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Frequently Asked Questions

Questions: Investments

Questions: Bonds

Questions:iBond

Questions: Overseas Securities Service

Questions:US Stock

Questions: Stocks Monthly Investment Plan

Questions: Unit Trusts

Questions: Structured Products

Questions: Deposit Plus

Questions: Foreign Exchange

Questions: IPOs

Questions: Marginal FX(Business FAQ)

Questions: Marginal FX (Technical FAQ)

Questions: Others


Investments

A1: What affects the value of money?

Money has a tendency to lose its value over time because the price of goods and services has an upward tendency. This is called inflation. Here are some factors that could eat away your money:

  • Inflation. Simply, inflation occurs when the price of goods and services rises. And when prices rise, people will ask for a rise in salary. That's why the money you earn today will be worth less 10 years from now.
  • Interest rate fluctuations. A drop in interest rates means a smaller return on your deposits, and if the interest rate is lower than the rate of inflation, your savings lose value. But for some investments, such as equities and bonds, the value of your investment may rise because of the drop in interest rates.

Therefore it is crucial that you have a financial plan to protect your future and to put your money where it generates reasonable returns to meet your needs.

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A2: When should I start planning for the future?

The sooner you start, the better. The example below shows the difference in accumulative savings between Mr. Early and Mr. Late, who start saving at different times.
Mr. Early saves for 10 years and then stops. Mr. Late starts 10 years later and also saves for 10 years. But Mr. Early gets 63% more than Mr. Late (based upon 5% annual growth, not taking into account annual inflation).



Year Savings Accumulation Savings Accumulation
1 1,000 1,050 0 0
2 1,000 2,153 0 0
3 1,000 3,310 0 0
4 1,000 4,526 0 0
5 1,000 5,802 0 0
6 1,000 7,142 0 0
7 1,000 8,549 0 0
8 1,000 10,027 0 0
9 1,000 11,578 0 0
10 1,000 13,207 0 0
11 0 13,867 1,000 1,050
12 0 14,560 1,000 2,153
13 0 15,289 1,000 3,310
14 0 16,053 1,000 4,526
15 0 16,856 1,000 5,802
16 0 17,698 1,000 7,142
17 0 18,583 1,000 8,549
18 0 19,512 1,000 10,027
19 0 20,488 1,000 11,578
20 0 21,512 1,000 13,207

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A3: What types of financial tools can I invest my money in?

A: You can choose from a range of different financial tools:

Traditionally, savings or time deposits are the safest place to put your money, but often offer lower rates of interest. Investment products usually offer potentially higher returns but with a greater risk.

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A4: How can I set up an investment account?

You can open an investment account online in most circumstances. You must maintain a personal banking account with HSBC before s/he ca open an investment account online.

Alternatively you can also open an investment account at our branches. If you wish to open a joint account, you can only do so at our branches.

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A5: Is there any fee to be charged?

Opening an investment account does not incur any fees. However, there may be other account fees applicable depending on the nature of the account and the products held in the account. Besides, there may be transaction fees involved when you buy or sell investment products. Please consult our staff should you have any queries.

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Bonds

A1: What are bonds?

Bonds are credit notes issued by governments, corporations or other issuers to bondholders. As a bondholder, you are extending credit to these issuers and they are obligated to repay the redemption value of the bond upon maturity, as well as a rate of interest during the life of the bond. There are many types of bonds from different issuers that vary in their terms. Some examples include the fixed rate bond, floating rate bond, zero coupon bond and convertible bond as well as Certificates of Deposit (CDs).
In general, bonds and CDs offer comparatively safe returns. At HSBC, we currently offer bonds and CDs issued by governments including PRC, US and HKSAR, local quasigovernment bodies, supranationals and well-known corporations around the world denominated in major currencies. There is also a wide selection of tenors or terms from which to choose, i.e., from 1 to 30 years with various benchmark yields. The minimum investment amount can be as low as HKD10,000.

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A2: How can I benefit from bond investments?

  • Regular income
    Bonds deliver stable and predictable coupons as streams of income. Bonds also offer predictable repayment of principal at maturity.
  • Yield Enhancement
    Bond yields are usually higher than time deposit rates with similar maturity.
  • Capital Gain Potential
    You can also benefit from capital appreciation if bond prices move up.
  • Risk Diversification Tool
    Bonds exhibit low correlation to other asset classes, hence the inclusion of bonds can bring relative stability to a portfolio.

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A3: What types of bond are available through HSBC?

HSBC offers you a full range of investment grade or equivalent bonds including RMB dimsum bonds, Government Bonds and Corporate Bonds with wide ranges of major currencies selections and tenors ranging from 1 to 30 years. Investment amount can be as low as HKD10,000.

Bonds from HSBC can be categorised by:

  • types of issuers - corporate bonds, supranational bonds and government/quasi-government bonds
  • coupon - fixed rate bonds, floating rate bonds and zero-coupon bonds
  • credit quality - investment grade bonds
  • currency - HKD, USD, AUD, CAD, CNY, EUR, GBP, NZD and SGD

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A4: Do I need a large sum of money to invest in bonds?

HSBC lets you invest in a wide range of bonds with a minimum investment amount of HK$10,000++.

++Please note the minimum and incremental investment amount varies from bond to bond. Please consult us for more details.

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A5: How can I trade bonds with HSBC?

You can now trade bonds via HSBC Internet Banking. Our one-stop online platform offers bond IPO subscription and secondary market trading services.
If you already have an HSBC Investment Services/Securities account, you can simply log on and execute your bond order with us. We also offer bond trading services through our branches and investment phonebanking service. To open an Investment Services/Securities account, simply visit www.hsbc.com.hk any time or visit any HSBC branch in Hong Kong.

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A6: Do I have to hold bonds until maturity?

HSBC will repurchase the bonds purchased through us based on the prevailing market price under normal circumstances thus you may not hold the bonds until maturity. Customer's selling price may differ from the original buying price due to changes in market condition. You could lose part or all of your investment if you choose to sell the bonds prior to maturity.

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A7: What if I need cash but the current selling price for my bonds is not favourable?

HSBC can offer you a loan at preferential rates of up to 70% the value of your bonds. Please consult us for details.

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A8: How can I collect my interest payments?

All bonds purchased through HSBC are under our custody and nominee service. So just sit back and we'll ensure all interest earned is credited to your settlement account on the coupon payment date.

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A9: What do Moody's and Standard and Poor's credit ratings represent?

They refer to the ability of the bond issuer to repay the value and interest to bondholders. Moody's and Standard and Poor's are the best known international credit rating agencies. Ratings are assigned based on the bond issuer's financial strength and past record of debt repayment. In general, the higher the credit rating, the lower the risk of default and the interest offered.

Moody's S&P Rating
Aaa AAA Highest quality
Aa AA High quality
A A Upper medium quality
Baa BBB Medium quality
Ba BB Somewhat speculative
B B Low grade, speculative
Caa CCC Low grade, highly speculative
Ca CC Low grade, most speculative
C C Default

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A10: What are the service charges for trading bonds?

Service Handling fees
Safe custody Waived
Interest Collection Waived
Redemption at maturity Waived
Transfer
(into or out of HSBC)
Through Central Money Market Unit (CMU): HKD500 per note/bond per transfer
Through Euroclear/other overseas clearing houses/bank: HKD1,000 per note/bond per transfer

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A11: What are the risks in Bonds?

Bonds involves the following risks (including but not limited to):

Interest Rate Risks

  • Refers to the potential loss in the bond value as a result of a rise in term interest rate. However, there is no impact if planning to hold bond to maturity.
  • Causes of term interest rate increase can be central bank policy hike to manage inflation, increase in issuance size in a particular tenor and reduced demand in that tenor.
  • The longer the maturity of a bond, the higher the interest rate risk.
  • Bond investors can consider mitigating interest rate risk by investing in floating rate bonds/ notes.

