” What does this mean? Over the counter (“O.T.C.”) means that these products are not traded through an exchange or market. Rather, it is a transaction between you and us. As such, you do not have the protections normally associated with trading on a regulated market and it is not possible to close out your positions by giving instructions to another service provider. 8 What charges are payable when dealing in Margin FX Contracts and C.F.D.’s? The common fees and charges that you will incur when dealing in Margin FX contracts and C.F.D.’s may incorporate any or all of the following: Payment of margins Margin adjustments Swap charges and credits A bid / offer spread 9 How do I open an account? Read this PDS, our Terms of Business and our FSG and then complete the online application form. (www.ipsomprime.com) 10 What is the minimum balance to open an account? US$500 or equivalent 11 How do I deal in Margin Contracts with IpsomPrime? Using our Trading Platform 12 What are “long” and “short” positions? You go “long” when you expect the price of a contract to rise and you buy it. You go “short” when you expect the price of a contract to fall and you sell it. 13 How do I close out a position? To close out a position, you take an equal and opposite position to the original position. 14 How do IpsomPrime deal with my money? IpsomPrime will be regulated in accordance with the requirements of the Corporations Act. Client money is held in a pooled “segregated” Client trust account operated by The Commonwealth Bank of Australia The Segregated Client Account is kept separate IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement from Ipsomprime and TG Global Markets own money and assets. Although Client money is pooled together in the Segregated Client Account, Ipsomprime and TG Global will not use money deposited by (and belonging to) one Client to meet the loss of another Client. Ipsomprime and TG Global will not use Clients’ money in the Segregated Client Account for its own purposes, including to settle its own dealings with the Hedge Counterparty. 15 What is my “Total Equity”? Your “Total Equity” is the aggregate of: The current cash balance of your account; and Your current unrealised profits or losses 16 What is my “Free Equity”? Your “Free Equity” is your Total Equity less your current Total margin Requirement. 17 What is Margin? The Initial Margin is the amount of money you have in your account in order to enter into a Margin FX Contract or C.F.D. with us. The sum of your margin requirements for all of your open positions is you’re “Total Margin Requirement.” Margin requirements will fluctuate with the value of the instrument that you are trading. 18 19 What is a “Margin Call” and what is a Margin Close out? How can payments be made into my account? IpsomPrime Trading Co. Pty Ltd 2nd February,2015 A Margin Call is a demand for more money from us in order to meet your Total Margin Requirement due to an adverse movement in your open positions. If the market in the Underlying Instrument goes against you and you have insufficient Margin Cover, meaning that the Margin in your Account falls below your Margin Requirement. We may in our reasonable discretion reduce your exposure by Closing Out one, or more, or all of your leveraged Open Positions with us, without notice to you. You may deposit fund by Bank wire, credit card, or using any of the payment gateways on our site. Product Disclosure Statement Funds must be “Cleared” before they are considered active. 20 Do I receive interest on monies held in my account? IpsomPrime does not pay interest on credit balances. 21 Do I have to pay or do I receive any financing or Swap Benefits? Depending on the currency pair and or the position that you hold, you may either receive or pay swap financing rates. 22 What are the risks involved in Margin FX Contracts and C.F.D.’s? Margin Contracts are leveraged, derivative speculative products and carry a significantly greater risk than other non-geared products. As with all Leveraged investments, trading in margin FX and CFDs can be risky and is not appropriate for everyone. There are a number of types of risk that you should be aware of before beginning to trade, including the possibility of losing more money than you invest. Some of these risks include: - Client Money Risk - Counterparty Risk - Leverage Risk - Loss of your money - Margin Risk - Foreign Exchange Risk - Market Risk - Unregulated Market Risk You should obtain your own independent professional advice on whether Margin FX Contract and C.F.D.s are for you. We provide a complaints handling and dispute resolution process for our clients. For more detail please see section 18. 23 What procedures are in place to deal with complaints? 24 What are the taxation implications of entering into Margin FX Contracts or C.F.D.’s? The taxation consequences of trading are complex and depend on your personal circumstances. We recommend that you obtain independent taxation advice from a specialist. 25 What are IpsomPrime’s trading and office hours? 