What are delayed payment charges

Delayed Payment Charges are penalties imposed when a trader or investor fails to pay the required funds for a purchase of securities within the specified time frame. These charges apply when the payment for a trade is not made by the settlement date, which is usually one day after the trade (T+1).

• Imposition: These charges are typically levied by brokers or financial institutions for failing to clear payments on time.
• Interest: The charges often include interest on the overdue amount, which can accumulate daily, increasing the total cost.