Wo Fung Securities

Wo Fung Securities
WikiStock Rating	⭐⭐⭐⭐
Account Minimum	N/A
Trading Fees	Brokerage fee: 0.25% - 0.5% of transaction amount (min HK$100)
Account Related Fees	Account Opening, Re-opening, or Cancellation: FreeDepositing physical stocks incurs a HKD5 stamp duty per transfer deed. Withdrawing physical stocks costs HKD5 per board lot, with a minimum charge of HKD30.Registration Fee for Physical Share Certificates: HK$60
Interests on Uninvested Cash	N/A
Margin Interest Rates	Prime rate (according to Wing Hang Bank) + 3.75%
Mutual Funds Offered	No
App/Platform	Web-based platform TRADER
Promotion	N/A

Wo Fung Securities Information

　　Wo Fung Securities is a regulated brokerage firm based in Hong Kong, authorized by the Securities and Futures Commission (SFC). It offers trading services primarily for securities listed on the Hong Kong Stock Exchange, serving both individual and institutional investors. Wo Fung Securities charges brokerage fees ranging from 0.25% to 0.5% per trade with a minimum fee of HK$100, along with additional fees like stamp duty and transaction levies. It provides a web-based trading platform.

Pros and Cons

　　Wo Fung Securities offers several advantages, including being regulated by the Securities and Futures Commission (SFC), ensuring compliance with stringent financial regulations in Hong Kong. This regulatory oversight provides a layer of security and trust for investors, knowing that their investments are managed within a regulated framework. Additionally, Wo Fung Securities provides secure clearing and custody services, which is crucial for safeguarding clients' assets against operational risks.

　　However, there are notable drawbacks to consider. One of the significant concerns is the higher brokerage fees charged by Wo Fung Securities, ranging from 0.25% to 0.5% per trade with a minimum fee of HK$100. This fee structure deters cost-conscious investors looking for lower-cost trading options. Another drawback is the absence of a mobile trading app, which limits the convenience and accessibility of trading on-the-go, especially in a market where mobile platforms are increasingly popular. Additionally, the firm lacks educational resources, which could be seen as a missed opportunity to support clients with market insights and investment knowledge.

Is Wo Fung Securities Safe？

• 　　Regulations:

　　Wo Fung Securities is a regulated financial institution under the jurisdiction of the Securities and Futures Commission (SFC) of Hong Kong. The company holds a specific license, designated as “ACS876,” which authorizes it to engage in securities trading activities. This regulatory framework ensures that Wo Fung Securities operates in compliance with Hong Kong's financial and legal standards.



• 　　Funds Safety:

　　Customer account balances held at Wo Fung Securities are not typically insured under a deposit protection scheme like those seen in banking institutions.

• 　　Safety Measures:

　　Wo Fung Securities implements robust security measures to protect client assets and information. The firm employs secure clearing and custody services to safeguard client funds and securities against operational risks. Additionally, Wo Fung Securities employs advanced encryption technologies to secure online transactions and client communications.

What are Securities to Trade with Wo Fung Securities？

　　Wo Fung Securities offers a range of tradable securities to its clients. These include stocks and shares listed on the Hong Kong Stock Exchange, providing direct access to this major financial market.

　　As an Exchange Participant with two trading rights (Broker numbers: 3938, 3939), Wo Fung Securities facilitates the buying and selling of these securities. The firm also conducts Type 1 (dealing in securities) regulated activities under the license from the Securities and Futures Commission.



Wo Fung Securities Accounts

　　Wo Fung Securities offers different types of accounts designed to suit various investor needs. The two primary account types available are the Cash Securities Trading Account and the Margin Securities Trading Account.

　　Cash Securities Trading Account

　　The Cash Securities Trading Account is ideal for individuals or joint account holders who prefer to trade securities using only the available funds in their account. This type of account is straightforward and suitable for investors who wish to avoid the risks associated with borrowing funds. It's particularly well-suited for those who prefer to maintain full control over their spending limits, as trades are limited to the amount of cash deposited.

　　Margin Securities Trading Account

　　The Margin Securities Trading Account offers an option for investors who seek to leverage their investments by borrowing funds to increase their purchasing power. This account type is suitable for more experienced traders who are comfortable with the additional risks and potential rewards of margin trading. Investors using a margin account can trade beyond their cash balance, making it possible to amplify both gains and losses. This account type is often chosen by those looking to engage in more aggressive trading strategies or by those who want to take advantage of short-term market opportunities.



