FAQ
Hani Securities (H.K.) Limited
U.S. Trading via Internet - FAQ
Am I eligible to trade in U.S. securities?
Before you begin the application process, please make sure that you are able to meet and maintain the following standard account eligibility requirements:
1) At least:
US$35,000 (HK$273,000) worth annual income
US$50,000 (HK$390,000) liquid net worth and/or US$100,000 (HK$780,000) in total asset.
2) Minimum account balance :
Retail investor account : US$10,000. Cash account only.
Active Day Trader account : US$25,000 (margin up to 4x intraday equity)
Existing account holders must maintain a $10,000 US minimum daily balance. Accounts under this amount will be treated as cash accounts, and margin privileges will be suspended until the minimum account balance of $10,000 US is restored. This restoration can be achieved with an account deposit of cash and/or fully-paid securities. Additionally, this amount is subject to any overriding minimum margin maintenance requirements as may be imposed from time to time by our clearing agent.
3) You must be an existing client of Hani Securities (H.K.) Limited for trading in Hong Kong listed securities.
4) You must provide your latest copy of your Hong Kong Identity Card, preferably a copy of your passport with signature, and proof of your address in Hong Kong (rates demand or utilities bill with your name on it).
5) You must have a valid email address.
In addition to the above requirements, Hani Securities (H.K.) Limited strongly suggests that clients have knowledge of - ECN (Electronic Communications Network), Order Handling Rules, and Level II trading.
How do I open a U.S. trading account?
There are a number of account opening documents which you will need to complete. Many of these forms and documents are merely a couple of A4 sheets, and Hani Securities will be pleased to explain and help you complete these forms at your convenience and forward the completed documents on your behalf to the U.S. broker.
All U.S. trading accounts of Hani Securities (H.K.) Limited ("Hani") must be opened with Global American Investment, Inc. ("GAI"), a U.S. registered broker dealer, and with Computer Clearing Service, Inc. ("CCS"), a U.S. registered clearing house.
Complete and Sign all the appropriate client account forms: -
GAI Customer Trading Agreement and Disclaimer 2 pages
GAI Risk Disclosure Statement 3 pages
NASD Rule 2341 3 pages
NASD Rule 2361 2 pages
Instruction for CCS Application Form 2 pages
CCS New Account Application Form 2 pages
CCS Customer Information 2 pages
CCS Margin Agreement 2 pages
Instruction for W-8BEN 6 pages
W-8BEN 1 page
DAFC Subscriber Agreement (Non-Professional) 23 pages
Monthly Data Feed Authorization 1 page
Extended Hours Trading Risk Disclosure 1 page
Hani Risk Disclosure and Disclaimer 2 pages
Hani Disclosure on referral Rebat 2 pages
PLEASE NOTE: All GAI account application forms MUST be accompanied with a copy of the applicant's:
- Passport with applicant's signature or
- Driver license (both sides) with applicant's signature or
- Overseas citizen ID (both sides with applicant's signature)
It is also very helpful if your photo ID is "enlarged" by 20% using a photocopier's enlarge function.
After Global American Investment Inc. receives your application form an email will be sent to you by GAI to confirm that your application is being processed immediately.
PLEASE NOTE: U.S. trading accounts are not available to resident or citizen of the following countries: Afghanistan, Angola, Burma (aka Myanmar), Canada, Cuba, France, Guam, India, Iran, Iraq, Libya, Montenegro, Nigeria, North Korea, Russia, Serbia (aka Yugoslavia), Sierra Leone, Sudan, Syria, Taliban, and United States of America. This list is subject to change without notice.
Do I open an account with Hani Securities (H.K.) Limited?
Hani Securities merely plays the role of an introducing broker, and acts as a liaison to Hong Kong clients, serving as their local customer service. You will actually open an account with an U.S. licensed broker "Global American Investments Inc." and an U.S. licensed clearing house "Computer Clearing Services Inc." who will be directly responsible for your money and stock holdings. Hani Securities will receive a certain percentage as commission, which is already included in your brokerage.
Who is Global American Investment Inc.?
Global American Investments Inc. is a California based registered broker/dealer, specializing in providing advanced direct access trading technologies to active online investors. The direct access trading platforms we offer provide our clients with fast execution speed and information delivery. Global American Investments Inc is a member of SIPC, which protects securities customers of its members up to US$500,000 (including US$100,000 for claims for cash). This does not cover against market loss or any other risk except the failure of the broker-dealer or its clearing firm.
Who is Computer Clearing Services Inc.?