26 Where do I go for further information? Trading hours will depend on the relevant instruments’ trading hours of operation. Our office is open Monday to Friday from 7am to 4pm AEST, subject to public holidays You can contact us by: Telephone: 1800 247 766 Email: [email protected] Internet: www.IpsomPrime.com IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement 2. Key information IpsomPrime Trading Co. Pty Ltd is the issuer of this P.D.S. and is a Corporate Authorised Representative (CAR 468222) of Avestra Capital Pty Ltd (AFSL 292464). The provider of the Margin FX Contracts and C.F.D.’s in this P.D.S. is TF Global Markets (Aust) Pty. Ltd. If you have any questions about this PDS, or IpsomPrime’s relationship with TF Global Markets (Aust) Pty. Ltd. please do not hesitate to contact us. This PDS is designed to: Provide you with information you need to determine whether the products we offer are appropriate for your needs; Explain the terms and conditions, rights and obligations associated with these products; and Help you compare products. WARNING: Trading in Margin Contracts (including C.F.D.’s) involves the potential for profit, as well as the risk of loss, which may vastly exceed the amount of your initial capital and is not suitable for all investors. Movements in the price of these products are influenced by a variety of unpredictable factors of global origin. Violent movements in the price of the underlying asset may occur in the market as a result of which you may be unable to settle adverse trades. We are unable to guarantee a maximum loss that you may suffer from trading. 3. What are we authorised to do? We do not provide personal advice. We are authorised to give you general financial product advice in relation to derivatives and foreign exchange contracts. Whenever we give you general advice, whether over the phone, via email or through our website, we do not take into account your financial situation, personal objectives or needs. Before using the products referred to in this P.D.S. you should read it carefully, and then consider your objectives and financial situation. We recommend that you seek independent financial advice to ascertain whether these products suit your financial situation and requirements. Any discussions with Ipsomprime employees about their view of current or future market conditions should not be seen as personal advice as they will not have taken your particular circumstances , objectives or needs into consideration. Updates, market reports, website content etc are not to be considered as personal advice. We offer margin trading services via our platform. There are two broad types of product that you can trade with us; Margin Foreign Exchange (FX) and Contracts for Difference (C.F.D.’s) 4. Margin FX contracts Margin FX contracts are agreements which allow you to make a gain or a loss based on a movement of underlying currencies. The contract derives its price from underlying currencies which are never delivered to you. This means you do not have the right of ownership to it. Rather, your rights are IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement attached to the contract itself. The proceeds of your trading will be determined by the movement of the value in the underlying currency pair. The contracts require a deposit, which is much smaller than the contract size, which is why these contracts are considered as “margined” or “leveraged.” a. Forced liquidation If the margin level in your account falls below a predetermined level set by us, or if we exercise our discretion, we may close out your positions at the prevailing market level without notice to you. We could do this in order to minimise trading risk and deduct the resulting realised loss from your remaining funds held with us. You will remain liable for any negative positions which can not be covered by the closing out of your positions. 5. CFD contracts A CFD is a leveraged financial instrument that changes in value in reference to fluctuations in the price of any underlying instrument. However you do not at any time own that underlying instrument or trade it on an exchange. This means that C.F.D.’s are an over-the-counter (O.T.C.) product. You can keep a trade open for as long as you are able to meet the margin requirements. C.F.D.’s are closed by you taking an equal and opposite position to what you did to open the position. We offer a number of different C.F.D.’s: a. Bullion (gold and silver) Bullion trading operates in the same manner a FX trading, except the underlying is either Loco London Gold (LLG) or Loco London Silver (LLS). Both of which have their prices quoted in U.S. Dollars. This means that if your account balance is in a currency other than USD, we will convert it to USD for you in order to make the trade. b. Index CFDs Index C.F.D.’s represent a basket or portfolio of shares. This provides you with the opportunity to speculate on the performance on an overall stock market. c. Cash index financing adjustments The financing charge for C.F.D. trades is levied for each day that the trade remains open (including weekends and public holidays). The financing charge is applied to all open positions at 00:00 server time (7am A.E.S.T.). Positions