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Service registration related questions

  1. Who can enjoy HSBC's U.S. Stock Trading Service?
  2. What is product and service coverage for the US Stock Trading Service?
  3. Why do I need to submit a W-8BEN Form?
  4. How do I know if my country has an income tax treaty with the U.S. and what is the applicable withholding tax rate?
  5. What is the NYSE Market Data Agreement?
  6. Regarding the NYSE Market Data Agreement, one of the criteria for being classified as "Non-professional" subscribers is not being engaged as an investment advisor. What is the definition of "investment advisor"?
  7. What will happen if I am classified as a professional subscriber? Can I still trade U.S securities with HSBC?
  8. How long does it take to activate my U.S. Stock Trading Service after my W-8BEN Form and NYSE Market Data Agreement submission?
  9. How long is a W-8BEN Form valid for?
  10. Can I transfer my U.S. stock holdings from other brokers to HSBC?

Trading related questions

  1. What are the services fees for HSBC U.S. Stock Trading Service?
  2. What are the U.S. stock trading hours?
  3. Can I trade U.S. stock during Hong Kong public holidays?
  4. What trading channels are available for HSBC's U.S. Stock Trading Service?
  5. Can I place U.S. stock orders at any time?
  6. What U.S. equities can I trade through HSBC's U.S. Stock Trading Service?
  7. Is there any quick way to differentiate if an equity is a Common Stock, Preferred Shares, ADR or ETF?
  8. What is ADR?
  9. What are the order types that are available for HSBC U.S. Stock Trading?
  10. Can I place an order with any number of shares?
  11. What U.S. market information is available on Stock Express?
  12. Is U.S. stock trading related information displayed in U.S. time?
  13. How can I get the real-time quote for a specific stock?
  14. What is a symbol?
  15. What if I do not know the symbol of the stock I am interested in?
  16. What is the settlement currency for HSBC U.S. Stock Trading?
  17. Do I have to register for SMS notification for my U.S stock transactions?
  18. Can I opt out this SMS alert service?
  19. After a sell order is successfully completed, can I immediately use the sales proceeds to buy another stock?
  20. Will my U.S. instructions be executed in alternative trading venues?
  21. Can I choose to opt out alternative trading venues ("ATVs") for executing my U.S. securities instructions ?
  22. When is the settlement day for US stock transaction?
  23. Will my U.S. stock order not be submitted to a market for execution?

Corporate actions related question

  1. What are the services fees for HSBC U.S. Stock Trading Service?

Service registration related questions

1:Who can enjoy HSBC's U.S. Stock Trading Service?

HSBC's U.S. Stock Trading Service is eligible for non-U.S. personal customers with:

- a valid Investment Services account (which is attached to an HSBC Premier/ Advance / Personal Integrated Account account); and
- a valid identification document complying with U.S. tax requirements;(e.g. Hong Kong Permanent Identity Card, Hong Kong Identity Card* or passport); and
- a duly completed W-8BEN form (should submit together with the Return Sheet) and NYSE Market Data Agreement verified by the Bank.

In case there are any changes of customer's address or nationality, especially if the changes would lead to a change of withholding tax rate, customer should inform the Bank of such changes in writing as soon as possible. For your information, if a change in your detail results in a change in the withholding tax rate, all your outstanding U.S. stock orders or outstanding quantity of a U.S. stock order (if any) will be cancelled.

* For accounts opened before 1 Jan 2001 only

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2:What is product and service coverage for the US Stock Trading Service?

HSBC's US Stock Trading Service provides trading and custodian services for US stocks listed in NYSE (NYSE Equities Market), NASDAQ and AMEX (NYSE Amex Equities Market). Non-listed US securities are beyond our service scope.

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3:Why do I need to submit a W-8BEN Form?

