
<p>Investment services have continuously been shifting online in recent years. With the help of mobile investing experience, stock portfolio trading is now simpler and more convenient than ever before. However, having access to simplified investment experience does not necessarily translate to better investment performance.</p>



<p>Common difficulties faced by new and casual retail investors include limited access to market information, inability to assess investment opportunities, and lack of knowledge/tools to analyze complicated data and keep their portfolios well-managed.</p>



<p>Fortunately, there are several stock apps out there that come in handy when making or managing investments.</p>



<h2><strong>Stock Trackers Help you Understand Investment Performance</strong></h2>



<h4>Recommended Free Tools: Excel / Google Sheet, Ticker, Planto</h4>



<p>The most traditional stock tracker is Excel or Google sheet. You can manually add data such as stock name, ticker, number of shares, buying/selling price, and fees/commissions, these data will then allow you to calculate the return of each investment. </p>



<p>While Excel / Google sheet option is the most manual and time-consuming, it also gives you the flexibility to include and sort information in any way that you prefer or think is the most useful. Once all the information and calculations are in place, you can do further analysis or plot out trends and examine whether the return is in line with your expectations.</p>



<p>For investors who do not want to manage a spreadsheet or prefer an automated stock tracker, a mobile app called “Ticker” is a popular option among many local investors. With Ticker, users only need to enter information like the ticker, number of shares, buying/selling price, and fees of each transaction, Ticker app will then calculate the realized and unrealized profit of your portfolio automatically. One drawback of the Ticker app however is that it does not provide tracking for U.S. stocks.</p>



<p>If you are looking for the ultimate convenience, <a href="https://www.planto.hk/en/">Planto app</a> helps you to automatically track all kinds of investment assets including stocks and MPF – simply link your securities or investment accounts to Planto, then the system will automatically convert your Hong Kong and U.S. stock portfolio into charts, making it easy for you to understand your performance at a glance. </p>



<p>Planto app currently supports more than 20 investment providers including <a href="https://www.planto.hk/en/blog/SoFi-Hong-Kong-Broker-Review/">SoFi HK</a>, <a href="https://www.planto.hk/en/blog/futu-brokers-review/">Futu</a>, <a href="https://www.planto.hk/en/blog/aqumon-breakdown-and-performance-review/">Aqumon</a>, Interactive Brokers, HSBC, Citi Bank, Bank of China (Hong Kong), and many more.</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Stock tracking tool</strong></td><td><strong>Adding of transaction(s)</strong></td><td><strong>Supporting instrument</strong></td><td><strong>Ease of use</strong></td></tr><tr><td>Excel / Google sheet</td><td>Manual</td><td>Hong Kong stocks, U.S. stocks and any other asset</td><td>Relatively complex</td></tr><tr><td>Ticker</td><td>Manual</td><td>Hong Kong stocks</td><td>Simple</td></tr><tr><td>Planto</td><td>Automatic</td><td>Hong Kong stocks, U.S. stocks, time deposit, MPF etc.</td><td>Simple</td></tr></tbody></table></figure>



<figure class="wp-block-image size-large is-resized"><img src="https://cms.planto.io/wp-content/uploads/2020/08/Ticker-app-tracking-portfolio-495x1024.jpg" alt="" class="wp-image-11458" width="248" height="512" srcset="https://cms.planto.io/wp-content/uploads/2020/08/Ticker-app-tracking-portfolio-495x1024.jpg 495w, https://cms.planto.io/wp-content/uploads/2020/08/Ticker-app-tracking-portfolio-145x300.jpg 145w, https://cms.planto.io/wp-content/uploads/2020/08/Ticker-app-tracking-portfolio-768x1589.jpg 768w, https://cms.planto.io/wp-content/uploads/2020/08/Ticker-app-tracking-portfolio-742x1536.jpg 742w, https://cms.planto.io/wp-content/uploads/2020/08/Ticker-app-tracking-portfolio-990x2048.jpg 990w, https://cms.planto.io/wp-content/uploads/2020/08/Ticker-app-tracking-portfolio.jpg 1125w" sizes="(max-width: 248px) 100vw, 248px" /><figcaption>Ticker is a stock tracking app that is popular among Hong Kong stock investors.<br></figcaption></figure>



<figure class="wp-block-image size-large is-resized"><img src="https://cms.planto.io/wp-content/uploads/2020/08/Planto-tracking-investment-performance-493x1024.jpg" alt="" class="wp-image-11459" width="247" height="512" srcset="https://cms.planto.io/wp-content/uploads/2020/08/Planto-tracking-investment-performance-493x1024.jpg 493w, https://cms.planto.io/wp-content/uploads/2020/08/Planto-tracking-investment-performance-768x1595.jpg 768w, https://cms.planto.io/wp-content/uploads/2020/08/Planto-tracking-investment-performance-740x1536.jpg 740w, https://cms.planto.io/wp-content/uploads/2020/08/Planto-tracking-investment-performance-986x2048.jpg 986w, https://cms.planto.io/wp-content/uploads/2020/08/Planto-tracking-investment-performance.jpg 1125w" sizes="(max-width: 247px) 100vw, 247px" /><figcaption>Planto provides automatic solutions for stock tracking (supports both Hong Kong and U.S. stock). The app goes beyond a stock tracker by automatically recording and analyzing deposits, MPF, insurance and credit card expenditure.</figcaption></figure>



<h2><strong>Access News &amp; Information on the Stock Markets</strong></h2>



<h4>Recommended Tools: Futu Securities and other Major Financial Information App</h4>



<p>Hong Kong investors typically use AASTOCK, HKET, and other apps/websites for information on the market and stock trends, however contents on such channels mostly focus on local trends and opinions. While the primary function of mobile applications from securities brokers such as Futu Securities and Valuable Capital is to facilitate stock trading, these mobile applications are also equipped with comprehensive news, intelligence, and stock screening features. Such mobile apps also have social features that allow investors to communicate and learn from each other, making them convenient platforms for accessing information.</p>



<p>For investors who mainly focus on the U.S. stock market, they may find local information platforms lacking as information is typically updated less frequently during trading hours which is caused by time zone difference. If you are looking for a reliable source of real-time information on the U.S. market, international platforms that focus on the global financial market may be more suitable for you. </p>



<p>If you do not mind paying subscription fees, Bloomberg can offer real-time information, news, and content on the financial markets globally. Bloomberg also has a Watchlist feature which can help you to build and track stocks in Hong Kong, U.S., Japan, U.K. and many more, this feature from Bloomberg is free and is easy to use. Bloomberg’s alternatives include Reuters and Investing.com.</p>



<figure class="wp-block-image size-large is-resized"><img src="https://cms.planto.io/wp-content/uploads/2020/07/Bloomberg-502x1024.jpg" alt="" class="wp-image-11116" width="251" height="512" srcset="https://cms.planto.io/wp-content/uploads/2020/07/Bloomberg-502x1024.jpg 502w, https://cms.planto.io/wp-content/uploads/2020/07/Bloomberg-147x300.jpg 147w, https://cms.planto.io/wp-content/uploads/2020/07/Bloomberg-768x1566.jpg 768w, https://cms.planto.io/wp-content/uploads/2020/07/Bloomberg-753x1536.jpg 753w, https://cms.planto.io/wp-content/uploads/2020/07/Bloomberg-1004x2048.jpg 1004w, https://cms.planto.io/wp-content/uploads/2020/07/Bloomberg.jpg 1125w" sizes="(max-width: 251px) 100vw, 251px" /><figcaption>Apart from news and market trends, Bloomberg also has a Watchlist feature which helps investors to track stocks from many markets.<br></figcaption></figure>



<hr class="wp-block-separator"/>



<h2>Compare U.S. Investment Brokers</h2>



<p><broker-comparison-page articlename="HK Stock Investing Article" country="US" language="en"></broker-comparison-page></p>



<p>Recommended Readings:</p>



<h4>Recommended Readings</h4>



<ul><li><a href="https://www.planto.hk/en/blog/free-stocks-brokers-welcome-offer/">Welcome Offer Comparison: Get Free Blue-Chip Stocks With New Investment Accounts</a></li><li><a href="https://www.planto.hk/en/blog/Portfolio-Diversification-Investment/">Investment Strategy Guide to building a diversified portfolio</a></li><li><a href="https://www.planto.hk/en/blog/Valuable-Capital-Broker-Review/">Valuable Capital Review:&nbsp;Commission-free HK stock trading, free real-time quotes</a></li><li><a href="https://www.planto.hk/en/blog/futu-brokers-review/">Futu Securities Review</a></li><li><a href="https://www.planto.hk/en/blog/saxo-bank-review-offshore-account/">Saxo Bank Review: A Simple Offshore Banking &amp; Trading Solution for Hong Kongers</a></li></ul>



<p></p>


Finding a free stock tracker? There are several stock portfolio tracking apps and tools that come in handy when managing U.S. and HK stock investments. Check out how Excel / Google Sheet, Ticker and Planto help you track your investment performance. 

Essential Tools for Stock Portfolio Tracking and Understanding Investment Performances


<p>A lot of low-fee securities brokers have entered the market and it&#8217;s hard to be competitive by simply being commission-free. Valuable Capital Limited (VBKR) stands out by offering not just the usual commission-free trading of HK stocks, US stocks, A-shares, warrants, margin loans for IPO subscriptions and other services but also integrating the latest news from its parent company (Sina Group). It&#8217;s effectively a one-stop investment platform where you can trade, research and talk to fellow investors in their community. New users can also get free real-time quotes if you deposit a certain minimum which is great for day traders!</p>



<h3>August Welcome offers for Planto Users</h3>



<p>Between 1 August to 31 August 2020, the following benefits will be allocated by Valuable Capital to new users who have completed online registration and account opening through Planto&#8217;s link:</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Requirements</strong></td><td><strong>Welcome Offer</strong></td></tr><tr><td><strong>Open an account online</strong></td><td>• Commission-free HK stock trading<br>• HK$100 cash coupon</td></tr><tr><td><strong>First time deposit <br>≥ HK$20,000</strong></td><td>• Free 30 days real-time streaming quotes for HK stocks (After 30 days, the real-time streaming quotes continues if the deposit is over HK$50,000)</td></tr><tr><td><strong>Open futures account and trade designated CME products during the applicable period</strong></td><td>• An Octopus card valued at HK$500</td></tr><tr><td><strong>Trade designated CUS futures</strong></td><td>• An Octopus card of HK$200</td></tr><tr><td><strong>IPO subscription</strong></td><td>• HK$50 coupon for IPO cash subscription<br>• 90% margin service with least 1.6% interest rate</td></tr></tbody></table></figure>



<planto-button link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoidmFsdWFibGVfYnJva2VyX0p1bHkiLCJ0eXBlIjoiaW52ZXN0bWVudF9icm9rZXIiLCJhcHBseVVybCI6Imh0dHBzOi8vaGsudmJrci5jb20vaGQvcHJvbW90aW9uLWZvci1zZWN1cml0aWVzLWFjY291bnQtcmVnaXN0cmF0aW9uIiwiZnJvbSI6IlZhbHVhYmxlIEp1bHkgT2ZmZXIgV2Vic2l0ZSJ9">Open an account now</planto-button>



<h2>10 reasons why you should consider VBKR</h2>



<p>1. <strong>One-stop investment platform:</strong> Invest in HK, US, China stocks and ETFs, subscribe to IPOs, purchase warrants, CBBCs, funds and margin trading services<br><br>2.&nbsp;<strong>Easy account opening:</strong> It&#8217;s 100% online and your account can be opened in 3 minutes<br><br>3.&nbsp;<strong>Low-cost trading: </strong>HK stocks are commission-free, while US stocks can be bought for as little as $1.99 USD / transaction<br><br>4.&nbsp;<strong>Free real-time quotes:</strong> Get one month free real-time quotes, and if your account balance is over HKD 50,000, it&#8217;s free <br><br>5. <strong>IPO subscriptions:</strong> Margin subscription rates that are low and up to 10x leverage<br><br>6.&nbsp;<strong>Convenient and fast deposit and withdrawals:</strong> You can deposit online and convert currencies within an hour<br><br>7.&nbsp;<strong>Large amounts of information: </strong>Financial news and columns are updated real-time and the stock analyses are informational and useful. Currently provided in Chinese only<br><br>8.<strong>Intelligent analysis:</strong> VBKR&#8217;s intelligent investment advisor can quickly create a diversified portfolio for you<br><br>9.&nbsp;<strong>Learning tools: </strong>For novices, paper trading and classrooms are available to help you learn how to invest better<br><br>10. <strong>Safe and reliable:</strong> VBKR&#8217;s licensed by the Securities and Futures Commission for Types 1, 2, 4 and 9</p>



<h2>VBKR online account opening process:</h2>



<p>Opening an account on the VBKR website or mobile app is very simple. When the Planto team tried it out, it only took a few minutes to complete the full application:</p>