held at 7am A.E.S.T. on a Saturday will be subject to a three day roll-over as the positions are being rolled from a Friday value date to a Monday value date. d. Index dividends When an individual stock that is a component of a cash stock index goes ex-dividend, this will have a weighted effect on the index. TF Global, as product issuer, will make an adjustment to those accounts with a position in an affected index. e. Forced liquidation Refer to “Forced Liquidation” in the “Margin FX contracts” section of this P.D.S. IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement 6. Margin calls Margin is the amount of cash that IpsomPrime requires a customer to maintain in his or her account in relation with the customer’s trading activity. Out system provides an automatic pre-deal check for margin availability and trades will only be executed if you have sufficient margin to do so. If a margin call is due you must add up all of the margin requirements of all of your open trading positions on your account. If your account is in a short-fall, you will be required to fund the short-fall in your account. You can do this by: Closing out existing positions to satisfy your margin requirement; or Deposit additional cleared funds into your account. 7. Stop and Limit orders We offer several features on our trading platform that may help you minimise and control trading losses: a. Buy limits A Buy Limit Order allows a client to specify the price they are willing to pay for a contract. A Limit Order also allows the client to control the length of time the order will be in the market before it is cancelled. b. Sell limits A Sell Limit Order allows a client to specify the price they are willing to offer or sell a contract. A Limit Order also allows the client to control the length of time the order will be in the market before it is cancelled. c. Buy stops An order to buy stops a contract which is entered at a price above the current offering price. The order is triggered when the market price touches or goes through the buy stop price. d. Sell stops An order to sell stops a contract which is entered at a price below the current offering price. The order is triggered when the market price touches or goes through the buy stop price. 8. Conversion of currency Your trading account with IpsomPrime will be denominated in a base currency, generally the currency you use to fund your account. Sometimes for you to trade, you may need to convert your base currency into another currency in order to trade a particular contract. When we convert your currency, we will charge a currency conversion spread on this transaction (see Section 12). When you close your trade, we will convert the realised losses or profits back to your base currency. IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement 9. Trading facilities We are able to provide margin foreign exchange and C.F.D. trading through our online trading platform. Our online trading platform is an internet based tool for you to trade with. When you use our platform, it is also possible for you to “plug-in” third party trading applications that can trade automatically for you. The use of these applications (sometimes called “algo’s”, or “robots”) can carry a significant risk of loss. We do not indemnify you from, nor take any responsibility for any losses incurred in connection with any third party plug-ins that you choose to use. 10. Trading benefits There are several potential benefits to using our services: Hedging: You can use our products to protect your exposure to an underlying currency or asset. Speculation: You can use our platform to speculate on volatile price movements. Speculators attempt to profit from a market by predicting price movements. Access to the foreign exchange market at any time: When using our platform, you have access to the foreign exchange market 24 hours a day, five days a week. Real time streaming quotes: Our platform provides real time quotes for all tradable assets that are available on it. Full control of your account and positions: On our platform, you may use stop and limit orders, which means that if the market moves against you, we will cloe out your position in accordance with your order. 11. Significant risks Before trading there are a number of risks in trading Margin FX and C.F.D.’s, which can result in an unfavourable outcome for you that you should consider . It is your responsibility to manage and monitor the risks involved with trading these instruments. Some of the risks associated with using our trading facilities include: Unforeseen circumstances: Occasionally in highly volatile markets, it may be impossible or impracticable to trade in certain markets. These include changes in Government and Central Bank policies, Company administration, de listing or liquidation of the underlying instruments and corporate actions. Market volatility: Foreign exchange, commodity and share markets are subject to many influences that may result in rapid price fluctuations. Because of this market volatility, there is no transaction or stop loss which is available via our platform that can be considered “risk free.” Given the high levels of volatility it is recommended that you closely monitor your transactions at all times. Markets are also known to move significantly and trade through levels. This is known as “gapping.” Due to this market phenomenon, IpsomPrime does not guarantee the levels of stops and your loss may be greater than you initially expected. Leverage risk: You should be prepared for greater risks from this kind of Leveraged derivative trading, which can lead to large losses as well as large gains. The high degree of Leverage in Margin FX and CFD trading Products can work against you as well as for you, and IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement may mean that you become liable to pay Ipsomprime more Margin The Margin Requirements applicable to Transactions may change rapidly in response to changes in the market for the Underlying Instrument. You may lose more than the amounts you pay Ipsomprime as Margin. Counterparty risk: Your counterparty risk with IpsomPrime is the risk that we are unable to perform all or any of our obligations under a contractual agreement. The products in this P.D.S. are not traded on an exchange, as such, your counterparty will be us. There is also a risk that parties, such as the Hedging Counterparties, with whom Ipsomprime contracts may not be able to meet their contractual obligations. This means that Ipsomprime could be exposed to the insolvency of its Hedge Counterparties or other defaults by the Hedge Counterparties on their obligations. If the Hedge Counterparties default on their obligations, then this could give rise to the risk that Ipromprime defaults on its obligations to you. To mitigate against this risk, Ipsomprime and TG Global have policies in place to ensure that its counterparties are carefully selected. Systems risk: We rely on technology to provide our trading facilities to you. A disruption of this facility may mean that you are unable to trade when you want to. Alternatively, an existing transaction may be aborted as a result of a technology failure. For example, these risks include the stability and reliability of your computer or other device through which you access the internet and your internet connection. We are not liable to you if losses arise owing to delays, errors or failures in operational processes outside our control, in particular, giving rise to faults in or instability in the trading platform or in the provision of data by third parties. Fees and charges: It is possible that you enter into a transaction with us, and the underlying moves in the same direction as you expect it to, but you end up with less than you started with when you close the position. This can happen due to the costs of spread of entering and exiting your position, in tandem with relevant swap costs. Use and access to our website: You are responsible for managing the ways and means in which you access our website. While the internet is generally reliable, technical problems may prevent you from accessing our online facility. Third party plugins: Third party plug-ins are often called “expert advisors” or “FX robots.” We are not responsible for any gain or loss that you make on your account due to using these products. 12. The costs of using our products Please refer to our current FSG for a description on how IpsomPrime, its employees and related parties are paid and remunerated. If you have any further or more detailed questions, you can contract us directly. 13. How much money do you need to trade? Before you can trade, you need to deposit with us your Initial Margin. These are funds required by IpsomPrime to cover risk and as a security for client obligations. Once open, your margin requirement will move in line with the profit or loss of your position. As a rule, we require the sum of USD500 or equivalent as a minimum opening balance. IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement 14. How do we handle your money? The funds you deposit will be held in a trust account until you place a trade, or withdraw funds. Funds deposited by our clients are segregated from our money and are held in a pooled trust in accordance with Australian law. By using our services, you relinquish your right to any interest on funds deposited in our designated trust account. Client money is held in a pooled “segregated” Client trust account operated by The Commonwealth Bank of Australia. The Segregated Client Account is kept separate from Ipsomprime and TG Global Markets own money and assets. Although Client money is pooled together in the Segregated Client Account, Ipsomprime and TG Global will not use money deposited by (and belonging to) one Client to meet the loss of another Client. Ipsomprime and TG Global will not use Clients’ money in the Segregated Client Account for its own purposes, including to settle its own dealings with the Hedge Counterparty. 