Frequently Asked Questions - FAQ

We have prepared answers to a number of frequently asked questions. This section is divided into answers corresponding to banking services and answers related to investment services.

Securities

1. Where are the securities I purchase using Fio banka recorded?

I.) Czech Republic

Securities (stocks and bonds) purchased at Burze cenných papírů Praha, a.s. (PSE) or RM-SYSTEM, české burze cenných papírů, a.s. (RMS) are kept in Centrální depozitář cenných papírů, a.s. (CDCP) in the client's account. This account is managed below the broker though which these securities were purchased or through which they were sold.

An exception are the stocks of foreign companies and certificates traded on RMS (e.g. NWR, Erste Group Bank, Pegas Nonwovens etc.). These securities are not held in the CDCP, rather they are on the client's account in the separate RMS records.

On 7 July 2010, the Securities Center (SCP) was replaced by Centrální depozitář cenných papírů, a.s. (CDCP).

II.) USA

Securities traded on markets in the U.S. are recorded on the collective accounts managed by the Pershing LLC depository. You can find more information about the collective accounts in the following document: Informaton about investment instruments, the protection of investment instruments and client funds as well as other information about trading with investment instruments

III.) Germany

Fio was the first domestic broker to become a member of the German XETRA electronic trading system and has also concluded a contract with the renowned depository managed by the British HSBC banking group. Securities purchased by clients in the XETRA system are managed in the common Fio account held at this institution. Fio then manages a sub-registry of these securities grouped by individual client.

2. Can an entire stock exchange be purchased?

An index itself cannot be purchased but it is possible to purchase Exchange Traded Funds (ETF), which have a composition that matches the composition of the given index. In the US the most traded ETF include DIA (copies the performance of the Dow Jones Industrial Average), SPY (copies the performance of the Standard & Poor´s 500) and QQQ (copies the performance of the Nasdaq 100). In Germany, the most traded ETF is EXS1, which copies the performance of the DAX 30.

ETF are traded in the same way as stocks and fees are the same for trading in stocks for the given country. In addition to the ETFs shown above (also known as "Index stocks") an entire range of ETFs matching national indexes are available (Russia, Brazil, China, Mexico, South Africa and others) as well as sector indexes and baskets of stocks. You can find more on ETFs here.

3. I want to invest in securities but I don't have enough time, experience or information. Is there a product or service to allow this?

Personal broker is a service where a client retains control over individual transactions with the full support of a broker based on personal meetings with the selected broker and the definition of a suitable investment strategy while the broker continuously searches for suitable investment opportunities for the client as well as professional supervision of such investments.

This service is provided for a minimum portfolio value of CZK 2,500,000. Read more information here.

If you have not found an answer to your question, do not hesitate to contact your branch of us directly using theonline form.