<ol><li>Fill in basic account opening information such as name, contact number, address, risk preference, etc.</li><li>Upload identification document and proof of address</li><li>Deposit funds via Internet Banking, FPS or cheque</li></ol>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/04/Group-5-1-1024x450.jpg" alt="" class="wp-image-9836" srcset="https://cms.planto.io/wp-content/uploads/2020/04/Group-5-1-1024x450.jpg 1024w, https://cms.planto.io/wp-content/uploads/2020/04/Group-5-1-300x132.jpg 300w, https://cms.planto.io/wp-content/uploads/2020/04/Group-5-1-768x338.jpg 768w, https://cms.planto.io/wp-content/uploads/2020/04/Group-5-1-1536x675.jpg 1536w, https://cms.planto.io/wp-content/uploads/2020/04/Group-5-1-1200x528.jpg 1200w, https://cms.planto.io/wp-content/uploads/2020/04/Group-5-1.jpg 1747w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>Among the different deposit methods, FPS was the fastest. Just take a screenshot of the FPS receipt and upload it into the VBKR app and your funds will show up in as little as an hour! The only drawback is this only works for HKD currency transfers.</p>



<planto-button link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoidmFsdWFibGVfYnJva2VyX0p1bHkiLCJ0eXBlIjoiaW52ZXN0bWVudF9icm9rZXIiLCJhcHBseVVybCI6Imh0dHBzOi8vaGsudmJrci5jb20vaGQvcHJvbW90aW9uLWZvci1zZWN1cml0aWVzLWFjY291bnQtcmVnaXN0cmF0aW9uIiwiZnJvbSI6IlZhbHVhYmxlIEp1bHkgT2ZmZXIgV2Vic2l0ZSJ9">Download VBKR</planto-button>



<h2>One app for all your trading needs</h2>



<p>Many people feel that trading requires a level of concentration that can&#8217;t be achieved on a smaller screen &#8211; luckily for you, VBKR offers iOS, Android, Windows and MacOS apps as well! </p>



<p>The VBKR app provides detailed analysis, data and charts on individual stocks, indexes and warrants. After selecting a stock, you can easily check the current price, turnover, market value, dividend rate, capital flow and other practical information. Selecting  the&#8221;Trade&#8221; tab to enter the trading page and start investing. It&#8217;s simple and easy for new investors!</p>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/04/華盛通.jpg" alt="" class="wp-image-9700" srcset="https://cms.planto.io/wp-content/uploads/2020/04/華盛通.jpg 800w, https://cms.planto.io/wp-content/uploads/2020/04/華盛通-300x113.jpg 300w, https://cms.planto.io/wp-content/uploads/2020/04/華盛通-768x288.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption>VBKR integrates real-time quotations, data analysis, and trading services. In addition to the mobile app, MacOS and Windows versions of the program are also provided to make it easy to study the market on a bigger screen</figcaption></figure>



<p>After opening an account, if you deposit more than HKD20,000, you can enjoy one month of free real-time quotes. For perpetual free real-time quotes, you&#8217;ll need to have deposits of at least HKD50,000. The threshold is not high and may be useful for investors who are active traders. In addition, like most other online brokers, VBKR does not charge a handling fee for their IPO subscriptions.</p>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/04/valuble-stock-level-tracking-2-1024x450.jpg" alt="" class="wp-image-9804" srcset="https://cms.planto.io/wp-content/uploads/2020/04/valuble-stock-level-tracking-2-1024x450.jpg 1024w, https://cms.planto.io/wp-content/uploads/2020/04/valuble-stock-level-tracking-2-300x132.jpg 300w, https://cms.planto.io/wp-content/uploads/2020/04/valuble-stock-level-tracking-2-768x337.jpg 768w, https://cms.planto.io/wp-content/uploads/2020/04/valuble-stock-level-tracking-2-1536x674.jpg 1536w, https://cms.planto.io/wp-content/uploads/2020/04/valuble-stock-level-tracking-2-1200x527.jpg 1200w, https://cms.planto.io/wp-content/uploads/2020/04/valuble-stock-level-tracking-2.jpg 1747w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>VBKR has detailed information on individual stocks and warrants with a simple interface so new investors can get started easily.</figcaption></figure>



<p>Buying and selling stocks in VBKR is similar to that of ordinary banks or investment brokers. Just select the order type, confirm the number of shares you&#8217;d like to buy and the price; if you want to buy and sell Hong Kong stock odd lots, you can go through the &#8220;Fold Limit Order&#8221; section. This feature makes it easier to sell odd lot stocks with low liquidity, and also helps novice investors with little principal to buy high-quality stocks with a lower investment amount.</p>



<h2>Sina Finance &amp; Community [Chinese only]</h2>



<p>Many securities brokers have tried to provide financial news in their mobile apps, and VBKR, as a product of Sina Group, integrates financial content from Sina and Weibo. Open the &#8220;Community&#8221; section of the VBKR mobile app and you can read a large number of financial news reports, analysis columns and investment experts sharing their experiences on social platforms. The content is updated 24 hours a day, and you can also get instant news of US stocks in the middle of the night.</p>



<p>In addition, in the &#8220;VBKR Classroom&#8221;, users can watch teaching videos, broadcasts and articles about Hong Kong and US stocks, covering basic knowledge of stocks, introduction to CBBCs, market analysis, etc., they even have the famous financial KOL Shi Fu (Shi Hongyi) teaching as well! The lessons are short and easy to understand &#8211; both novices and veterans could learn something from them!</p>



<p>There is no shortage of cost-effective investment brokers in the market, but the informational content in VBKR stands out. Even if you invest with other securities firms, you may wish to use VBKR to keep up with the latest stock market news and data.</p>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/04/華盛通資訊.jpg" alt="" class="wp-image-9705" srcset="https://cms.planto.io/wp-content/uploads/2020/04/華盛通資訊.jpg 800w, https://cms.planto.io/wp-content/uploads/2020/04/華盛通資訊-300x113.jpg 300w, https://cms.planto.io/wp-content/uploads/2020/04/華盛通資訊-768x288.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption>VBKR provides a lot of financial information and investing lessons &#8211; unfortunately the content is only available in Chinese</figcaption></figure>



<p>VBKR also has robo-advisory functionality &#8211; if you&#8217;re not sure how to invest, you can invest in a diversified portfolio composed of ETFs with one click. The system will prompt you to adjust positions when the market conditions change, making investment simple whilst helping you build a good habit. Whether the performance of the robo-advisory algorithm is better than humans is hard to say &#8211; but it can be a good way to enter the market while you&#8217;re doing your own research!</p>



<p>If you&#8217;re scared of investing in the market, or have different strategies you want to try, another way you can test these is with VBKR&#8217;s simulated stock trading functions. You get a virtual initial capital of HKD 1 million and you can practice paper-trading before diving into the real thing.</p>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/04/華盛證券網上客服.jpg" alt="" class="wp-image-9699" srcset="https://cms.planto.io/wp-content/uploads/2020/04/華盛證券網上客服.jpg 800w, https://cms.planto.io/wp-content/uploads/2020/04/華盛證券網上客服-300x113.jpg 300w, https://cms.planto.io/wp-content/uploads/2020/04/華盛證券網上客服-768x288.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption>VBKR also has an online account manager to answer inquiries about account opening or how to use the app. The response rate during our test was quite fast &#8211; but they also have WhatsApp and phone call centers if you need help.</figcaption></figure>



<broker-comparison-page market="hk" language="en" show_review="“false&quot;" selectedbroker="valuablecapital"></broker-comparison-page>



<p></p>


Through Valuable Capital Limited, a subsidiary of Sina Group, users can invest in Hong Kong, US and China stock markets on a single platform with services like IPO subscription, warrants and margin trading. If you open a Valuable Broker account via the Planto website, you can enjoy new offers like free real-time quotes!

Valuable Capital Limited (VBKR) Review: Commission-free HK stock trading, free real-time quotes


<p>Due to heated competition between investment service providers, various securities brokers are competing for new customers. In recent months, securities brokers are going above and beyond competing with services, and account opening welcome offers are becoming a norm among <a href="https://www.planto.hk/en/blog/invest-hk-stocks-broker-bank-accounts/">securities brokers in Hong Kong</a>.</p>



<p>Consumers are opening securities accounts for investment, and no welcome offer would prove to be more attractive than having blue-chip stocks in the newly opened account, for free!</p>



<p>Welcome offers from providers like <a href="https://www.planto.hk/zh/blog/futu-brokers-review/">Futu Securities</a>,<a href="https://www.planto.hk/en/blog/SoFi-Hong-Kong-Broker-Review/"> SoFi HK (Formerly 8 Securities)</a>, <a href="https://www.planto.hk/zh/blog/uSMART-brokers-review/">uSMART Securities</a> and 9F Securities are currently among the most attractive in the market. Find out how you can get free stocks in your new securities account below:</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Securities Firm</strong></td><td><strong><a href="https://www.planto.hk/en/blog/SoFi-Hong-Kong-Broker-Review/">SoFi HK</a></strong></td><td><strong><a href="https://www.planto.hk/zh/blog/uSMART-brokers-review/">uSMART Securities</a></strong></td><td><strong>9F Securities</strong></td><td><strong><a href="https://www.planto.hk/zh/blog/futu-brokers-review/">Futu Securities</a></strong></td></tr><tr><td><strong>Free Stock Offers and Conditions</strong></td><td>Earn 20 SoFi points after account opening. Get more points through various activities and exchange them for free SnapChat, Twitter or Coca Cola shares.</td><td>1 share of Jiumaojiu after account opening<br><br>2 shares of Peijia Medical if first-time deposit > HK$20,000<br><br>2 shares of Ping An Good Doctor if first transaction is over HK$500 and assets under management amount reach HK$100,000 or above within 30 days upon account activation</td><td>Get 2 and up to 10 shares of CLP Holdings after depositing a minimum of HK$20,000</td><td>Get 1 share of HSBC and Tencent each after depositing HK$20,000 or more</td></tr><tr><td><strong>Other Offers</strong></td><td>⭐️No commission and platform free for U.S. and Hong Kong stock trading</td><td>⭐️Zero commission plan for U.S. and Hong Kong stock trading</td><td>⭐️0 platform fee and transaction fee for HK stocks.<br><br>⭐️Free 30-day trial for LV2 streaming.</td><td>⭐️HK$100 supermarket gift voucher<br>Life long commission free Hong Kong stock trading</td></tr><tr><td><strong>More Details</strong></td><td><a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZWlnaHRzZWN1cml0aWVzX3NvZmkiLCJ0eXBlIjoiaW52ZXN0bWVudF9icm9rZXIiLCJhcHBseVVybCI6Imh0dHBzOi8vZ28ub25lbGluay5tZS8xdFZvP3BpZD1QbGFudG8mYz1QbGFudG9fU29GaUhvbmdLb25nJmFmX3dlYl9kcD1odHRwcyUzQSUyRiUyRnd3dy5zb2ZpLmhrJTJGd2ViJTJGemgtaGFudCUyRm9wZW4tYWNjb3VudCUyRiUzRnV0bV9zb3VyY2UlM0RQbGFudG8lMjZ1dG1fbWVkaXVtJTNEQWZmaWxpYXRlcyUyNnV0bV9jYW1wYWlnbiUzRFBsYW50byIsImZyb20iOiJicm9rZXIgd2VsY29tZSBvZmZlciB0YWJsZSB0YWJsZSJ9">Visit Broker</a></td><td><a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoidXNtYXJ0X2Jyb2tlciIsInR5cGUiOiJpbnZlc3RtZW50X2Jyb2tlciIsImFwcGx5VXJsIjoiaHR0cHM6Ly91c21hcnRzZWN1cml0aWVzLmNvbS9BZmZpbGlhdGUvdC9OciIsImZyb20iOiJicm9rZXIgd2VsY29tZSBvZmZlciB0YWJsZSB0YWJsZSJ9">Visit Broker</a></td><td><a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiOUZfYnJva2VyIiwidHlwZSI6ImludmVzdG1lbnRfYnJva2VyIiwiYXBwbHlVcmwiOiJodHRwczovL3d3dy45ZnN0b2NrLmNvbS9uZXctb3Blbi1zdG9jay5odG1sP2NoYW5uZWxJZD01NTUmdXRtX3NvdXJjZT0zcmQtemh1Y2UmdXRtX21lZGl1bT1wbGFudG8iLCJmcm9tIjoiYnJva2VyIHdlbGNvbWUgb2ZmZXIgdGFibGUgdGFibGUifQ==">Visit Broker</a></td><td><a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZnV0dV9zZWN1cml0aWVzIiwidHlwZSI6ImludmVzdG1lbnRfYnJva2VyIiwiYXBwbHlVcmwiOiJodHRwczovL3Bhc3Nwb3J0LmZ1dHU1LmNvbS9zZW0vaGs/bGFuZGluZ0lkPTMmY2hhbm5lbD02NDIiLCJmcm9tIjoiYnJva2VyIHdlbGNvbWUgb2ZmZXIgdGFibGUgdGFibGUifQ==">Visit Broker</a></td></tr></tbody></table><figcaption>The above offers are limited time offers and they are subjected to periodical updates. Latest offer information can be found on securities firm’s websites.</figcaption></figure>