Computer Clearing Services (CCS) is a full service clearing firm for broker dealers. It specializes in both clearing and the technology needed for Retail and Electronic Online Trading. CCS, like all major broker dealers is a member of NSCC and DTC, the largest clearing facility and depository in the United States. It provides execution and clearing for transactions in equities, options, mutual funds and fixed income products on all major exchange floors and marketplaces. CCS offers personal banking services through the Reserve Funds. It is members of NASD, MSRB and SIPC. CCS provides supplemental insurance in the amount of $10 million. CCS role is very similar to Hong Kong's HKSCC's CCASS Investor Participation Service.
How much money should I use or allocate to start my U.S. trading?
For retail investor accounts, US$10,000 is required. Clients buy through cash account only, no margin.
For Active Day-Trading Account, at least US$25,000 (approximately HK$195,000). Your U.S. margin account will permit you to trade up to 2 times of that amount overnight, and 4 times your total equity intra-day.
How do I deposit money into my account?
After your account is opened, you will be notified by email of your account number. You should instruct your bank to wire (telegraphic-transfer) the money to Computer Clearing Services Inc. at
United California Bank
One Front Street
San Francisco, CA 94111
ABA# : 122003516
SWIFT Code : SANWUS66
For : Computer Clearing Services Inc.
For Credit to customer : (Insert your name)
Account Number : (Insert your trading account number)
What is the transaction cost involved?
Brokerage or Commission US$16.00 per trade up to 2,000 shares.A buy-order and a sell-order are considered as 2 separate trades.No charge for cancellation as long as that order has not been partially filled.No extra charge for partial fills of the same order.The commission includes Island ECN routing fee.Hani Securities will receive a certain percentage as commission, which is already included in your brokerage.
Tax or SEC Fee
he Securities and Exchange Commission assesses a tax of 1/300th of 1% (1/30,000th) on the sales value of all New York Exchange, American Stock Exchange, and NASDAQ securities. This tax went into effect on January 1, 1997. Global American collects this SEC tax from your account.
NASDAQ Level II Data fees US$125 per monthFree if you trade more than 75 trades per month.
Additional charges No ECN fee for Island trades. For all orders routed through ARCA a $.005/share fee will be added to your base commission.
What is ECNs (Electronic Communications Networks)?
Electronic Communication Networks are separate entities other than Market Makers that traders buy and sell stock through. The Island is an example of an ECN. Its symbol on a Level II screen is ISLD. Traders post limit orders through Island and other traders execute their limit orders through Island. Trades are electronically matched up without the decision making that a true Market Maker such as Goldman Sachs goes through. There are a number of ECNs that are available. Island (ISLD) and Archipelago (ARCA) are the only ECNs that you have on our system to post your limit orders. They both have execution buttons embedded in the order entry system for you to access easily.
Who provides the real-time quote and trading engine?
SE Global Equities Corp. provides the software which includes the real-time quote (NASDAQ Level II) and trading engine.
Will I get a printed statement for trades I have transacted?
Printed statement will be sent to you by post. You can also get all your account and trading information directly from Computer Clearing Services website customer.eclearinginc.com.
How do I make money from trading in U.S. securities?
You don't! You should treat trading in U.S. securities as an alternative method of overseas investment. And with any investment you are likely to suffer losses as well as gains. U.S. securities are extremely volatile, more so than many other markets or investments. There are inherent risks in investing in securities and you could lose all your money and still be in great debt. Trading in U.S. securities is not much different from gambling in a casino or betting on horses, in essence you are more likely to lose money than profit made. The investment decision you make is your own, and you cannot blame any one for errors, mistakes or bad investments you've made on your own.
What sort of equipment will I need to trade U.S. securities via the Internet?
All Windows platforms beginning with Win95 or later are supported (Win95a, Win95b, Windows NT 3.51 and later, Win98, Win ME and Win2000). No other operating systems are supported (Mac, Linux, Unix, etc. are not supported).
Hardware - Minimum of a Pentium II processor with a speed of at least 300 megahertz (MHz), and 64 megabytes (MB) of RAM.
Modem - It is recommended that you use a high capacity line such as cable modem, DSL, or T1. However SE Global Trade (the trade engine) will function effectively on modems as low as 28.8kps modem.
Hard Drive - Available hard disk space should be no less than 20MB. We also recommend at least a 2MB Video Card and a full size monitor (at least 14").
Who should I contact if I have more questions?
You should contact Hani Securities on either (852)-23752286 (hotline) or (852)-28691318 or Global American Investments Inc. 1-909-3968899 (hotline) for more information. Alternatively you may send your questions via email to info@HaniNet.com and we will endeavor to answer you query within a few hours. |
