Futu Review 2023

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Our Rating

2.5
/ 5

Futu is #151 in our broker rankings.

Futu is a Chinese stock broker with a range of securities from Hong Kong, Chinese and US markets.

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Trusted

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Demo Account

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Award Winning

Minimum Deposit $1500

Trading Platforms Proprietary

Instruments Stocks, ETFs, IPOs, CBBCs, iBonds, Options, Warrants

Bonus Offer -

Account Currencies

Payment Options Wire Transfer, Cheque

All Futu Details

Compare Futu

Binary Trading

Futu Securities International supports options trading with securities from Hong Kong, China and the US.

Forex Trading

Not Available

Stocks Trading

Futu offers stocks and ETFs from Hong Kong, China and the US.

CFD Trading

Not Available

Crypto Trading

Not Available

Awards

• HKEX - Business Innovation Information Vendors 2017
• HKEX - Rising Information Vendor of the Year 2016
• KPMG - China Leading Fintech 50 (2017/2016)
• Bloomberg - Best Online Broker 2017
• CB Insights - CB Insights’ Fintech 250 (2018/2017)

Futu is a recognised fintech unicorn and one of Asia’s top-ranking online brokers. It provides a fully digital service and advanced wealth management options to clients residing in China. This brokerage review will break down how to open a Futu account, weigh up the pros and cons of the broker’s services and detail commission charges, platform features, IPO prospectus and more.

Futu Headlines

Futu Securities International (Hong Kong) Limited is a technology corporation, running a fully digitised brokerage with a secure trading platform. Founded in 2012, the financial company has developed leading investment services. The broker is a subsidiary of Futu Holdings Limited, whose entities include Futu Inc., registered by the US SEC, and Futu Trading Broker Singapore Pte Ltd., led by CEO and founder Leaf Hau Li. A stock forecast data quote indicates an estimated share price target of £238.84 to be reached in 2022.

The broker is a licensed corporation regulated by the Securities and Futures Commission of Hong Kong (SFC). The number of Futu users exceeds 15 million, serviced by 1,315 employees. Year-end 2020 financial revenue results were particularly impressive, sitting at $427 million. Futu brokerage was listed on the NASDAQ stock exchange in 2019 and partners with AMEX and NYSE. Respected strategic investors include Tencent Holdings and Sequoia Capital.

Trading Platform

The broker only offers a proprietary digital platform terminal, Futubull, which is free for download to desktop devices running on Windows and Mac. The platform is also compatible with all major web browsers and available to open via an API, with eight supported languages, including English, Traditional Chinese, and Korean.

Futubull features include:

• Live news streaming
• Simple user interface
• Integrated customer support
• Lightning-fast trade executions
• Several powerful analytical tools
• Intelligent and conditional orders
• Real-time stock quotes and market data
• 14 reminder types with 24-hour cloud monitoring
• Social integration features including live chat room
• Data analysis tools including emotion index, AI market monitor, and screener

  

In 2019, Futu launched a mutual fund platform. This accommodates a variety of targets and risk appetites of traders. Money markets, equity funds, and fixed income products from Chinese and other leading global fund houses are hosted here.

Assets

Futu offers clients worldwide investing and trading opportunities from Hong Kong, mainland China, and US markets in the following securities:

• IPOs
• ETFs
• Stocks
• CBBCs
• iBonds
• Options
• Warrants

At the time of writing, Futu does not offer trading in digital currencies, though the broker has outlined plans to expand into crypto investing. That being said, crypto futures are available, such as Bitcoin futures. Pre-IPO trading is also available, which can be accessed between 16:15 and 18:30 HKT (GMT+8) after the close of trading on the day prior.

Fees

Futu’s fee structure is transparent and competitive, regularly offering zero-commission trading periods on US and Hong Kong stocks and shares. Below is a full breakdown of standard commission charges.

• US Stocks: 0.0049 USD per share
• US Options: 0.65 USD per contract
• US Futures: 2 USD per contract per side
• IPO Subscriptions (Cash): 50 HKD per order
• Chinese Stocks: 0.03% x transaction amount, minimum 3.00 CNH per order
• Hong Kong Stocks: 0.04% x transaction amount, minimum 3.00 HKD per order
• Hong Kong Options: 0.2% x transaction amount, minimum 3.00 HKD per order
• IPO Subscriptions (Futu Financing): the annual interest rate of HK stock margin (ave. 6.8% per year)

The annual margin rate for financing is a flat rate of 6.8% for Hong Kong stocks, 4.8% for US stocks and 8.8% for China A-shares. This is comparable to Moomoo and Webull rates, though less competitive than many other brokers both inside and outside of China.

Futu brokerage fees can be either fixed, at a flat rate of 15 HKD per order, or tiered, with the price falling from 30 HKD per order with increasing trading volume.

Clients may also incur other charges, including regulatory fees, exchange settlements, trading activity costs and stamp duty.

Leverage

Leverage, or margin trading, is available to all of Futu’s retail clients, though only with a minimum account value of $2,500. Leverage is capped at 1:2 for long positions and 1:1.67 for short positions. Margin trading can magnify your profit potential and market exposure by borrowing funds from the broker, though this can also magnify losses, sometimes wiping out the entirety of your account capital. Traders intending to use margin financing should have robust risk management strategies in place to avoid margin calls.

