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    [Investing for Beginners] Introduction to US Stock and Securities Account Fee Comparison

    All Posts » Start Investing
    Last updated: Sep 13, 2023•  4 min read

    語言: 廣東話

    Table of ContentsTable of Contents
    • Fee Comparison of Hong Kong’s most popular US Stock Accounts

    • Minimum fees to buy US Stocks

    • US Stock Exchange Fees and Taxes

    • Trading Hours for the US Stock Market

    • 3 Major US Stock Indices

    • Pros of US Stock

    • Cons of US Stock

    HK Market
    US Market
    Robo Advisors
    logo
    Futubull
    Other Fee
    N/A
    Avg. Trade Cost
    HKD 15
    Welcome Offer: Welcome Offer: Enjoy up to HK$2,100 welcome offer Register a new account on or before 31st October 2024 by using Planto exclusive promo code “PLANTO” can enjoy the below rewards: 1) Planto exclusive offer : Enter promo code “PLANTO” BEFORE account opening can enjoy HK$300 flight ticket cash coupon 2) Lifetime commission-free for HK stocks and US stock LV2 real-time streaming quotation services 3) Open an account, deposit a total of HK$10,000 or above into the Futu HK account. Maintain 60 days daily average asset* of HK$10,000 or above to receive : Alibaba (NYSE:BABA) - 1 share or HK$400 supermarket e-voucher or HK$600-equivalent BTC 4) Open an account, deposit a total of HK$80,000 or above into the Futu HK account. Maintain 60 days daily average asset* of HK$80,000 or above to receive : Nvidia (NYSE:NVDA) – 1 share or HK$1,000 equivalent BTC Redemption procedures : Download Futu app; Register an account and go to Activity Centre; Enter “PLANTO” in redemption centre before account opening. Detailed procedures can refer to review article All rewards can be stacked. As of the closing price on 1 Oct 2024, Alibaba (NYSE: BABA) stock price was US$112.74/share As of the closing price on 1 Oct 2024, Nvidia (NYSE: NVDA) stock price was US$117/share Asset calculation method: Sum of the everyday assets/60 days; Including Cash/ Stocks/ Funds/ Options/ Futures Investment involves risks. The fund price may move up or down. Investor should thoroughly study the funds' offering documents and other related documents (including risk disclosure statements). Terms and Conditions apply
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    logo
    Tiger Brokers
    Other Fee
    0
    Avg. Trade Cost
    HKD 0
    Welcome Offer: Successfully open an account through Planto’s exclusive link then complete certain tasks until 11th October 2024 to enjoy up to HK$2,300 worth of reward: - Exclusive HK$400 supermarket vouchers from Planto after depositing HK$10,000 , plus: 1. Time-limited Commission-Free Rewards -0 Commission for HK stock trading (Lifetime) -0 Platform fee for HK stock trading (until 11th October 2024) -NYSE Arca Level 2 Deep Quote streaming for US stocks (until 11th October 2024) -0 Commission for US stock option trading (until 11th October 2024) -US Stock Option Lv1 Real-time Quotes (until 11th October 2024) - 365-day A-share commission-free voucher (available by opening an account before October 31, 2024) 2. New clients account opening awards, fund more for 45 consecutive days to get more (please refer to T&Cs for detailed qualifications) - Net deposit* HK$10,000 or US$1,500 or above : to activate HK$300 stock voucher (3x HK$100 vouchers) and 3-month free HK Stock Lv1 streaming quote - Net deposit* HK$50,000 or above : to activate HK$600 stock vouchers (6x HK$100 vouchers) - Net deposit* HK$100,000 or above : to activate HK$1,200 stock vouchers (12x HK$100 vouchers) 3. Complete 5 non-forex trades with each trade amounting to or exceeding HK$100 within 60 days after successful account opening (applicable to both Hong Kong and US stocks) : to activate HK$700 stock voucher (7x HK$100 vouchers) * Net deposit = deposit amount - withdrawal amount, excluding the part of asset increase or decrease due to normal transactions. ^Daily cumulative net deposits = (from the account opening date) cumulative deposit amount - (from the account opening date) cumulative withdrawal amount, excluding asset fluctuations caused by normal trading activities * Offers are subject to terms and conditions
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    logo
    Webull
    Other Fee
    0
    Avg. Trade Cost
    Welcome Offer: New customers who successfully open a Webull account through the Planto website's link can enjoy Apple shares worth up to HK$1,688! - Successfully open an account, deposit HK$10,000, and maintain the funds for 60 days to receive Apple stocks worth HK$600. - Successfully open an account, deposit HK$80,000, complete 10 buy trades, and maintain the funds for 60 days to receive an additional HK$1,088 worth of Apple stocks. - New users can enjoy 90 days of 0 platform fees for Hong Kong and US stocks upon opening an account. - Trade 50 or more option contracts to enjoy 0 commission and 0 platform fees on option trading.
    logo
    Longbridge
    Other Fee
    0
    Avg. Trade Cost
    HK$0
    Welcome Offer: On or before 31 October 2024, apply via Planto by using promo code「614701」, successfully open an account and deposit HK$10,000 to receive : 1) Planto exclusive HK$200 supermarket coupon 2) Extra HK$100 cash rebate 3) Life-time commission free for HK and US stock 4) APR 6% offer for deposit 5) Deposit HK$10,000 for 60 days with 4 tradings : NVDA.US - 1 share OR deposit HK$60,000 for 60 days with 4 tradings : AAPL.US - 1 share New customers who transfer the stock to LongBridge and meet designated requirement can get either 1) AirPods 4 ; or 2) an iPad mini 6 ; or 3) iPhone 16 Pro Max Terms and conditions apply
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    logo
    Interactive Brokers
    Other Fee
    0
    Avg. Trade Cost
    Welcome Offer: Earn up to 4.83% annual interest rate on positive settled cash balance for accounts with total NAV of US$100,000 or higher. (Accounts with NAV of less than US$100,000 receive interest at rates proportional to the size of the account. Interest rate if for reference only, it may change any time according to market condition)
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    Custodian Fee
    Avg. Trade Cost
    logo
    BOC Hong Kong
    HKD 100 - 150
    per half year
    HKD 0.16 / share
    (min. HKD 140)
    logo
    BOC Hong Kong
    Custodian Fee
    HKD 100 - 150
    per half year
    Avg. Trade Cost
    HKD 0.16 / share
    (min. HKD 140)
    logo
    HSBC
    HKD 25 - 30
    per month
    > HKD 140
    per trade
    logo
    HSBC
    Custodian Fee
    HKD 25 - 30
    per month
    Avg. Trade Cost
    > HKD 140
    per trade
    logo
    Citibank
    Free
    HKD 100 if inactive for 6 months
    0.5% - 1%
    (min. HKD 230)
    logo
    Citibank
    Custodian Fee
    Free
    HKD 100 if inactive for 6 months
    Avg. Trade Cost
    0.5% - 1%
    (min. HKD 230)

