Comprehensive Guide to Hong Kong Stock Trading Fees: Futu Securities vs. Interactive Brokers Comparison

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When investing in Hong Kong stocks, you are often most concerned about trading fees and broker features. Futu Securities typically allows you to enjoy lower costs for small trades, while Interactive Brokers is more advantageous for large or high-frequency trades. You can choose the broker best suited to your trading habits and fund size.

Core Points

• Futu Securities is suitable for small and occasional traders, with low fees, simple operations, and a user-friendly account opening and usage experience.
• Interactive Brokers is ideal for large and high-frequency traders, with low commission rates, multi-currency and multi-market support, and more professional features.
• Hong Kong stock trading fees include commissions, platform fees, exchange fees, currency conversion fees, and deposit/withdrawal fees; you should consider these costs comprehensively when choosing a broker.
• Futu Securities offers free real-time quotes and Chinese customer support, suitable for beginners; IB provides professional tools and multilingual support, ideal for experienced investors.
• Choose a broker rationally based on your fund size and trading habits to avoid blindly following trends, maximizing cost savings and investment efficiency.

Hong Kong Stock Trading Fees Comparison

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Main Fee Types

When choosing a broker, you first need to understand the main components of Hong Kong stock trading fees. Hong Kong stock trading fees generally include the following categories:

• Commissions: Each time you buy or sell stocks, the broker charges a percentage or fixed commission.
• Platform Fees: Some brokers charge platform usage or account management fees.
• Exchange Fees: These include trading fees and settlement fees charged by the Hong Kong Stock Exchange.
• Currency Conversion Fees: When you deposit or withdraw in USD, the broker converts at a certain exchange rate, and some brokers also charge conversion fees for exchanges.
• Deposit/Withdrawal Fees: You may incur fees when transferring funds from a Hong Kong or other bank to the broker’s account or withdrawing to a bank account.

You need to consider these fees comprehensively to accurately calculate your Hong Kong stock trading costs.

Futu Securities Hong Kong Stock Trading Fees

Futu Securities provides you with a relatively transparent Hong Kong stock trading fee structure. When you trade Hong Kong stocks with Futu Securities, the main fees involved are:

• Commissions: A minimum of $0.99 per trade, or 0.03% of the transaction amount, whichever is higher.
• Platform Fees: $0.99 per trade.
• Exchange Fees: Include trading fees charged by the Hong Kong Stock Exchange (0.005%), settlement fees (approximately $0.64 per trade, up to $8.2), and stamp duty (0.13%).
• Currency Conversion Fees: After depositing USD, Futu Securities automatically converts to HKD at rates close to the market, with a 0.05%-0.1% spread in some cases.
• Deposit/Withdrawal Fees: Depositing via Hong Kong bank transfers is usually free; withdrawing to a Hong Kong bank account incurs no fees from Futu Securities, but banks may charge $10-$20 for wire transfers.

When you make small trades, Futu Securities’ fixed fee advantage is significant, making it suitable for investors with smaller funds.

Interactive Brokers Hong Kong Stock Trading Fees

Interactive Brokers (IB) offers you a flexible Hong Kong stock trading fee structure. When you trade Hong Kong stocks with IB, the main fees involved are:

• Commissions: A minimum of $2 per trade, or 0.08% of the transaction amount, whichever is higher.
• Platform Fees: IB does not charge additional platform fees.
• Exchange Fees: Include trading fees charged by the Hong Kong Stock Exchange (0.005%), settlement fees (approximately $0.64 per trade, up to $8.2), and stamp duty (0.13%).
• Currency Conversion Fees: You can buy Hong Kong stocks directly in USD, as IB supports multi-currency accounts with exchange rates close to the market and a conversion fee of 0.002%.
• Deposit/Withdrawal Fees: Depositing via Hong Kong bank transfers is free; you get one free withdrawal per month, with additional withdrawals costing $10 each.

When you make large or high-frequency trades, IB’s low commission rates and multi-currency account advantages are significant, making it suitable for professional investors.

Fee Comparison Table

You can visually compare Futu Securities and Interactive Brokers’ Hong Kong stock trading fees for different trade sizes in the table below:

You can see that Futu Securities has lower fees for small trades, while Interactive Brokers’ commission rate advantage becomes evident for large trades, though its fixed minimum commission impacts small traders’ costs.

If you trade frequently each month, IB’s lack of platform fees and multi-currency accounts can help you save on some Hong Kong stock trading costs. Futu Securities is suitable for occasional traders or those with smaller funds.

Features and Services Comparison

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Account Opening and Deposits

When you open an account with Futu Securities, the process is very simple. You only need to prepare a passport or ID card, proof of address in China (e.g., utility bills), and bank account information. The system automatically generates a W-8BEN form to help you benefit from tax advantages. Futu Securities’ account opening interface is clear, suitable for inexperienced users.
If you choose Interactive Brokers, the account opening materials also include identity proof, ITIN proof, and bank account information. IB supports multi-market trading, ideal for professional investors. The account opening process involves more steps and requires additional information, but you gain access to richer account features.