15. Terms and business Our Terms of Business must be understood and agreed to before a contract is entered into. If you are outside Australia, there may be other terms and conditions you will be required to sign or acknowledge. To the extent of any inconsistency, our legal documents will rank in the following priority: This P.D.S. Terms of Business Account Opening Form The information in this P.D.S. is subject to change from time to time and is up to date as per the date stamp on the front page of this document. There is no cooling off period for any product offered by IpsomPrime. You must provide all information and identification to us which we reasonably require for you and us to comply with any law in Australia or any other country. When you use our services, you promise to us not to breach any law in Australia, or in any other country. We reserve the right to suspend the operation of our website and online facility or any part of sections of them. In such an event, we may at our sole discretion, close out your open positions at prices we consider fair and reasonable. We may impose volume limits on client accounts at our sole discretion. 16. Tax implications Margin FX and C.F.D. transactions can create tax implications. Taxation laws are complex and variable in different countries. As such, we recommend that you obtain independent advice from your tax advisor, who can take into account your personal circumstances and situation. IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement 17. Regulation IpsomPrime Trading Co. Pty Ltd operates as a Corporate Authorised Representative of Avestra Capital. This means that IpsomPrime operates under Avestra Capital's licence to provide Margin FX products and C.F.D.’s. Avestra Capital holds an Australian Financial Services Licence, (AFSL) 292464. Avestra has authorised IpsomPrime as a Corporate Authorised Representative (CAR 468222). Avestra is a member of the Financial Ombudsman Service, with a member number of 12174. 18. What are our different roles? IpsomPrime Trading Co Pty Ltd is the service provider. Our website and representatives can give you general advice and help you with our trading services only. TF Global Markets (Aust) Pty Ltd is the provider of margin FX contracts and C.F.D.’s. Avestra Capital provides the ASIC licence (AFSL) under which IpsomPrime operates. 19. What should you do if you have a complaint? We are committed to providing quality advice to our clients. This commitment extends to providing accessible complaint resolution mechanisms for our clients. If you have any complaint about the service provided to you, you should take the following steps; Contact IPSOMPRIME TRADING CO PTY LTD or your advisor immediately. If your complaint is not satisfactorily resolved within 7 days please contact IPSOMPRIME TRADING CO PTY LTD authorising licensee (Avestra Capital Pty Ltd) by Phone 1300 882 402. Or put it in writing and email to [email protected] If we cannot reach a satisfactory resolution within a further 45 days you can raise your concerns with the Financial Ombudsman Service on 1300 78 08 08. The Australian Securities and Investments Commission, (ASIC), also has a free call info line on 1300 300 630 which you may use to make a complaint or obtain information about your rights IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement 20. Glossary A.S.I.C.: The Australian Securities and Investment Commission. The regulator under which IpsomPrime operates in Australia. Base Currency: refers to the currency in which your account is denominated. Business Day: refers to a day in which Commercial Banks are open for business in the two host currencies of the relevant currency pair, or in the case of C.F.D.’s, the relevant exchange on which they are traded. Contract for Difference: An agreement to pay or receive the change in value of an asset depending on whether the price rises or falls. Forced Liquidation: As described in section 4a of this P.D.S. F.S.G.: Refers to our Financial Services Guide. F.X.: Means foreign exchange. Initial Margin: Is the initial deposit required before you can trade with us. Leverage: The ability to pay only a small amount of the value of a contract as an initial payment to open a trade. Leverage is also known as “gearing.” Loco London Gold and Silver: Refers to the market on which Gold and Silver are physically held and to which a particular price applies. Margin Level: Refers to the equity or balance of funds in your account. P.D.S.: Means Product Disclosure Statement. Representative: Includes a director or employee of IpsomPrime, and a Director or employee of any company related to IpsomPrime as well as any other entity that is appointed as an authorised representative of IpsomPrime. Slippage: Typically defined by the difference that a trader sees on the screen and the price at which a trade is actually executed. This is usually caused by an increase in market volatility. Spread: The difference between the “buy” price and the “sell” price of an asset on our platform. Terms of Business: Refers to the terms and conditions that you are required to agree to before you can use the products described in this P.D.S. They are incorporated by reference in this P.D.S. You can obtain a copy of this document by contacting us directly. IpsomPrime Trading Co. Pty Ltd 2nd February,2015 Product Disclosure Statement
© Copyright 2024