SoFi Hong Kong Review: Low Fees and Fractional Trading for US Stocks

In 2020, U.S. fintech unicorn SoFi acquired Hong Kong’s online securities firm 8 Securities and launched a new trading app called “SoFi Hong Kong” (SoFi HK). The app features margin financing, fractional share U.S. stock trading, and Auto Invest services, attracting many young Hong Kong investors specializing in U.S. stocks. Users can also earn SoFi Points to redeem specific U.S. stocks for free.

Open an SoFi HK account in 5 minutes using online application and e-signature

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

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!

SoFi Points

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

Within the app, users can choose to trade from 15,000+ U.S. stocks, Hong Kong stocks as well as ETF funds – with $0 commission, $0 platform fees and no other hidden fees. 

The SoFi HK app has a section called “SoFi Points”, a introduced reward system where users can earn points by completing various tasks within the app including open an account , log-in daily, invite friend, open an account through referral etc.

SoFi Points can be used to redeem free shares. 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.

Fractional Share Trading: Invest as Little as US$10

U.S. stocks are traded per share, and leading tech stocks like Tesla, Google, and Amazon have high entry costs before stock splits, which can deter small investors with limited capital.

In early 2021, SoFi introduced fractional share trading for U.S. stocks, with a minimum investment amount starting at US$10 (approximately HK$78) and a maximum of HK$1,000 (approximately HK$7,800). Investors can choose from 40 top U.S. companies, including Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), and Tesla (TSLA), without having to pay commissions, platform fees, or custody fees.

Other useful services

• US dollar exchange: 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
• Leaderboard: SoFi’s anonymous leaderboard allows its users to learn or follow investment strategies of the most successful investors within the platform
• Academy: Investment academy feature provides multiple videos to answer questions like “What is a stock”, “What is asset allocation”, “What is diversification” and many more 

In terms of fees, SoFi HK 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.

There are other online brokerages like uSMART and Futu 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 SoFi HK’s low cost trading without missing out or anything.

Its Parent Company: SoFi in the U.S. Has More than 5 Million Users

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.

SoFi Hong Kong Pricing Table

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Important information:

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.