Before deciding to apply to open a futures and options trading account with Bell Commodities, prospective Traders need to consider and complete the following;
1. Product Disclosure Statement (PDS):
It is important that you familiarise yourself with our PDS which contains the following sections:
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1. Introduction
2. Issuer Details
3. Benefits of Futures and Options
4. Basic Risks Explained
5. Amounts Payable
6. Other Significant Characteristics of Derivatives Contracts
7. Taxation Implications
8. Cooling Off Arrangements
9. Other Information Available
10. Other Considerations
Glossary of Terms.
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Click here to download PDS.
Please read it carefully and proceed.
2. Financial Services Guide (FSG):
It is also important that before deciding to apply to open a Futures and Options Trading Account with Bell Commodities that you familiarise yourself with Bell Commodities' FSG, which contains the following sections;
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1. Purpose of the FSG & other disclosure Documents'
2. Bell Commodities Authorisation,
3. Bell Commodities Financial Products & Services,
4. Bell Commodities Licensed Markets'
5. Futures, Options and FX Markets,
6. Responsibility for bell commodities Advice,
7. Bell Commodities remuneration for the service being provided,
8. Advisers and others participating in Bell Commodities remuneration.
9. Relationships,
10. Instructing an Adviser.
11. Statement of Advice,
12. Client's rights and responsibilities.
13. Privacy, and
14. Complaint Resolution Procedures.
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Click here to download FSG.
By proceeding to view or print the PDS and FSG you acknowledge that this information has been made available to you.
Please read it carefully and proceed.
Futures Advisers at Bell Commodities are available to explain any aspect of the PDS and FSG, either on the telephone or in person at one of Bell Commodities' offices.
Once these two documents have been acknowledged as read, you may proceed to download the following documents that are required by Bell Commodities in order to assess your application to open a Futures and Options Trading Account with Bell Commodities.
3. Suitability Statement, which includes the following;
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- Nature of the Futures and Options on Futures Markets.
- Relevant Personal Circumstances Questionnaire.
- Client Acknowledgement /Risk Disclosure
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The purpose of the Suitability Statement is to supplement the information contained in the Product Disclosure Statement in order to explicitly identify the nature of the Futures markets and their associated Options markets, the risks involved and the features that are relevant for investors to assess their suitability to trade those markets.
In order to trade in the Futures and related Options markets a Trader needs to have both a "speculative" and a "leveraged" investment objective unless the Trader is hedging an exposure in an underlying or related physical market.
Futures Advisers at Bell Commodities are available to explain any aspect of the Suitability Statement either on the telephone or in person at one of Bell Commodities' offices.
The Nature of the Futures and Options on Futures Markets section is supplementary to the Product Disclosure Statement and should be read carefully.
As mentioned Traders need to have a Speculative and a Leveraged Investment Objective in order to trade the Futures and associated Options markets and those Investment Objectives need to be appropriate to the investor/trader's Relevant Personal Circumstances. To establish those relevant personal circumstances and assist Bell Commodities in assessing the appropriateness of the futures markets to the prospective Trader we ask 16 questions to which we would appreciate your answer.
A number of Risk Disclosures and Client Acknowledgements are made and are required, which cover,
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- Leverage,
- Risk,
- Investment Objectives,
- Risk and Return, Volatility and Time Decay,
- Suitability,
- Proposed Strategies,
- Granting Options Warning,
- Risk Management Warning,
- Market Terminology
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Click here to download the Suitability Statement.
4. Non Discretionary Account Opening Form which is comprised of the following;
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- Checklist/Explanation on completing the Form
- Account Information,
- Client Account Agreement,
- Directions regarding Partnership Account,
- Employee Authorisation re Corporate Accounts
- Deed of Indemnity and Guarantee
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Click here to download the Account Opening Form.
Additional matters that you need to consider are as follows;
5. Funding a Futures and Options Account:
The funding of a Futures and Options Account has to be understood. Futures Traders need to have access to liquid funds to collateralise the opening and maintenance of a Futures or associated Option position through the prompt deposit of initial and variation margins.
Futures Traders need access to liquid funds, which are surplus to their day to day living, business and retirement planning requirements. Margins may need to be settled on a same day or 24 hour basis where time is of the essence.
6. Investment experience and/or commercial acumen:
Futures and Option Traders need a level of investment experience and/or commercial acumen to fully understand the operation of the Futures and Options markets and the risks and rewards attached to them. Certainly no Futures or Options strategy should be undertaken which is beyond the Trader's level of understanding. In short, the Futures and Options markets are only suitable to the investor with a sophisticated knowledge of financial products and services.
7. Extent of Financial exposure to the Futures and Options Markets
Finally it is recommended that Traders in the Futures and related Options markets only expose a small proportion of their total net worth to these markets. As volatility is a constant feature of these markets the financial commitment cannot be limited to the amount of initial margin required to secure the opening of a position. A trader's exposure is more than this.
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Important Information
Introduction to SFE Futures and Options (7767KB)
How to read your Futures and Options Trading Statement (Tax Invoice) (78KB)
Privacy Policy (76KB)
Corporate Profile (66KB)
Need help?
If you do not understand any part of these documents or need assistance please call your Adviser.
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