BOCOM International Holdings Company Limited (“BOCOM International”, stock code: 3329.HK) is the only integrated platform for securities and securities-related financial services of BOCOM (a state-owned joint stock commercial bank) in Hong Kong. As one of the earliest licensed securities firms with a PRC background in Hong Kong, BOCOM International has weathered many economic and industry cycles as well as regulatory reforms since its establishment in 1998, and has grown to become one of the largest securities firms specialising in securities brokerage and margin financing, corporate finance and underwriting, investment and loans, asset management and advisory businesses in Hong Kong. BOCOM International successfully landed on the Main Board of the HKEX on 19 May 2017.
Overview of BOCOM International
BOCOM International, established in China Hong Kong 15-20 years ago, is a prominent securities firm offering a comprehensive suite of services. Specializing in securities brokerage, margin financing, corporate finance, underwriting, investment, loans, and asset management, it accommodates investor needs.
Its advantages include access to global markets, a user-friendly trading app, and responsible customer support. However, limited payment methods (only bank transfer), and commissions starting at 0.25%, its competitiveness in terms of fees is questioned.
Regulated by the China Hong Kong Securities and Futures Commission, BOCOM International ensures compliance and investor protection.
Regulatory Status
BOCOM International operates under the regulatory oversight of the Securities and Futures Commission of Hong Kong (SFC) with license number API271, APH797 and APJ121.
Being regulated by such a reputable authority adds a layer of assurance for traders on the platform. This regulation ensures that BOCOM International adheres to strict standards of conduct, and investor protection mandated by the SFC. Traders can feel more confident knowing that the platform operates within a regulated framework, which typically implies greater accountability and safeguards against fraudulent activities or malpractices.
Pros and Cons
Pros:
Offers a variety of investment products: BOCOM International provides access to a wide range of investment products, including stocks, bonds, mutual funds, and options. This variety allows investors to build a well-rounded portfolio suited to their individual risk tolerance and investment objectives.
Provides access to global markets: With BOCOM International, investors can trade in markets around the world, including major exchanges such as the New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE), and Tokyo Stock Exchange (TSE).
User-friendly trading app: BOCOM International offers a user-friendly trading app that makes it easy for investors to execute trades, monitor their portfolios, and access market data on the go.
Responsible customer support: BOCOM International is committed to providing responsive customer support to assist investors with their inquiries, account management, and trading needs.
Cons:
Limited educational resources: While BOCOM International offers research reports to help investors stay informed about market trends and investment opportunities, the educational resources are limited compared to other brokers.
Limited payment methods: BOCOM International only accepts bank transfers as a payment method for funding trading accounts. This limited payment option inconveniences some investors who prefer alternative payment methods, such as credit/debit cards or electronic wallets.
Commissions (0.25%) and fees not so competitive: BOCOM International's commissions and fees, including a brokerage commission of 0.25% per transaction, are not as competitive as those offered by other brokerage firms.
Tradable Securities and Services
BOCOM International is one of the largest securities firms specialising in securities brokerage and margin financing, corporate finance and underwriting, investment and loans, asset management and advisory businesses in Hong Kong.
Securities Brokerage and Margin Financing
BOCOM International offers a range of services in securities brokerage and margin financing, facilitating clients in trading various financial instruments. The platform enables investors to engage in buying and selling securities. Additionally, BOCOM International extends margin financing services, allowing clients to leverage their investments and potentially enhance returns.
Corporate Finance and Underwriting
In the domain of corporate finance and underwriting, BOCOM International provides comprehensive support for businesses seeking capital market solutions. This includes services such as initial public offering (IPO) sponsorship, financial advisory, underwriting, placing, debt underwriting, and mergers and acquisitions advisory. Asset Management and Advisory
BOCOM International offers asset management and advisory services tailored to meet the various needs of individual and institutional investors. This encompasses mutual fund management, specialized asset management, private equity fund management, and investment advisory services. Clients benefit from professional guidance and diversified investment opportunities.
