How can investors cope with such high trading costs of Hong Kong and US stocks?

In today's globalized investment environment, more and more investors are looking at the Hong Kong and US stock markets. However, the high transaction cost of Hong Kong and US stocks has always been a pain point for investors. Traditional brokerage firms usually charge high commissions and platform fees, which significantly increase investors' transaction costs and erode investment returns. For example, in Hong Kong stock trading, the commission rate of most brokers ranges from 0.2% to 0.3%, coupled with a platform fee of around HK$15 per transaction, the transaction cost should not be underestimated. A similar problem exists in U.S. stock trading, where the commission rate of some brokers is even as high as 1% of the transaction amount. For investors, how to find quality brokers with really low commissions among the many brokers has become their biggest concern. In this article, we will discuss the composition of Hong Kong and U.S. stock trading costs, analyze the current situation of the industry, and introduce you to a brokerage firm that can significantly reduce transaction costs - Zinvest Financial.

Composition of Hong Kong and U.S. stock trading costs

Hong Kong stock trading costs

Hong Kong stock trading costs mainly include the following components:

• Commission: traditional brokerage firms usually charge 0.2% to 0.3% of the transaction amount as commission, with a minimum charge of tens of Hong Kong dollars.
• Platform fee: A platform fee of around HK$15 is charged for each transaction.
• Transaction fee: a percentage based on the transaction amount, about 0.005%.
• Settlement Fee: Fixed fee, around HK$2 per transaction.
• Stamp duty: 0.1% of the transaction amount.
• Other fees: e.g. FRC transaction levy, etc.

Taking a HK$10,000 Hong Kong stock transaction as an example, the fees charged by traditional brokerage firms may include:

US Stocks Transaction Costs

US Stocks Transaction Costs are similarly complex and mainly include:

• Commission: Traditional brokerage firms usually charge 0.5% to 1% of the transaction amount as commission.
• Platform fee: A platform fee of about $1 per transaction.
• Transaction fee: a percentage based on the transaction amount, about 0.01%.
• Settlement Fee: A fixed fee of about $0.5 per transaction.
• Other fees: such as regulatory fees, clearing fees, etc.

Taking a US$1,000 U.S. stock transaction as an example, the fees charged by traditional brokerage firms may include:

General Phenomenon in the Industry

By comparing the fee rates of a number of well-known Hong Kong and U.S. stock brokerage firms (e.g., FUTU, Tiger, and Watson, etc.), the following general phenomenon can be found:

• High Commission Phenomenon: The commission ratio of most brokerage firms is high, especially for U.S. stock transactions, and the commission ratio of some firms can even be as high as 1%.
• Difference in platform fee: The difference in platform fee between different brokers is large, and some brokers even charge a platform fee as high as HK$20 per transaction.
• Hidden fees: Some brokers charge a variety of hidden fees in addition to commissions and platform fees, such as data fees and account management fees.

How High Costs Erode Investment Returns

The impact of high transaction costs on investment returns is obvious. Taking an investor as an example, assuming that he or she makes 20 Hong Kong stock trades per month, with each trade amounting to HK$10,000, the transaction cost for one year is calculated as follows:

If you choose a low-commission brokerage firm, such as Zinvest Financial, the transaction cost can be significantly reduced:

As you can see from the comparison, choosing a low-commission brokerage firm can significantly reduce the transaction cost and increase the return on investment.

How to find a low-commission and safe Hong Kong and US stock brokerage investor coping strategies

Faced with high transaction costs, investors have to find coping strategies. Some investors try to cut costs by reducing the frequency of trades, but this undoubtedly limits their investment flexibility. Other investors look to low-commission brokers in the market, hoping to reduce the cost pressure. However, among the many brokerage firms claiming to offer low commission services, how to identify quality brokerage firms that can truly deliver on their promises has become a challenge for investors.

How does Zinvest Financial's low commission strategy help investors reduce trading costs in Hong Kong and US stock trading?

After in-depth research and comparison of a number of brokerage firms, Zinvest Financial stands out with its unique low commission model and quality service, providing an ideal solution for investors.

Zinvest Financial's Core Features: Low Commission, Convenient Account Opening & Rich Investment Products

Hong Kong Stock Trading

Zinvest Financial offers a lifetime commission-free service for Hong Kong stocks, charging only a platform fee of HK$1 per transaction. Regardless of the size of the transaction amount, the investor only needs to pay 1 HKD/transaction fee, which significantly reduces the transaction cost.

U.S. stock trading

Zinvest Financial also provides U.S. stock lifelong commission-free service, each transaction only charges 1 U.S. dollar platform fee. For U.S. stock investors, this is undoubtedly a huge advantage.

U.S. Stock Options Trading

Zinvest Financial's U.S. stock options trading fees are also very low, with a lifetime commission-free service and a platform fee of only $0.3 per option. This is a significant cost advantage for options traders.

Other Advantages of Zinvest Financial: No Proof of Deposit and $500,000 Account Security Insurance

No Proof of Deposit: Zinvest Financial has simplified the account opening process, so investors don't need to provide proof of deposit, which greatly reduces the account opening threshold and facilitates investors to enter the market quickly.