    The economic instability in Hong Kong has weighed on the city’s stock market. More Hong Kong investors are switching to higher-achieving US stocks among which ETFs are one of the most popular choices.

    However, before opening a US stock account, there are a few rules that amateur investors must know. Read on learn the basics of the US stock market and have a fee comparison of the most commonly used US stock securities accounts in Hong Kong!

    Buying US stocks is pretty easy in Hong Kong as most banks provide US stock accounts but the fees are MUCH lower if you buy it through securities firms or robo-advisors.

    These transaction costs can add up really quickly, are easily avoidable and offer no value to an investor – so just pick the broker or company with the lowest costs (based on your trading habits).

    Minimum fees to buy US Stocks

    Hong Kong stocks’ minimum trading unit is a “lot”, the number of shares in each “lot” usually ranges from 100 to 2,000.

    Let’s say you want to buy HSBC Holdings (0005) stocks. They have a minimum lot size of 400 shares. If each share costs HKD 58, the minimum account of money to buy a lot of HSBC Holdings (0005) would be over HKD 23,000 (400 shares x HKD 58 plus transaction fees).

    In the US, however, the minimum trading unit of US stock is a “share”. Take Apple Inc. (AAPL) as an example, their stock price was around USD 220 (~HKD 1,716) in October 2019 so you could start investing with just HKD 1,716!

    Because of this, generally, the minimum amount you need to invest into US stocks is much lower than Hong Kong stocks.