Credit Risk

  • Refers to the potential loss in the bond value as a result of either a downgrade of the issuer's credit rating or the market's perception of the issuer's credit worthiness and its ability to meet its financial obligations. However, there is no impact if planning to hold a bond to maturity.
  • Bond investors can consider mitigating credit risk by investing in bonds of higher risk rating.

Default Risk

  • Refers to the potential total loss in the bond value as a result of the issuer going bankrupt.
  • Bond investors can consider mitigating credit risk by investing in bonds of higher risk rating.

Liquidity Risk

  • Refers to investors may have difficulty finding a buyer when they want to sell and may be forced to sell at a significant discount to market value.
  • Liquidity risk is greater for thinly traded securities such as lower-rated bonds, bonds that were part of a small issue, bonds that have recently had their credit rating downgraded or bonds sold by an infrequent issuer. Bonds are generally the most liquid during the period right after issuance when the typical bond has the highest trading volume.
  • It is often reflected in wider spread between the bid and offer price of the bond.

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A12: Will the bank provide me with regular statements of my Bond investment?

Yes, HSBC will provide contract note to you in every Bond transaction and you can also find your Bond investment record in the monthly consolidated statement (if applicable).

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iBond

A1: Why my allotted iBond holding in HSBC is settled in CMU?

According to the iBond Issue Circular, if a customer applied iBond via placing Bank, the allotted iBond will be held through Central Moneymarkets Units (CMU), a debt securities custodian. The allotted iBond can be traded at Over-the Counter (OTC) through the Bank's Bond Trading Services.

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A2: How can I sell the allotted HKSAR Government iBond from IPO via HSBC for Over-the-Counter (OTC) trading?

You can sell the allotted iBond instantly during trading hours through our OTC trading service, Online Bond Trading Services (click "Investments" on internet banking, then "Bonds/Certificates of Deposit", click "My portfolio"). You can also call our phonebanking or visit any branches for selling of iBond through our OTC Bond Trading Service. No extra fees and charges applied.

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A3: If I want to sell the allotted iBond via Hong Kong Exchanges and Clearing Limited (HKEx), how can I do it?

You need to transfer the iBond to Central Clearing and Settlement System(CCASS) by filling in a transfer request form at branches. It normally takes 3 business days (if request is received before noon) to complete the transfer before you can sell through HKEx. Please note the transfer fee is HKD100. (Such fee also applies for iBond transfer from Central Clearing and Settlement System (CCASS) to Central Moneymarkets Units (CMU).) Selling of the iBond via the stock trading platform is subject to fees and charges of stock trading services including brokerage fee, deposit charge (purchase order only), Securities and Futures Commission transaction levy, investor compensation levy and Hong Kong Exchanges and Clearing Limited trading fee (details as illustrated in Q4. below).

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A4: What is the difference between selling iBond via the Bank's Online Bond Trading Service (i.e. OTC) and HKEx?

The major differences are the iBond transfer leadtime and the costs involved which are summarized below:

via OTC(trading outside the Stock Exchange) through our Bond Trading Platform via the Stock Exchange
Trading of allotted iBond Instantly Upon completion of transfer iBond to Central Clearing and Settlement System(CCAS) of which 3 Business days are required. (only support same name transfer).
Service fee is HK$100. (Such fee also applies for iBond transfer from Central Clearing and Settlement System (CCASS) to Central Moneymarkets Units (CMU))
Costs on trading According to bid/ask price. No other fees. Brokerage fee 0.25% to 0.5% (depends on trading channels); minimum HK$100.
Trading fee : 0.005%
Transaction levy : 0.003%
Deposit charge for purchase order: HK$5/lot; minimum HK$30, maximum $200.
Settlement T+1 T+2
Holding the iBond No other fees Safe custody fee: HK$25 monthly (for Premier, Advance and SmartVantage / HK$30 for other general accounts)
Dividend collection : 0.5% of dividend amount; minimum HK$ 30, maximum HK$2,500
Redemption at maturity : minimum 0.5% of Principal Amount or HK$30, maximum HK$2,500

For details of fees/charges/levy, please refer to the Local Securities Service Charges at www.hsbc.com.hk

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A5: How can I transfer the allotted iBond to Central Clearing and Settlement System(CCASS) for trading at Stock Exchange ?

You can visit any branch and fill in a transfer request form. It normally takes 3 business days to complete the transfer if request is received by the bank before noon. A service fee of HK$ 100 will be charged. (Such fee also applies for iBond transfer from Central Clearing and Settlement System (CCASS) to Central Moneymarkets Units (CMU).) Upon completion of transfer, the iBond holding will be held under the respective stock code for trading via HKEx.

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A6: Is there a price difference between the iBond offered by the Bank's Bond Trading Services (or Over-The-Counter) and HKEx?

You can trade iBond through the following markets :

  1. Stock Exchange of Hong Kong
  2. OTC - over-the-counter, trading outside the Stock Exchange

The price in the 2 markets may be different and there is chance that the price on HKEx is higher than OTC or vice versa. This is due to the different demand and supply in respective markets and that the price is driven by different market pool. The price gap also reflects the associated fee/levy when trading on HKEx.

You should consider to trade in which market by considering the leadtime and all the associated costs (please refer to Q3 & Q4) besides the price.

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Overseas Securities Service

A1: What are securities?

Securities is the generic name for shares and other investment tools quoted on the stock market. Individuals may invest in securities, either through a broker or through their bank, and can check the progress of their investment every day in the newspapers or on the Internet.
It is possible to enjoy a higher rate of return from investing in securities than from savings accounts. Stock market securities in thriving economic climates will generally show an increase over time, and sometimes within a very short period. However, all stock markets are volatile and buying securities should not be seen as a short-term method of making money.
Buying securities also costs money. Stockbrokers make various charges for their services, such as commission. You may consider taking advantage of convenient payment and reimbursement terms by dealing through your bank.
Other than investing in securities by yourself, you can assign asset management professionals or companies to invest on your behalf.

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A2: What is pre-opening session?

On 25 March 2002, the Hong Kong Exchanges and Clearing Limited (HKEx) introduced new trading hours by launching a pre-opening session for the securities market 30 minutes before the normal morning trading session (Mon-Fri, 9:30 am -12:00 noon). Now you can place orders and have transactions executed before the morning trading session commences.

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A3: How can I place an order?

Simply call (852) 2233 3322. Speak to us after keying in your account number and PIN.

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A4: What information do I need to provide to place an order?

The basic information required is the stock name, stock market, order size, your price limit and settlement currency. It is worth paying attention to the stock name. Using the full stock name in your order will ensure no misunderstanding on which stock to trade, as some stocks may have similar names. If in doubt, we will be happy to assist you based on your description of the abbreviated name, the nature of business and the latest closing price.

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A5: What order types are offered?

We accept limit price orders. Orders placed will be valid for the same day until the respective market closes. You can place orders with us anytime. Orders received after the trading hours of the respective market will be processed on the next trading day.

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A6: What is at-auction limit order?

At Auction limit order is a limit order valid for the pre-opening session, i.e. 9:00am - 9:30am . Only orders with at-auction-limit price within a 500 spread of the market price will be passed to the HKEx for processing. In addition, please note that orders accepted by the Bank may nevertheless not be supported by the HKEx's AMS/3, such as at-auction limit orders with order price lower than HKD0.01 or deviates 9 times or more from the previous closing price, and accordingly, such orders will not be executed.

For the pre-opening session, any unfilled at-auction limit orders at HKEx will be converted to limit orders and carried forward to the next trading session.

You can conveniently place an at-auction-limit order any time through HSBC Internet Banking except from 9:15am to 4:00pm on Hong Kong trading days.

To protect our customer's interest, a message will be displayed to remind you to double check input price should your at-auction limit price deviates from the last price of previous trading session by 10% or more, except for scenarios where no previous closing price is available such as newly listed stocks or warrants, etc.

