Futu Securities vs. Tiger Brokers: A Comparison of US Stock Trading Fees and User Experience

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When choosing a broker for U.S. stock trading, fees and platform experience are key. Futu Securities and Tiger Brokers are known for low commissions and robust platforms. Futu charges $0.0049 per share, while Tiger Brokers charges $0.005 per share for U.S. stocks, both with strong regulatory backing for fund safety. Futu has a slight edge in commissions, but each excels in different areas of platform functionality and flexibility, catering to varied investor needs.

Key Points

• Futu and Tiger Brokers offer competitive U.S. stock trading commissions, ideal for cost-conscious investors.
• Futu’s platform is feature-rich, supporting multi-market trading, perfect for data-driven and frequent traders.
• Tiger Brokers provides broader global market coverage and a streamlined interface, great for mobile-focused, diversified investors.
• Both have user-friendly signup and deposit processes; check fee structures to avoid hidden costs.
• Prioritize regulated brokers for fund safety and ensure compliance with tax reporting requirements.

Fee Comparison

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Commissions and Platform Fees

Commissions and platform fees directly impact your trading costs. Futu Securities charges $0.0049 per share for U.S. stocks with a $0.99 minimum per trade, while Tiger Brokers charges $0.005 per share, also with a $0.99 minimum. For a 100-share trade, both cost $0.99 due to the minimum.

Futu and Tiger Brokers outshine traditional brokers like TD Ameritrade with lower fees. Futu may charge extra for advanced features like Level 2 quotes or premium data, while Tiger’s fee structure is simpler but less transparent for some users, potentially hiding minor costs.

Tip: Review fee disclosures before signing up to avoid unexpected charges impacting returns.

Options and Financing Rates

For options trading or margin needs, fees and rates matter. Both brokers charge $0.99 per U.S. options contract (100 shares), competitive in the market.

Margin rates for both range from 4.8% to 6.5% annually, depending on loan size. Futu excels in margin for IPO subscriptions, ideal for short-term funding needs. Monitor loan amounts and rate fluctuations to manage costs.

Other Fees

Beyond commissions, consider additional costs. Futu supports multi-market trading but charges for premium features and has a higher 0.08% fee for virtual assets. Tiger Brokers offers broad market access and fast account approvals but has a narrower Hong Kong product range and inconsistent customer service. Some users note unclear fee explanations, suggesting possible hidden costs.

• Futu Securities Advantages:
  • Low-latency trading
  • Multi-market support
  • Strong user experience
  • Robust margin for IPOs
  • Large user base
• Futu Securities Disadvantages:
  • Premium features cost extra
  • High virtual asset fees (0.08%)
• Tiger Brokers Advantages:
  • Low U.S. stock fees ($0.0039/share in some cases)
  • Broad market coverage
  • Fast account approvals
  • Large custodial assets
• Tiger Brokers Disadvantages:
  • Limited Hong Kong product range
  • Inconsistent customer service
  • Unclear fee disclosures

Combine your trading habits and budget with these fee structures. Test platforms with small trades or demos to uncover any hidden fees.

User Experience

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Account Opening and Deposits

Both brokers offer online account opening with ID and address proof uploads. Futu typically completes reviews in 1–2 business days, while Tiger’s reviews may occasionally take longer. Deposits support USD or HKD via Hong Kong bank transfers, with Futu providing clear deposit guides and multi-currency accounts. Tiger’s deposits are often faster, but fees vary by bank.

Tip: Confirm deposit policies and fees with customer support to avoid surprises from exchange rates or bank charges.

Platform Features

Futu and Tiger Brokers provide web and app platforms for trading, market monitoring, and portfolio management. Futu’s platform, Futu NiuNiu, is fast and feature-rich, offering K-line charts, tick charts, and Level 2 data for in-depth analysis, though some tools require subscriptions. Tiger’s Tiger Trade app is sleek, mobile-friendly, and supports seamless market switching (U.S., Hong Kong, A-shares) with clear order types like market or limit orders, ideal for mobile traders.

Futu suits data-driven traders; Tiger excels for simple, mobile-based trading.

Customer Service

Futu offers online chat, phone, and email support with quick responses, often within minutes, plus a comprehensive FAQ section. Tiger provides similar channels, but response times can lag during peak hours.

Note: For urgent issues, use online chat or phone support for faster resolution.

Flexibility and Products

Investment Options

Futu focuses on Hong Kong and U.S. stocks, ideal for concentrated strategies. Tiger covers global securities, futures, options, and forex, offering greater diversification.

Tiger is better for diversified portfolios; Futu meets needs for U.S. and Hong Kong markets.

Trading Hours

Both support regular U.S. and Hong Kong stock trading hours, with Tiger offering extended hours for some global markets, including U.S. pre/after-hours trading. Futu supports U.S. extended hours but with less coverage. Check specific hours and fees for extended trading.

