Best Online Brokerages in Hong Kong 2022

Choose from MoneySmart's curated list of best brokerage accounts in Hong Kong!

Best Online Brokerage in Hong Kong 2022

Online Brokerage	Min. U.S. Stock Commission	Min. HK Stock Commission
uSMART Securities	US$0	HK$0
Saxo Markets	US$3	HK$40
Webull	US$0	N.A.
Sofi	US$0	HK$0
LONGBRIDGE	US$0	HK$0
Valuable Capital	US$0	HK$0

A Beginner’s Guide to the Hong Kong Stock Market

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.

What is an online brokerage?

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.

Hang Seng Index

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.

Brokerage commission

HK Stock Market: HK$0 - HK$40/ transaction

US Stock Market: US$0 - US6.95/ transaction

Platform fee

HK$0- HK$0.5/ transaction

SFC transaction levy

0.0027% of the transaction amount

HKEX trading fee

0.005% of the transaction amount

Stock stamp duty

0.1% of the transaction amount

Central Clearing Shares Payment

0.002% of the transaction amount (min: HK$ 2)

A Beginner’s Guide- Trading US Stocks in Hong Kong

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.

Different Portfolio Strategies By Age

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.

Step 1

Fill in online application form

Simply fill in the online application form with supporting documents e.g. proof of identity and proof of residential address, and submit for review.

Step 2

Fund the account

Complete the risk disclosure statement and fund your account, every broker has a different minimum balance requirement so be sure to keep it in mind.

Step 3

Start trading!

Once the transfer is completed, you are ready to start buying stocks, bonds, funds and other investments.

Online Brokers VS Bank

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.

Online Brokerage FAQ

What exclusive offers can I enjoy if I open a stocks account via MoneySmart?: MoneySmart partners with various brokers in Hong Kong to offer exclusive offers to clients for account opening:

From now till 31st Oct 2021, you can get 1 share of Disney stock (NYSE:DIS) for opening SoFi account and get 1 share of Qualcomm (NASDAQ: QCOM) for opening WeBull account through opening account via MoneySmart! Check out MoneySmart's online brokerage page for more attractive offers!
Which brokers are commission-free?: SoFi, Webull, and uSmart securities are all commission free for HK and US stocks and Valuable Capital charges $0 commission fee for HK Stocks. Open an account via MoneySmart today to enjoy exclusive offers!
Is it a good idea to open a brokerage account?: You can buy and sell stocks, funds, bonds, securities and more investments with a brokerage account. Brokerage accounts are perfect for your long-term financial goals, in order to keep investment-related costs from eating up your trading profits, it is a good idea to open a brokerage account.
What is the cheapest brokerage account?: uSMART Securities offers life-time commission fee waiver for US Stock trading and commission fees waiver for HK Stock for the first 90 days. But promotion may change without notice so don’t forget to check the MoneySmart website for the latest information.
What is the best online brokerage for beginner investors?: Beginners can make use of the free demo account provided by Saxo Markets to learn more about trading and get used to how financial products behave before starting to trade.