To help you better capture market opportunities, if the HKEx's pre-opening session is cancelled due to typhoon, Black Rainstorm Warning or any other reasons, the Bank will convert your at-auction limit order to normal limit order and place it in the normal trading session when HKEx resumes trading during the same trading day. In addition, in case your at-auction limit order cannot be successfully passed to HKEx within the pre-opening session due to any reasons, the Bank will also convert your at-auction limit order to normal limit order and place it in the following normal trading session to further enhance the order processing efficiency.



Pre-opening session At-auction limit order
Capture Amend Cancel
Order Input Period 9:00am-9:15am Yes Yes Yes
Pre-order Matching Period 9:15am-9:20am No No No
Order Matching Period 9:20am-9:28am No No No
Blocking Period 9:28am-9:30am No No No

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A7: What are the trading hours of the five overseas markets?

The following table shows the Hong Kong time for trading hours in each of the overseas markets:

Countries Trading Hours (in Hong Kong Time)
North Hemisphere Summer North Hemisphere Winter
USA 9.30 pm - 4:00 am 10.30 - 5:00 am
UK 3:00 pm - 11.30 pm 4.00 pm - 12:.30 am
Japan 8.00 am - 10.00 am and 11.30 - 2.00 pm 8.00 - 10.00 am and 11.30 - 2.00 pm
Australia 8.00 am - 2.00 pm (Australia Winter) 7.00 am - 1:00 pm (Australia Summer)
Canada 9.30 pm - 04:00 am 10.30 pm - 05:00 am

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A8: When will my account be debited for stock purchase?

Upon order placement (trade day), the purchase amount will be held on HKD/USD account. The actual debit of the money will take place on the settlement day (ie, T+3). Money held between the placement day and the settlement day will continue to earn interest in your account. In case the settlement day is a Hong Kong public holiday, the actual debit of the money will take place on the last working day before the settlement day.
If you choose to settle in USD and need to transfer sufficient funds into your USD settlement account, please do so before 7 p.m. Hong Kong time. We will be pleased to help you.

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A9: How soon can I sell my stocks, and when will I receive the money from selling stocks?

Stocks can be sold once settlement is completed (ie, T+3). The sales proceeds will be credited to your account three days after the sales execution (ie, T+3).

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A10: How can I check the status of my Securities trading order?

  • HSBC Internet Banking
    You can check your order status and execution result by clicking 'Checking order status' under 'My Investment' section. We will also notify you the execution result via email at HSBC Internet Banking.
  • Stock Express
    You can check your order status under the 'Order Status' section. All securities orders with pending dealing status will be displayed first by default, but you can sort the sequence of display by stock code, transaction type and transaction date at your choice.

Alternatively, you may also call our investment phonebanking services hotline or log on to HSBC Internet Banking to check your order status and execution result or sign up for our free eAlerts investment order confirmation service at HSBC Internet Banking to receive your stock order execution result via SMS. For more details about eAlerts, please go to 'Investment eAlerts' section at HSBC Internet Banking.

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A11: Can I trade my overseas securities during Hong Kong public holidays?

Trading will be available if overseas stock markets are open. We will be there to take your orders and answer your queries during Hong Kong public holidays.

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US Stock

A1: Who is eligible for the US Stock Trading Service?

Customers are eligible for signing up for the U.S. Stock Trading Service if they are

  • Non-U.S. persons
  • Able to provide a valid identification document such as permanent Hong Kong Identity Card or passport.
  • Non professional market data subscribers* (Please refer to the NYSE Market Data Agreement for details.)

* One of the criteria for being classified as 'Non-professional' subscribers is not being engaged as an 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, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analyses or reports concerning securities.

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A2: How do I register for the US Stock Trading Service?

  1. Open an investment services account (with account suffix 380) with HSBC by visiting any HSBC branch or via HSBC Internet Banking(for existing HSBC's customers only) if you do not have one
  2. Duly complete the W-8BEN form as required by the U.S. Internal Revenue Service and submit it at any HSBC branch. (See the section below for details)
  3. Duly complete the NYSE Market Data Agreement as required by NYSE and submit it at any HSBC branch. (See the section below for details)

Note: Please seek your own independent professional advice for filling out the W-8BEN form and the NYSE Market Data Agreement where necessary.

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A3: What is the W-8BEN form?

The W-8BEN form is a requirement of the U.S. Internal Revenue Service ("IRS") for U.S. tax reporting for non-U.S. persons. 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.

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 instructions for Form W-8BEN and tax treaties, please visit the following IRS websites or consult your tax adviser:

Instructions for Form W-8BEN:
http://www.irs.gov/pub/irs-pdf/iw8ben.pdf

Tax Treaties Information:
http://www.irs.gov/businesses/international/article/0,,id=96739,00.html

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A4: 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 HSBC 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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Stocks Monthly Investment Plan

A1: What are the key benefits of the Stocks Monthly Investment Plan?

You can

  • participate in the equity market even with limited capital
  • reduce investment risk by using Dollar Cost Averaging
  • enjoy potentially higher return than general deposits as a medium-to long-term investment
  • meet your targeted investment needs

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A2: What is meant by Dollar Cost Averaging?

Dollar Cost Averaging refers to the buying of securities at scheduled intervals, irrespective of the dollar amount, whether the stock price is rising or falling. When the share price is low, more shares can be bought and vice versa. At such, the average cost will be less than the average of the price paid. The risk arising from short-term market fluctuations will be reduced as a result.

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A3: How does the Stocks Monthly Investment Plan work?

Your investment amount will be debited from your designated account on the 8th of each month (the "Specified Date"). For debit through an account with the Bank, the amount will be debited on the preceding business day if the Specified Date is a non business day.

The Bank will start to purchase shares on behalf of all SMIP customers at the market price at 11am on the transaction date (3rd trading day after the debit date). The average price of all purchases will be used and any surplus funds will be credited to your account two business days after the transaction date. The purchased stocks will be deposited into your investment services or securities account on the settlement date (2nd trading day after the transaction date).

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A4: Is there a minimum investment period?

There is no minimum investment period. Your chosen stocks will be purchased and deposited into your securities account on a monthly basis, after settlement of which you can sell the shares anytime to capture the profit or meet emergency needs. You also have the flexibility to suspend or stop your contribution as needed.
However, you are recommended to treat it as a medium-to long-term investment as you will be able to enjoy higher growth potential of the stocks over time without having to worry about any short-term market fluctuations.

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A5: Is there any minimum transaction amount for setting up or amending or cancelling SMIP?

The minimum amount for setting up or amending or cancelling SMIP is HKD1,000. The minimum amount for top-up existing SMIP is HKD5,000.

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A6: How can I set up a Stocks Monthly Investment Plan with HSBC?

Apply now at HSBC Internet Banking, or Simply visit any HSBC branch in Hong Kong to set up the Stocks Monthly Investment Plan. Please note that it takes five business days (excluding Saturday) to set up the Plan.

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Unit Trusts

A1: What are unit trusts? How can I benefit from unit trusts investment?

Unit trusts (or mutual funds) are a medium to long-term investment tool. They give investors the opportunity to diversify even a small investment in securities, bonds, currencies and commodities in markets around the world. This is achieved by combining the resources of many investors into one large fund which can be spread over a number of different investments and over a wide geographical area. This range of investments is called a portfolio.
Unit trusts have a number of benefits:

  • Spreading the risk. You spread your investment across a diverse portfolio. This is usually safer than investing in a single share. Of course, levels of risk and return also vary among different funds.
  • Professional management. Fund managers spend their working lives researching and managing investments. It would be very difficult for an individual to have an in-depth knowledge of markets around the world. With a unit trust, their expertise is working for you.
  • Access to worldwide markets. Your money can be invested in overseas markets, which may not be easily accessible by individuals.
  • Economies of scale. With a large number of investors contributing to a single fund, operating costs and commissions can be amortised. Individual investors thus pay lower fees.
  • Liquidity. You can buy and sell unit trusts on any dealing day (except on public holidays in the countries to which your fund is linked). Your money need not be tied up for a specific period of time.