The completion of the W-8BEN form (should submit together with the Return Sheet) is a requirement of the U.S. Internal Revenue Service (IRS). Non-U.S. persons are subject to U.S. tax (max 30%) on certain types of income received from U.S. sources, such as interest and dividends. (Guidance for Completion of W-8BEN form)

Non-U.S. persons are required to complete and submit a duly completed W-8BEN Form for the following main reasons:

- to establish that you are not a U.S. person; and
- to claim that you are the beneficiary of the US-sourced income for which the W-8BEN Form is provided; and
- to claim, if applicable, a reduced rate of, or exemption from, withholding tax by being a resident of a foreign country with which the United States has an income tax treaty.

If you would like to know more about the W-8BEN form, please refer to the following IRS website:

https://www.irs.gov/forms-pubs/about-form-w-8-ben

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4:How do I know if my country has an income tax treaty with the U.S. and what is the applicable withholding tax rate?

Please check with your tax adviser or refer to the following IRS website for more information:

https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z

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5:What is the NYSE Market Data Agreement?

The NYSE Market Data Agreement, also known as "Exhibit B Agreement For Market Data Display Services", relates to provision of market data by the New York Stock Exchange (NYSE). As required by NYSE, every retail customer must sign this agreement to confirm that he/she is a "non-professional" market data subscriber before obtaining access to the NYSE's market data.

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6:Regarding the NYSE Market Data Agreement, one of the criteria for being classified as "Non-professional" subscribers is not being engaged as an investment advisor. What is the definition of "investment advisor"?

In brief, "Investment adviser" means any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analyses or reports concerning securities. For more details please refer to the U.S. Securities and Exchange Commission ("SEC") website below, and you are strongly advised to seek professional advices when needed.

https://www.sec.gov/brokers-and-investment-advisers-tips-chairman-jay-clayton

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7:What will happen if I am classified as a professional subscriber? Can I still trade U.S securities with HSBC?

Yes, you can still trade U.S securities with HSBC but you will need to pay for all professional subscribers' related charges as levied by the U.S. Exchanges to you. For non-professional subscribers, customers can access all real-time U.S. market data free of charge on HSBC Stock Express.

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8:How long does it take to activate my U.S. Stock Trading Service after my W-8BEN Form and NYSE Market Data Agreement submission?

Under normal circumstances, if you submit a duly completed W-8BEN Form and NYSE Market Data Agreement to any HSBC branches in Hong Kong and have your integrated investment services account (account suffix 380) opened before noon (Hong Kong time 12:00pm), you may start placing orders upon the opening of the U.S. market on the same day.

* Saturdays are excluded. In addition, we may have an earlier cut off time during promotional periods. Please refer to our marketing materials for detailed information.

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9:How long is a W-8BEN Form valid for?

A W-8BEN Form is valid for a period starting from the date you sign the form to the last day of the third succeeding calendar year unless there is a change of circumstances requiring new W-8BEN form. e.g. A W-8BEN Form signed on 1 Jul 2010 remains valid through 31 Dec 2013.

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10:Can I transfer my U.S. stock holdings from other brokers to HSBC?

Yes, you are welcome to transfer stock holdings to HSBC and there will be no charges incurred from HSBC. Simply visit any of our branches in Hong Kong.

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Trading related questions

1:What are the services fees for HSBC U.S. Stock Trading Service?

Please refer to the following tariff table:

Service Charges
Trade-related services
Buying and selling shares
- Brokerage fee
   - trading through HSBC Stock Express /      HSBC Mobile Banking
      1st 1000 shares
      Over 1000 shares
   - trading through manned phonebanking
      1st 1000 shares
      Over 1000 shares
- SEC fee1 (for sell transaction only)

- French Financial Transaction Tax (FTT) – for purchase of eligible French companies listed in US as American Depository Receipt (ADR). Please refer to Euroclear France for latest eligible French company list.

- Italian Financial Transaction Tax (IFTT) – for purchase of eligible Italian companies with market capitalization more than Euro 500m and listed in US as ADR (Collected for Italian Government)

USD18(flat fee)
Flat fee + USD0.015 per additional share

USD38(flat fee)
Flat fee + USD0.015 per additional share

Please refer to the charges table under Stocks in www.hsbc.com.hk for further information.