Account Security Insurance: Zinvest Financial provides investors with 500,000 account security insurance to ensure the safety of funds, so that investors have no worries.

Convenient account opening process: Zinvest Financial's account opening process is very convenient, supporting a variety of identity documents (such as mainland, Hong Kong, Taiwan, Macao identity cards and passports of non-U.S. residents), account opening in just 2 minutes.

Rich investment products: Zinvest Financial provides a wealth of investment products, covering Hong Kong stocks, U.S. stocks, A shares, ETFs, turbines, bull and bear certificates, U.S. stock options and a variety of other investment targets to meet the needs of different investors.

[Related Reading] Zinvest Global Account Opening Guide: Full Analysis of Legality, Commission Fees and Account Opening Process

Zinvest Financial April Deposit Benefits

First Net Deposit Benefits

Zinvest Financial launched a generous promotion benefits in April, the first net deposit of HKD 10,000 can enjoy the following benefits:

• Lifetime commission-free for Hong Kong, U.S., and A-shares: commission-free for all transactions, only need to pay a very low platform fee.
• A complimentary 1 share of Tencent Music stock: worth about RMB 104.
• HK$200 credit voucher: issued upon deposit and can be used to offset trading fees.

Benefit Collection Conditions and Process

• Collection conditions: First time net deposit of HKD10,000 or above.
• Receiving process: After completing the account opening and depositing, the system will automatically issue the benefits, which investors can check in their accounts.

Zinvest Financial 2-minute speedy pass version of the account opening process

Zinvest Financial's account opening process is simple and convenient, the specific steps are as follows:

First through the Hawk Insight exclusive benefits link: click to receive benefits, invitation code RRK582

1. Select identity region: according to the prompts to select your identity region (such as the Mainland, Hong Kong, Macao, Taiwan, etc.).

2. Bank Verification: Upload bank statements that support Hong Kong bank or mainland bank cards to complete bank verification.

3. Compliance Statement: Read and agree to the compliance statement to ensure compliance with relevant laws and regulations.

4. Financial Status and Investment Experience: Fill in your financial status and investment experience, usually you need to fill in the investment experience of 1-3 years.

5. Account Type: Select the account type (e.g. cash account or financing account).

6. Signature Confirmation and Submit for Review: Sign on the screen and submit for review.

7. Identity Verification: Upload the front photo of your ID card to complete the identity verification.

8. Personal Information: Fill in your personal information, including name, address, employment information, etc.

9. Upload ID photo: Upload the reverse photo of your ID card.

10. Risk Disclosure: Read and confirm the risk disclosure and complete the account opening process.

Attention

• Authenticity of information: Ensure that the uploaded information is authentic and complete so as not to affect the audit progress.
• Audit time: Usually the audit time is 1-3 working days, it is recommended to prepare the required information in advance.

Frequently Asked Questions

1. Does Zinvest Financial need to provide proof of stock?

No. Zinvest Financial has simplified the account opening process, investors do not need to provide proof of stock, greatly reducing the threshold for opening an account.

2. How does Zinvest Financial protect account security?

Zinvest Financial provides investors with $500,000 account security insurance to ensure the safety of funds. At the same time, Zinvest Financial holds financial licenses in Hong Kong and the United States, and strictly abides by the relevant regulatory requirements.

3. What deposit methods does Zinvest Financial support? How long does it take for the funds to arrive?

Zinvest Financial supports a variety of deposit methods, including Hong Kong and U.S. bank cards and bank accounts in other regions. Deposits from Hong Kong and U.S. bank cards can be made in real time at the earliest, while deposits from other regions usually take 1-3 business days.

4. What is included in Zinvest Financial's April promotion?

Zinvest Financial's April promotion benefits include:

• Lifetime commission free for Hong Kong, US and A shares.
• Complimentary 1 share of Tencent Music stock (worth about RMB104).
• Complimentary HK$200 credit voucher (issued upon deposit).

5. What investment products does Zinvest Financial support?

Zinvest Financial provides a wide range of investment products, covering Hong Kong stocks, U.S. stocks, A-shares, ETFs, turbines, CBBCs, U.S. stock options and other investment targets.

6. Does Zinvest Financial charge for API trading?

Zinvest Financial provides Restful API trading interface. The charges for users trading through API and using APP are the same and there is no extra charge.

7. How is Zinvest Financial's customer service?

Zinvest Financial provides a variety of customer service methods, including online consulting, 400 hotlines and dedicated account manager services, to ensure that investors can get help in a timely manner.

8. What are Zinvest Financial's trading hours?

The trading hours for Hong Kong stocks are from 9:00 to 16:00 Beijing time (with a 1-hour lunch break), and the trading hours for U.S. stocks are from 16:00 Beijing time to 8:00 the next day (with an overall delay of 1 hour during the winter season).

Summary

Zinvest Financial has become the first choice of Hong Kong and U.S. stock investors by virtue of its low commission, convenient account opening process, rich investment products and strong capital security. By choosing Zinvest Financial, investors can significantly reduce transaction costs and increase investment returns.

If you are looking for a low-commission, convenient, safe and reliable Hong Kong and U.S. stock brokerage, you may want to seize Zinvest Financial's April promotional benefits, open an account as soon as possible, and start your low-cost, high-efficiency investment journey!