Start trading Hong Kong stocks with Interactive Brokers as your trading platform.
Its overall economic conditions, economic freedoms and world-class exchanges make Hong Kong a favorable place for investors and traders who want to trade on the Stock Exchange of Hong Kong (SEHK).
Open an account with a reputable broker in order to trade stocks in Hong Kong. Keep in mind that not all brokerages are created equal, so be sure to carefully consider your needs before you open an account.
Quick Look at the Best Hong Kong Stock Brokers:
- Best Overall: Plus500
- Best for Beginners: Charles Schwab
- Best for Day Traders: Interactive Brokers
Best Stock Brokers in Hong Kong
Finding the best online brokerage depends largely on your needs as an investor or trader. If you trade actively and do your own research, a discount broker with low commissions would probably be the most advantageous.
If you rely on outside research and investment advice, then a full-service broker could make more sense.
1. Best Overall: Plus500
- Fees: $10 inactivity fee; other fees may apply
- Account Minimum: $100
- Promotional Offers: $150 bonus with $1,000 deposit
Plus500 is a global multi-asset fintech group that operates trading platforms globally, offering a range of trading products, including CFDs, Share dealing and Futures trading (US).
Highlights of the platform include:
- Quick onboarding
- Simplified mobile trading
- Easy-to-use platform
- CFDs for indices, ETFs, shares, forex, commodities, options and cryptocurrency
- Free deposits and withdrawals
- $100 minimum investment
- 0.7% currency conversion fee per transaction, when the currency in your account is different from those traded
However, Plus500 is not a platform for novices as it solely makes money from spreads and does not charge a commission. You may start trading Plus500 right away, leverage your experience, expand your portfolio and start making money right away.
Why We Picked It: Benzinga loves Plus500 because it is extremely versatile and serves a wide range of traders and strategies.
2. Best for Beginners: Charles Schwab
- Best For:Fund InvestingVIEW PROS & CONS:securely through Charles Schwab's website
Our pick for beginners has an extensive array of educational material for new traders. U.S.-based Charles Schwab has a Hong Kong office and is a member of the SEHK. The stockbroker is also registered with the HKSFC, in addition to a slew of other international regulators.
To take advantage of Schwab’s educational resources and to trade stocks listed on the SEHK, you can simply open a Schwab brokerage account. The Schwab brokerage account used for domestic trading in the United States can be used to trade securities internationally via the Schwab Global Investing Services desk.
If you’re based in Hong Kong, opening a Schwab account allows you to trade U.S. equities, fixed income securities and offshore mutual funds. You can also trade American Depository Receipts (ADRs) so you can invest in thousands of companies whose home base is outside the U.S.
Schwab’s full-featured trading platform is known as StreetSmart Edge. This desktop trading software features streaming live quotes, a news feed and sophisticated charting and technical analysis capabilities. A web-based version of the platform and mobile applications for iOS and Android devices are also available.
Customer service for Schwab Hong Kong is available to clients via telephone, email and a form on their website. A rather hefty minimum of USD $10,000 is required to open an account, while stock transactions on the SEHK cost a minimum of 250 HKD online and 600 HKD with telephone assistance, which may be on the high side for many traders.
Why We Picked It: Charles Schwab offers a user-friendly platform, extensive research tools, low fees, and exceptional customer service that cater to both experienced and novice investors.
Read Benzinga's full Charles Schwab Review
3. Best for Day Traders: Interactive Brokers
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
Interactive Brokers is a major international broker based in the United States. Interactive Brokers maintains an office in Hong Kong, is a member of the SEHK and is regulated by the HKSEC, as well as numerous other regulators internationally.
Interactive Brokers also has some of the lowest commissions for trading stocks in the business, including Hong Kong shares, which makes it the best broker for day traders who want to trade Hong Kong stocks. Commission on Hong Kong stock trades is a low 18 HKD per transaction, the lowest we could find for members of SEHK.
The Integrated Investment Account gives you access to trade in a wide variety of assets listed on over 120 world exchanges. In addition to SEHK stocks, you can trade ETFs, forex, metals, futures, options, funds, bonds and structured products.
Interactive Brokers’ trading platforms include an easy-to-use platform called Client Portal, ideal for less-experienced traders. The broker also offers a professional Trader Workstation (TWS) platform with many features that experienced traders can find useful. Interactive Brokers also offers a web-based platform known as IBKR WebTrader.