Wo Fung Securities Fees Review

• 　　Commissions and Fees

　　Securities Trading

• 　　Brokerage Fee: For trading securities through Wo Fung Securities, the brokerage fee is set between 0.25% and 0.5% of the transaction amount, with a minimum charge of HK$100.

• 　　Stamp Duty: A stamp duty of 0.1% is levied on the transaction amount, rounded up to the nearest dollar.

• 　　CCASS Fee: The Central Clearing and Settlement System (CCASS) fee is 0.002% of the transaction amount, with a minimum charge of HK$2.

• 　　Transaction Levy (SFC): The Securities and Futures Commission (SFC) imposes a transaction levy of 0.003% on the transaction amount.

• 　　HKEX Trading Fee: Trades executed on the Hong Kong Stock Exchange (HKEX) incur a trading fee of 0.005% of the transaction amount.

• 　　Italian Financial Transaction Tax (IFTT): For trades involving Italian companies with a market capitalization of more than €500 million listed in Hong Kong, a tax of 0.22% on the net purchase amount applies. This tax is calculated based on the weighted average purchase price and the net purchase share quantity executed on the same day.

　　Account-Related Fees

• 　　Account Opening, Re-opening, or Cancellation: There are no charges for opening, re-opening, or canceling a cash or margin account with Wo Fung Securities.

• 　　Physical Stock Deposit and Withdrawal: Depositing physical stocks incurs a HKD5 stamp duty per transfer deed. Withdrawing physical stocks costs HKD5 per board lot, with a minimum charge of HKD30. For withdrawals of 100 board lots or more, the fee is HKD4 per board lot.

• 　　Registration Fee for Physical Share Certificates: The handling charge is HK$60 for different locations of registrar companies, with an additional transfer fee of HK$2.5 per physical scrip as charged by the registrars.

• 　　Scrip Handling and Settlement: Depositing securities through Standard Instructions (SI) is free, but withdrawing them costs HK$100 per transaction. Using Investor Self-Instructions (ISI), both deposit and withdrawal are free.

• 　　Cash Dividend Collection Fee: A fee of 0.12% of the dividend amount is charged by CCASS, with an additional handling charge of 0.5% of the dividend amount (minimum HK$20, maximum HK$300), plus HK$2 per board lot.

• 　　Cash + Scrip Dividend Collection Fee: This service incurs a handling charge of HK$30 per transaction, plus any applicable CCASS fees.

• 　　Exercise of Warrants / Rights: The handling charge for exercising warrants or rights is HK$40, plus applicable CCASS fees.

• 　　Rights Issue Entitlement and Related Services: This includes handling fees of HK$40 per transaction plus CCASS fees for rights issues, excess rights applications, preferential offers, and open offers.

• 　　Cash or Scrip Offer / Compulsory Acquisition / Takeover / Shares Privatization: A handling charge of HK$40 per transaction, in addition to CCASS fees, applies to these corporate actions.

• 　　Callable Bull / Bear Contracts: Exercising or mandatory calling of callable bull or bear contracts incurs a handling charge of HK$60, plus CCASS fees.

• 　　Shares Consolidation / Splitting / Exchange: There are no charges for these services.

• 　　EIPO Nominee Services Application: A handling charge of HK$30 per application is required, regardless of the success of the application.

• 　　Stock Storage Fee: An annual fee of HK$160 is charged, which is waived if at least one trade is conducted within the year.

• 　　Dividend Claims: A handling charge of HK$300 per claim, plus any applicable CCASS fees, is required for dividend claims.

• 　　Investment Order Confirmation or Monthly Statement Re-issue: Statements or confirmations issued within the last three months are free of charge. For those older than three months, a fee of HK$20 per month is charged.

• 　　Late Value Day Interest Rate: Interest on late payments is charged at the prime rate set by Wing Hang Bank plus 3.75%.

　　Compared to popular brokers, Wo Fung Securities' brokerage fee of 0.25% to 0.5% is on the higher side. In general, brokers that charge less than 0.1% are considered to have low commissions. Therefore, Wo Fung Securities' fees are above average and could be classified as high, especially for lower-value trades where the percentage significantly impacts the total cost.