Mobile Trading

Futu’s proprietary web terminal, Futubull, is also available in mobile format. Downloadable from both the Apple App Store and Google Play Store for iOS and Android devices, respectively, the application allows access to the full trading features of the Futu desktop platform. This includes Futu Holdings live news streams, stock forecast quotes, and transaction history up to the present day so you can trade while on the go. Premarket or after-hours price forecasts can be reviewed from your handheld devices. The mobile platform also supports real-time quotes, multiple order types, live chat and big data applications.

Payments

Deposits

Futu only accepts bank transfers as a funding method, with cash, e-wallet and joint account transfers not supported. There are no broker deposit fees, though third-party payment charges may apply. While processing times vary by bank, Futu aims to approve fund settlements within one working day. ICBC (Asia) accounts are recommended as the fastest deposit processing method.

Futu has an initial minimum deposit requirement of 10,000 HKD/1,500 USD.

Withdrawals

Futu Securities International does not charge a withdrawal fee. Clients must withdraw to an account matching the trading account owner and can be done either through cheque or bank transfer. The capital to be withdrawn must first be settled with the exchange, which can take two business days for Hong Kong and US stocks.

Processing times vary with third-party bank timings, although the broker will action the request in the same business day if received before 15:00 HKT. Withdrawals can be requested through the Futubull app.

Demo Account

Futu does not offer a demo account for risk-free trading. This limits the competitiveness of the broker, as practice accounts are a great way to test out the broker, get to grips with the platform and markets or trial new trading strategies and assets. Close competitors, such as Interactive Brokers, Robinhood and Tiger Brokers all offer demo accounts.

Regulation

Futu Securities International is registered by Hong Kong’s Securities and Futures Commission (SFC), CE number AZT137. Clients are financially protected up to 500,000 HKD through the Investor Compensation Company (ICC) in the case of losses resulting from the broker defaulting on SFC rulings. SFC regulation also brings with it data transparency through compulsory financial reports. 

Futu holds 20 licenses with exchanges and financial regulatory agencies, including type 1 securities and type 2 futures contracts dealing licenses with the SFC.

Additional Features

Clients of Futu automatically have access to NiuNiu, a 13 million-strong global investment community that embeds social media tools to create a network of users exchanging investment opinions, ideas and insights. Additionally, the interactive community provides educational and skill-based content, plus live broadcasts of corporate events and training courses through the NiuNiu Classroom. Content includes US stock fee calculators, IPO subscriptions and information on how to transfer, buy or sell stock on the trading platform. This is suitable both for new and experienced traders.

Live Accounts

There are four different types of Futu accounts, each geared for different trading preferences:

• Fund Account
• US Margin Account
• Hong Kong Margin Account
• Northbound Margin Account

Accounts with Futu can be opened through the Futubull trading platform and are relatively quick, though KYC compliance checks are still required. The processing of an account opening request can take one to two business days.

Benefits

• Intuitive mobile app
• Pre-IPO trading hours access
• Free deposits and withdrawals
• Listed on NASDAQ stock exchange
• Range of trading and analytics tools
• Powerful and intuitive proprietary terminal
• Investor Compensation Company (ICC) registration
• Regulated by Hong Kong’s Securities and Futures Commission (SFC)
• Investor backing from several corporations including Tencent Holdings
• NiuNiu community-based platform with NiuNiu Classroom education access

Drawbacks

• No live chat option
• High margin rate fees
• Chinese residents only
• No MT4 or MT5 access
• High minimum deposit
• Limited payment options
• Limited information on website

Trading Hours

Futu follows standard local office hours but supports trading 24-hours a day between Monday and Friday. However, different instruments may have specific opening and closing times, often dependent on their respective exchange’s trading hours.

Contact Details

Futu brokerage’s customer service team can be contacted via the email address, phone number or postal address below. No live chat option is available, meaning clients cannot get immediate answers to their questions.

• Email: BD@futunn.com
• Telephone: (+852) 2523 3588
• Address: Unit C1-2, 13F, United Centre, No.95 Queensway, Admiralty, HK

Account Security

The Futubull trading platform assures high-tech encryptions and industry-standard data privacy across all touchpoints. Third-party witness verification is required for all account opening requests for global clients without either a Chinese or Hong Kong ID or bank account. Deposit and withdrawal transactions must be verified by a one-time dynamic password, creating a new verification code for every exchange.

Futu Verdict

Overall, Futu Securities International provides a secure investment environment for both new or experienced traders. The Futubull platform is technology-focused with intuitive analytical tools and a user-friendly dashboard. Although the product portfolio is limited, there is a good range of assets from US, Hong Kong and Chinese markets, with low commission charges and margin trading support. However, the lack of accessibility for foreign clients will deter prospective investors.

FAQs

Accepted Countries

Futu only accepts traders from China, Hong Kong.

Payment Methods

• Wire Transfer
• Cheque

Futu Details

Compare Futu

Compare Futu with similar brokers that accept traders from your location. Among available brokers these are the most similar to Futu:

1. OANDA – OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is authorized by leading regulators, including the CFTC/NFA. Around the clock support is available, alongside flexible contract sizes and automated trade executions.
   Go to OANDA
2. Forex.com – Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they offer a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
   Go to Forex.com
3. Webull – Webull offers a popular online stock trading app with low fees and generous bonuses.
   Go to Webull

Futu Comparison Table

Compare Trading Instruments

Compare the markets and instruments offered by Futu and its competitors. Please note, some markets may only be available via CFDs or other derivatives.

Futu vs Other Brokers

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	Visit	Futu is a Chinese stock broker with a range of securities from Hong Kong, Chinese and US markets.
Futu is a Chinese stock broker with a range of securities from Hong Kong, Chinese and US markets.