Some unit trust products are linked to the index options listed on the various stock exchanges or sometimes to currency options. They can be slightly riskier than more diverse funds.

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A2: Are they very expensive?

You can start up a unit trust for the price of a dinner for two, and you can make a monthly minimum contribution of as little as HKD1,000.

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A3: Can I get easy access to my investment?

Unit trusts are very flexible and you can buy and sell unit trusts on any (dealing) day. Your proceeds can take as little as seven working days to access.

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A4: Do I have to make a lump sum investment?

You don't need to make a large lump sum investment. We can also offer you a monthly investment plan where no initial lump sum is required and the monthly contribution is as low as HKD1,000.

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A5: Are they high risk?

Unit trusts obviously have an element of risk but less so than direct investment on the stock market. Risk is comparatively lower because it may be spread over a number of years, a variety of commodities, currencies or countries - you are spreading the risk.

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A6: Are the returns low?

Because unit trusts are comparatively low-risk investment, they therefore can offer lower rates of return in comparison to high-risk direct investments. However, over the long-term, your overall returns is more stable making them a perfect long-term investment.

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A7: Are they difficult to monitor?

Professional fund managers do this for you, so you don't have to monitor them on a daily basis. They have access to information and research statistics from economists and analysts around the world, and keep you updated of major changes.

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A8: Are the commission fees high?

Unit trust fees are actually much lower than if you were to set up an individual fund or investment. This is due to economies of scale. As a large number of investors are involved in a fund the fee cost is therefore shared and thus reduced.

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A9: What are the different types of Unit Trusts available through HSBC?

HSBC offers wide range of unit trusts under 3 major asset categories, namely Equity funds, Balanced or Multi-assets funds and Fixed Income funds. Individual funds investing in different regions, has different investment strategies and investment objectives to better serve our customer's wealth needs against his/her risk appetite.

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A10: Are unit trusts investment similar to a pension plan?

Broadly speaking, unit trusts serve as one of the major investment tools to fulfill customer's retirement needs and planning currently. It also serves to cater customer's education needs, for wealth accumulation and other wealth needs.

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A11: What are the key charges in Unit Trusts? How can I access to these fees details and understand the potential risks involved?

The relevant fees and charges of individual unit trusts may vary, including but not limited to Initial Charge and Annual Management Fee. Please refer the detailed fees and charges from the respective offering documents.

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A12: What are the risks in investing in Unit Trusts?

In general, investors are exposed to following risks in investing in unit trusts and investors should refer to the individual product offering document for further details and risks involved.

  • Investment Risk - Unit Trusts are NOT equivalent to time deposits. They are investment products and some may involve derivatives. Investment involves risks. Past performance is no guide to future performance of the funds. Value of the investments can fluctuate and is not guaranteed.
  • Credit risk - For funds investing in bonds, bonds are subject to the risk of the issuer defaulting on its obligations. It should also be noted that credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the issuer
  • Liquidity risk - There is a risk that investments made by a unit trust may become less liquid in response to unfavourable market developments or market sentiment
  • Currency risk - If the fund's assets and income are denominated in currencies other than the base currency of the fund, currency movement may affect the value of the fund's share price.

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A13: How can I subscribe or redeem unit trusts through my HSBC account?

You can place your subscription and redemption orders via HSBC Internet Banking. If you already have an HSBC Investment Services/Securities account, you can simply log on and execute your orders with us. We also offer Unit Trusts Investment Services through our branches. To open an Investment Services/Securities account, simply visit www.hsbc.com.hk any time or visit any HSBC branch in Hong Kong.

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A14: Will the bank provide me with regular statements of my unit trusts investment?

Yes, HSBC will provide contract note of relevant transactions and you can also find your unit trusts holding record in the monthly consolidated statement (if applicable).

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Structured Products

A1: What are Structured Products? And How does it work?

Structured Products are investment instruments embedded with derivatives, under which the return, the amount due and/or the method of settlement is determined by reference to 1) changes in the price, value and/or level of one or more reference underlying assets; and/or 2) the occurrence or non-occurrence of an event.

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A2: How can I benefit from investing in Structured Products?

Customer can benefit from investing in Structured Products:

  • Return - by participating in the performance of various underlying assets to achieve a higher potential return in some market situation
  • Capital Protection - some types of Structured Products offer investors principal protection at maturity
  • Callable - some Structured Products come with auto-callable or callable feature, which enable the investors to receive their investment capital earlier than maturity.
  • Portfolio diversification - allowing diversification through participation in the performance of different assets or markets.

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A3: What is Pre-Investment Cooling-off Period?

Effective from 1 January 2011, a Pre-Investment Cooling Off Period arrangement is required by the Hong Kong Monetary Authority (HKMA) for non-listed derivative product purchases to enhance investor protection to ensure that customers have sufficient time to consider the non-listed derivative product purchase.

Pre-Investment Cooling-off Period (PICOP) is applicable to each particular dealing of the Structured Products if investor is one of the following retail customer types:
(1) An elderly customer aged 65 or above, unless investor is not a first-time buyer of that particular type of structured products AND investor's asset concentration^ is below 20% AND investor opts out from the PICOP arrangement; or
(2) A non-elderly investor who is a first time buyer of that particular type of structured products AND investor's asset concentration is 20% or above.

If Pre-Investment Cooling-off Period is applicable to investor, investor can only subscribe for the product at least 2 calendar days (of which the last day should be a business day) after product discussion with the Bank. This is to ensure that investor have sufficient time to understand the product and consider the appropriateness of the investment before deciding on the subscription.

^ For the purpose of determining whether PICOP is applicable, asset concentration refers to the percentage of total net worth (excluding real estate properties) to be invested in this product.

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A4: What is Post-Sale Cooling-off Period?

If the investment period of the Equity Linked Investment customers subscribe is more than one year, customer can cancel or unwind (as the case may be) the whole of the Equity Linked Investment purchase order during the period from (and including) the date customers place the purchase order to (and including) the fifth Hong Kong business day after the order date (this period is referred to as the post-sales cooling-off period), and get back the issue price minus any negative market value adjustment. Please refer to the Product Booklet for details. The Bank does not apply any handling charge on such cancel or unwind order. If customers choose to cancel or unwind the Equity Linked Investment purchase order during the post-sales cooling off period, please contact our branch between 10:00am and 12:00 noon on any Hong Kong business day during the post-sales cooling-off period. Our staff will help you complete the sell order form.

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A5: What are the different types of Structured Products available through HSBC?

Structured Products linked to various underlying including equity, Exchanged Traded Fund (ETF), foreign exchange (FX), and interest rates are offered in HSBC.

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A6: Will the bank provide me any confirmation advice/ contract note of my investment?

Advice will be provided to customers upon deposit placement & maturity for Deposit Plus, Capital Protected Investment Deposits, and Equity Linked Investments.

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A7: What are the risks in investing in Structured Products?

In general, investors are exposed to following risks in investing in Structured Products and investors should refer to the individual product offering document for further details and risks involved.

  • Not equivalent to a time deposit - Structured products are embedded with derivatives and are not equivalent to time deposits.
  • Maximum potential loss - For non capital protected structured products, the downside risk may be unlimited, and you could lose all of the investment in extreme cases
  • Market risk - You will be exposed to the market risks and price movement of the reference asset, which will affect the payout under the structured product.
  • Liquidity risk - Some structured products do not offer redemption feature and you must be prepared to invest in the product for the entire tenor of the product. For products with redemption feature, you may sell the product before maturity but you may suffer a potential loss of principal irrespective of the asset price performance
  • Credit risk / Default Risk of Issuer - If the issuer becomes insolvent or defaults on its obligations under the product, you can only claim as an unsecured creditor of the issuer. In the worst scenario, you could lose all of your investment.
  • Currency risk - If the settlement currency is not your home currency, you may make a gain or loss due to exchange fluctuations.

