Best Online Brokerages in Hong Kong 2022

To start investing in the stock market, you need to first open an investment account. You can do so either in brokerages or banks. Before you open an investment account, there are things you should consider. First, you need to understand the costs associated with investing e.g. commission fees, platform fees, etc. However, it should not discourage you from investing. You just need to compare the costs and choose a low-cost platform among all the available options. Secondly, you need to understand more about the stock market in Hong Kong.

In Hong Kong, you can invest in stocks on a monthly basis with as little as HK$1,000. These stock monthly investment options allow investors to begin investing even with a small amount of money and it allows investors to smooth out volatility in markets. You should also take time to learn about how to trade and develop your knowledge in this area. It is important to understand more about the Hong Kong blue-chip stocks, ETR and REITS, etc.

An online brokerage is a brokerage firm that offers trading service over the internet instead of the traditional way, as online brokers have a lower running cost compared to brick-and-mortar brokers, they often provide better fees and charges. Customers may use their online trading platforms for investments.

Before finding the right online brokers for stocks, you should always make sure that the online trading platform is licensed and registered by the Securities and Futures Commission. If the online broker is located overseas, like Saxo Markets or TD Ameritrade, you should check if they are licensed in jurisdictions.

The Hang Seng Index, which consists of 50 constituent stocks (also known as the blue-chip stocks), is an indicator of the overall performance of the Hong Kong stock market.

You can start trading US stocks by opening an investment account with banks or international brokers in Hong Kong. In the Hong Kong stock market, the minimum trading unit is “one lot”, which may equal to 100 shares, 500 shares, etc., depending on the stock price. However, in the US stocks market, you can buy ‘one share’. Once your account is open, you can choose from a list of popular US shares such as Amazon, Facebook, Apple and Google. If you are not a resident of the US, you won’t be charged on dividends from the US shares you buy.

When you are young, with an aim to accumulate capital, it is appropriate to take chances and look for high returns in higher-risk assets like shares as you are less vulnerable to high risks. However, as you age, your portfolio should change, before you plan to retire, it is wise to be more protective of the capital you have built over the course of years.

Investing comes at a cost, including brokerage fees, commissions, platform fees, etc. If you want to keep your expenses down, it is important to choose the right platform. You may be tempted to open an investment account in banks because you trust them. But the high-street bank is not always the best place to buy an investment product. Trading with brokers is almost always cheaper and you can open an account online without hassle.

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