From my experience in trading and investing, my genuine favourite stockbroker is Futubull (Futu). Before using Futubull to trade, I used Interactive Brokers, which is a US-based stockbroker.
The main reason why I switched from Interactive Brokers (IB) to Futu is due to Futu’s advantages of lower commission rates for trading in the Hong Kong Stock Exchange. Below is the comparison between the two brokers.
Disclaimer: This post is not sponsored by any stockbroker; All opinions are genuine. Invest at your own risk and remember, past earnings do not reflect future earnings. You may not receive your investments back.
What and Who is Futu?
Futubull, commonly known as Futu is a digitalized stockbroker, wealth management company that operates in China Mainland, Hongkong and the US. Futu is a listed company on the US NASDAQ stock exchange as NASDAQ: FUTU.
What and Who is Interactive Brokers?
Interactive Brokers is an American multinational brokerage firm. It operates mainly in the US and it is a listed company on the NASDAQ stock exchange as NASDAQ: IBKR.
Comparison between Futu and IB
|Futubull: FUTU||Interactive Brokers: IBKR|
|Lower Commission Rate for HK/US trades||Charges standard and average commission rates|
|User-Friendly Mobile/Web Interface||Hard to navigate through web interface|
|Limited range of assets (Only US, HK, SZ, SG)||Wider range of assets available (Global Access)|
|Expensive Margin Loans||Relatively cheaper margin loans|
|There is a community where traders can share their experiences||No community for traders to share their experiences|
|Users >18 can use futures / options||Users must be >21 to use futures/options|
Finding the lowest cost for trading is key for long term investors as it is chip away a large portion of your return.
Assuming that your investment portfolio is $1,000,000, by using a cheaper commission broker, you are saving $650,000 over the span of 30 years. This means that you will only start to breakeven when you profit $650,000, over the 30-year horizon.
Therefore, transparency of commission charges is extremely important, and Futu does a great job in disclosing their charges. Here is the summary of Futu’s commission rates:
|Hong Kong Stocks||China A Shares||US Stocks|
|0.03% of transaction amount or HK$3, whichever is higher||0.03% of transaction amount or CNY$3, whichever is higher||US$0.0049 per share, minimum of US$0.99/Order.|
For Macau Residents Exclusively (This only applies to Macanese Investors)
As I’ve received multiple requests on how to set up a stock account in Futu, I’ve created a separate guide.
Do not worry if you are an HK or US investor, I have also attached Futu’s guide for HK and oversea registrations. Visit here for more.
Withdrawing money on Futu
Next, let’s talk about how you can withdraw money on Futu, as most people worry about withdrawing more than depositing. If you’re using a reputable bank in your area, Futu will allow you to withdraw money easily.
If you have an HK bank account, you’re able to receive your money in just 5 minutes, guaranteed by Futu. However, for overseas transfers (including Macau), it will take 3-5 working days.
You can withdraw your money in three different currencies: Hong Kong Dollar, USD, or the Chinese Yuan.
Note: If you do decide to use Chinese Yuan, Futu only support withdrawals to HK bank accounts.
Withdraw Charges Summary
|105 HKD Per Withdrawal||15 USD per Withdrawal|
Futu Investing Courses
Are you ready to trade? If not, that is fine too! Futu offers free trading/investing courses on their app. I have taken a few courses on Futu and I’ve found it really helpful. I recommend it to anyone who wants a deeper understanding on financial assets. You can take beginner or expert level courses on Futu, it is up to you!
If you think you’re already an expert at trading/investing, you can even apply for a certification of “Expert Investor”. This grants you better loan and commission rates on Futu but, the selection process is strict.
What do I like about Futu?
1.Futu charges incredibly low commission fees for trading in the HK stock exchange.
2. As opportunities in the market may be instantaneous, Futu allows me to trade on my iPad, Mac, PC, and iPhone easily.
3. Learning how to use Futu was incredibly fun and easy. (It really is!)
One key point that I highly recommend to you is that to start trading right away. But! You do not have to do so with real money. You learn a whole lot more when you are executing trades on your phone or computer.
Futu offers simulation accounts for free, and you can get started right away. To see more about registration, click here.
If you have other stockbrokers you enjoy, feel free to share it down in the comment section or DM me @(Leinvests_) on Instagram. I would love to know what everyone’s favourite stockbrokers are!