Futu

Overview of Company's Operations

Futu is a high-growth Fintech unicorn and one of the largest online brokers in Asia. Futu Securities International (Hong Kong) Limited was founded in 2012 as a digital broker that offers an online platform for investors in Hong Kong and China to buy and sell stocks, manage their investments and grow their wealth.

Regulatory Framework

Futu Securities International operates under a license granted by the Hong Kong Securities and Futures Commission (SFC), under the CE AZT137 license number.

Market Access

Futu has global access to the Hong Kong, China and USA markets, and offers the following security types for trading:

IPO's

ETF's

Equity's

CBBC's

iBond's

Options

Warrants

Commission Structure

Futu has a competitive commission structure, including an occasional zero commission for trading shares on the stock exchanges of Hong Kong and the USA.

A summary of commission rates for various transaction types is provided below.

US Equity Transactions:

US Stocks: $0.0049 per share.

US Options: $0.65 per option contract.

US Futures: $2 per contract per side.

IPO Cash Subscriptions: $50 per order.

Hong Kong and Chinese Stocks:

Chinese Stocks: 0.03% x Transaction Amount (Min 3.00 CNH).

Hong Kong Stocks: 0.04% x Transaction Amount (Min 3.00 HKD).

Hong Kong Options: 0.20% x Transaction Amount (Min 3.00 HKD).

IPO Margin financing for HK Equity: approx. 6.8% per year.

Annualized Margin Rate:

Hong Kong Equities: 6.80%.

US Equities: 4.80%.

China A Stocks: 8.80%.

Futu charges a fixed commission rate of either 15 HKD per order, or tier commissions from 30 HKD to 70 HKD based on transaction volume. Any other applicable regulatory and/or exchange fees charged to the trader will be outlined in the trade confirmation request.

Leverage

Long positions will have a maximum 1:2 ratio of leverage.

Short positions will have a maximum 1:1.67 ratio of leverage.

To trade on margin, a trader must maintain a minimum of $2,500 in their trading account.

Account Types

There are currently four (4) types of accounts available:

Fund account

US Margin account

Hong Kong Margin account

Hong Kong Northbound Margin account.

Depositing Money

Depositing money into your trading account must be completed using bank transfers only. A minimum amount required to open an account is HKD 10,000 or USD 1,500. There is no fee associated with broker deposits.

Deposits made by bank transfers through ICBC (Asia) are processed the fastest. All bank transfers are approved within one (1) business day of receipt.

Time Frame to Process Withdrawal Requests

Withdrawal requests do not incur any fees.

All withdrawal requests must be sent to a bank account in the name of the person requesting the withdrawal.

The following is a time frame for processing withdrawal requests:

For withdrawals processed from Hong Kong and the USA - 2 business days.

If a request for payment is submitted before 15:00 HKT, the payment will be processed on the same day.

All requests for withdrawals must be submitted via the Futubull app.

Available Trading Platforms

Futu's own proprietary trading platform known as Futubull is available for the Windows and Mac OS. The evolving nature of trading platforms is developing with the increasing popularity of big data analytics.

Countries That May Open Accounts with Futu

Currently, Futu accounts are only open for clients residing in Hong Kong and China.

Hours of Operation

Futu products and services may be traded 24/5, Monday through Friday, based on the trading periods for each exchange.

Communication with Futu

Futu offers three (3) methods of communication with its customers. Futu does not currently offer live chat:

Email: [email protected]

Phone: (+852) 2523 3588

Address: Unit C1-2, 13F, United Centre, No.95 Queensway, Admiralty, Hong Kong.

Summary of Futu

Overall, Futu is a technology driven online broker that allows access to online trading to investors in Hong Kong and China. Futu's regulatory status is through the SFC; additionally, they provide access to the worldwide financial markets, a competitive commission structure and an innovative trading platform with significant tools for analysis and research for serious traders. However, there are restrictions on payment types available, the countries where accounts may be opened; and no option to have a live chat may create challenges for some traders.