Tip: An ITIN can replace an SSN for account opening, and filling out the W-8BEN form allows you to benefit from dividend tax advantages under the U.S.-China tax treaty.

Trading Tools and Interface

Futu Securities provides you with an intuitive interface. You can easily view quotes, place orders, and manage positions. New users can quickly get started.
Interactive Brokers’ trading tools are highly powerful. You can use the professional-grade TWS terminal, supporting multi-market and multi-currency operations. The interface is feature-rich, but first-time users may need time to adapt.

Market Data and Information

With Futu Securities, you can access free real-time Hong Kong stock quotes and abundant market information. The platform pushes important news and announcements, helping you stay updated on market dynamics.
IB also provides you with multi-market data, but some advanced data requires additional fees. You can customize information subscriptions to meet personalized needs.

Customer Service

Futu Securities supports online customer service and phone consultations. When you encounter issues, you can quickly receive Chinese-language support.
IB offers multilingual customer service, supporting email, phone, and online tickets. If you face complex issues, IB’s professional team can assist you.

Deposit and Withdrawal Methods

With Futu Securities, you can deposit funds via Hong Kong bank transfers for free, and withdrawals to Hong Kong bank accounts incur no platform fees.
IB supports multi-currency deposits and withdrawals, offering one free withdrawal per month. Additional withdrawals cost $10 each. You can choose the platform best suited to your fund flow needs.

Target Audiences

Beginners and Small Investors

If you are new to Hong Kong stock investing or trade small amounts, such as $1,000 to $5,000 per trade, Futu Securities is more suitable for you. Futu Securities’ account opening process is simple, and the interface is user-friendly. You can quickly learn how to place orders and view quotes. Futu Securities’ fixed fees are low, with commissions and platform fees typically totaling less than $2. Depositing via Hong Kong bank transfers is convenient, and withdrawals incur no platform fees. You also get free real-time Hong Kong stock quotes and information. For those with limited funds or low trading frequency, Futu Securities helps you save significant costs.

Tip: You can practice with Futu Securities’ demo account first, then move to real trading once familiar with operations.

High-Frequency and Large Investors

If you trade multiple times per month or have large trade amounts, such as over $20,000 per trade, Interactive Brokers (IB) is more suitable for you. IB’s commissions are charged proportionally, with a minimum of $2 per trade and a rate of 0.08%. The larger your trade amount, the more evident the commission rate advantage. IB does not charge platform fees and supports multi-currency accounts. You can buy Hong Kong stocks directly in USD, with exchange rates close to the market and a low conversion fee of 0.002%. IB offers one free withdrawal per month, ideal for frequent fund flows. You also access professional trading tools and rich market data, meeting high-frequency or large investment needs.

• Suitable for you if:
  • You trade multiple times per month
  • Your trade amounts are large
  • You need multi-market, multi-currency operations

Users with Special Needs

If you have special needs, such as investing in multiple markets like U.S. stocks, A-shares, and Hong Kong stocks, or if you want to use automated tools for quantitative trading, IB offers more comprehensive support. IB supports multi-market, multi-currency accounts, allowing you to manage global assets in one account. You can also implement automated trading via API interfaces. Futu Securities is more suitable if you focus solely on Hong Kong stocks or prioritize Chinese-language services and localized experiences. You can choose the most appropriate platform based on your investment goals and operational habits.

Note: When choosing a broker, consider your fund size, trading frequency, and feature needs, making a rational judgment to avoid blindly following trends.

When choosing a broker, you need to focus on Hong Kong stock trading fees, features, and services. Futu Securities is suitable if you have smaller funds, with simple operations and a user-friendly interface. Interactive Brokers is better if you have larger trade amounts, higher trading frequency, or richer feature needs. You can rationally decide which broker suits you best based on your fund size and trading habits. Understanding Hong Kong stock trading fees helps you make informed decisions.

FAQ

How long does it take to open an account with Futu Securities and Interactive Brokers?

Opening an account with Futu Securities typically takes 1-3 days. Opening an account with Interactive Brokers generally takes 3-5 days. After submitting documents, the platform notifies you of the review progress via email.

Can I buy Hong Kong stocks directly in USD during trading?

With Futu Securities, you need to convert USD to HKD first. With Interactive Brokers, you can buy Hong Kong stocks directly in USD, with the system automatically settling the exchange rate.

How long does it take to withdraw to a Hong Kong bank account?

With Futu Securities, withdrawals to a Hong Kong bank account typically take 1-2 business days. With Interactive Brokers, withdrawals usually take 2-3 business days.

Which is better for long-term holding of Hong Kong stocks, Futu Securities or IB?

Both Futu Securities and IB are suitable for long-term holding of Hong Kong stocks. You can choose the more cost-effective platform based on your trading frequency and fund size.

What hidden fees should I watch for in Hong Kong stock trading?

You should note currency conversion spreads, bank wire transfer fees, and account management fees on some platforms. You can check the broker’s official website for detailed fee disclosures before trading.

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