Investment and Loans
In the realm of investment and loans, BOCOM International provides avenues for clients to deploy capital effectively. This includes equity and fixed income investments, structured finance, and direct equity investment opportunities. These services enable clients to access a variety of investment products and financing solutions, supporting their financial objectives.
Commissions and Fees
BOCOM International imposes a range of commissions and fees for its services in the Hong Kong stock market.
For securities trading, clients are subject to a brokerage commission of 0.25% of the transaction amount, with a minimum of $100, though negotiation is possible.
Stamp duty is set at 0.10% of the transaction amount, rounded to $1 if below $1, while additional fees include a trading levy of 0.0027% and a transaction fee of 0.00565%, rounded to the nearest cent.
Moreover, the platform charges for stock settlement through the central clearing and settlement system, ranging from 0.002% of the transaction amount with a minimum of $2 to a maximum of $100.
Compared to other popular brokers in the market, BOCOM International's fees generally fall within the range of standard industry rates. However, its suitability for different user groups hinges on the specific trading preferences and investment strategies of individuals.
While the platform may be suitable for active traders seeking a wide range of services and features, cost-conscious investors may find lower-cost alternatives more appealing, particularly for those engaging in frequent trading or managing smaller portfolios.
| Service |
Fee Structure |
| Securities Trading Services |
|
| Brokerage Commission |
0.25% of transaction amount (minimum $100), negotiable |
| Stamp Duty |
0.10% of transaction amount (rounded up to $1 if less than $1) |
| Trading Levy |
0.0027% of transaction amount |
| Transaction Fee |
0.00565% of transaction amount (rounded to the nearest cent) |
| Stock Settlement Fee Charged by Central Clearing and Settlement System |
0.002% of transaction amount (minimum $2, maximum $100) |
| Investor Compensation Levy |
Exempt (until further notice) |
| Fee for Dual Currency Dual Stock Conversion Trading Desk |
$5 per stock for each transfer |
| Handling of Physical Stocks and Settlement Services |
|
| Transfer of Ownership Fee |
$5 per transfer document (charged when depositing physical stocks) |
| Deposit of Physical Stocks |
Exempt |
| Withdrawal of Physical Stocks |
$6 per lot (minimum $50 per stock) |
| Settlement Instruction Fee (Incoming) |
Exempt |
| Settlement Instruction Fee (Outgoing) |
Fees as listed in the “Settlement Instruction Notice” |
| Investor Settlement Instruction Fee (Incoming/Outgoing) |
$5 per instruction |
| Agency Services and Corporate Actions |
|
| Transfer Fee |
$1.5 per lot (calculated based on the number of shares as of the first transfer cutoff date after purchase/deposit) |
| Dividend Collection Fee (including scrip dividends) |
0.5% of dividend amount (minimum $20, maximum $10,000), maximum fee negotiable |
| Fee for Handling Bonus Shares |
Exempt |
| Fee for Stock Consolidation/Split |
Exempt |
| Handling Fee for Fulfillment of Obligations (Corporate Action Fee) |
$0.8 per lot (minimum $20), plus handling fee: $50 per transaction |
| Information Services |
|
| Real-Time Click Quotes |
Provides 1,000 free real-time basic quotes per month; For every $2 of trading commission paid, an additional free real-time quote will be given |
| Streaming Quote Connection to Online Trading Platform |
Plan 1: $320 per month (including Hang Seng Index) |
|
Plan 2: $345 per month (including Hang Seng Index and Hang Seng Index Futures) |
|
Plan 3: $200 per month (for domestic use only) |
| Additional Streaming Quote Services |
Various monthly fees, please contact for details |
| Account Services |
|
| Account Balance Certificate Fee |
$200 per request |
| Custodian Fee |
0.05% of year-end portfolio value, minimum fee equivalent to HKD 100 |
| Dormant Account Service Fee |
HKD 50 per year if no transactions are made by the client for more than 2 years |
| Loans and Other Services |
|
| Cash Account Overdue Interest |
Annual interest rate is the best rate of Bank of China (Hong Kong) plus 5% |
| Margin Account Loan Interest |
Annual interest rate is the best rate of Bank of China (Hong Kong) plus 3% |
| Application Fee for Public Offering in the Name of an Agent |
$80 per application |
| Handling Fee for New Stock Yellow Form |
$100 per yellow form |
| Copying Statement |
$20 per daily statement, $50 per monthly statement |
| Annual Mailing Service Fee for Statements |
HKD 80 per month |
| Withdrawal Handling Fee |
If the withdrawal amount is less than HKD $100, a handling fee of HKD $5 is required |
| CHATS Handling Fee (applicable to Hong Kong dollars only) |
$100 per application |
| Telegraphic Transfer Handling Fee (applicable to Hong Kong dollars only) |
$150 per application |
| Investment Immigration Account Management Fee |
$6,000 per year |
| Proxy Collection of Dividends Fee |
$400 per application, plus other fees charged by the Central Clearing Agent |
| Deposit Certification |
|
| Stop Payment Handling Fee |
HKD 150 per request |
| Payment to China International Securities Limited |
HKD 500 per request |
Account Types
BOCOM International offers individual accounts, Joint accounts and Corporate accounts.