<p><strong>Free stocks are especially great for new investors</strong></p>



<p>From experienced investors’ perspective, receiving a few free shares may not have any impact on their overall portfolio, however this may not be the case for new investors. According to a survey done by Hong Kong Investor Education Center, over 62% of their survey respondents want to increase their wealth through investment, but they are afraid of losing money.&nbsp;</p>



<p>First time experiences are often scary, and they intensify when money is at stake. New investors may be concerned about making the right investment choice or they feel unfamiliar with the buying/selling process of investment which ultimately lead to the fear of losing money.</p>



<p>Free stocks solve this problem for new investors by giving them stocks to manage for free as soon as they open an account. They can experience the up and down of investment, then try selling off stocks for profit before they invest their own money.&nbsp;</p>



<p>Furthermore, securities firms like Futu and 9F do not charge any custodian fee so new investors can take their time and experience investment process free of charge. Since welcome offers typically give out popular blue-chip shares, new investors can also use this chance to get to know these companies and their performance before consider investing their own money.</p>



<p><strong>Odd lots</strong></p>



<p>Most welcome offers will give out 1 or 2 share(s), which will be considered an odd lot because it amounts to less than 1 single board lot (For example 1 single HSBC lot size contains 400 shares). According to HKEX, odd lots are not accepted by the Exchange’s trading system for auto-matching, but there is a special lot market in the system for odd lots trading. In general, share prices of odd lots are slightly lower than that of the same security in the board lot market due to their lower liquidity.</p>



<p>Given the welcome offer’s odd lots are free in the first place and their selling price could increase in the future, a slight discount in share price should not be a big consideration. Although odd lots are typically eligible for dividend, if the number of shares is too small, any dividend could be offset by handling or platform fee.</p>



<p>The concept of odd lot does not apply if you receive U.S. stock as part of the welcome offer since the lot system is unique to the Hong Kong market. U.S. stocks are traded on per share basis so welcome offer shares will have the same liquidity as any other shares.</p>



<p><strong>Welcome offer comparison and more details</strong></p>



<p>Securities firms in Hong Kong are offering a wide range of welcome offers to new customers. Find out more and compare them below:</p>



<p><broker-comparison-page articlename="HK Stock Investing Article" country="HK" language="en"></broker-comparison-page></p>



<h4>Recommended Readings</h4>



<ul><li><a href="https://www.planto.hk/en/blog/Portfolio-Diversification-Investment/">Investment Strategy Guide to building a diversified portfolio</a></li><li><a href="https://www.planto.hk/en/blog/Valuable-Capital-Broker-Review/">Valuable Capital Review:&nbsp;Commission-free HK stock trading, free real-time quotes</a></li><li><a href="https://www.planto.hk/en/blog/futu-brokers-review/">Futu Securities Review</a></li><li><a href="https://www.planto.hk/en/blog/saxo-bank-review-offshore-account/">Saxo Bank Review: A Simple Offshore Banking &amp; Trading Solution for Hong Kongers</a></li></ul>



<p></p>


How to get free stocks from brokers in Hong Kong? Welcome offers from providers like Futu Securities, SoFi HK, uSMART Securities and 9F Securities are currently among the most attractive in the market. Find out how you can get free stocks in your new securities account.

Welcome Offer Comparison: Get Free Blue-Chip Stocks With New Investment Accounts


<p>Many Hong Kong consumers who feel uncertain about the country’s prospect have been looking to move a portion of their asset overseas in order to reduce geographical risks within their portfolio. When it comes to investment assets, <strong>Firstrade</strong> is a commission free, offshore platform that Hong Kong investors can easily apply for.&nbsp;</p>



<p>Within this article, <strong>Planto</strong> will be reviewing pro &amp; con of investing with <strong>Firstrade</strong> as well as providing a step-by-step guide on how to open a <strong>Firstrade</strong> account.</p>



<hr class="wp-block-separator"/>



<h4>Editor’s choice</h4>



<ul><li><a href="https://www.planto.hk/en/blog/saxo-bank-review-offshore-account/">Saxo Bank Review: A Simple Offshore Banking &amp; Trading Solution for Hong Kongers</a></li><li><a href="https://www.planto.hk/en/blog/uSMART-brokers-review/">Review: uSMART Securities</a></li><li><a href="https://www.planto.hk/en/blog/SoFi-Hong-Kong-Broker-Review/">Review: SoFi Hong Kong</a></li></ul>



<hr class="wp-block-separator"/>



<planto-button link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZmlyc3R0cmFkZSIsInR5cGUiOiJpbnZlc3RtZW50X2Jyb2tlciIsImFwcGx5VXJsIjoiaHR0cHM6Ly9hZmZpbGlhdGUuZmlyc3RyYWRlLmNvbS9hZmZpbGlhdGUvaWRldmFmZmlsaWF0ZS5waHA/aWQ9NzU3IiwiZnJvbSI6IkZpcnN0IHRyYWRlIG9wZW4gYWNjb3VudCJ9">Open a Firstrade Account</planto-button>



<h2><strong>Pro and Con of Firstrade</strong></h2>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Pro</strong></td><td><strong>Con</strong></td></tr><tr><td>0 transaction, custodian, or platform fee</td><td>Relatively high cost of fund deposit or remittance. It would be more cost effective to remit a larger sum in one go</td></tr><tr><td>Wide range of investment options including stocks, ETF, options and more than 11,000 mutual funds</td><td>Debit card withdrawal outside of the U.S. will be charged 3% per transaction</td></tr><tr><td>Among one of the easiest offshore account to open for Hong Kong investors. After a completely online account opening process, investors can start trading within a few days after making deposit</td><td>Relatively expensive margin interest</td></tr><tr><td>Assets are protected by Securities Investor Protection Corporation (SIPC). If the broker fails financially, investors can be compensated up to US$500,000.</td><td>No welcome or account opening rewards when compared to other Hong Kong based brokers like <a href="https://www.planto.hk/en/blog/futu-brokers-review/"><strong>Futu</strong> </a>or <a href="https://www.planto.hk/en/blog/uSMART-brokers-review/"><strong>uSmart</strong></a></td></tr><tr><td>No minimum deposit requirement</td><td></td></tr><tr><td>Both product interface and customer service are available in English and Chinese</td><td></td></tr><tr><td>Users can apply for <strong>Firstrade</strong>’ Visa debit card which can be used around the world</td><td></td></tr></tbody></table></figure>



<h3><strong>Opening an account with Firstrade</strong></h3>



<p><strong>Firstrade</strong>’s online account opening process is very simple and can be completed within a few minutes.</p>



<ol><li>Open an account via <strong>Firstrade</strong>’s website</li><li>Upload identification document (Support both HKSAR Passport or BNO)</li><li>Fill in basic information such as name, address, email, employment status and investment preference</li><li>Set up electronic signature and submit the application</li></ol>



<p>A confirmation email will be sent immediately after the application is submitted successfully. When the Planto team tested the account opening process, our account was approved and opened 5 hours after we received the confirmation email – this speed is pretty much the same as opening <a href="https://www.planto.hk/en/blog/US-Stock-Account-Compare/">an U.S. brokerage account in Hong Kong</a>.</p>



<p>Once the account is opened, one remaining step is to deposit money and start trading.</p>



<figure class="wp-block-image"><img src="https://lh6.googleusercontent.com/lJn09hlKL55GhhuYx_heWSHdW4nGPBnWFaWo_1UX0IXupDMjGfIbAoYif0QDL2R3A17IxauVo6We_NhUf85CEMIDdTIkM0Yb2cgKoD41GELLz82rTtd9EJuYyFNS-f_XJ8OHQts" alt=""/><figcaption>It only takes a few minutes to apply and the account is generally approved within one day.</figcaption></figure>



<h3><strong>Deposit transfer and withdrawal fees vary across different banks</strong></h3>



<p>Depositing funds into <strong>Firstrade</strong> account follows a similar process as any other brokerages, however fund deposit for <strong>Firstrade</strong> will be done through an international transfer. The transfer can be made via online banking platform or at bank branches, and it generally requires information such as name of the receiving bank, SWITFT code, payee account name, account number and the user’s full name in English.&nbsp;</p>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/07/WIRE-FUNDS-INTO-YOUR-FIRSTRADE-ACCOUNT-1024x775.png" alt="" class="wp-image-11233" srcset="https://cms.planto.io/wp-content/uploads/2020/07/WIRE-FUNDS-INTO-YOUR-FIRSTRADE-ACCOUNT-1024x775.png 1024w, https://cms.planto.io/wp-content/uploads/2020/07/WIRE-FUNDS-INTO-YOUR-FIRSTRADE-ACCOUNT-300x227.png 300w, https://cms.planto.io/wp-content/uploads/2020/07/WIRE-FUNDS-INTO-YOUR-FIRSTRADE-ACCOUNT-768x581.png 768w, https://cms.planto.io/wp-content/uploads/2020/07/WIRE-FUNDS-INTO-YOUR-FIRSTRADE-ACCOUNT-1200x908.png 1200w, https://cms.planto.io/wp-content/uploads/2020/07/WIRE-FUNDS-INTO-YOUR-FIRSTRADE-ACCOUNT.png 1470w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Users have to pay for the cost of international wire transfers. Exchange rates and transfer fees vary across different banks.</figcaption></figure>



<p>When the <strong>Planto</strong> team inquired about fund withdrawal cost, we were told that <strong>Firstrade</strong> will not charge any additional handling fee to Hong Kong users who choose to use bank transfer, however banks usually charge transfer fee of about US$35 (approximately HK$270) – but the actual fee may vary from one bank to another.</p>



<p>If the user choose to use <strong>Firstrade</strong>’s Debit Card for fund withdrawal, a fee of 3% of transaction amount will be charged each time. However users with asset more than US$10,000 in their account are eligible for free withdraw of up to US$1,000 once every month. In general, the users should avoid making frequent withdrawal in order to avoid unnecessary fees.</p>



<planto-button link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZmlyc3R0cmFkZSIsInR5cGUiOiJpbnZlc3RtZW50X2Jyb2tlciIsImFwcGx5VXJsIjoiaHR0cHM6Ly9hZmZpbGlhdGUuZmlyc3RyYWRlLmNvbS9hZmZpbGlhdGUvaWRldmFmZmlsaWF0ZS5waHA/aWQ9NzU3IiwiZnJvbSI6IkZpcnN0IHRyYWRlIG9wZW4gYWNjb3VudCJ9">Visit Broker</planto-button>



<h4>Recommended Readings</h4>



<ul><li><a href="https://www.planto.hk/en/blog/Portfolio-Diversification-Investment/">Investment Strategy Guide to building a diversified portfolio</a></li><li><a href="https://www.planto.hk/en/blog/Valuable-Capital-Broker-Review/">Valuable Capital Review:&nbsp;Commission-free HK stock trading, free real-time quotes</a></li><li><a href="https://www.planto.hk/en/blog/futu-brokers-review/">Futu Securities Review</a></li><li><a href="https://www.planto.hk/en/blog/saxo-bank-review-offshore-account/">Saxo Bank Review: A Simple Offshore Banking &amp; Trading Solution for Hong Kongers</a></li></ul>


Firstrade is a commission free, offshore platform that Hong Kong investors can easily apply for. Planto will be reviewing pro & con of investing with Firstrade as well as providing a step-by-step guide on how to open a Firstrade account.