Please refer to the charges table under Stocks in www.hsbc.com.hk for further information.



Please refer to the charges table under Stocks in www.hsbc.com.hk for further information.
Account maintenance services

- Maintenance Fee



USD5 per month2
(waived until 31 Dec 2017)
Online information services

- Online real-time price quote






- Investment order confirmation eAlerts


Free quote entitlement per month
HSBC Premier/Advance/Personal Integrated Account customers: 99,999 quotes3

Cost per additional quote
HK$0.1 per quote4


Free
Nominee service

- Collection of dividend and other corporate actons


Free5
Script handling and settlement-related services
-Receipt
-Delivery

Free5
USD150 per line of stock
American Depository Receipt (ADR) Fee USD0.01 - 0.05 per share6
1SEC fee is subject to review by U.S. Securities Commission (SEC) from time to time.
2Maintenance Fee is waived until 31 Dec 2017. Customers are also entitled to Maintenance fee waiver afterwards for one month if he / she has conducted at least 1 U.S. stock buy or sell transaction during that month.
3All unused quotes will not be carried forward.
4The fee incurred will be debited from your designated or default charge account on the 4th / 5th working day of the following month, depending on the account type and is payable upon closure of accounts where the account is closed before the payment date.
5Customers will need to pay if there is any out of pocket cost incurred.
6Customers holding ADRs may be charged ADR fee regularly (e.g. annually) by the Depository Receipts Agent through HSBC. Fees will be automatically deducted from your HSBC Integrated Account(s) and shown on your statement(s) as "ADR fee". ADR fee is subject to the final confirmation from the Depository Receipts Agent and the captioned price range is for reference only.

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2:What are the U.S. stock trading hours?

U.S. Eastern Time* 9:30 am - 4:00 pm
H.K. Time* 9:30 pm - 4:00 am (Summer Time)#
10:30 pm - 5:00 am (Winter Time)#

*with no lunch break

#The U.S. begins Summer Time at 2:00am local time on the second Sunday in March and reverts to Winter Time at 2:00am local time on the first Sunday in November.

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3:Can I trade U.S. stock during Hong Kong public holidays?

As long as U.S. stock markets are open, you can trade U.S. stocks as usual during Hong Kong public holidays and even when typhoon signal no.8 or black rainstorm is hoisted in Hong Kong.


Note

1. U.S. Stock Trading Service via phonebanking hotlines is applicable to HSBC Premier & Advance Customers only. HSBC Personal Integrated Account customers are welcome to logon to HSBC Stock Express or HSBC Mobile Banking for Online U.S. Stock Trading Service. To enquire about the services, they can call (852) 2233 3000 during 9:00-1730, from Monday to Saturday (Hong Kong business days only)

2. HSBC One Customers are required to register for HSBC Personal Internet Banking Services for Online U.S. Stock Trading Service. During severe weather condition in Hong Kong, U.S. Stock Trading Service via phonebanking hotlines is applicable to HSBC Premier Customers only.

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4:

What trading channels are available for HSBC's U.S. Stock Trading Service?

You can trade U.S. stocks through the following channels:
HSBC Stock Express 24 hours services
HSBC Mobile Banking
HSBC Phonebanking Hotlines* HSBC Premier - 2233 3322 (24 hours services)
HSBC One - 2233 3000 (24 hours services)

*U.S. Stock Trading Service via phonebanking hotlines is applicable to HSBC Premier & Advance Customers only. HSBC Personal Integrated Account customers are welcome to logon to HSBC Stock Express or HSBC Mobile Banking for Online U.S. Stock Trading Service. To enquire about the services, they can call (852) 2233 3000 during 9:00-1730, from Monday to Saturday (Hong Kong business days only)

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5:Can I place U.S. stock orders at any time?