BOCOM International offers individual accounts tailored to single users, providing a personalized trading experience. These accounts are suitable for individuals who prefer to manage their investments independently and have full control over their trading decisions.
Joint accounts allow multiple individuals to jointly own and manage the account, suitable for couples, business partners, or family members who wish to collaborate on their investments. Such accounts are suitable for those who want to share investment responsibilities and pool their resources for joint trading activities.
Corporate accounts are designed for businesses and corporate entities, offering specialized features and tools tailored to their unique needs. These accounts are suitable for companies seeking to manage their corporate investments and conduct trading activities on behalf of the organization.
Platforms & Tools
The BOCOM International Trading Treasure app offers customers a platform to access stock market information and conduct global stock transactions conveniently from their Android devices.
The app is user-friendly, accommodating the operating habits of Android phone users. It utilizes data streaming technology, ensuring a data refresh speed comparable to that of computer terminals.
Additionally, the app features throttling traffic costs and traffic control technology, helping users save on data expenses. It adopts an A-share quotation style, aligning with the stock trading preferences of mainland users.
Moreover, it incorporates a unique traditional Hong Kong stock Dali market quotation style, providing users with a familiar trading environment.
Deposit & Withdrawal
BOCOM International facilitates customer deposits exclusively through bank transfers.
Upon completing a deposit, customers are required to furnish a bank deposit certificate containing their name and account number. This certificate must be sent via fax to (852) 8148 6118, emailed to fund@bocomgroup.com, or submitted through the online trading platform. Notably, the bank deposit certificate must include adequate information to identify the customer's deposit, such as their name and registered bank account number.
Customer Service
BOCOM International provides accessible customer support services to address investor inquiries and concerns. Investors can reach out via email atir@bocomgroup.comor contact their office directly at 10/F., Man Yee Building, 68 Des Voeux Road Central, Hong Kong.
For prompt assistance, individuals can also dial their telephone number at (852) 3766 1868 during business hours. Additionally, fax communication is available at (852) 3798 0133.
Educational Resources
BOCOM International provides research reports for traders, offering traders insights into market trends and investment opportunities.
While these resources provide valuable information, they lack the depth and variety seen with other popular brokers. Compared to leading competitors, BOCOM International's educational offerings might seem relatively simplistic, potentially limiting the depth of analysis and educational support available to traders.
Conclusion
In conclusion, BOCOM Internationa offers a wide range of tradable securities and services, including securities brokerage, margin financing, corporate finance, and asset management.
While its advantages lie in providing access to global markets, a user-friendly trading app, and responsible customer support, certain drawbacks exist. These include limited payment methods (only bank transfer), and commissions starting at 0.25%.
Despite these challenges, BOCOM International remains a competitive option for investors seeking comprehensive financial services, with the potential for strong returns and professional guidance.
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