Offshore Securities Brokerage: Firstrade Account Opening Considerations for Hong Kong Consumers


<p><strong>SoFi</strong>, a FinTech unicorn from the U.S. recently acquired Hong Kong’s homegrown online securities firm,<strong> 8 Securities</strong> – <strong>SoFi </strong>subsequently launched a new securities trading app called <strong>SoFi Hong Kong</strong> (“SoFi HK”). </p>



<p>The new<strong> SoFi HK</strong> app features the same commission free U.S. and Hong Kong stock trading as 8 Securities app, with additional features in the pipeline including margin financing and frictional share U.S. stock trading.</p>



<broker-comparison-page market="hk" language="en" show_review="false" selectedbroker="sofihk"></broker-comparison-page>



<h2><strong>Open an SoFi HK account in 5 minutes using online application and e-signature</strong></h2>



<ol><li>Fill in basic information such as your name, phone number, address, work, financials, investment preference etc.</li><li>Upload proof of address and identity (HKID/Passport)</li><li>Provide e-signature through your mobile, deposit HK$10,000 via bank transfer then upload your transfer proof</li><li>The account will typically be opened within 2 to 3 working days, you will be able to start investing immediately afterward</li></ol>



<planto-button link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZWlnaHRzZWN1cml0aWVzX3NvZmkiLCJ0eXBlIjoiaW52ZXN0bWVudF9icm9rZXIiLCJhcHBseVVybCI6Imh0dHBzOi8vZ28ub25lbGluay5tZS8xdFZvP3BpZD1QbGFudG8mYz1QbGFudG9fU29GaUhvbmdLb25nJmFmX3dlYl9kcD1odHRwcyUzQSUyRiUyRnd3dy5zb2ZpLmhrJTJGd2ViJTJGemgtaGFudCUyRm9wZW4tYWNjb3VudCUyRiUzRnV0bV9zb3VyY2UlM0RQbGFudG8lMjZ1dG1fbWVkaXVtJTNEQWZmaWxpYXRlcyUyNnV0bV9jYW1wYWlnbiUzRFBsYW50byIsImZyb20iOiJTb2ZpIFJldmlldyJ9">Download SoFi HK</planto-button>



<p>Some consumers have inquired about the validity and necessity of the HK$10,000 deposit during the account opening process – this is actually a requirement by the SFC as a standard practice for opening a securities account online so it is a common practice and there is nothing to worry about!</p>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/07/SoFI-commission-free-1024x297.png" alt="" class="wp-image-11099" srcset="https://cms.planto.io/wp-content/uploads/2020/07/SoFI-commission-free-1024x297.png 1024w, https://cms.planto.io/wp-content/uploads/2020/07/SoFI-commission-free-300x87.png 300w, https://cms.planto.io/wp-content/uploads/2020/07/SoFI-commission-free-768x222.png 768w, https://cms.planto.io/wp-content/uploads/2020/07/SoFI-commission-free-1536x445.png 1536w, https://cms.planto.io/wp-content/uploads/2020/07/SoFI-commission-free-2048x593.png 2048w, https://cms.planto.io/wp-content/uploads/2020/07/SoFI-commission-free-1200x348.png 1200w, https://cms.planto.io/wp-content/uploads/2020/07/SoFI-commission-free-1980x573.png 1980w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption><strong>SoFi HK</strong> is the lowest fee trading platform in Hong Kong. </figcaption></figure>



<h2><strong>SoFi HK app, the newly introduced SoFi points and soon-to-come fractional share trading</strong></h2>



<p>The <strong>SoFi HK</strong> app’s interface is similar to the<strong> 8 Securities</strong>’ app, however the color theme has been changed to <strong>SoFi</strong>’s refreshing sky blue but you can still pick between light and dark modes. </p>



<p>Within the app, users can choose to trade from 15,000+ <a href="https://www.planto.hk/en/blog/US-Stock-Account-Compare/">U.S. stocks</a>, <a href="https://www.planto.hk/en/blog/invest-hk-stocks-broker-bank-accounts/">Hong Kong stocks</a> as well as <a href="https://www.planto.hk/en/blog/etf-explained/">ETF</a> funds – with $0 commission, $0 platform fees and no other hidden fees. </p>



<p>If you are an existing <strong>8 Securities</strong>’ app user, you will notice a newly added section within the <strong>SoFi HK</strong> app called “<strong>SoFi Points</strong>”, a newly introduced reward system where users can earn points by completing various tasks within the app including open an account (20 points), log-in daily (1 point), invite friend (20 points), open an account through referral (20 points) etc.</p>



<p><strong>SoFi Points </strong>can be used to redeem free shares, for example 80 points can be exchanged for 1 free share of <strong>SnapChat (SNAP)</strong>. If you are an active app user who keeps a close eye on the stock market, you would be able to earn a few free shares throughout the year – a rewarding experience for loyal or active users which is uncommon in Hong Kong where most securities platforms only give out rewards to new users. Although the users should keep in mind that SoFi points will expire at the end of each year.</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>SoFi Points</strong></td><td><strong>Rewards (and US dollar value equivalent as at 13 July 2020)&nbsp;</strong></td></tr><tr><td>80</td><td>1 share of SnapChat (SNAP, US$24.27 per share)</td></tr><tr><td>220</td><td>1 share of Twitter (TWTR, US$33.82 per share)</td></tr><tr><td>440</td><td>1 share of Coca Cola (KO, US$42.25 per share)</td></tr></tbody></table></figure>



<p>Additionally,<strong> SoFi HK</strong> was the first player in Hong Kong to announce fractional share trading as part of their future pipeline, this feature will allow investors in Hong Kong to invest in U.S. stock with as little as US$10 (or HK$78). U.S. stocks are typically traded on a per share basis, however even 1 blue chip share could be worth as much as HK$10,000 – for example 1 share of Alphabet (GOOGL), the parent company of Google, is worth more than US$1,500 or approximately HK$11,625 as of July 9<sup>th</sup>. </p>



<p>The fractional share trading feature will allow a “fraction” of 1 share to be purchased and sold. In other words, even with just tens of US dollars, you can become a shareholder of one or multiple blue chip companies in the U.S. such as Amazon (AMZN), Tesla (TSLA) and Apple (AAPL).</p>



<p>However, <strong>SoFi HK</strong>’s fractional share trading is still subject to regulatory approval, this means <strong>SoFi HK</strong>’s users will have to wait a little longer before they can enjoy this feature.</p>



<figure class="wp-block-image size-large is-resized"><img src="https://cms.planto.io/wp-content/uploads/2020/07/image.png" alt="" class="wp-image-11098" width="610" height="231" srcset="https://cms.planto.io/wp-content/uploads/2020/07/image.png 940w, https://cms.planto.io/wp-content/uploads/2020/07/image-300x114.png 300w, https://cms.planto.io/wp-content/uploads/2020/07/image-768x291.png 768w" sizes="(max-width: 610px) 100vw, 610px" /><figcaption><strong>SoFi</strong> has added a new section for <strong>SoFi Points</strong>, while its leaderboard and other stock related screens are mostly the same as the <strong>8 Securities</strong>’ app. More updates will be coming soon.</figcaption></figure>



<h4><strong>Other useful services</strong></h4>



<ul><li><strong>US dollar exchange:</strong> SoFi users can seamlessly exchange their HKD into USD within the mobile app. One point to note is that the exchange rate displayed on the app is for reference only, the actual exchange rate may differ slightly from the displayed value. Users can also purchase U.S. stock directly without exchanging currencies in advance</li><li><strong>Leaderboard</strong>: SoFi’s anonymous leaderboard allows its users to learn or follow investment strategies of the most successful investors within the platform</li><li><strong>Academy:</strong> Investment academy feature provides multiple videos to answer questions like “What is a stock”, “What is asset allocation”, “What is diversification” and many more </li></ul>



<p>In terms of fees, <strong>SoFi HK</strong> is undoubtedly the best in Hong Kong market, however if you are looking for functionality, some of the popular features like streaming quotes or news and analysis features may still be lacking. </p>



<p>There are other online brokerages like <a href="https://www.planto.hk/en/blog/uSMART-brokers-review/"><strong>uSMART</strong></a> and <a href="https://www.planto.hk/en/blog/futu-brokers-review/"><strong>Futu</strong></a> that offers more features so one strategy you could consider is to make use of 2 platforms – one for tracking, analysis and alert features while another is primarily for making trades – this way you could take the most advantage of <strong>SoFi</strong> <strong>HK</strong>’s low cost trading without missing out or anything.</p>



<h3><strong>Existing 8 Securities customers are required to update their old mobile app</strong></h3>



<p>If you are one of 8 Securities’ existing customers, you can start using the new <strong>SoFi HK </strong>app immediately after a quick update which will replace your old 8 Securities app with the new <strong>SoFi HK</strong> app.</p>



<p><strong>SoFi HK</strong> stated that during this transition period, users may receive notifications or other forms of communications from 8 Securities Limited or “8 SL”, but this will eventually become<strong> SoFi Securities (Hong Kong) Limited </strong>or “<strong>SoFi HK</strong>” in the future.</p>



<h3><strong>The parent company, SoFi in the U.S. has more than 1 million users</strong></h3>



<p>Mike Cagney, a Stanford University business school student founded SoFi in 2011. Headquartered in San Francisco, SoFi was selected by Forbes as one of the top 5 fintech companies in the U.S.. The company has a valuation of over US$4.4 billion (approximately HK$34.4 billion), with many renowned investors like Softbank and Qatar Investment Authority as its shareholders. SoFi’s acquisition of 8 Securities was their first step into international market expansion.</p>



<h4><strong>Key fees and charges</strong></h4>



<p>While <strong>SoFi HK</strong> offers trading at 0 fees and commissions, the users will still need to pay taxes and other fees to the government (this is the same across all brokerages). </p>



<figure class="wp-block-table"><table><tbody><tr><td>Hong Kong stock exchange and government fee</td><td>U.S. stock exchange and government fee</td></tr><tr><td>Stamp duty: 0.1% (fees lower than HK$1 will be rounded up to HK$1)</td><td>Securities commission fee (sell): 0.00221% (minimum of US$0.01)</td></tr><tr><td>Transaction levy: 0.0027% (round to nearest cent)</td><td>Transaction levy (sell): US$0.000119 per share (minimum of US$0.01 and maximum of US$5.95)</td></tr><tr><td>HKEX transaction fee: 0.005% (round to nearest cent)</td><td><br></td></tr><tr><td>Clearing and settlement fee: 0.002% (minimum of HK$2 and maximum of HK$200)</td><td><br></td></tr><tr><td>Trading tariff: HK$0.5 per trade</td><td><br></td></tr><tr><td><br></td><td><br></td></tr><tr><td>Other charges</td><td>Other charges</td></tr><tr><td>Hosting fee: free</td><td>Hosting fee: free</td></tr><tr><td>Stock transfer fee: HK$0.2 per lot</td><td><br></td></tr><tr><td>Dividend fee: 0.5% (minimum of HK$28)</td><td>Dividend fee: free</td></tr><tr><td>Bonus share entitlement: HK$1 per lot (minimum of HK$28)&nbsp;</td><td><br></td></tr><tr><td>IPO: HK$88 (no charge If unsuccessful)</td><td><br></td></tr><tr><td>Deposit / withdraw: Free for HSBC / BOC HK$15 or US$2 for non HSBC / BOC Overseas transfer at cost (min US$35)</td><td>Deposit / withdraw: Free for HSBC / BOC HK$15 or US$2 for non HSBC / BOC Overseas transfer at cost (min US$35)</td></tr></tbody></table><figcaption><a href="https://www.sofi.hk/forms/Pricing_EN.pdf">Link to the full pricing list</a></figcaption></figure>



<planto-button link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZWlnaHRzZWN1cml0aWVzX3NvZmkiLCJ0eXBlIjoiaW52ZXN0bWVudF9icm9rZXIiLCJhcHBseVVybCI6Imh0dHBzOi8vZ28ub25lbGluay5tZS8xdFZvP3BpZD1QbGFudG8mYz1QbGFudG9fU29GaUhvbmdLb25nJmFmX3dlYl9kcD1odHRwcyUzQSUyRiUyRnd3dy5zb2ZpLmhrJTJGd2ViJTJGemgtaGFudCUyRm9wZW4tYWNjb3VudCUyRiUzRnV0bV9zb3VyY2UlM0RQbGFudG8lMjZ1dG1fbWVkaXVtJTNEQWZmaWxpYXRlcyUyNnV0bV9jYW1wYWlnbiUzRFBsYW50byIsImZyb20iOiJTb2ZpIFJldmlldyJ9">Visit SoFi HK&#8217;s Website</planto-button>



<h4>Recommended readings: </h4>



<ul><li><a href="https://www.planto.hk/en/blog/Portfolio-Diversification-Investment/">Investment Strategy Guide to building a diversified portfolio</a></li><li><a href="https://www.planto.hk/en/blog/Valuable-Capital-Broker-Review/">Valuable Capital Review: Commission-free HK stock trading, free real-time quotes</a></li><li><a href="https://www.planto.hk/en/blog/futu-brokers-review/">Futu Securities Review</a></li></ul>



<p style="font-size:14px"><strong>Important information:</strong><br><br>Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.</p>


Trade U.S. and Hong Kong stock at 0 fee & commission! Check out SoFi HK's Account Opening Guideline and Money Saving Tips on U.S. Stock Trading. Learn how to redeem free stocks using SoFi Points!


SoFi HK Review: Trade U.S. & HK Stock at $0 Commission and Get Free Stocks Using SoFi Points

Saxo Bank is the parent company of Saxo Capital Markets Hong Kong. Any Hong Kong resident can easily apply for a Danish offshore account to hedge their risk as well as invest in popular markets like Hong Kong, the U.S., the U.K., Japan, Singapore and many more. Learn More about how to open a Saxo Bank European offshore account!

