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

    [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

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    HK Market
    US Market
    Robo Advisors
    Futubull
    Other Fee
    N/A
    Avg. Trade Cost
    HKD 15
    Welcome Offer: Enjoy up to HK$1,900 welcome offer Register a new account through Planto and receive an exclusive HKD 200 cash coupon (directly deposited into Futu account) Open an account, deposit HK$10,000, and complete specific requirements can get 1 out of 2 rewards: First level gift (1 out of 2): - 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. 1) Alibaba (NYSE:BABA) - 1 share or 2) HK$400 e-supermarket gift certificate Second level gift:: - Deposit a total of HK$80,000 or above into the Futu HK account by 15:00 29th February 2024. Maintain 60 days daily average asset* of HK$80,000 or above. Google (NASDAQ: GOOGL) – 1 share The first reward and the second reward can be stacked. As of the closing price on December 19, 2023, Alibaba (NYSE:BABA) stock price was US$74.390/share. As of the closing price on December 18, 2023, Google (NASDAQ: GOOGL) stock price was US$137.19/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).
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    Futubull
    Other Fee
    N/A
    Avg. Trade Cost
    HKD 15.5
    Welcome Offer: Enjoy up to HK$1,900 welcome offer Register a new account through Planto and receive an exclusive HKD 200 cash coupon (directly deposited into Futu account) Open an account, deposit HK$10,000, and complete specific requirements can get 1 out of 2 rewards: First level gift (1 out of 2): - 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. 1) Alibaba (NYSE:BABA) - 1 share or 2) HK$400 e-supermarket gift certificate Second level gift:: - Deposit a total of HK$80,000 or above into the Futu HK account by 15:00 29th February 2024. Maintain 60 days daily average asset* of HK$80,000 or above. Google (NASDAQ: GOOGL) – 1 share The first reward and the second reward can be stacked. As of the closing price on December 19, 2023, Alibaba (NYSE:BABA) stock price was US$74.390/share. As of the closing price on December 18, 2023, Google (NASDAQ: GOOGL) stock price was US$137.19/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).
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    LONGBRIDGE
    Other Fee
    N/A
    Avg. Trade Cost
    HKD 15
    Welcome Offer: On or before 29 February 2024, apply via Planto, successfully open an account and deposit HK$10,000 to receive up to HK$1,900 worth of rewards: - Planto exclusive HK$200 supermarket coupon - Choose from one of the below 4 offers: 1) HK$400 cash coupons (retain assets for 60 days) 2) Total worth of HK$800 stocks cash coupon 3) Total worth of HK$1,400 6-month LV2 Hong Kong stocks quotes (retain assets for 4 months) 4) Total worth of HK$1,700 US stocks options offer pack (US$160 option cash coupon + 4-month LV1 US stock quotes) - HK Lv1 live stocks quote upon successful registration - Life-time free commission on US and Hong Kong stocks upon successful registration - Selected money market funds of up to 5.66% 7-day annualised rate of return upon successful registration - 0 handling fee for Hong Kong IPO Terms and conditions
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    LONGBRIDGE
    Other Fee
    N/A
    Avg. Trade Cost
    HKD 8
    Welcome Offer: On or before 29 February 2024, apply via Planto, successfully open an account and deposit HK$10,000 to receive up to HK$1,900 worth of rewards: - Planto exclusive HK$200 supermarket coupon - Choose from one of the below 4 offers: 1) HK$400 cash coupons (retain assets for 60 days) 2) Total worth of HK$800 stocks cash coupon 3) Total worth of HK$1,400 6-month LV2 Hong Kong stocks quotes (retain assets for 4 months) 4) Total worth of HK$1,700 US stocks options offer pack (US$160 option cash coupon + 4-month LV1 US stock quotes) - HK Lv1 live stocks quote upon successful registration - Life-time free commission on US and Hong Kong stocks upon successful registration - Selected money market funds of up to 5.66% 7-day annualised rate of return upon successful registration - 0 handling fee for Hong Kong IPO Terms and conditions
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    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 from Jan 18th to Feb 18th 2024 to enjoy up to HK$1,720 worth of reward: - Exclusive HK$400 supermarket vouchers from Planto after depositing HK$10,000 , plus: 1. Commission-Free Rewards - Permanent 0 commission for Hong Kong stock trading - 0 platform fee for Hong Kong stock trading - 0 commission for US stock options trading - US Stock Options Real-time Quotes - NYSE Arca Level 2 Deep Quote streaming for US stocks - 3 months of HK Stock Lv1 Real-time Streaming Quote 2. . Tiger Vault 6.6% opening reward; claim rewards up to HK$1,320 New clients buy any fund, including Tiger Vault and other public funds, and enjoy a 6.6% account opening reward*. Funds credited to your account within 60 days! Note: The reward amount is determined as 6.6% of the initial purchase amount. Total earnings=the actual returns from the held funds + the reward amount. Tiger Vault is an exclusive solution for Tiger Brokers' clients to manage their idle cash, to invest in "money market funds" with stable returns, low risk, and high liquidity. MMF average return 4.73%^. ^The average return is calculated by taking the average of the 7-day annualized return (since its inception to 29/12/2023) of each USD MMF (ISIN:HK0000862265;HK0000862273;HK0000934320) that has been in existence for more than 6 months within Tiger Vault. It is based on the past performance of these USD MMFs in the 7-day period and does not represent actual one-year returns. The assumptions involved in the calculation of the 7-day annualized returns and the average return are hypothetical. Historical performance of each MMF was listed in 5.6 of the T&C. *The campaign is subject to terms and conditions. The reward applies to funds in Tiger Vault and Tiger Trade. Investment involves risk. For details, please refer to T&Cs.Commission free rewards valid within promotion period and subject toT&Cs.