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A8: What are the different fees & charges for Structured Products?

In general, there are no additional charges on investing Structured Products, all operational, administrative and hedging costs, etc have already been contained and subsumed within the calculation of the return and/or other variables of the Product.

If customer elects for physical settlement for Equity Linked Investment, customer will need to pay for related deposit transaction charge plus stamp duty for the underlying assets being deposited to your investment account.

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A9: Can I sell the Structured Products before it matures? Is there a penalty to unwind early?

Customers can early sell back Equity Linked Investments and Interest Rate Linked Capital Protected Investment Deposit subject to individual product offering documents. The early sell back price will be subject to prevailing market conditions and may be less than the principal amount of the original investment.

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Deposit Plus

A1: How is the Integrated Account Secured Credit Facility Loan Ratio calculated when the Deposit Plus deposit date is 2 business days after the application submission?

After the Deposit Plus order placement on trade date and before deposit date:

  • For order with deposit currency in foreign currency (FCY), the order 'hold amount' will be deducted from the account available balance and thus will not be included in the Credit limit of Secured Credit Facility calculation. The Credit limit of Secured Credit Facility will drop during the period accordingly since FCY deposit has been included in the Credit limit of Secured Credit Facility calculation before trade date.
  • For order with deposit currency in HKD, the order 'hold amount' will also be deducted from the account available balance and will not be included in the Credit limit of Secured Credit Facility calculation. Yet, the Credit limit of Secured Credit Facility will not be affected during the period since HKD deposit has not been included in the Credit limit of Secured Credit Facility calculation before trade date.

On DPS deposit date, i.e. on trade date + 2 business days,
- Order amount in any deposit currency will be included in the calculation of Credit limit of Secured Credit Facility until it is uplifted on maturity date

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Foreign Exchange

A1: How can I invest in foreign currency with HSBC ?

You can invest in foreign currency with HSBC via a number of ways. You can use our 24-Hour Foreign Exchange Service to place your exchange instruction anytime anywhere via internet or mobile banking.
If you have a target exchange rate in mind, you can use our FX Order Watch Trading Service to preset your instruction.
If you want to accumulate your foreign currencies or RMB via regular saving, you can use the ForEx / RMB Switching Service to preset your exchange instructions and we will automatically execute the instructions for you according to your preset criteria.

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A2: What is FX Order Watch Trading Services ?

FX Order Watch Trading Services is available to HSBC Premier and HSBC Advance customers only. Customers can pre-set their own target FX rate using Internet Banking or Mobile Banking to convert funds automatically within accounts for the foreign exchange when the FX rate is hit. It also provides an alert service which customers will be informed via SMS/email when the FX rate is hit.

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A3: What can I use FX for?

Customers can use HSBC's foreign exchange services for many purposes which include but not limit to the followings :

  • Meet your "wealth accumulation" needs, e.g. pre-set instruction using RMB switching service to accumulate RMB at your own pace.
  • Meet your "family" needs, e.g. use FX Order Watch and alert service to pre-set instruction to convert funds to other currenices at your preferred rate to settle oversea payment like mortgage or tuition fee for your children.
  • Meet your "Lifestyle needs", e.g. use pre-order foreign currencies services when you plan to travel to overseas so as to save your queuing time for currency exchange at branch.

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A4: What are the regulatory restrictions related to FX?

There are no Hong Kong regulatory restrictions on general foreign exchange. However, for margin FX, it is subject to regulatory restrictions.

RMB is currently not freely convertible and subject to regulatory restrictions (which might be changed from time to time). For personal customers who are Hong Kong residents, conversions conducted through RMB deposit accounts with banks in Hong Kong are subject to the limit of up to RMB20,000 per person per day. Personal customers who are Hong Kong residents should allow time for conversion of RMB from/to another currency of an amount exceeding the daily limit. Non-Hong Kong residents are not required to observe the corresponding limits and requirements regarding Renminbi conversions for Hong Kong residents.

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A5: Who can transact in FX?

All customers who have valid foreign currency account can transact in FX.

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A6: What platforms are available for me to deal in FX?

Following major service platforms are available for HSBC customers to conduct FX transactions :

  • FX Order Watch Trading Service
  • FX / RMB Switching Service
  • 24-hour online foreign exchange service

Please refer to the Foreign Exchange section in our website for more details of each service.

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A7: What are the risks associated with FX products?

When conducting in foreign exchange, customers need to be aware of the following risks.

  1. Currency conversion risk - the value of your foreign currency and RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your foreign currency and RMB deposit to other currencies at an exchange rate that is less favourable than the exchange rate in which you made your original conversion to that foreign currency and RMB, you may suffer loss in principal.
  2. RMB is currently not freely convertible and subject to regulatory restrictions (which might be changed from time to time). For personal customers who are Hong Kong residents, conversions conducted through RMB deposit accounts with banks in Hong Kong are subject to the limit of up to RMB20,000 per person per day. Personal customers who are Hong Kong residents should allow time for conversion of RMB from/to another currency of an amount exceeding the daily limit. Non-Hong Kong residents are not required to observe the corresponding limits and requirements regarding Renminbi conversions for Hong Kong residents.

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A8: Being a customer, will I get access to latest FX update and houseviews?

HSBC customers are provided with timely and comprehensive FX information from our FX specialist. Please refer to Foreign Exchange Market News section in our website and you will find the latest FX market information, including trend chart, technical analysis and comments from our FX specialist for most major currencies.

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A9: What are the various FX services that Bank offers me?

HSBC offers a comprehensive foreign exchange services to customers which include :

  • 24-Hour Foreign Exchange Service
  • Pre-order Foreign Currency Service
  • ForEx/Renminbi Switching Services
  • FX Order Watch Trading Services

Please refer to Foreign Exchange section in our website for more details

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IPOs

A1: What is an IPO?

IPO stands for Initial Public Offering. It is the first time a company issues securities/bonds to investors. The newly issued securities/bonds may be listed on a stock exchange.

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A2: What are the risks associated with IPOs?

Over-subscribing to an IPO
In some cases, IPOs may be oversubscribed. The company may go through a balloting/allocation process to determine whether an investor will receive any securities and if so, in what quantity. An investor may be tempted to subscribe for a greater quantity than he intended to, believing that he will not receive the full amount in case of over-subscription. However if the IPO is not oversubscribed, the investor will receive all the quantity applied for and will have to pay the full cost.

Market risk
There is a risk that the company's share price will drop below its initial IPO price, once the company's securities/bonds trading (on the stock market or otherwise) commences. Securities/bond/ prices will fluctuate over time.

Company risk
It is vital to understand the company and the business you are investing in. Thoroughly study the prospectus, financial reports and even seek professional advice before you make investment decisions. For more information on investing, visit our Investment Services.

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A3: What is HSBC IPO Nominees Services?

It is a service open for HSBC Investment Services/Securities account holders to subscribe for newly listed/issued securities/bonds/certificates of deposits in IPO in HSBC Nominee's name. Customers can click on www.hsbc.com.hk and follow the links to fill in the IPO application form and choose the settlement account from any of their HSBC accounts.

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A4: What are the benefits of applying with HSBC IPO Nominees Services ?

HSBC would like to provide you with the greatest convenience. If you choose to apply for securities with HSBC IPO Nominees Services (to do so, you must maintain an Investment Services/Securities account with HSBC), we will help you through with the whole application process, and you may enjoy the following benefits:

  • Payment Convenience - you can choose to pay the application money from any of your HSBC account and we will directly debit your account, saving much of your time in payment arrangement.
  • Earliest Availability - your allotted securities/bonds/certificates of deposit will be directly credited into your Investment Services/Securities account on the first listing/issue day, which will allow you to take immediate actions according to market conditions.
  • Refund Convenience - any refund of the application money will be directly credited to your payment account.