Saxo Bank Review: A Simple Offshore Banking & Trading Solution for Hong Kongers


<p>We all love traveling. This is why our review this time is on DBS&#8217;s Black World Mastercard, which is famous for its air miles and travel perks! </p>



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<h2>Key Features</h2>



<ul><li>Can earn up to 50,000 miles with their limited-time welcome offer of HK$0.5 = 1 mile</li><li>Can redeem reward programs such as Asia Miles, Avios, KrisFlyer and PhoenixMiles with your DBS$</li><li>Local Spending HK$6 = 1 Mile  </li><li>Overseas Spending HK$4=1mile  </li><li>DBS$ never expire so you can slowly plan your next trip</li><li>No charges on the conversion from DBS$ to miles</li><li>You can get DBS$ for your e-Wallet spending e.g. Octopus, PayMe, WeChat, etc.</li></ul>



<h2 id="迎新優惠">Welcome Offer</h2>



<p>Limited time only!  From 1 April 2020 to 30 June 2020, you can enjoy as low as HK$0.5 = 1 mile when you successfully apply for a new card!</p>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/03/Screenshot-2020-03-31-at-8.33.16-PM.png" alt="" class="wp-image-9301" srcset="https://cms.planto.io/wp-content/uploads/2020/03/Screenshot-2020-03-31-at-8.33.16-PM.png 716w, https://cms.planto.io/wp-content/uploads/2020/03/Screenshot-2020-03-31-at-8.33.16-PM-300x153.png 300w" sizes="(max-width: 716px) 100vw, 716px" /></figure>



<h2 id="迎新優惠">Mileage Rate</h2>



<p>Between  1 Apr – 31 Jun 2020</p>



<ul><li>Local Spending: HK$ 6 = 1 mile</li><li>Overseas Spending: HK$ 4 = 1 mile</li><li>eWallet Spending: HK$ 6 = 1 mile</li></ul>



<h2>Basic Information</h2>



<ul><li>Annual salary requirement: HK$ 240,000</li><li>Annual fee: HK$ 2,000</li><li>Overdue payment fees: up to HK$ 300</li><li>Foreign currency transaction fee: 1.95%</li></ul>



<h2>Disadvantages</h2>



<ul><li>Online payment spending doesn&#8217;t apply to the welcome offer</li><li>PayMe, Alipay HK, Wechat Pay spending does not apply to the welcome offer</li><li>Octopus AAVS is only HK$ 12 = 1 mile</li></ul>



<h2>Is the DBS Black World Mastercard right for you?</h2>



<p>The DBS Black World Mastercard earns flight miles whether you&#8217;re spending on eating out, drinks or shopping, and there is no mileage conversion fee.&nbsp;You can use the Planto app to link your existing credit card and analyze your past spending &#8211; if you spend a lot and want to spend less time managing cards, the DBS Black World Mastercard can help you effortlessly accumulate Asia Miles. Since the DBS$ points have no expiration date, you don&#8217;t even have to worry about your points expiring and can plan your travels with ease!</p>



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We all love traveling. This is why our review this time is on DBS's Black World Mastercard, which is famous for its air miles and travel perks! This card offers you HK$6 = 1 mile on local spending and HK$4 = 1 mile on overseas spending, hotel booking discounts, online travel tax refund rebate, welcome offers up to 80,000 miles and much more! 

[Credit Card Review] DBS Black World Mastercard: As low as HK$0.5 = 1 Mile!


<p>It&#8217;s important to ensure you&#8217;re not taking too much risk when you&#8217;re investing. You do it all the time in everyday life if you buy insurance, wearing a seatbelt in a car or even when going for a run. It&#8217;s not that you can avoid risk entirely but you want to give yourself the best chance of succeeding &#8211; whether it comes to your health or growing your investments.</p>



<p>The surest way to reduce risk when it comes to investing is to ensure your portfolio is diversified. There&#8217;s two main categories of risk:</p>



<ol><li><strong>Systematic risk</strong>: This means macro-economic risks in the broader market, geographies or asset classes e.g. the recent China-US trade war, or the dot com bubble in the early-2000s</li><li><strong>Unsystematic risk</strong>:  This means risks specific to your investments e.g. video games regulation in China affecting Tencent, or data security concerns over Facebook</li></ol>



<h2>What is diversification</h2>



<p>In short, diversification is the concept of &#8220;don&#8217;t put all your eggs in one basket&#8221;. However, an even better way is thinking about it like a fruit market.</p>



<p>If you were running a fruit market, rather than selling only one kind of fruit, you&#8217;d want to sell many different kinds. If a natural disaster occurs which means mangoes are no longer available, you&#8217;d want to make sure you have other fruits to sell as well! </p>



<p>The natural disaster here is a systematic risk and the different fruits would be asset classes.</p>



<p>To go a step further, rather than buying all your mangoes from the same supplier, you&#8217;d want to have multiple suppliers in case one goes out of business, increases their price (among the many other reasons) &#8211; this would be an example of &#8216;unsystematic risk&#8217;.</p>



<h2>How do you use diversification in a portfolio</h2>



<p>The first step for any investor is to diversify between asset classes: equities (e.g. stocks), fixed income (e.g. bonds, money market funds, etc.) and alternatives (e.g. art, commodities, etc.).</p>



<p>The next step would be, for each asset class, to invest in different geographies, and then choosing different company sizes and industries.</p>



<p>Lastly, you would diversify away from &#8216;single&#8217; companies by buying mutual funds, <a href="https://www.planto.hk/en/blog/etf-explained/">ETFs</a> or a large number of individual securities.</p>



<p>Different asset classes, company sizes and sectors have their own risks and their own returns so each investor needs to think about their own risk tolerance when creating their portfolio. A younger couple may want to invest with higher risk to get higher returns, while someone closer to retirement would want stable returns with low risk.</p>



<single-action-item title="Robo-advisors can build a diversified portfolio for you with just a few clicks" subtitle="" button_text="Learn More" type="robo_comparison"></single-action-item>



<h2>Why regular rebalancing matters</h2>



<p>Once you have determined what your portfolio should look like, it&#8217;s important to make sure it remains the same over time. It can be very tempting to chase &#8216;high return&#8217; stocks but if you think about past events e.g. dot com bubble or the 2008 financial crisis, investors who were primarily in tech or financial services stocks suffered huge losses compared to more diversified investors.</p>



<p>Over time, if you have determined your ideal portfolio is 80% stocks and 20% bonds portfolio, it&#8217;s quite likely according to historical data that your stocks would get higher returns and thus become a larger part of your portfolio e.g. 90% stocks and 10% bonds instead. At times likes this, you need to rebalance your portfolio back to match your original risk tolerance (80% stocks, 20% bonds).</p>



<h2>Summary</h2>



<p>Building a diversified portfolio can seem like a lot of work &#8211; and it is if you want to do it right! Signs of good diversification are that that your investments work well together (if your riskier investments go down, your less risky investments shouldn&#8217;t go down as much), and that your portfolio matches your risk tolerance and goals.</p>



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<p style="font-size:14px"><strong>Important information:</strong><br><br>Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.</p>


It's important to ensure you're not taking too much risk when you're investing. The first step for any investor is to diversify between asset classes: equities, fixed income and alternatives. The next step would be, for each asset class, to invest in different geographies, and then choosing different company sizes and industries.

[Investment Strategy] Guide to building a diversified portfolio


<p>Despite ending a rocketing streak, Hong Kong&#8217;s home prices still remain one of the most expensive in the world and, hence, stamp duty is a considerable expense for homebuyers. After the implementation of double stamp duty in 2013 and the increase of property stamp for second-home buyers to 15% in 2016, homeowners began transferring the title of a property from joint ownership to single ownership. Doing so enables them to restore the “first-time purchaser” status for one party in order to re-enter the property market without paying the additional tax.</p>



<p>Notably, a study by QFang indicated that transactions involving close relatives constituted over 10% of the second-hand residential transactions in the first seven months of last year.&nbsp; The same study indicated that this has increased in recent months and was 16% of all second-hand sales in July.&nbsp; This may indicate that some buyers are optimistic about the market outlook and are preparing to make a new purchase by restoring their “first-time purchaser” status.</p>



<h2>How much can you save with the first-time buyer status?&nbsp;</h2>



<p>A person (HKPR) holding a property as a joint proprietor or individual owner may transfer (sell) their ownership of the property to a close relative such as a parent, sibling, spouse or child. This “close relative” status exempts the relative from paying the 15% Ad Valorem Stamp Duty (AVD).&nbsp; The transaction is subject to Stamp Duty based on the determined value of the property, but the person (transferor) becomes eligible for first-time buyer status, exempting them from the 15% (AVD) on a future purchase.</p>



<p>For example, a couple jointly owns a property with a market value of HK$6 million. The husband transfers the title of the property to his spouse. The total amount of tax rate payable is HK$45,000 ($3,000,000 x 1.5%). Later, the husband purchases a residential unit with a market value of HKD$8 million as a first-time buyer, avoiding the 15% AVD (HK$1.2 million), instead paying only the 3.75% stamp duty (HK$300,000).&nbsp; This results in a net tax savings of HK$855,000 compared to what would have been paid had he purchased the property without having transferred ownership of the original property.</p>



<p>Under current laws, the husband may do this repeatedly &#8211; buy a property and then transfer it to his wife – and be entitled to the first-time buyer status and exempt from the AVD on each new purchase. Compared with the 15% AVD, the stamp duty applicable to first-time home buyers is much lower, ranging from 1.5% to 4.25%. If the property price is under HK$2 million, only a printing fee of HK$100 is required. &nbsp;</p>



<h3>A Similar Tax Saving Trick in First-hand Market</h3>



<p>In the first-hand property market, a similar strategy has evolved, with some with prospective buyers “borrowing” their relatives names and registering multiple lottery applications in order to increase their chances of purchasing units. If successful, they can transfer the property ownership from their relative to themselves, typically after waiting three years to avoid being subject to the Special Stamp Duty (SSD), an additional tax payable if you sell or transfer within 3 years of purchase.</p>



<p>These tax-saving strategies are not illegal and sound like no-brainers for anyone seeking to build a portfolio of properties.&nbsp; So why doesn’t everyone (who can afford to buy multiple properties) do this?&nbsp; This approach is obviously beneficial, but one must also pay attention to the risks involved.</p>



<h2>4 Risks of Transferring Property</h2>



<p>Although transferring property titles helps some buyers to reduce taxes, there are other considerations.</p>



<h3>Mortgage Financing</h3>



<p>Banks are naturally careful about awarding a <a href="https://www.planto.hk/en/mortgage-home/">mortgage</a> considering the financial strength of all parties involved, particularly for older purchasers or those with multiple properties in their portfolio.&nbsp; In the above example, the husband may qualify for a mortgage when acquiring a property but may later find that the bank will not transfer the mortgage to his wife if she doesn’t meet various stress tests (ie. debt-to-income, etc.).&nbsp; Or the bank may allow the mortgage transfer but at a higher interest rate.&nbsp; In such cases, the husband could provide a personal guarantee on his wife’s mortgage, though again the bank will review the combined financial strength of the two parties.&nbsp; The same applies to a parent transferring ownership to a child.&nbsp; Just as importantly, a family should not undertake more debt (i.e. risk) than they can comfortably support.</p>



<h3>Costs</h3>



<p>One must consider the costs of the transaction, both the immediate costs (such as attorney’s fees) and costs that may be incurred later.&nbsp; If the mortgage is transferred before the expiry of a penalty period, it may be necessary to return the cash rebate and pay the penalty interest to the bank.</p>



<h3>Estate Planning</h3>



<p>With joint-ownership, if one party passes away, the ownership automatically transfers to the other.&nbsp; Moving to separate ownership results in a more protracted probate process of the sole owner dies, especially if they do not have an updated will, which then leads to an even more exhaustive intestate court process and potentially legal disputes amongst the family.</p>



<h3>Other Tax and Title Considerations</h3>



<p>Some owners may attempt to transfer their property at a below-market price (to reduce stamp duty).&nbsp; However, tax authorities have the right to recover the difference, potentially with a penalty.&nbsp; If the title transfer is done as a Deed of Gift (with no money changing hands between the parties), it is still considered a property transfer and subject to the same tax treatment as a sale.&nbsp; Properties transferred via a Deed of Gift are also subject to claims by creditors if the donor declares bankruptcy within 5 years.&nbsp; This title encumbrance can cause complications later, making the property difficult to sell, since banks may be unwilling to provide a mortgage to a new buyer during that 5-year period.&nbsp;</p>



<p>In summary, property transfers are legal ways to reduce your property taxes. However, there are potential complexities to consider and you should engage professional legal and tax advisors to assist you in making an informed decision before employing this strategy.&nbsp; In addition, the Government has indicated that it is closely monitoring such transfers, so stay abreast of the latest policies in case they change.</p>



<p>Note: Illustrations in this article are for reference only and no representation or warranty is made regarding their accuracy.&nbsp; This article in no way represents legal, tax, accounting or investment advice. Readers considering real estate transactions should consult professionals in these areas for advice.</p>



<p>This article is written by <a href="https://www.okay.com/en/property-news/how-can-transferring-a-property-to-a-relative-save-taxes-in-hong-kong/900?nid=59">OKAY.com</a> and originally published in the author&#8217;s website.&nbsp;</p>



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Hong Kong Homeowners began transferring the title of a property from joint ownership to single ownership. Doing so enables them to restore the “first-time purchaser” status for one party in order to re-enter the property market without paying the additional tax.

