Overview of China Tonghai Securities
China Tonghai Securities is a leading mid-tier financial services institution based in Hong Kong. It is now renowned as Quam Securities, a subsidiary of China Tonghai International Financial Group. It operates as a securities brokerage with global execution capabilities, allowing clients to trade in various investment products such as stocks, futures, options, bonds, funds, and structured products in Hong Kong and global markets.
The trading platforms offered by China Tonghai Securities include Qplus, a mobile trading app that allows clients to buy and sell stocks, monitor market trends, and seize investment opportunities, while SP Trader is a comprehensive platform for internet trading of cash, derivatives, stocks, futures, and options products, connecting to over 20 exchanges worldwide.
China Tonghai Securities provides customer support through various channels, including a Hong Kong hotline and a PRC toll-free hotline. Clients can reach out to the broker for assistance with account opening, trading inquiries, and general support.
Is China Tonghai Securities regulated？
While the company claims to have over 20 years of knowledge and experience in global dealings and operates as a mid-tier securities brokerage in Hong Kong, China Tonghai Securities are unable to provide relevant licenses for regulatory oversight and authorization. The absence of regulation and license for China Tonghai Securities poses significant risks to potential investors. Regulation plays a crucial role in ensuring the integrity and stability of financial markets and protecting the interests of investors.
Without proper regulation, there is a lack of oversight and accountability, making it difficult to assess the credibility and reliability of the brokerage firm. It is recommended to verify the broker's licensing and regulatory status, review customer feedback and reviews, and consult with independent financial advisors or regulatory authorities for a comprehensive assessment of the company's legitimacy and reputation.
Pros and Cons
China Tonghai Securities offers several advantages to investors. With over 20 years of experience, the company provides valuable insights and expertise. They have a strong network in Greater China and global markets, offering access to a wide range of investment opportunities. Operating round-the-clock, clients can conveniently trade and access market information. China Tonghai Securities offers diverse investment options, including securities, futures, options, bonds, funds, and structured products. They also provide professional services in research, brokerage, placements, and financial advisory, catering to individual and corporate clients.
However, the absence of proper regulation and licensing is a significant drawback of China Tonghai Securities. This lack of oversight raises concerns about investor protection and increases risks. Compliance uncertainties and limited transparency are additional challenges, making it essential for investors to exercise caution and conduct thorough due diligence. The absence of regulatory protection measures also leaves investors more vulnerable to financial risks and disputes.
Market Instruments
China Tonghai Securities offers a comprehensive range of market instruments for investment and trading purposes. Clients have access to various options, including bonds, mutual funds, structured products, and futures. Bonds are debt securities that provide regular interest payments and repayment of principal. Mutual funds pool money from investors and invest in stocks, bonds, or other securities under the management of professionals. Structured products are investment instruments linked to underlying assets or events, providing returns based on changes in prices or specific occurrences. Clients can trade these various products in different securities markets, such as Australia, China-Shanghai, Shenzhen, Indonesia, Japan, Korea, Philippines, Malaysia, Singapore, Taiwan, Thailand, the UK, the US, and Canada.
China Tonghai Securities also offers corporate finance services to assist enterprises in raising funds for business expansion. Discretionary accounts and asset management services are available for clients who seek professional guidance and customized investment strategies. Additionally, the company engages in high-frequency and algorithmic trading, leveraging automation and advanced technology to capitalize on price spreads. With futures contracts and options, investors can participate in these markets to potentially generate returns and manage risks effectively. These diverse market instruments empower clients with a wide range of investment opportunities to meet their financial goals.
Account Types
China Tonghai Securities offers several account types to cater to the diverse needs of investors. These account types include:
Cash Account: A basic securities account that uses personal or corporate funds for trading securities without borrowing or leveraging.
Margin Account: Enables investors to trade on margin by borrowing funds from the brokerage, providing additional buying power but involving risks and interest charges.
Stock Options Account: Tailored for trading options contracts, which grant the right to buy or sell underlying securities within a specific time frame.
Futures and Options Account: Allows trading of futures contracts and options contracts, providing access to the futures market for various commodities, currencies, interest rates, and stock indexes.
These account types provide different levels of trading capabilities and flexibility, catering to the diverse needs of investors. It's important to carefully evaluate your investment objectives, risk tolerance, and trading preferences to determine which account type best suits your needs.