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A5:

 

Do I need to register with HSBC if I apply through HSBC IPO Nominees Services? Is there any service charge or handling fee?

Yes, to apply through HSBC IPO Nominees Services, you need to maintain an Investment Services/ Securities account with the Bank. The securities/bonds/certificates of deposit allotted will be directly deposited into the Investment Services/Securities account with the Bank. Unless otherwise specified, there will be a handling charge of HKD50 for every stock IPO application through HSBC Internet Banking. The handling charge will be HKD100 if the stock IPO application is through our designated branches or IPO service hotline on (852) 2269 2121. For bond and certificates of deposit IPOs, there will be a handling fee of 0.15% on the subscription amount. There may also be other charges in respect of individual IPO. Please refer to the details of respective IPO at the eIPO Centre.

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A6:

 

How can I make the application payment for the application? Is there any maximum payment limit applicable?

With HSBC IPO Nominees Services, you can choose to debit the application money from any of your HSBC savings or current accounts.
There is no payment limit as long as you have deposited enough money for the application in your chosen settlement account. However, you should ensure that there are sufficient funds in the account to cover the full subscription cost no later than 12 midnight on the day which is one business day prior to the closing date of the public offer period, otherwise, your IPO application will be cancelled accordingly.

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A7: Is online IPO application available 24 hours a day?

Yes, it is a round-the-clock service and you can submit your application online for the particular IPO anytime within the specified HSBC IPO Nominees Services offering period.

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A8: How do I know if whether my application has been successfully submitted?

You can check your chosen settlement account on the IPO closing date, since application money will only be debited if the application has been successfully submitted.

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A9: Can I amend or cancel my application?

No, once you submit the eIPO application, we will start processing it and you cannot amend or cancel your application.

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A10: How do I know if my application is successful or not?

For successful applications, newly allotted securities/bonds/certificates of deposit will be credited into your Investment Services/Securities on the Issue Date. You can then take immediate action according to market conditions.

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A11: How will I be refunded should my application be partially successful or wholly unsuccessful?

For partially successful and wholly unsuccessful applications, the application money (or part thereof) will be credited back directly to your chosen settlement account within the days specified in the respective Prospectus/Offering Memorandum.

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Marginal FX (Business FAQ)

A1: What is a Market Order?

A market order is executed immediately when placed and is priced at the prevailing market rate at the time of execution. When placing a market order, the transaction is usually executed at, or very near, the price displayed when the order was submitted. However, due to the rapidly changing nature of FX exchange rates, it is possible for the rate to move more than you are willing to accept.

To address this, HSBC Margin FX platform enables you to place upper and lower bound on each order that will prohibit the order's execution if the market rate falls outside the limits you specify. The customer is also allowed to set up stop loss, take profit and trailing stop instructions under Market Order.

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A2: What is a Limit Order?

A limit order is the order to buy or sell a currency pair at a specified price within a defined period. When the specified price is reached, the limit order will be executed.

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A3: What is a Take Profit Order?

A take profit order is used to lock in profits in the event a currency moves in a favourable direction from the current level.

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A4: What is a Stop Loss Order?

A stop loss order is similar to a take profit order but rather than locking in a profit, this order type sets a threshold to prevent continuing losses by automatically closing a position once the exchange rate reaches the level you assign to the order.

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A5:What is a Trailing Stop Order?

Trailing stop order is a stop loss order where the price at which an open position is closed changes dynamically based on a specified spread from the relevant quotation price. If the relevant quotation price for an open position moves in a favourable direction but stays unchanged if the relevant quotation price for an open position moves in an unfavourable direction.

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A6:What is the difference between an order, trade, and position?

An order is the expressed intention to buy or sell currency. A trade is the execution of the order. A position is the aggregate of all trades for a particular currency pair.

In the case where only one trade is open for a given currency pair, sometimes the terms trade and position are used interchangeably.

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A7:What are bid and ask price?

Each currency pair listed is accompanied by an exchange rate that shows the bid and ask price. The bid price is the rate that the market/broker is willing to buy for the currency pair; in other words, this is the rate you sell the currency pair to the market. The ask price is the rate at which the market/broker is willing to sell and it represents the rate you buy the currency pair.

The difference between the bid and the ask price is referred to as the spread. The bid price is always less than the ask price.

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A8:What is a 'unit'?

'unit' is the base currency in a currency pair. For example:
1 unit of USD/CAD, USD/CHF or USD/JPY would equal 1 US Dollar.
1 unit of EUR/USD, EUR/CHF or EUR/HKD would equal 1 Euro.

This provides the flexibility for you to specify an amount that suit your investment need. The maximum trade size is 5 million units of trading currency.

The number of units you can trade with is determined by: the currency pair, the margin you have available, and the margin ratio for your account.

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A9:What is a 'pip'?

Pip is the abbreviation of "price interest point". One pip for most currency pairs is referring to the 4th decimal place of the exchange rate. For currency pair that involves JPY, one pip is referring 2nd decimal place of the exchange rate. Another term 'pipettes' is 1/10 of pip.

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A10:How do I open an account?

You need to go through our online application process. Your risk attitude, previous investment experience and other related factors will be reviewed in the application. It usually takes 2 to 3 working days to complete. You will receive confirmation letter and email upon account opening.

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A11:What is the minimum account balance?

The minimum deposit for opening of margin FX trading services is USD 10,000 or equivalent. The deposit can be placed in any of your collateral accounts.

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A12:What are HSBC Margin FX's trading hours?

The Margin FX platform accepts trades from 5 am Monday HKT to 5 am Saturday HKT during summer time (US daylight saving), and 5 am Monday HKT to 6 am Saturday HKT during winter time (non-US daylight saving).

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A13:What currencies can I trade in?

You can trade in the following currencies:
10 currencies: AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD and USD.
45 currency pairs in total.

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A14:What is the minimum and maximum trade size?

There is no minimum trade size. The maximum trade size is 5m at base currency. For example, if you are trading EUR/USD, the maximum trade you can make will be for EUR 5m. Please note that the total open positions cannot exceed USD 20m.

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A15:How often are the prices updated?

The prices are updated in real-time. When the market (or price) for a currency changes it will be reflected to the customer immediately.

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A16:Can I go long and short at the same time?

It is not possible to hold long and short positions of the same currency pair at the same time in the same account. The platform will offset such positions on a first-in, first-out basis.
For example:
Your account currently has below completed trades:
  - 30,000 units EUR/USD at long position (Order executed on 13 Dec 2011)
  - 50,000 units EUR/USD at long position (Order executed on 14 Dec 2011)
If you place a market order to sell 38,000 units EUR/USD, this order will be split into 2 trades. The long position of 30,000 units EUR/USD, executed on 13 Dec 2011, will be offset first. The remaining 8,000 units from the sell order will reduce the long position of EUR/USD executed on 14 Dec 2011.
In the end, your account will have 42,000 units EUR/USD at long position (Order executed on 14 Dec 2011).

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A17:Are limit orders executed at the specified price?

A limit order is triggered once the specified price in the order is reached. The Margin FX system will execute the trade using the price in the system at that moment. However, if the market is very volatile, the execution price may not necessarily be the same as the specified price.
You can protect yourself against unexpected price movements by setting upper and lower bound to your order so that the order will get executed only if the price at the server lies within the bounds. Please note that if the price is outside the bound range at the moment of execution, the limit order will be cancelled. In other words, the order will not be executed even if the price moves back within the range in a very short period. Customer has to place the order again.

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A18:Why was my order triggered when it appeared that its execution price was not reached?

The Margin FX platform will not trigger an order if the execution price has not been reached. You should compare the execution price of buy order against the ask price and that of sell order against the bid price.
If you are looking at the Close Price, Candlestick, HLOC, or HLC charts, your order may appear to be out of bounds because the bid and ask prices are not being displayed. Instead, you can use the Min-Max chart view when examining your trades. This chart displays the range between the minimum bid and the maximum ask prices during each time interval.