HK Homeowners Gain Tax Advantages by Transferring Property Ownership.  Here’s How it Works and the Risks


<p>Tax is one of the things everyone hates &#8211; but there are ways to reduce it! One option is to make use of <a href="https://www.fidelity.com.hk/en/mpf-tvc/tax-deductible-voluntary-contributions">Tax Deductible Voluntary Contribution</a> (TVC). In this article, we will show you the benefits of TVC, steps to open a TVC account and how to apply for tax deductions.</p>



<h2><strong>TVC applications are rapidly increasing </strong></h2>



<p><a href="https://www.fidelity.com.hk/en/articles/press-releases/2019-12-04-global-wi-tax-incentives-1575442758915">According to Fidelity International</a>, more than 80% of Hong Kong people were positive about the government’s new tax-deductible financial products e.g. TVC and QDAP and VHIS. Based on MPFA’s research, as of September 2019, there were 19,000 TVC accounts held by Hong Kong employees, which was a five-fold increase from April 2019 (3,400 TVC accounts)!</p>



<figure class="wp-block-table"><table class=""><tbody><tr><td>Date</td><td>Contribution Accounts</td><td>Personal Accounts</td><td>TVC Accounts</td></tr><tr><td>30/6/2019</td><td>4,183,000</td><td>5,723,000</td><td>13,000</td></tr><tr><td>30/9/2019</td><td>4,228,000</td><td>5,771,000</td><td>19,000</td></tr><tr><td>Growth Rate</td><td>+1.07%</td><td>+0.83%</td><td>+46.15%</td></tr></tbody></table></figure>



<p>Although TVC has been growing since its launch, it still accounts for less than 0.2% of the total MPF accounts.</p>



<h2><strong>Benefits of TVC</strong></h2>



<h4>Pay less tax</h4>



<p>TVC contributions can be included in tax deductions under salaries tax or tax under personal assessment, with a maximum cap per year of $60,000 (which is an aggregate limit for TVC and qualifying deferred annuity policies premiums). It can save you up to HK$10,200 in tax each year. <a href="https://fidelity.onelink.me/b9Fq?pid=planto&amp;c=2020_etvc&amp;af_channel=display&amp;af_adset=tvc_howto">Click here to know more about TVC tax deductions</a>!</p>



<h4>Increase your net worth</h4>



<p>Under the fierce inflation in Hong Kong, relying on MPF contributions alone may not be enough to support retirement life. If you put away just a few hundred dollars each month for voluntary contributions, your net worth at retirement can be increased by millions.</p>



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<h2><strong>How to open a TVC account</strong></h2>



<p>Opening a TVC account is simple. You just need to request a TVC application form from your MPF provider, complete the form and return it with copies of HKID card and residential address proof. </p>



<p><strong>Steps to apply for a TVC account using physical form</strong></p>



<p>Application form can be downloaded from MPF trustee’s website. You can then apply for an account<br>
following these 3 steps:</p>



<ol><li>Complete your personal and employment information such as name, date of birth, contact details etc. Since TVC accounts are not opened with employers, additional information such as income and job position will be required</li><li>Choose a contribution model, whether this is lump sum or regular monthly contribution. Lump sum payment method requires a cheque while regular monthly contribution requires a Direct Debit Authorization form</li><li>Choose your funds and investment allocation. If there is no instruction or the instruction is not clear, the contributions will be invested according to the Default Investment Strategy (DIS)</li></ol>



<p><strong>Steps to apply for a TVC account online in 15 minutes</strong></p>



<p>Some MPF trustees have launched mobile application to facilitate online TVC account opening. For example, Fidelity’s <a href="https://fidelity.onelink.me/b9Fq?pid=planto&amp;c=2020_etvc&amp;af_channel=display&amp;af_adset=tvc_howto">SmartRetire app</a> allows you to open a TVC account completely online, from the comfort of your home. The account can be opened following 3 simple steps:</p>



<ol><li><a href="https://fidelity.onelink.me/b9Fq?pid=planto&amp;c=2020_etvc&amp;af_channel=display&amp;af_adset=tvc_howto">Download the SmartRetire app</a> and choose an open to apply for a TVC account</li><li>Verify your identity through the app, fill in electronic form and choose investment allocation</li><li>Confirm payment method, arrange for payment then complete your application using electronic<br> signature</li></ol>



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<p><strong>How to transfer TVC assets</strong></p>



<p>You can only transfer balance from one TVC account to another. So if you have multiple TVC accounts (one for each MPF scheme), you may want to consolidate it all. Once you do that, your TVC account in the original scheme will be terminated. Transfer forms are downloadable from websites of MPFA or from your current MPF provider.</p>



<p><strong>How to apply for TVC tax deductions</strong></p>



<p>To apply for TVC tax deductions, you simply need to claim the deductions in the Tax Return (BIR60)<s>.</s> If you have already submitted the 2019/20 tax return, you may apply for correction within 6 years after the end of the relevant year of assessment.</p>



<p>You won’t need to attach any supporting documents to the tax returns but you should retain the contribution summaries by the trustees for 6 years, in case of a selected review by the HK IRD.</p>



<p>In addition, if a TVC member also has <a href="https://www.gov.hk/en/residents/taxes/salaries/allowances/deductions/annuity.htm">qualifying annuity premiums</a>, the TVC deductions would be claimed first. Lastly, you only claim tax deductions from your personal account, not family members’ account.</p>



<p>“In this world nothing can be said to be certain, except death and taxes,” said Benjamin Franklin. Taxes may be certain but we can be smart about it &#8211; pay less tax but use it to increase your net worth and strengthen your financial foundation after retirement.</p>



<p>&#8212;</p>



<p style="font-size:12px"><strong>Important information</strong></p>



<p style="font-size:10px">Investment involves risks. This material contains general information only. It is not an invitation to subscribe for shares in a fund nor is it to be construed as an offer to buy or sell any financial instruments. The information contained in this material is only accurate on the date such information is published on this material. Opinions or forecasts contained herein are subject to change without prior notice. Reference to specific securities mentioned within this material (if any) is for illustrative purpose only and should not be construed as a recommendation to the investor to buy or sell the same. Any person considering an investment should seek independent advice. FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity International. Fidelity, Fidelity International, and the Fidelity International logo and F symbol are trademarks of FIL Limited. This material is issued by FIL Investment Management (Hong Kong) Limited and Planto, and has not been reviewed by the Securities and Futures Commission.</p>



<p style="font-size:10px">This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action.</p>



<p style="font-size:10px">The results of the projection of MPF accrued benefits is calculated based on certain assumptions and it is for reference only. </p>



<p style="font-size:10px">Investment involves risks. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. The third party mark appearing in this material is the property of the respective owner and not by Fidelity.</p>



<p style="font-size:10px">This material may contain materials from third parties which are supplied by companies that are not affiliated with any Fidelity entity (“Third Party Content”). Fidelity has not been involved in the preparation, adoption or editing of such third party materials and does not explicitly or implicitly endorse or approve such content. Any opinions or recommendations expressed on third party materials are solely those of the independent providers, not of Fidelity. Third Party Content is provided for informational purposes only.</p>


Want to pay less tax and increase your net worth? Make use of Tax Deductible Voluntary Contribution (TVC)! In this article, we will show you the steps to open a TVC account and how to apply for tax deductions.

[Save on your tax] How to open a Tax Deductible Voluntary Contribution (TVC) account


<broker-comparison-page market="hk" language="en" show_review="false" selectedbroker="usmartsecurities"></broker-comparison-page>



<p>In recent years, there are more investment brokers launching in Hong Kong which is fantastic for consumers! Many of them have made investing very cheap, offer powerful stock research tools and help you invest smarter. uSMART Securities has done all of the above &#8211; it helps you invest in HK and US stocks with extremely low fees, uses big data to analyze stocks and gives strategies to follow. On top of that, the app is simple to use and easy to get started with.</p>



<h2>What&#8217;s great about uSMART?</h2>



<ul><li>Lowest trading fees in the market for HK and US stocks</li><li>Monthly investment plan available</li><li>Fund platform where you can buy equity, bond or money market funds with ease</li><li>AI-based stock screening tool</li><li>Easy account opening (3 minutes to get started!)</li><li>Simple app user interface</li><li>IPO stock subscription available</li><li>Licensed by the SFC for Type 1, 4 and 9 (<a href="https://www.planto.hk/en/blog/investor-compensation-fund/">your investments are protected</a>!)</li></ul>



<h2> Opening uSMART Account in 3 Minutes</h2>



<p>Opening a uSMART securities account is simple:</p>



<ol><li>Download the app and receive a verification code via SMS; (or log in with your Facebook or Google account)</li><li>Use your phone to take pictures and upload your ID card and address proof</li><li>Fill in some basic information such as name, contact, financial status, etc.</li><li>Deposit funds and start investing</li></ol>



<h4>Deposit</h4>



<ol><li>Support eDDA instant deposit (HSBC, Hang Seng Bank, Bank of China, DBS Bank, Bank of Communication, Chong Hing Bank, China Merchants Bank, CITIC Bank, China Minsheng Bank, Wing Lung Bank)</li><li>FPS</li><li>Bank account transfer</li></ol>



<h2>Pricing plans for HK stocks</h2>



<p>uSMART securities offers two plans for HK stocks:</p>



<ol><li><strong>Pay a commission:</strong> This means that you will pay 0.03% (if your account balance is more than HKD 100,000) or 0.05% (if your account balance is less than HKD 100,000) of the transaction as a commission and $0 as platform fees. In essence, this means if your account balance is $150,000 and you buy a few lots of HK shares worth $50,000, you would have to pay 15 HKD in fees.</li><li><strong>Pay a platform fee</strong>: This is more straightforward &#8211; you pay a flat HKD 12 per transaction.</li></ol>



<p>Which one you choose depends on your trading habits &#8211; if you buy in large transactions, the platform fee makes more sense. If your transactions are smaller, then the commission plan might be more suitable.</p>



<h2>Pricing plan for US stocks</h2>



<p>For US stocks, uSMART offers zero-commission plans. You just have to pay a flat USD 1 (~HKD 7.8) as a platform fee which is one of the lowest in Hong Kong. It&#8217;s simple and ideal for starting to invest in the US!</p>



<h2>Tools and Research</h2>



<p>On top of having really low fees, uSMART also provides you with stock research functionality that can be quite powerful. The key features are:</p>



<ol><li><strong>Smart Advisor</strong>: This is an AI / Big Data driven stock screener that can help identify stocks based on various metrics including growth potential, price/earnings ratio and more. The performance is backtested but real-life performance over the long term remains to be seen &#8211; but it could still be a great tool to get ideas.<br></li><li><strong>Stock analysis</strong>: For individual stocks, aside from providing the price quote, uSMART provides intelligent scoring based on various factors of the company e.g. profit, growth, industry prospects, dividend yield, etc., and ranks them to help investors make more informed decisions. As an example, HSBC Holdings (0005.HK) had a score of 69.55 on January 2, 2020; Tencent Holdings (0700.HK) scored 68.34 points on the same day.</li></ol>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/01/usmart_stock_analysis.jpg" alt="" class="wp-image-7716" srcset="https://cms.planto.io/wp-content/uploads/2020/01/usmart_stock_analysis.jpg 810w, https://cms.planto.io/wp-content/uploads/2020/01/usmart_stock_analysis-300x181.jpg 300w, https://cms.planto.io/wp-content/uploads/2020/01/usmart_stock_analysis-768x465.jpg 768w" sizes="(max-width: 810px) 100vw, 810px" /></figure>



<h2>Smart Fund Platform</h2>



<p>The funds on uSMART Securities platform are divided into four types: money market, bond, balanced and equity. Each fund has a chart to clearly show the performance trend, and lists the minimum investment amount and handling fee, which makes it straightforward for investors to choose what fund they are interested in.</p>



<ol><li><strong>Money Market Funds:</strong> These have the lowest risk and invest mainly in Treasury bills, commercial paper, etc. Many investors may opt to use money market funds as a substitute for time deposit plans. As of the end of 2019, uSMART&#8217;s money market funds&#8217; returns ranged between 1.92% and 2.64% in one year.</li><li><strong>Bond funds:</strong> The risks can be high or low, depending on the fund because bonds can have various risk levels (government bonds being lower risk, corporate and junk bonds being higher risk). As of the end of 2019, uSMART&#8217;s bond funds&#8217; returns ranged between 2.69% and 14.53% in one year.</li><li><strong>Balanced funds:</strong> These funds are diversified across bonds, stocks and other products. The risk is variable depending on the holdings of the fund and thus reward is also variable. As of the end of 2019, uSMART&#8217;s balanced funds&#8217; returns ranged between 4.21% and 19.03% in one year.</li><li><strong>Equity funds:</strong> These have higher risk (and higher returns). The investments include various types of stock assets which also makes it an easy way to diversify risk. As of the end of 2019, uSMART&#8217;s equity funds&#8217; returns ranged between 7.96% and 51.78% in one year.</li></ol>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/01/usmart_smartfund.jpg" alt="" class="wp-image-7718" srcset="https://cms.planto.io/wp-content/uploads/2020/01/usmart_smartfund.jpg 540w, https://cms.planto.io/wp-content/uploads/2020/01/usmart_smartfund-300x272.jpg 300w" sizes="(max-width: 540px) 100vw, 540px" /></figure>



<h2>Summary</h2>



<p>The uSMART mobile app is powerful, affordable and easy to use. The Smart Advisor functionality is interesting but lacks real-life historical data to see if it really works and may take a while before it can be considered a replacement to robo-advisors.</p>



<p>The good news is, even if we exclude the smart advisor and analysis features, uSMART&#8217;s app is really good. Whether you&#8217;re a beginner or an experienced investor with a bank already, you&#8217;d want to give it a try yourself.</p>