An IBKR mobile app is available for Android and iOS tablets and smartphones. A hands-free access app, IBot, can also be downloaded for use with the Client Portal.
Read Benzinga's full Interactive Brokers Review
Why We Picked It: Interactive Brokers offers an advanced trading platform, low fees, extensive range of investment options and a strong reputation for reliable and efficient service.
Trading Stocks in Hong Kong
Securities trading began in Hong Kong in 1866, but a formal stock market did not exist until the opening of the Hong Kong Stock Exchange (SEHK) in 1914, which arose out of the Association of Stockbrokers, founded in 1891.
Since its independence as a British Dependent Territory of the United Kingdom in 1997, Hong Kong has become one of the world’s leading financial centers due to its low taxes and free trade agreements. This makes the SEHK one of the easiest international markets for investing and trading.
According to the Heritage Foundation, the Hong Kong Special Administrative Region of China ranks as the number one country in the world for financial freedom with a score of 90.2. The SEHK is ranked as the fourth-largest in Asia and fifth in the world by its market capitalization of just under $4 trillion.
The SEHK has oversight from the Securities and Futures Commission of Hong Kong (HKSFC), which is an independent agency charged with regulating the securities and futures markets in Hong Kong. The agency also supervises market participants such as brokers, fund managers and investment advisors. Regulation by the HKSFC is important when selecting a stockbroker to trade local stocks through in Hong Kong.
The SEHK’s trading hours begin with a pre-opening session from 9 a.m. until 9:30 a.m. and the securities’ opening price is announced at 9:20 a.m. A continuous session takes place from 9:30 a.m. until 12 p.m. At noon, an extended one-hour trading session happens, called the “lunch break.” Another continuous trading session occurs from 1 p.m. until 4 p.m.
Hong Kong traders and investors can trade in over 2,000 eligible securities on the Shanghai and Shenzhen stock exchanges through a program called “Stock Connect.”
Features of a Great Stockbroker
Several elements should be considered before you decide on opening an account to trade stocks through in Hong Kong. They include:
Regulation and Exchange Membership
To trade stocks on the SEHK, you must go through a broker registered with the HKSFC. Stockbrokers who do business in Hong Kong must also be members of the stock exchange in order to act as intermediaries for traders and investors.
HKSFC protects investor interests and requires all financial intermediaries who do business on the SEHK to conform to HKSFC’s rules and regulations.
Trading Platform
Your potential broker should ideally have an electronic trading platform for you to place stock orders on the SEHK
Research
Fundamental traders and investors often rely on the information provided by a good research department.
Full-service brokers will typically charge more but provide better quality market research as well as other features that cheaper discount brokerages do not offer.
Commissions and Fees
Active traders typically pay per trade commissions more often than inactive traders and investors. Since keeping costs low will improve your bottom line, you might want to select a discount broker with reduced transaction fees.
Customer Service
Most traders, especially those who are inexperienced, will appreciate the assistance provided by a good customer service department. A customer service department should be able to help you resolve trading-related issues. You can reasonably expect any decent stockbroker to give you access to customer service via telephone, email and live chat.
Choosing the Best Hong Kong Stock Broker
Trading stocks on the SEHK can be quite straightforward and secure, especially if you open an account with a reputable broker. Your particular requirements will define the best type of broker for you, and that includes your experience level and the number of funds you can commit to your trading account.
Frequently Asked Questions
What are the different ways I can buy stocks in Hong Kong?
To buy stocks in Hong Kong, you can use a broker with access, ADRs, mutual funds or ETFs.
How safe is the Hong Kong stock market?
The safety of the Hong Kong stock market is generally considered to be high due to strict regulations, transparency, and oversight by regulatory bodies.
Is it good to invest in Hong Kong stocks?
Yes, it can be good to invest in Hong Kong stocks due to its strong economy, favorable tax environment and proximity to mainland China’s market. However, as with any investment, it is important to carefully research and consider factors such as market trends, political stability and exchange rate fluctuations before making a decision.
About Jay and Julie Hawk
About Julie:
Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.
Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.
During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.
Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.
About Jay:
Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.
His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.
This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.
Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance.
As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.