Fee Type	Fee
Brokerage Fee	0.25% - 0.5% of transaction amount (min HK$100)
Stamp Duty	0.1% of transaction amount (rounded up)
CCASS Fee	0.002% of transaction amount (min HK$2)
Transaction Levy (SFC)	0.003% of transaction amount
HKEX Trading Fee	0.005% of transaction amount
Italian Financial Transaction Tax (IFTT)	0.22% of net purchase amount
Account Opening, Re-opening, or Cancellation	Free of charge
Physical Stock Deposit	HK$5 stamp duty per transfer deed
Physical Stock Withdrawal	HK$5 per board lot (min HK$30) or HK$4 per board lot for 100 lots or more
Registration Fee for Physical Share Certificates	HK$60 handling + HK$2.5 transfer fee per physical scrip
Scrip Handling and Settlement (through SI)	Deposit: Free; Withdrawal: HK$100 per transaction
Scrip Handling and Settlement (through ISI)	Free for both deposit and withdrawal
Cash Dividend Collection Fee	0.12% CCASS Fee + 0.5% handling (min HK$20, max HK$300) + HK$2 per board lot
Cash + Scrip Dividend Collection Fee	HK$30 per transaction + CCASS Fee
Exercise of Warrants / Rights	HK$40 handling + CCASS Fee
Rights Issue Entitlement and Related Services	HK$40 handling + CCASS Fee
Cash or Scrip Offer / Compulsory Acquisition / Takeover / Shares Privatization	HK$40 handling + CCASS Fee
Callable Bull / Bear Contracts	HK$60 handling + CCASS Fee
Shares Consolidation / Splitting / Exchange	Free
EIPO Nominee Services Application	HK$30 per application
Stock Storage Fee	HK$160 per annum (waived with one trade per year)
Dividend Claims	HK$300 handling + CCASS Fee
Investment Order Confirmation or Monthly Statement Re-issue	Free within 3 months; HK$20 per month for older records
Late Value Day Interest Rate	Prime rate + 3.75%



• 　　Margin Interest Rate

　　Wo Fung Securities' margin interest rate is calculated as the prime rate, based on Wing Hang Bank's rate, plus an additional 3.75%. This formula determines the late value day interest rate applicable to margin accounts, influencing the cost of borrowing funds for leveraging investments through the firm.



Wo Fung Securities Trading Platform Review

　　Wo Fung Securities provides a web-based trading platform known as I TRADER. This platform is designed for users who prefer to trade directly from their web browser without the need for additional software downloads. Key features of I TRADER include real-time market data and interactive charts, which allow users to monitor and analyze stock performance effectively. The platform supports order placement and management, enabling clients to execute trades quickly and efficiently. Additionally, I TRADER offers access to comprehensive financial news and research tools, providing users with relevant information to make informed trading decisions.

　　The absence of a mobile app means that users must rely on a web browser to access their accounts, which is less convenient for those who prefer trading on the go.



Customer Service

　　Wo Fung Securities provides customer support via phone, fax, and email. You can reach them at +852 2542-1128 for phone inquiries or send a fax to +852 2541-3535. For email support, contact wofungco@netvigator.com.

　　Their office is located at 2/F Siu Ying Commercial Building, 153 Queens Road Central, Hong Kong. Customer service is available from 9:00 a.m. to 5:30 p.m., Monday to Friday, and on Saturdays from 10:00 a.m. to 12 noon (by appointment).



Conclusion

　　In conclusion, Wo Fung Securities presents itself as a regulated and secure option for investors in Hong Kong seeking reliable brokerage services. While it did not offer the lowest trading fees or a mobile trading app, its adherence to SFC regulations ensures a robust framework for managing investments.

　　The platform, with its web-based trading interface, suits investors who prioritize regulatory compliance and value comprehensive customer support over advanced technological features. It is particularly suitable for individuals and institutions familiar with traditional web-based trading platforms and who prioritize stability and security in their investment dealings within Hong Kong's financial markets.

FAQs

• 　　Is Wo Fung Securities a safe platform to trade on？

• 　　Wo Fung Securities is regulated by the Securities and Futures Commission (SFC) of Hong Kong, ensuring it operates within legal standards, making it a safe option for trading.

• 　　Is Wo Fung Securities a good platform for beginners？

• 　　Wo Fung Securities offers comprehensive customer support and a straightforward web-based trading platform, which can be beneficial for beginners starting their investment journey.

• 　　Is Wo Fung Securities a legitimate platform？

• 　　Yes, Wo Fung Securities is a legitimate brokerage firm regulated by the SFC in Hong Kong, providing assurance of its legality and compliance with financial regulations.

• 　　Is Wo Fung Securities good for investing or retirement planning？

• 　　Wo Fung Securities can be suitable for investing, offering access to Hong Kong Stock Exchange securities. However, individuals planning for retirement may prefer platforms with more comprehensive retirement planning tools and resources.

Risk Warning

　　The information provided is based on WikiStock's expert evaluation of the brokerage's website data and is subject to change. Besides, online trading entails substantial risks, potentially leading to total loss of invested funds, so comprehending associated risks before engaging is crucial.