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A19:How is my account leverage ratio determined?

Your account leverage ratio is assigned based on your investment experience, trading frequency and other relevant information. The leverage ratio will be assigned at the bank's absolute discretion.
Please note that the maximum leverage ratio for the currency pairs that involve HKD is 5:1. For example, if you have leverage ratio of 20:1 and trade EUR/HKD, you will be only entitled to the leverage ratio of 5:1. If you trade EUR/USD, you will still be entitled to 20:1 leverage ratio. If you have been assigned a leverage ratio lower than 5:1, you will be only entitled to that assigned leverage ratio for trading all currency pairs.

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A20:How can I change my account leverage ratio?

You can submit a form to change your leverage ratio. Please note the following:

  • The change of leverage ratio will apply to all of your sub accounts
  • You should maintain sufficient balance to cover the new margin requirement after the new leverage ratio is effective.
  • Your newly requested leverage ratio will be reviewed based on relevant information including your investment experience, trading frequency, etc.
  • The leverage ratio will be assigned at the bank's absolute discretion.

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A21:Can I have more than one collateral account?

Yes, you can open a HKD account and a USD account.

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A22:Does my margin deposit earn interest?

Yes, your collateral account is a statement savings account and interest bearing.

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A23:Can I deposit funds in any other currency other than HKD dollars?

Yes, you can deposit funds in any currency and it will be converted to either USD or HKD, depending upon what type of collateral account you hold.

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A24:How do I deposit money to my collateral account?

You can transfer in or deposit cash via branch, internet banking, phonebanking service and ATM/ Cash Deposit Machine.

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A25: How do I withdraw money from my collateral account?

You can withdraw from internet banking and branch.

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A26:What is Margin Call?

Margin call refers to the notifications to the customers when the net asset value of their account falls to the level which is at specific percentage above the close-out level. Customers are required to either deposit more funds in order that they have sufficient margin to cover the position, or close some of the positions.

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A27:Do I pay interest on my account when there is a margin call?

No. However, if you do not deposit enough collateral and when the price further drops to the level that your NAV is below 50% of margin requirement, your position will be closed out by the system.

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A28:What is a closeout?

The Margin FX platform has a unique feature whereby the customer's positions are automatically liquidated when a certain threshold has been breached. The closeout is to protect customers from unlimited losses and thereby protecting HSBC from credit exposure. The closeout will be automatically triggered when the net asset value falls below 50% of the margin required to maintain all of the customers open positions. When this occurs the platform will close all of the customers open positions simultaneously.

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A29:Why are the rates from other sources different from those on Margin FX platform?

Different sources will always quote different price levels. As there is variability in the spread, it is certain that most sources will differ from each other at any given time.
We advise our customers to use external rate sources as a general guide for price levels, but that they should never be used as a direct comparison to the prices on Margin FX platform, which are always considered to be authoritative.

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A30:How do I set the quote currencies which appear in the Quote Panel or Quote List?

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A31: How do I open the quote panel in another window?

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A32:How can I draw a trendline?


1. Click the Draw Trendlines button located above the graph, the second icon from the right. A menu which lists different types of trendlines appears.
2. Select the type of trendline you want to draw.
3. Place the cursor where you would like the trendline to begin, and click. (For horizontal and vertical trendlines, simply click once to place the line.)
4. Move the cursor where you would like the trendline to end, and click.

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A33:What types of trendlines can I draw?

Basic trendlines are straight lines that you can draw on the graph to mark times, values, or trends. Margin FX platform includes below options:
 1. Vertical Trendline: Used to mark a time period.
 2. Horizontal Trendline: Used to mark a price.
 3. Trendline: A diagonal line to mark trends or movement on the graph.

Advanced trendlines:
 1. Fibonacci Arc
 2. Fibonacci Fan
 3. Fibonacci Retracement
 4. Fibonacci Time Zone
 5. Pivot Points
 6. Speed Lines

For more information on trendlines, please refer to the documents inside 'Learn more about Margin FX' in our platform.

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A34:How can I manage the display of trendlines?

Click the Draw Trendlines button located above the graph, the second icon from the right.

Use the bottom menu items to:

  • Show or hide trendlines
  • Show or hide trendline labels (available for advanced trendlines)
  • Turn on magnetic trendlines (so trendlines stick to the graph when you plot them).
  • Remove all trendlines for the currently viewed currency pair

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A35:How can I modify the appearance of a trendline?

Click over an existing trendline to modify it. A menu will appear:

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A36:How do I filter information on 'Full Trades History' page?


Click Buy/Sell at the top of Margin FX platform and select Full Trades History. The above screen will pop up.
Account: You can select from a list of your accounts.
Field Selection: You can select different kind of information (e.g. price, rollover interest) you want to display for the trades.
From Date: You can specify the start date for the period you want to view for your trades.
To Date: You can specify the end date for the period you want to view for your trades.
Number of days to retrieve: You can specify the number of days you want to view for your trades. For example, if you input 2 in this field, it will display the trades of latest 2 days.

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A37:How do I change my default trading parameters?

Parameters can be set for all currency pairs or a specific currency pair:

Click 'Setting' at the top of the platform and select User Preferences. A 'User Preferences' screen will appear and select Trading.
The following settings apply to all currency pairs:
 1. Enable Bounds By Default: Automatically enables and populates the bounds fields in the Order window with the default bounds.
 2. Enable Stop Loss By Default: Automatically enables and populates the stop loss field in the Order window with the default stop loss.
 3. Enable Take Profit By Default: Automatically enables and populates the take profit field in the Order window with the default take profit.
 4. Enable Trailing Stop By Default: Enables the trailing stop and uses the default trailing stop values every time the Limit Order and Market Order windows are opened
 5. Show Confirmation Windows: Click if you want to see windows asking you to confirm your action after you buy, sell, close, or modify a trade order.
 6. Confirm Position Reversal: Notifies you if a position is being reduced, closed, or reversed by a new trade. This notification will be issued even if confirmation windows are disabled.
Please note that the stop loss option is enabled by default with a pre-set stop loss limit. Customers should change the default set up if desired.
The following settings apply to specific currency pair:
First select a currency pair and click the Use Custom Settings box.
 1. MARKET: Choose a currency pair from this list box for you to use custom settings for thatpair. Leave "DEFAULT" selected if you want the settings to apply to all pairs.
 2. Use Custom Settings: Check this box if you want the settings to apply to the pair you selected from the MARKET list box. (This box is grayed out if the DEFAULT market is selected.)
After you customize settings for a particular currency pair, you can toggle between those settings and the default settings by clicking this check box on and off.
 3. Default Order Size: The default order size used in any "units" field (for example, in the Buy/Sell window). Use the pull-down menu beside this field to set the number of units (for example, 10,000) of the base currency or the account currency, or the percentage of units available to trade.
 4. Default Bounds: The default value that appears in the bounds fields of the Buy/Sell window. Choose from pips, a percentage, or a monetary amount.
 5. Default Stop Loss: The default value that appears in the Stop Loss field. Choose from pips, a percentage, or a monetary amount.
 6. Default Take Profit: The default value that appears in the Take Profit field. Choose from pips, a percentage, or a monetary amount.
 7. Default Trailing Stop: For trailing stops, determines the default amount and units (pips, price, a set amount of the home currency, or a percentage of price, balance, or NAV).
Note: the trigger price is calculated from the bid price (for short market orders) or the sell price(for long market orders). It means that the trigger price is determined by the maximum trailing stop plus the spread.
 8. Default Limit Order Duration: By default, limit orders expire after one week. Instead, you can set the default expiry period to a selected number of hours, days, or even a month.
Please click Apply and Save after you have finished changing the parameters.

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A38:What does NSE mean when it appears in my trade activity?