Yes, you can place U.S. stock orders via HSBC Stock Express, HSBC Mobile Banking and our Phonebanking Hotlines* 24 hours a day, 7 days a week. Details are as follows:

Limit order & Sell Stop limit order#: any time
Market order: during U.S. trading hours

*U.S. Stock Trading Service via phonebanking hotlines is applicable to HSBC Premier & Advance Customers only. HSBC Personal Integrated Account customers are welcome to logon to HSBC Stock Express or HSBC Mobile Banking for Online U.S. Stock Trading Service. To enquire about the services, they can call (852) 2233 3000 during 9:00-1730, from Monday to Saturday (Hong Kong business days only)

#Sell stop limit order is only available at HSBC Stock Express

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6:What U.S. equities can I trade through HSBC's U.S. Stock Trading Service?

You can trade Common Stocks, Preferred Shares, ETFs and ADRs traded on NYSE (NYSE Equities market), AMEX (NYSE Amex equities market) and National Association of Securities Dealers Automated Quotations (NASDAQ).

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7:Is there any quick way to differentiate if an equity is a Common Stock, Preferred Shares, ADR or ETF?

Yes. When you input the name or keyword of an U.S. equity into the box next to "Enter a Symbol" on Stock Express, you will see a list of relevant equities, together with the relevant symbols, company names and the relevant exchanges. You can usually determine the asset types using the last three characters of the company names - ORD, PRF and ETF stand for Common Stock, Preferred Shares and ETF respectively. For ADRs, you will find "ADR" in the company names and the last three characters will show "ORD"

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8:What is ADR?

ADR stands for American Depositary Receipt. In U.S. stock markets, ADRs allow investors to indirectly invest in non-U.S. companies in the form of depositary receipts. Several popular listed companies in Hong Kong have ADRs trading in U.S stock markets, for example, "HBC" is the ADR of HSBC trading in NYSE.

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9:What are the order types that are available for HSBC U.S. Stock Trading?

We currently offer Limit Order and Market Order through both HSBC Stock Express and Phonebanking channels.

Limit Order
Limit Order is an instruction that allows you to specify your highest purchase price or lowest selling price. You can place a U.S. stock limit order valid for up to 14 calendar days.

Market Order
Market Order is an instruction that allows you to buy/sell stock at the prevailing bid/ask price of the stock. Market order can be placed during U.S. Stock trading hours and only day order is allowed.

Unlike market order in H.K stock trading, any unfilled quantity of your U.S. stock market order will remain outstanding in the market. As a result, the final execution price may differ widely from the last traded price at the time of order placement, especially for some illiquid stocks. To manage your risk, you are always suggested to check the order status for execution results right after your order placement and to consider cancelling any unfilled quantity if necessary.

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10:Can I place an order with any number of shares?

Yes, you can place an order with a minimum of one share for most securities.

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11:What U.S. market information is available on Stock Express?

You can access to a wide range of information on HSBC Stock Express enabling you to make an informative investment decisions, including real-time stock quotes (equities trading at the 3 major U.S. stock exchanges), latest market news, Thomson Reuters Stock Report + for designated stocks, and major U.S. indices.

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12:Is U.S. stock trading related information displayed in U.S. time?

All U.S. stock orders/transactions details on HSBC Stock Express are displayed in "ET", which refers to the Eastern Time zone of U.S.

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13:How can I get the real-time quote for a specific stock?

Through HSBC Stock Express, you can easily get real-time quotes for U.S. stocks. Simply input the symbol of the stock into the box next to "Enter a Symbol" and then click "Quote".

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14:What is a symbol?

In U.S. stock trading, symbols are short but unique abbreviations of stocks traded on stock markets, similar to stock codes in H.K stock trading. For example, "HBC" is the symbol of HSBC Holdings trading in NYSE.

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15:What if I do not know the symbol of the stock I am interested in?

Simply input the name/keyword of the stock into the box next to "Enter a Symbol" on HSBC Stock Express. You will then see a list of relevant stocks.

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16:What is the settlement currency for HSBC U.S. Stock Trading?

Your U.S. stock trading transactions will be settled in U.S. dollars. For your convenience, you may consider transferring a certain amount of fund into your default settlement account (U.S. dollar savings account) at the time you register for U.S. Stock Trading Service.