Tip: Verify extended-hours support and fees if trading outside regular sessions.

Fractional Shares and Transfers

Tiger supports fractional share trading (rules/fees undisclosed) and streamlined transfers with incentives:

1. Transfer $10,000 in stocks: Up to $700 stock voucher + 10 free trades (1 year).
2. Transfer $20,000: Up to $1,000 voucher + 15 free trades.
3. Transfer $50,000: Up to $1,200 voucher + 30 free trades.
4. Free trades activate within 60 days, valid for 1 year.

Futu’s fractional share and transfer details are less clear; contact support for specifics.

Futu Securities: Ideal Users

Frequent Traders

Futu’s NiuNiu platform supports stocks, ETFs, funds, and bonds across multiple markets, with the “NiuNiu Circle” for real-time news and community insights. Its fast, modern interface suits high-frequency traders. By 2020, Futu had 11.92 million users, up 59%, with 60% of revenue from commissions, reflecting active trading.

1. Multi-market, multi-product support.
2. NiuNiu Circle for news and community.
3. Smooth interface for frequent trades.
4. 90% of new funded clients from overseas, showing global appeal.

Frequent traders benefit from Futu’s multi-market access and active community.

Long-Term Investors

Futu’s robust data tools (K-line, tick charts) aid fundamental analysis for long-term holdings. Portfolio management and systematic investment plans reduce volatility risks, ideal for steady investors.

Use Futu’s tools for informed, long-term portfolio management.

Margin Users

Futu’s margin rates (4.8%–6.5%) and IPO margin support suit short-term funding needs. Assess rates and risks before borrowing.

Ensure margin aligns with your financial strategy.

Common Issues

Fee Traps

Watch for:

1. Broker Add-Ons: Some platforms add up to 5 points on spreads, inflating costs.
2. Bonus Traps: Promotional bonuses may be non-withdrawable and lead to risky trading or freezes.
3. User Complaints: In 2018, non-compliant platforms caused losses via third-party transfers.
4. Regulation: U.S. (NFA) and UK (FCA) regulators enforce strict fund segregation; Hong Kong is less stringent.
5. Recourse: Keep transaction and bank records for disputes; some legal teams offer no-win, no-fee aid.

Read fee terms and avoid non-withdrawable bonuses.

Fund Safety

Choose brokers regulated by FCA or NFA for segregated funds and compensation schemes. Use Hong Kong bank transfers and retain records for disputes.

Tax and Account Management

U.S. non-residents face 30% dividend withholding tax, reducible via W-8BEN. Use brokers with automated tax reports for efficiency.

Recent Developments

Stricter regulations impact both brokers:

1. Overseas work/life proof required for signup, raising barriers.
2. HSBC Hong Kong accounts now require HK$1M (~$127,000).
3. Enhanced compliance shares tax data with Chinese authorities.

Note: Verify policies, as mainland users face app store delistings and stricter KYC.

Choose based on trading frequency, market focus, and compliance needs. Futu suits multi-market, data-driven traders; Tiger fits mobile, global investors. Test platforms and monitor policy updates.

FAQ

What are hidden fee risks?

Check for account management, data subscription, or transfer fees. Review official fee schedules to avoid small, cumulative costs.

Are funds safe?

Regulated brokers segregate funds. Use Hong Kong bank transfers and keep records for security.

How to handle U.S. stock taxes?

File W-8BEN for tax treaty benefits. Dividends face 30% withholding; maintain records for reporting.

Can I deposit RMB directly?

No, convert RMB to USD via Hong Kong banks. Monitor exchange rates for cost efficiency.

What to know for transfers?

Confirm stock support, prepare transfer forms and ID, and check fees and timelines to avoid delays.

Both Tiger Brokers and Futu Securities offer low-cost and convenient trading experiences for U.S. stock investment. However, the article also highlights a key pain point: whether you’re depositing or withdrawing funds, you have to deal with complex cross-border remittance processes, non-transparent exchange rate losses, and high fees. Especially with the restriction of “not being able to directly deposit RMB,” you need to first convert currency and then transfer it via a Hong Kong bank, which not only increases operational difficulty but also adds unnecessary costs and time to every transaction.

BiyaPay is dedicated to solving these cross-border financial pain points, providing you with a more efficient and cost-effective investment channel. We support the conversion between various fiat and digital currencies, allowing you to easily manage global assets, and offer a real-time exchange rate query feature to ensure you always get the best rates. Most importantly, we provide remittance fees as low as 0.5% with same-day delivery, significantly reducing your transaction costs and time. Now, you can invest in both U.S. and Hong Kong stocks on a single platform without needing a complex overseas account. Say goodbye to cross-border payment hassles and start your efficient financial journey now. Register with BiyaPay and make your fund management as smooth as your trading.