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    Webull
    Other Fee
    N/A
    Avg. Trade Cost
    HKD 10
    Welcome Offer: During the promotion period, new customers who apply via Planto, successfully open a Webull account, and complete some simple tasks can enjoy rewards valued up to HK$1,000: - Successfully open an account, deposit HK$10,000, and retain it for 60 days to receive a HK$1,000 supermarket voucher. (Complete Planto reward redemption to receive the offer) Terms and conditions apply.
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    Webull
    Other Fee
    N/A
    Avg. Trade Cost
    HKD 0
    Welcome Offer: During the promotion period, new customers who apply via Planto, successfully open a Webull account, and complete some simple tasks can enjoy rewards valued up to HK$1,000: - Successfully open an account, deposit HK$10,000, and retain it for 60 days to receive a HK$1,000 supermarket voucher. (Complete Planto reward redemption to receive the offer) Terms and conditions apply.
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    uSMART Securities
    Other Fee
    N/A
    Avg. Trade Cost
    HKD 8
    Welcome Offer: February special offer, Open an account with uSmart to earn: • 2024 promotion : US$1.5 transaction fee per trade for US stock, 0 commission and platform fee for HK stock • Real-time streaming quotation for HK stocks (Terms and conditions apply)• Lifetime free U.S. stock commission (only for standard accounts) • HK$20 cash coupons X8 #For HK stocks, you can enjoy 0 commission and platform fee by trading the designated 16 ETF. For US stocks, you can enjoy US$1.5 transaction fee per trade when the value of each trading of main board stocks equals or higher than US$100.
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    uSMART Securities
    Other Fee
    N/A
    Avg. Trade Cost
    0.03%(min. HKD 12)
    Welcome Offer: February special offer, Open an account with uSmart to earn: • 2024 promotion : US$1.5 transaction fee per trade for US stock, 0 commission and platform fee for HK stock • Real-time streaming quotation for HK stocks (Terms and conditions apply)• Lifetime free U.S. stock commission (only for standard accounts) • HK$20 cash coupons X8 #For HK stocks, you can enjoy 0 commission and platform fee by trading the designated 16 ETF. For US stocks, you can enjoy US$1.5 transaction fee per trade when the value of each trading of main board stocks equals or higher than US$100.
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    Saxo Hong Kong
    Other Fee
    N/A
    Avg. Trade Cost
    0.05%
    (min. HKD 18)
    Welcome Offer: Enjoy up to 4.27%* on cash deposits amount US$10,000 or higher *the interest rate figure is for reference, it could change with the market condition
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    Saxo Hong Kong
    Other Fee
    N/A
    Avg. Trade Cost
    From HKD 0.039 / share
    (min. from HKD 23)
    Welcome Offer: Enjoy up to 4.27%* on cash deposits amount US$10,000 or higher *the interest rate figure is for reference, it could change with the market condition
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    Syfe
    Account Funding Requirements
    HKD 10,000
    Fees
    0.35%-0.65% AUM
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    Stashaway
    Account Funding Requirements
    HKD 10,000
    Fees
    0.2%-0.8% AUM
    Welcome Offer: New customers who successfully open a StashAway account via Planto’s link can enjoy 3 months of free management for up to HK$50,000.
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    Aqumon
    Account Funding Requirements
    HKD 10,000
    Fees
    0.5%-0.8% AUM
    See more
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    Custodian Fee
    Avg. Trade Cost
    BOC Hong Kong
    HKD 100 - 150
    per half year
    HKD 0.16 / share
    (min. HKD 140)
    BOC Hong Kong
    Custodian Fee
    HKD 100 - 150
    per half year
    Avg. Trade Cost
    HKD 0.16 / share
    (min. HKD 140)
    HSBC
    HKD 25 - 30
    per month
    > HKD 140
    per trade
    HSBC
    Custodian Fee
    HKD 25 - 30
    per month
    Avg. Trade Cost
    > HKD 140
    per trade
    Citibank
    Free
    HKD 100 if inactive for 6 months
    0.5% - 1%
    (min. HKD 230)
    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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