Investing in Hong Kong (HK) stocks through Tiger Brokers provides access to a wide range of market opportunities, all with competitive and transparent fees. Understanding the commission and platform fees associated with trading HK stocks is crucial to effectively manage your investment costs.
This blog will break down Tiger Brokers’ fee structure for HK stock investing, including details on commission and platform fees and how they affect your overall trading costs.
Tiger Brokers’ Fee Structure for HK Stocks
When you trade HK stocks on the Tiger Trade app, you’ll encounter two main types of fees: the commission fee and the platform fee. Let’s take a closer look at each.
- Commission Fee
The commission fee is a percentage of the total value of your trade. It’s charged by Tiger Brokers for executing your buy or sell orders. For HK stocks, the commission fee is calculated as follows:
0.03% of the Trade Value
Minimum Fee: HKD 7 per order
How the Commission Fee Works:
For small trades: If your total trade value is low, the minimum commission fee of HKD 7 will apply. This ensures that even small trades are still covered by a reasonable fee.
For larger trades: As your trade value increases, the commission fee becomes 0.03% of the trade value, which scales according to the size of your investment. However, it will never go below the minimum fee of HKD 7.
Example:
Example 1: Small Trade (HKD 500)
For a HKD 500 trade, the commission fee would be HKD 0.15 (0.03% of HKD 500). However, since the minimum fee is HKD 7, you would pay the HKD 7 commission fee.
Example 2: Larger Trade (HKD 50,000)
For a HKD 50,000 trade, the commission fee would be HKD 15 (0.03% of HKD 50,000), which is higher than the minimum fee, so you’ll be charged HKD 15.
- Platform Fee
In addition to the commission fee, Tiger Brokers also charges a platform fee for trading HK stocks. This fee helps maintain the infrastructure that supports your trading experience and access to real-time data. The platform fee for HK stocks is also based on the trade value:
0.03% of the Trade Value
Minimum Fee: HKD 8 per order
How the Platform Fee Works:
For small trades: If your trade is of low value, the minimum platform fee of HKD 8 will apply.
For larger trades: For larger trades, the platform fee will be 0.03% of the trade value, just like the commission fee, but will be capped by the minimum fee of HKD 8.
Example:
Example 1: Small Trade (HKD 500)
For a HKD 500 trade, the platform fee would be HKD 0.15 (0.03% of HKD 500). However, the minimum fee of HKD 8 would apply, so the platform fee charged would be HKD 8.
Example 2: Larger Trade (HKD 50,000)
For a HKD 50,000 trade, the platform fee would be HKD 15 (0.03% of HKD 50,000), which exceeds the minimum fee, so you would pay HKD 15 as the platform fee.
How Both Fees Impact Your Total Trading Costs
When you place an order for HK stocks, both the commission fee and the platform fee are applied to your trade. Here’s an example to help clarify:
Example: Trade of HKD 50,000
Commission Fee: HKD 15 (0.03% of HKD 50,000)
Platform Fee: HKD 15 (0.03% of HKD 50,000)
Total Fees: HKD 30 (HKD 15 + HKD 15)
Why Choose Tiger Brokers for HK Stock Trading?
Low Fees: Tiger Brokers offers highly competitive commission and platform fees for HK stock trading, ensuring you don’t pay excessive charges.
Transparency: The fee structure is clear and simple, with no hidden fees, so you can make informed decisions.
Access to a Wide Range of Markets: Tiger Brokers allows you to invest in HK stocks alongside other global markets, all on a single platform.
Advanced Trading Tools: With the Tiger Trade app, you gain access to advanced tools and real-time market data to make smarter investment decisions.
Conclusion: Understand Your Trading Costs
When trading HK stocks on Tiger Brokers, the commission fee and platform fee are an important part of the overall cost structure. The commission fee is charged based on 0.03% of the trade value, with a minimum fee of HKD 7. Similarly, the platform fee is also based on 0.03% of the trade value, with a minimum fee of HKD 8.
These fees are competitive in the market, and understanding them helps you calculate your total trading costs and make more informed investment decisions.
