Exchange Traded Funds (ETFs) are funds that are listed and traded on a stock exchange. Their main goal, depending on the type of ETF, is to either track the movements of an index through passive management, or outperform an index with active management.
When to/why invest in ETFs?
ETFs allow for investing in sectors and/or indices, providing less risk versus investing in a single company.
Like stocks, ETFs are traded on an exchange, providing higher liquidity and transparency
As ETFs may hold vastly different constituent funds, an investor has exposure to multiple companies by investing in one fund, mitigating concentration risk.
Drawbacks of ETFs
Some ETFs that track specific sectors may be influenced by large swings within that sector (eg. Oil)
Some ETFs that are not as actively traded may have high bid/ask spread
If one constituent stock is performing poorly, an investor cannot spin off that one stock within the ETF
What are the types of fees that I may be charged?
Unlike trading of shares, there is no stamp duty collected for ETFs, nor do we have a minimum charge for trades. We only charge commission at 0.08%, or 0.05% for day trading, and the transaction fees that HKEx charges.
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Terms and Conditions
This promotion begins on 1 April 2022 and remains effective until further notice.
This promotion is only applicable for online trading transaction.
Online buy transaction not more than HKD 30,000 (after the order is combined) of the same Hong Kong listed ETF on the same trading day enjoys HKD 0 commission.
Online day trade offer is only applicable to transactions of the same Hong Kong listed ETF within the same trading day. If the total buy amount of the ETF on the day is not more than HKD 30,000, the buy transaction will enjoy a $0 commission. If the total buyamount of the ETF on the day is more than HKD 30,000, the commission for the buy transaction is 0.05%. The commission for selling transaction is 0.05%.
The commission of ETF buy transaction more than HKD 30,000 is 0.08%.
This promotion is not applicable HK-listed ETF quoted in RMB currency.
The calculation of POEMS point for transactions under this promotion is HKD$2,000 of turnover = 1 POEMS point. Only online transactions involving in the list of ETF is affected.
The Company reserves the right to alter these terms and conditions without prior notice and has final and irrevocable discretion in case of dispute. Investment involves risks. Please refer to the Risk Disclosures Statement on our website at www.poems.com.hk.
$0 Commission for all online buy transactions with traded quantity≤15
Ultra-competitive US stock commission, commission as low as US$0.0099/share
$0Platform fee, $0 Custody fee, $0 Membership
Complimentary live prices for US stocks
USD margin loan interest rate as low as 3%(P-2.75%), trade up to 5x leverage with your US shares collateral
*For Online Transactions Only
Footnote: The margin ratio of stock is for reference only, which is subjected to change as determined by both the market and specific company factor. The company deserves the right to provide a different ratio to client based on his account situation.
Hotline: (852) 2277 6678 (Mon to Fri) Foreign Stock Department E-mail: email@example.com
Terms and Conditions of 0 Commission on US Trades
Effective from 03 January 2022 under further notice.
This promotion is only applicable for all online buy transactions (trades done via POEMS Mobile App / POEMS online platform) with traded quantity less than or equal to 15.
US Securities Regulatory Commission fees, clearing fees, and transaction activity fees will be charged separately.
This offer is not eligible to capital management customers, Investment immigration plan customers, Institutional Customers and corporate Customers, and customers who have enjoyed preferential rates.
Offline transactions (trades placed over the phone through Account Executive or Stock Dealer) are charged at 0.20% of Transaction amount for Transactions <US$15,000 or at 0.25% of Transaction amount for Transactions ≥US$15,000. Minimum US$20 per order. US$0.0099/share for stocks with traded price<US$5. 24-hour Global stocks trading hotline: +852 2277 6678