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17:Do I have to register for SMS notification for my U.S stock transactions?

No, prior registration is not required. SMS notification is sent to customers free of charge. Customers with valid local or overseas mobile phone numbers will receive SMS notification once your order execution result is confirmed. It is a 24-hour notification to adhere the US Stock Market which helps you to manage the trading timely.

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18:Can I opt out this SMS alert service?

Please understand that the SMS about investment trade execution result is to help identify potential unauthorized activities. SMS alert forms part of our investment account service package and cannot be opted out.

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19:After a sell order is successfully completed, can I immediately use the sales proceeds to buy another stock?

No, due to U.S. regulatory restrictions, trading with receivable sales proceeds is not allowed for cash account.

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20:Will my U.S. instructions be executed in alternative trading venues?
In respect of orders for securities listed on stock exchanges outside of Hong Kong, it is our existing practices that the Bank may transmit your orders to affiliated HSBC entities and third party brokers for execution, who may, subject to local regulation, execute such orders on alternative trading venues ("ATVs"), including dark pools.
The primary potential benefits for using ATVs is to achieve better pricing and to reduce transaction costs. In general, ATVs and ATV operators are subject to regulations which are not necessarily the same as regulations that are applicable to exchanges and exchange operators. A typical feature of ATVs is that there is no pre-trade transparency. The reference prices on an ATV could be "stale" or out-of-date due to latency from data feeds. Separately, access to ATVs is usually restricted and there could be less supply and/or demand on an ATV (as compared to the supply and/or demand on an exchange) due to the limited number of participants.
Our affiliated HSBC entities and third party brokers generally consider the execution price and opportunities for price improvement when deciding the appropriate venue for executing orders. There may also be other factors in their consideration, for example (i) market depth and order size; (ii) the trading characteristics of the security; (iii) speed and accuracy of executions; (iv) the availability of efficient and reliable order handling systems; (v) liquidity and automatic execution guarantees; (vi) service levels; (vii) the cost of executing orders; and (viii) execution certainty. The Bank will continue to monitor and evaluate the execution practices of our affiliated HSBC entities and third party brokers.

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21:Can I choose to opt out alternative trading venues ("ATVs") for executing my U.S. securities instructions?
Customers cannot choose to opt out ATVs but please rest assure that execution would have been reviewed and have adopted the applicable local regulatory requirements. The Bank will continue to monitor and evaluate the execution practices of our affiliated HSBC entities and third party brokers.

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22:When is the settlement day for US stock transaction?
Effective 5 September 2017, settlement day of the US securities markets is 2 business days after trade execution day (T+2). For buy orders, debit of the purchase amount from your account and deposit of the purchased securities will take place 2 business days after trade execution day. For sell orders, sales proceeds will be credited to your account 2 business days after sale execution day.
Note: Actual settlement date is subject to market arrangement which maybe beyond the stated date due to time zone difference, different lead time required or suspension of business or trading.

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23:Will my U.S. stock order not be submitted to a market for execution?
In respect of orders for securities listed on stock exchanges outside of Hong Kong, it is our existing practices that we may transmit your orders to relevant brokers for execution. Under certain circumstances whenever the relevant broker determines that it is appropriate and in the interest of a fair and orderly market to protect investors and comply with applicable local regulation/exchange trading rules/market requirements as appropriate, the broker may not proceed to execute your instruction in the exchange/alternative trading venues without prior notice to you. If order is rejected, the order status will become 'unexecuted'. Please be reminded to check the latest order status through the 'Order Status' screen after you have placed a new order, an amendment or a cancellation instruction.

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Trading related questions

1:When will the payment (e.g. dividend) of US stock be received?
The payment(if any, e.g. dividend) will be distributed to your account once we receive the payment from relevant custodian of the respective US stock. The receipt of payment may sometimes occur beyond the date of payment as announced in the relevant market due to :
- time zone difference as paying agent/custodian usually located in US time zone
- the timing of confirmation by the relevant paying agent/custodian
This is in line with market practice.

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