<next-steps-list lang="en"> 
<next-steps-list-item type="content" link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoidXNtYXJ0X2Jyb2tlciIsInR5cGUiOiJpbnZlc3RtZW50X2Jyb2tlciIsImFwcGx5VXJsIjoiaHR0cHM6Ly91c21hcnRzZWN1cml0aWVzLmNvbS9BZmZpbGlhdGUvdC9OciIsImZyb20iOiJ1U01BUlQgUmV2aWV3In0=" title="Open a uSMART account" subtitle="Read about uSMART's latest offers and open an account to invest in HK and US stocks and funds！"></next-steps-list-item>
<next-steps-list-item type="robo_comparison" title="Want someone to do the investing for you?" subtitle="Consider a robo-advisor instead!"></next-steps-list-item>
</next-steps-list>



<p style="font-size:14px"><strong>Important information:</strong><br><br>Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.</p>


uSMART offers zero commission trading on HK and US stocks, intelligent stock screeners and a great app. Learn more about uSMART and start investing smarter and cheaper.

uSMART Securities Review


<p>Futu Securities, which was invested into by the Internet giant Tencent (0700.HK), is one of the most popular investment brokerages in Hong Kong with more than 600,000 users for its mobile app &#8220;Futu Niuniu&#8221;. The main advantages include cheaper transaction fees, a simple-to-use app, easy to trade Hong Kong stocks, US stocks and rich market research capabilities.</p>



<p>To help you more, we went through the account opening process and the user experience of buying and selling stocks and money market funds!</p>



<h2>Futu Securities Fees &amp; Features</h2>



<broker-comparison-page market="hk" language="en" show_review="false" selectedbroker="futusecurities"></broker-comparison-page>



<h2>Futu Online Account Opening Process</h2>



<p>The website is Chinese only but it&#8217;s <a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZnV0dV9zZWN1cml0aWVzIiwidHlwZSI6ImludmVzdG1lbnRfYnJva2VyIiwiYXBwbHlVcmwiOiJodHRwczovL3Bhc3Nwb3J0LmZ1dHU1LmNvbS9zZW0vaGs/bGFuZGluZ0lkPTMmY2hhbm5lbD02NDIiLCJmcm9tIjoiRnV0dSBSZXZpZXcifQ==">easy enough to navigate </a></p>



<figure class="wp-block-image size-large"><img src="https://cms.planto.io/wp-content/uploads/2020/01/FutuHowToSignUp_en.jpg" alt="" class="wp-image-7639" srcset="https://cms.planto.io/wp-content/uploads/2020/01/FutuHowToSignUp_en.jpg 1013w, https://cms.planto.io/wp-content/uploads/2020/01/FutuHowToSignUp_en-300x115.jpg 300w, https://cms.planto.io/wp-content/uploads/2020/01/FutuHowToSignUp_en-768x296.jpg 768w" sizes="(max-width: 1013px) 100vw, 1013px" /></figure>



<ol><li>Enter your phone number</li><li>Click the &#8216;get verification code&#8217; button</li><li>Enter the verification code</li><li>Click open account</li></ol>



<p>Once you&#8217;ve done this, you can actually just switch to the Futu app and login with your phone number and continue the account opening process there. The steps include:</p>



<ol><li>Login to your account (via phone number)</li><li>Prepare your HKID card and address proof (screenshots or pictures of the card or proof is fine!)</li><li> Fill in some simple information such as name, date of birth, employment status, etc. Buying U.S. stocks involves U.S. taxation, so you must declare whether you are a U.S. citizen</li><li> For identity verification, you can choose from three methods: online account opening, in-person appointment, or by submitting a cheque</li></ol>



<p>and that&#8217;s it! The Planto team tested two account opening methods &#8211; doing it completely online and by making an appointment. Either way works and you can have your account open and ready to invest within 1-2 days.</p>



<h4>100% online account opening &amp; identity verification</h4>



<p>This is the <strong>easiest</strong> way to open a Futu account. Fill out the information online and select &#8220;Open an account online&#8221;, use your mobile phone or computer to upload your ID card and address proof photo, then bind your bank account and deposit HK $ 10,000 to the Futu account shown on the screen. The sooner you do this, the quicker you can start investing!</p>



<h4>Make an appointment to verify your identity</h4>



<p>After filling in the information online and choosing &#8220;Make an appointment&#8221;, you can choose to meet with Futu staff and present your identification documents on the spot. Users can choose the time and place for the meeting. The Planto team submitted an online application on November 6 and successfully made an appointment to verify their identity at the Hong Kong MTR Station two days later.</p>



<p>Although it is &#8220;offline&#8221; account opening, in practice, the Futu staff only uses an iPad to take pictures and upload documents for applicants, which is almost the same as online account opening. The main benefit of meeting and opening an account is that you can open an account without having to deposit the HK$ 10,000 immediately when you open an account.</p>



<h2>Trading of Hong Kong stocks, US stocks, and new shares</h2>



<p>Futu has iPhone, Android, Windows and Mac versions of the app, which can be used to invest in Hong Kong stocks, US stocks and A shares. The buying and selling procedures are similar to those of the bank&#8217;s system. Select the stock, number of shares you want to buy, and order instructions and then you just wait for the order to be executed!</p>



<p>(Fun fact: Futu&#8217;s trading system claims to complete Hong Kong stock trading orders in 0.0037 seconds &#8211; although this probably won&#8217;t matter for most investors)</p>



<p>If you invest in US stocks, you can deposit US dollars into your account or exchange it via the Futu app directly. If investing in A shares, you&#8217;ll need to have RMB in the Futu A-share account. In addition, you can also subscribe to IPO stocks in HK and US although this would not be advisable for beginner investors!</p>



<h2>Futu MoneyPlus Fund</h2>



<p>Futu MoneyPlus includes <a href="https://www.planto.hk/en/blog/Money-Market-Fund-Intro/">money market funds</a>, stock funds and bond funds. The money market funds are particularly interesting:  while you&#8217;re waiting to invest (whether it&#8217;s for research or waiting for the right time), you can put your idle funds in the money market funds and get an annualized return of nearly 2%, <strong>withdrawable at any time</strong>. Due to the low risk and stable returns of the money fund, you could almost consider it as a high-interest savings account.</p>



<figure class="wp-block-image size-medium"><a href="https://cms.planto.io/wp-content/uploads/2020/01/FutuMoneyMarket-1.jpg" target="_blank" rel="noreferrer noopener"><img src="https://cms.planto.io/wp-content/uploads/2020/01/FutuMoneyMarket-1-295x300.jpg" alt="" class="wp-image-7662" srcset="https://cms.planto.io/wp-content/uploads/2020/01/FutuMoneyMarket-1-295x300.jpg 295w, https://cms.planto.io/wp-content/uploads/2020/01/FutuMoneyMarket-1-768x781.jpg 768w, https://cms.planto.io/wp-content/uploads/2020/01/FutuMoneyMarket-1.jpg 800w" sizes="(max-width: 295px) 100vw, 295px" /></a></figure>



<p>Bond funds are low to medium risk, with greater volatility than money market funds, but also higher returns. As for equity funds, the potential risks and returns are both higher.</p>



<h2>Stock quote, analysis, practical information</h2>



<p>Another selling point of the Futu Niuniu app is that it can provide very rich market information, including real-time quotes, valuation trends, corporate financial analysis and forecast, financial news reports, stock market basics and other information about Hong Kong and US stocks. There&#8217;s also a community where you can discuss ideas with other fellow-minded investors!</p>



<figure class="wp-block-image size-medium"><a href="https://cms.planto.io/wp-content/uploads/2020/01/FutuCommunity.jpg" target="_blank" rel="noreferrer noopener"><img src="https://cms.planto.io/wp-content/uploads/2020/01/FutuCommunity-296x300.jpg" alt="" class="wp-image-7663" srcset="https://cms.planto.io/wp-content/uploads/2020/01/FutuCommunity-296x300.jpg 296w, https://cms.planto.io/wp-content/uploads/2020/01/FutuCommunity-768x779.jpg 768w, https://cms.planto.io/wp-content/uploads/2020/01/FutuCommunity.jpg 800w" sizes="(max-width: 296px) 100vw, 296px" /></a></figure>



<p>Having said that, most of the research information is displayed in Simplified Chinese &#8211; if you can&#8217;t read Chinese, then it may not be that useful for you!  </p>



<p>Luckily, this doesn&#8217;t impact the actual experience of buying and selling securities so if you&#8217;re looking for a low-cost broker, Futu can be a great choice (whether you speak Chinese or not)!.</p>



<next-steps-list lang="en" title="Next steps:">
<next-steps-list-item title="Open a Futu account" type="content" link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZnV0dV9zZWN1cml0aWVzIiwidHlwZSI6ImludmVzdG1lbnRfYnJva2VyIiwiYXBwbHlVcmwiOiJodHRwczovL3Bhc3Nwb3J0LmZ1dHU1LmNvbS9zZW0vaGs/bGFuZGluZ0lkPTMmY2hhbm5lbD02NDIiLCJmcm9tIjoiRnV0dSBSZXZpZXcifQ=="></next-steps-list-item>
<next-steps-list-item title="Compare other HK brokers" lang="en" type="content" link="https://www.planto.hk/en/blog/invest-hk-stocks-broker-bank-accounts/"></next-steps-list-item>
<next-steps-list-item type="robo_comparison" title="Want someone to do the investing for you?" subtitle="Consider a robo-advisor instead!"></next-steps-list-item>
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<p style="font-size:14px"><strong>Important information:</strong><br><br>Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.</p>


Futu Securities, which was invested by the Internet giant Tencent (0700.HK), is one of the most popular investment brokerages in Hong Kong with more than 600,000 users for its mobile app "Futu Niuniu". The main advantages include cheaper transaction fees, a simple-to-use app, easy to trade Hong Kong stocks, US stocks and rich market research capabilities.

Futu Securities Review: Trading HK & US Stocks with Low Fees


<p>It&#8217;s a very common statement that I don&#8217;t invest because I don&#8217;t have enough money. Several years ago, this may have been true when you needed to have a large amount of money to buy Hong Kong stocks or to open an investment account. </p>



<p>This has changed recently &#8211; here&#8217;s three ways you can start investing with as little as HKD 1,000:</p>



<h2>1. Invest with a Robo-Advisor</h2>



<p>Robo-advisors are automated investment consultants. These are companies that will help you invest by picking ETFs and stocks for you. They have very low minimums and it&#8217;s quite simple to set up an automated investment plan so you don&#8217;t have to think about it. <a href="https://www.planto.hk/en/blog/robo-advisor-compare-recommend/">We compare the major robo-advisors here</a> &#8211; Chloe and Kristal let you start with as little as HKD 1,000!</p>



<single-action-item lang="en" type="robo_comparison" title="Compare the major robo-advisors in Hong Kong" button_text="Learn more"></single-action-item>



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<h2>2. Buy ETFs</h2>



<p><a href="https://www.planto.hk/en/blog/etf-explained/">ETFs</a> are very similar to mutual funds except you can buy them on the market like a regular stock. The advantage of ETFs are that they can represent either a geography (like US or China, etc.), a sector (like Financial Services or Technology, etc.) or even an investment approach! A comprehensive <a href="https://www.etf.com/channels">list of ETFs can be found here</a>. </p>



<p>You&#8217;d have to <a href="https://www.planto.hk/en/blog/US-Stock-Account-Compare/">open a US investment account</a> in order to access most ETFs and given there&#8217;s no lot size restriction, you can buy just 1 stock of an ETF too! Luckily, opening a US account is quite easy with the low-cost brokers available in Hong Kong.</p>



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<h2>3. Get a Monthly Investment Plan</h2>



<p>This is what people are most familiar with &#8211; banks often provide <a href="https://www.planto.hk/en/blog/monthly-stock-investment-plan-compare/">Monthly Investment Plans</a> which can seem like an easy way to get started investing with a small amount of money. However, it&#8217;s not that simple: most banks will charge you a transaction fee for each stock you purchase every month and <strong>these costs add up really fast. </strong></p>



<p>Example: Lets say you&#8217;re buying 5 stocks a month, contributing HKD 2,000.</p>



<p>If you were using the Monthly Investment Plan offered by BOC or Hang Seng, you would be paying min. 50 HKD per stock which means <strong>a minimum of HKD 250 per month to buy your stocks</strong>!</p>



<p>This is: HKD 250 / HKD 2000 = <strong>12.5% in fees</strong></p>



<p>In order to accommodate for this, you may think you can just invest more but the cost remains really high. If you&#8217;re looking for a Monthly Investment Plan, going for a bank would not be advisable. Luckily, some <a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoidXNtYXJ0X2Jyb2tlciIsInR5cGUiOiJpbnZlc3RtZW50X2Jyb2tlciIsImFwcGx5VXJsIjoiaHR0cHM6Ly91c21hcnRzZWN1cml0aWVzLmNvbS9BZmZpbGlhdGUvdC9jayIsImZyb20iOiJJbnZlc3QgV2l0aCBMaXR0bGUgTW9uZXkgQXJ0aWNsZSJ9">investment brokers like uSMART</a> offer affordable monthly investment plans which could be a consideration:</p>



<single-action-item type="content" link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoidXNtYXJ0X2Jyb2tlciIsInR5cGUiOiJpbnZlc3RtZW50X2Jyb2tlciIsImFwcGx5VXJsIjoiaHR0cHM6Ly91c21hcnRzZWN1cml0aWVzLmNvbS9BZmZpbGlhdGUvdC9OciIsImZyb20iOiJJbnZlc3QgV2l0aCBMaXR0bGUgTW9uZXkgQXJ0aWNsZSJ9" title="uSMART Securities offers affordable monthly investment plans" subtitle="Transaction fees range between HKD 8-12 per stock" button_text="Learn more"></single-action-item>
<single-action-item type="content" link="https://www.planto.hk/en/blog/monthly-stock-investment-plan-compare/" title="Compare all monthly investment plans" button_text="Learn more"></single-action-item>



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<h2>Takeaways</h2>



<p>Starting to invest doesn&#8217;t mean you have to wait until you have a large amount of money saved up. In fact,<strong> investing a consistent amount each month over a long period of time is the surest way to build your wealth</strong>. Whether you prefer do-it-yourself investing via ETFs and monthly investment plans, or if you want a robo-advisor to do it for you &#8211; there&#8217;s many options to invest even if you aren&#8217;t saving a huge amount each month.</p>



<p style="font-size:14px"><strong>Important information:</strong><br><br>Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.</p>


In the past, you may have needed a lot of money to start investing. With robo-advisors, monthly investment plans and ETFs, you can start with as little as HKD 1,000!