NSE means non sufficient funds.

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Marginal FX (Technical FAQ)

A1:Why can't I connect to the Margin FX Trading Platform?

When you log on to the Margin FX Trading Platform from the web, a pop-up window appears.


 

Cause Solution

1

The pop-up block software installed does not allow the trading platform to load.

You can configure the software so that it allows the pop-ups from Margin FX Trading Platform.

2

The Java plug-in cache is corrupted.

You can clear the Java cache (See Q6 - How do I clear my Java cache?)

3

Your computer has 'behind the firewall' error.

You can check if the 'behind the firewall' error is caused by hardware router. From the Windows start menu, click Run and type CMD. Once the black command prompt comes up, type IPCONFIG and press enter. If your IP address starts with 192 or 10, you have a hardware router. If not, you are directly connected to the Internet. If your computer is behind a hardware firewall, please make sure port 443(default port for HTTPS) is open when your access the Margin FX trading platform.

4

Your Java version is not upto-date.

Margin FX Trading Platform is supported by Java version 1.5 or above. You can download the most updated Java version from http://java.com.


If you have any problems, please call (852) 2233 3322 for HSBC Premier customers, (852) 2748 8333 for HSBC Advance customers or (852) 2233 3000 for other Personal Banking customers

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A2:The loading bar in the pop-up window stops at a percentage. How can I fix this problem?

One of the reasons for this freeze is that your web browser cache is corrupted. Please follow our instructions on how to clear your cache. (see Q6 - How do I clear my Java cache?)
Alternatively, you may have an old version of Java which needs to be upgraded. Please visit http://java.com and install the latest version.

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A3:Which web browser is compatible with Margin FX Trading Platform?

You can use any browser with Java 5 support and 128-bit encryption, which includes popular web browsers such as Microsoft Internet Explorer version 5.0 and above, Firefox version 1.0 and above, and Safari version 2.0 and above.

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A4:The Margin FX Trading Platform was frozen after I opened many graph windows. How can I fix this problem?

Your Margin FX Trading Platform configuration may require more memory than that has been allotted for Java processes. If your computer has sufficient memory, you can increase the amount of memory that Java is allowed to use. Otherwise, you can reduce the number or size of graphs that you are using.
In order to change the maximum amount of memory that Java is allowed to use, open your Java plug-in control panel. Once the Java control panel is open, click the Java tab and click the View button. The Java run-time settings will open. In the column labeled java run-time parameters, type "-Xmx512m" (without the quotes) where 512 is the maximum amount of memory in megabytes that you would like Java to be able to use (or you can use another value instead of 512). Please make sure that you have included the '-' character when entering the parameter.

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A5:My username and password are accepted and the pop-up window appears but there is a "broken image" graphic (a red 'x') where the loading bar should be.

It is likely that Java is disabled or not installed. To enable Java, please follow our instructions (See Q11 - How can I enable the java in the web browsers?). To install Java, please visit http://java.com.
If Java is already installed, you may need to clear the cache, created by the Java plugin. (See Q6 - How do I clear my Java cache?) .

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A6:How do I clear my Java cache?

Please follow below steps to clear your computer's Java plug-in cache.
Windows and Linux
 1. Close all applications.
 2. Open your Java Plug-in Control Panel.
   Windows - Navigate to Control Panel > Java Plug-in.
   Linux - Navigate to System > Preferences > Java Control Panel.
 3. On the General tab under Temporary Internet Files, click View...

 4. From the Show menu, select Applications. Select all Margin FX applications and click the red X to remove these items.

 5. From the Show menu, select Resources. Select all Margin FX resources and click the red X to remove these items.

 6. From the Show menu, select Deleted Applications. Select all Margin FX applications and click the red X to remove these items.

Mac OS X
 1. Close all Margin FX applications.
 2. Navigate to HD > Applications > Utilities > Java Preferences.
 3. On the Network tab, click View Cache Files...
 4. From the Show menu, select Applications. Select all Margin FX applications and click the red X to remove these items.
 5. From the Show menu, select Resources. Select all Margin FX resources and click the red X to remove these items.
 6. From the Show menu, select Deleted Applications. Select all Margin FX applications and click the red X to remove these items.
If clearing Java cache does not solve the problem, please reboot the computer to allow your system to be in a 'clean' state.

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A7:How can I print graphs or other parts of the Platform?

To print graphs, click the Chart Options icon, shown as a series of vertical lines on the top right corner of the chart, and select Print Chart. To print any other portion of the platform, you need to take a screen capture of the user interface. If you are using Windows, press the Shift+PrintScreen to copy the whole screen or ress Alt+PrintScreen to copy the active window. After that, please paste the copied image into a program such as Microsoft Word or Paint.
If you are using Mac OS X, press Command+Control+Shift+3 to capture the whole screen or press Command+Control+Shift+4 to capture a designated area of the screen. After that, you paste the copied image into a program such as Microsoft Word or Paint.

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A8:Do I need to enable pop-ups?

You need to enable pop-up windows for the Margin FX Trading Services and Trail Account. If pop-ups are blocked, some platform windows (such as help button windows or dialog boxes) will not appear.

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A9:How can I get the latest version of Java?

You can get the latest Java software here - http://java.com

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A10:Does Javascript need to be enabled?

When you log on to the Margin FX Trading Platform, a pop-up window should appear. Please make sure that the Javascript is enabled.
If a small window does not appear, you will need to enable Javascript within your browser and configure your pop-up blocking software to allow pop-ups from the Margin FX website. Please be assured that our pop-up does not contain any advertising.

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A11:How can I enable the Java in the web browser?

Please follow below steps to enable the java in different web browsers:
Internet Explorer
 1. Click Tools and then Internet Options
 2. Select the Security tab, and select the Custom Level button
 3. Scroll down to Scripting of Java applets
 4. Make sure the Enable radio button is checked
 5. Click OK to save your preference
Firefox
 1. Start Mozilla Firefox browser or restart it if it is already running
 2. At the top of the browser, select the Firefox button (or Tools menu in Windows XP), then Add-ons The Add-ons Manager tab will open.
 3. In the Add-ons Manager tab, select Plugins
 4. Click Java (TM) Platform plugin to select it
 5. Click on the Enable button (if the button says Disable, Java is already enabled)
Chrome
 1. Click on the wrench icon, then select Options.
 2. Select Under the Hood and then Privacy Content Settings. The Content Settings panel will appear.
 3. In the Plug-ins section, select the Disable individual plug-ins link to check whether Java is enabled
 4. Click on the Enable link (if the Disable link appears, Java is already enabled)

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Others

A1: What should I do before I start investing?

You should know your financial need or investment objective, your current financial situation and risk tolerance.
Your objectives could incorporate any combination of the following:

  • Protection for your family
  • Education for your children
  • Retirement
  • Managing and growing wealth
  • Legacy planning

You should also understand how much your target is, how long you want to invest, how much you can invest and your own investment preferences.

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A2: How do I determine my investment risk tolerance?

You can make use of our Risk Profiling Questionnaire to help you find out more about your investment risk tolerance.

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A3: How can I research and keep track of my investments?

The more you know about what you're investing in the better. Stock prices and unit trust prices are quoted in the newspapers and on the Internet, and you can keep track of spot prices through your broker or your bank.
You should also read through the relevant offering documents before making an investment decision to ensure that you understand the product features, potential return and risks involved. Constant review helps to keep your investments up-to-date. You can consult the bank for a review of your holdings. You can also track and review your investments through our Personal Internet Banking.

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Disclaimers:
The information shown in this website is neither a recommendation, an offer, nor a solicitation for any investment product or service. Investment involves risk. You should carefully consider whether any investment product or service mentioned herein is appropriate for you in view of your personal circumstances. Past performance is no guide to future performance. Investors should refer to the individual product explanatory memorandum or offering document for further details and risks involved. The price of investment products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling investment products.