    Like we said, it’s cheaper to start investing with a broker and you get a much better user experience.

    How to start investing in 3 steps

    1
    Open an account
    You can open an account with most brokers 100% online and it only takes about 10 minutes. In most cases, you will need your HKID and address proof and that's about it.
    2
    Transfer money in
    Once your account is opened, you can transfer money through bank transfers or even FPS. You'll need to deposit HKD 10,000 if you want to verify your account online (but otherwise, you can visit them in person!). Your money will usually be received within the same day.
    3
    Start investing
    Once the broker receives the money and your account is verified, you can start investing - that's literally it!

    US Stock Exchange Fees and Taxes

    Apart from commissions and platform fees charged by banks and securities firms, investors will also be charged by US regulatory authorities. Yet, it is still generally cheaper than buying Hong Kong stocks. The main fees are as follows:

    Charged Items Fees (in USD)
    SEC Fee* Adjusted seasonally, commonly varies from 0.00213% to 0.00218% of the transaction amount
    Trading Fee $0.003 per share
    Transaction Fee* $0.000119 per share
    Dividend Tax Rate 30%

    *For sale trades only

    Trading Hours for the US Stock Market

    The trading hours of the US stock market are different in winter and summer times. In summer, the trading hours are from 9:30pm to 4am in Hong Kong time. They are one hour late in winter – from 10:30pm to 5am in Hong Kong time.

    3 Major US Stock Indices

    Similar to how we have the Hang Seng Index (HIS) in Hong Kong, there are 3 major US stock indices which indicate the overall market performance in the US.

    • Dow Jones Industrial Average (DJIA) – Founded in the 19th century, it measures 30 listed companies including Coca-Cola (KO), Boeing (BA) and Goldman Sachs Group (GS).
    • NASDAQ Composite (NASDAQ) – Founded in 1971, its 100 constituent stocks are mainly from IT, Telecommunication and Biotech sectors, including Google (GOOG), Apple Inc. (AAPL) and Microsoft (MSFT)
    • S&P 500 Index (S&P 500) – Founded in 1957, its constituent stocks are more diversified, measuring 500 listed companies including Facebook (FB), Johnson & Johnson (JNJ) and ExxonMobil (XOM)

    Pros of US Stock

    • They have lower entrance fees: The minimum trading unit of US stock is only a share! And the management fee is relatively cheap. You can start investing with less money.
    • They offer more and better choices: Many of the world’s top companies chose to get listed in the US. You can easily find a quality stock of interest and there are more ETFs in the US too.
    • You are exempt from profits tax: Americans are required to pay investment income tax but luckily Hong Kongers don’t have to! Just fill out the W-8BEN form (most securities firms will help you with this!) and declare you’re a foreigner when you open a US stock account and you’re exempt from the tax.
    • They are highly regulated and transparent: The US regulatory authorities put a lot of effort into combating insider trading, market manipulation, financial fraud, etc. so its market transparency is high.

    Cons of US Stock

    • The time difference: The opening of the US stock market is at night in Hong Kong. It could be hard for Hongkongers to stay close to the market. If you’re following a long term strategy, then it’s not too big a deal though!
    • The exchange rate: As US stocks are traded in USD, investors must pay attention to the currency conversion cost.
    • More expensive monthly stock investment plans: Investors have to pay for administrative fees of about 5% of contribution in monthly stock investment plans which makes it very hard to justify! Although, since the entry cost for US stocks is much lower, you may not need a stock investment plan at all. You could just buy a few shares of various ETFs to get a diversified portfolio!
    • High dividend tax rate: The US dividend tax is 30% which might weaken the returns on dividend investing.

    (Banks and securities firms’ fees and service information are for reference only. Actual charges depend on in-time information provided by banks and securities firm.)

    Invest in US ETFs with a Robo-advisor
    Robo-advisors can create your US stock portfolio using AI, and you can start with as low as HKD 500!

    #US Stock Investing
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    Table of ContentsTable of Contents
    • Fee Comparison of Hong Kong’s most popular US Stock Accounts

    • Minimum fees to buy US Stocks

    • US Stock Exchange Fees and Taxes

    • Trading Hours for the US Stock Market

    • 3 Major US Stock Indices

    • Pros of US Stock

    • Cons of US Stock
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