How to start investing with a small amount of money

<p>In recent years, it&#8217;s becoming more common to <a href="https://www.planto.hk/en/blog/invest-hk-stocks-broker-bank-accounts/">open accounts with securities brokers</a> rather than banks in order to save money on commissions and transaction fees for buying and selling stocks. However, there are still investors who use large banks and are worried about switching to a securities bank. What happens if the securities broker defaults&#8217; &#8211; will you lose your money? What does the investor protection look like?</p>
<p>In order to protect investors, the Securities Regulatory Commission has established what it calls the <a href="https://www.hkicc.org.hk/about_us/introduction_e.htm">Investor Compensation Company</a>. Once a securities broker, bank, or other qualified intermediary fails or an event of default occurs, causing investors to suffer losses, investors can claim compensation from this fund.</p>


<h2>How much you will be compensated</h2>



<p><strong>Under the current regulations, the Investor Compensation Fund will compensate investors up to HKD 500,000 in each case</strong> (since 1 Jan 2020) which is in line with the <a href="https://www.dps.org.hk/index_EN.html">Deposit Protection Scheme</a>. In other words, the compensation amount is the same as if your bank was to fail. In addition, the protection scope of this mechanism will also be expanded to invest through Northbound Connect, which will increase the protection for investors who wish to buy stocks via Shanghai Stock Connect and Shenzhen Stock Connect A shares through Hong Kong securities brokers.</p>



<p>Investors are able to claim under defaults that include &#8220;bankruptcy, winding up or insolvency or has committed breach of trust, defalcation, fraud or misfeasance&#8221;. The violating intermediary can be a licensed individual, or an institution such as a bank or a securities broker.</p>



<p>There are still some investors who would rather pay a <a href="https://www.planto.hk/en/blog/invest-hk-stocks-broker-bank-accounts/">higher commission for stock trading</a> and choose to invest with large banks that they consider more robust. However, with the increase in the upper limit and scope of the protection amount, there&#8217;s very little reason to stick with the large banks. Along side the SFC-provided investor protection, <a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoidXNtYXJ0X2Jyb2tlciIsInR5cGUiOiJpbnZlc3RtZW50X2Jyb2tlciIsImFwcGx5VXJsIjoiaHR0cHM6Ly91c21hcnRzZWN1cml0aWVzLmNvbS9BZmZpbGlhdGUvdC9LdCIsImZyb20iOiJJbnZlc3RtZW50IFJpc2sgUHJvdGVjdGlvbiBBcnRpY2xlIn0=">uSMART Securities</a>, <a href="https://www.planto.hk/zh/blog/invest-hk-stocks-broker-bank-accounts/">8 Securities</a> and other emerging securities brokers also have lower fees and sometimes have promotional offers with stock and cash coupons.</p>



<next-steps-list lang="en">
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<h2>How compensation amount is calculated</h2>



<p>Investor Compensation Co., Ltd. states that the amount of compensation received by investors from the relevant mechanism is calculated based on the closing price of securities on the date of breach. The following is an example of compensation based on the current compensation limit of HKD 500,000.</p>



<p>Lets say Mike bought the following portfolio on a certain date:</p>



<figure class="wp-block-table"><table class=""><tbody><tr><td>Stock Name</td><td># of Stocks</td><td>Purchase Price (HKD)</td><td>Total Price (HKD)</td></tr><tr><td>Company A</td><td>10,000</td><td>25.5</td><td>255,000</td></tr><tr><td>Company B</td><td>8,000</td><td>21.0</td><td>168,000</td></tr><tr><td>Company C</td><td>40,000</td><td>3.7</td><td>148,000</td></tr><tr><td></td><td></td><td>Total Investment</td><td>571,000</td></tr></tbody></table></figure>



<p>However, his securities broker defaults on 22 December 2019. His holdings at the close of that date looked like this:</p>



<figure class="wp-block-table"><table class=""><tbody><tr><td>Stock Name</td><td># of Stocks</td><td>Current Price (HKD)</td><td>Total Price (HKD)</td></tr><tr><td>Company A</td><td>10,000</td><td>20.0</td><td>200,000</td></tr><tr><td>Company B</td><td>8,000</td><td>15.0</td><td>120,000</td></tr><tr><td>Company C</td><td>40,000</td><td>3.0</td><td>120,000</td></tr><tr><td></td><td></td><td>Total Investment</td><td>440,000</td></tr></tbody></table></figure>



<p>In this case, Mike bought his stocks at HKD 571,000 and the securities broker defaulted on 22 December 2019, and the market price (on that date) was HKD 440,000. In this case, Mike would receive investor protection compensation of <strong>HKD 440,000.</strong></p>



<h2>Frequently Asked Questions about Investor Compensation</h2>



<p><br><strong>What is the maximum compensation limit for joint securities accounts?</strong></p>



<p>The maximum compensation is calculated for <em>each investor</em>. Even if a joint securities account is used, the maximum compensation for each person is still HKD 500,000.</p>



<p></p>



<p><strong>What is the maximum compensation limit for an investor who holds more than one account in a single bank or securities bank?</strong></p>



<p>No matter how many securities accounts an investor holds in a default institution, the maximum compensation per person in a single default event is only HKD 500,000.</p>



<p></p>



<p><strong>Can cash in securities accounts be protected?</strong></p>



<p>The coverage of the compensation fund also includes cash in securities accounts, but the cash must be intended for purchase and sale of securities.</p>



<p style="font-size:14px"><strong>Important information:</strong><br><br>Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.</p>


Is it risky to use a securities broker rather than a bank? How does the investor compensation fund help? 

Is it risky to use a securities broker rather than a bank?


<p>If you&#8217;ve realized you need to start investing, congratulations! Thinking about investing means that you&#8217;re already know how important it is to your future, whether it&#8217;s to grow your wealth, reach financial freedom or even <a href="https://www.planto.hk/en/blog/invest-inflation-risk/">just to avoid inflation</a>.</p>



<p>On the most basic level, the first question you need to ask yourself is, in an ideal world:</p>



<p class="has-large-font-size"><strong>1) Do you want to do your investing yourself?</strong></p>



<p>You&#8217;ll need to learn about the basics of investing, concepts like time horizon, diversification, asset classes and more. It&#8217;s not rocket science, but it&#8217;s not for everyone either!</p>



<p class="has-large-font-size"><strong>2) Do you want someone else to manage your investments for you?</strong></p>



<p>In this case, you&#8217;re entrusting someone else to do all the research and ensure you have a portfolio that is right for you. In Hong Kong, the easiest (and cheapest) way to do this would be using a robo-advisor. </p>



<single-action-item title="Let a robo-advisor manage your investments" subtitle="It's easy to get started with as little as HKD 500!" button_text="Learn more" type="robo_comparison" lang="en"></single-action-item>



<h3>Which one is better?</h3>



<p>Ultimately, this is a question for you to answer yourself. Are you committed to learning more about investing responsibly? Do you find it interesting? Would you be able to stay rational in an emotional market? </p>



<p>There&#8217;s pros and cons to each &#8211; but ultimately the best way is <strong>whichever will get you started sooner</strong> and <strong>whichever will keep you investing consistently</strong>.</p>



<h3>I really want to do it myself</h3>



<p>At Planto, we believe in <strong>responsible investing</strong> &#8211; you don&#8217;t need to be a genius stock-picker. As long as you are committed to investing for the long-term in a disciplined way, you&#8217;ll be fine!</p>



<p>The three most important things for being a responsible investor are:<br> 1) Start early<br> 2) Understand some basic concepts<br> 3) Be disciplined in investing each month</p>



<h4>1. Start early</h4>



<p>Starting early means you can take advantage of compound interest to grow your wealth exponentially faster. Here&#8217;s a visualization:</p>



<investment-asset-growth-calculator title="How your wealth grows with time" language="en"></investment-asset-growth-calculator>



<p>As you can see, compound interest accelerates your wealth growth over time, which means the sooner you start, the more time your wealth has to grow.</p>



<p>Do future-you a favor and take the leap to open an investment account &#8211; the lower the fees, the better. Here&#8217;s <a href="https://www.planto.hk/en/blog/US-Stock-Account-Compare/">the best brokers for investing in the US</a>, and here&#8217;s <a href="https://www.planto.hk/en/blog/invest-hk-stocks-broker-bank-accounts/">the best brokers to invest in HK</a>.</p>



<h4>2. Basic Concepts</h4>



<p>There&#8217;s two major concepts you need to understand to be a responsible investor: </p>



<h5>A) Time Horizon</h5>



<p>This means your investing strategy should depend on your goals. If your goals are in the short term, you should not be buying risky stocks because if the market goes down (even temporarily), your goal may be delayed! </p>



<p>On the other hand, if your goal is far away (like financial freedom), you want to invest more aggressively for higher returns to be able to reach it!</p>



<p>The easiest way to adjust your risk is to build a portfolio of different asset classes: <a href="https://www.planto.hk/en/blog/low-risk-investment-tools/">low risk investments</a> like time deposits, money market funds and bonds will lower your risk, while stocks will increase your risk.</p>



<h5>B) Diversification</h5>



<p>This means don&#8217;t put all your eggs in one basket. There&#8217;s two things to consider: <strong>geography</strong> and <strong>sector</strong>.</p>



<p><strong>Geography</strong>: If most of your investments are in a market like China, Hong Kong or United States &#8211; a single event like the trade war, or Brexit could cause your investments to suffer. Having your investments spread across geographies reduces that risk.</p>



<p><strong>Sector</strong>: If most of your investments are in technology, then a single bad event like the dot com bubble could erase your returns. Having investments across all sectors &#8211; utilities, energy, financial services, technology, etc., reduces that risk.</p>



<p>The easiest way to diversify is to build a portfolio <a href="https://www.planto.hk/en/blog/etf-explained/">using ETFs</a> &#8211; this reduces on your transactions cost (since one ETF can cover multiple geographies, sectors, or even asset classes!) and makes it easier to manage your investments.</p>



<h4>3. Discipline</h4>



<p>The surest way to build your wealth is to invest every single month, taking advantage of<a href="https://www.planto.hk/en/blog/monthly-stocks-savings-plans/"> dollar cost averaging</a> and <a href="https://www.planto.hk/en/blog/invest-inflation-risk/">compound interest</a>. <a href="https://www.planto.hk/en/blog/expense-tracking-budgeting-101/">Set a budget for yourself</a> (it doesn&#8217;t have to be super strict) to ensure you save consistently, and consider a <a href="https://www.planto.hk/en/blog/monthly-stock-investment-plan-compare/">monthly investment plan</a> (or <a href="https://www.planto.hk/en/blog/robo-advisor-compare-recommend/">use a robo-advisor</a>) to automatically transfer a fixed amount of money each month if that&#8217;s what it takes! </p>



<h2>Next steps</h2>



<p>The very first thing you should do is open your investment account (whether with a robo-advisor or with an investment broker) &#8211; it&#8217;s easy to fall into the trap of <em>&#8220;I don&#8217;t know what to buy yet &#8211; I&#8217;ll open an account later&#8221;</em>. In reality, what you&#8217;ll find is that once you have an account open, you&#8217;ll find the motivation to start doing your own research and grow your wealth!</p>



<p class="has-normal-font-size">If you&#8217;re too scared to take the leap, there&#8217;s also <a href="https://www.planto.hk/en/blog/low-risk-investment-tools/">low risk investments</a> you can start with just to get the hang of things!</p>



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<p style="font-size:14px"><strong>Important information:</strong><br><br>Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.</p>


Once you have your emergency savings, it's important to make your money work for you. Here's how you can start investing responsibly by building a portfolio that considers your time-horizon and diversification.