Step-by-step on opening an account
Opening an account in China Tonghai Securities can be done online for Hong Kong and Mainland Chinese residents. The process is straightforward and easy to follow. Here are the 5 steps to open a China Tonghai Securities account online:
Download the Qplus mobile app and register your account online. Prepare the required documents beforehand, such as your Hong Kong ID card (or passport for non-permanent Hong Kong residents), a valid mobile number, a mainland Chinese bank card, and proof of address for mainland residents.
Fill in the required information and upload the necessary account opening documents through the mobile app. This includes providing personal details and taking a video for identity verification.
Set up a password for your account and track the progress of your application through the app.
Once your account has been processed, it will be approved within 3 to 5 business days. You will receive updates on the approval process via phone messages.
After the account is successfully opened, you will receive a confirmation letter within the next business day either by email or mail.
On the other hand, non-Hong Kong or non-Mainland China residents can open an account through offline appointments. With offline appointments, clients can schedule a visit to the China Tonghai Securities office in Hong Kong during office hours. They must bring the required documents, including ID card or passport copies, proof of address, and any additional documents based on the account type. The account opening process will be completed in person with the assistance of China Tonghai Securities staff.
Spreads & Commissions (Trading Fees)
In trading, spreads refer to the difference between the buying (bid) and selling (ask) prices of a financial instrument. Spreads are an essential component of trading as they impact the overall cost and profitability of a trade. When placing a trade, you will typically buy at the higher ask price and sell at the lower bid price. The spread range for each product category in China Tonghai Securities is as follows:
Besides of spreads, China Tonghai Securities charges trading and commission fees to clients for its services in facilitating securities trading. These fees cover the costs of executing trades, providing real-time market quotes, and supporting the company's operations. Trading fees include charges for market information, while commission fees compensate the company for trade execution and support services. The table below shows more specific information about each fee type.
Please note that the table includes specific fees and charges, but there may be additional fees or variations based on individual circumstances. It is recommended to refer to the official fee schedule provided by China Tonghai Securities or consult with their representatives for the most accurate and up-to-date fee information.
Trading Platform
China Tonghai Securities offers two trading platforms: SPTrader and QPlus. SPTrader is a versatile platform available for use on computers, mobile phones, and tablets. It supports trading in securities, futures, and stock futures, providing real-time streaming stock quotes and various charting options to aid in price analysis. With features like customizable watchlists, price alerts, and quick order placement, SPTrader offers convenience and efficiency for traders.
On the other hand, QPlus is a mobile trading app specifically designed for Android 11.0 or above and iOS 14.0 or above. It allows users to buy and sell stocks easily while providing real-time market monitoring. By keeping track of market trends, users can swiftly seize investment opportunities.
Deposit & Withdrawal
Depositing securities to your China Tonghai Securities trading account involves providing a written instruction to your current broker and completing China Tonghai Securities' Securities Settlement Instruction form. This form should be faxed or handed over to China Tonghai Securities, specifying the securities you wish to transfer. Once the delivering broker confirms the transfer, China Tonghai Securities will deposit the respective securities into your account. In the case of physical Hong Kong securities, you need to complete and sign the Standard Form of Transfer, bring it along with the Securities Certificate, and deliver them to China Tonghai Securities. Upon acceptance by the Clearing House, the securities will be credited to your account.
To withdraw securities from your China Tonghai Securities account, you should fill out the relevant form, either the Securities Settlement Instruction form or the Stock Delivery Order form. Specify the delivery instructions, whether it is Delivery/Receipt Versus Payment or Free of Payment, and submit the form via fax or in-person to China Tonghai Securities. The withdrawal process typically takes about two days. Once the securities are ready for collection, you will be notified, and you can either collect the physical stock in person or provide written authorization for someone else to collect it on your behalf. If you wish to withdraw securities and deliver them to your account at CCASS (ISI), you should fill out the Securities Settlement Instruction form, following the same process of submitting it to China Tonghai Securities via fax or in person.
It is also important to pay attention that China Tonghai Securities has recently introduced additional handling charges for deposit and withdrawal transactions through third-party payment methods. This change comes into effect from June 19th, 2023, and is a response to the increasing operational costs. The handling fee for such transactions will be 0.1% of the payment amount, subject to a minimum charge of HKD 1,000 and a maximum charge of HKD 50,000.
Customer Support
China Tonghai Securities provide comprehensive customer support to its clients, ensuring a seamless trading experience. Clients can avail themselves of various support channels to address their inquiries, seek guidance, and receive assistance promptly.
Clients can contact the dedicated hotlines for inquiries and assistance: (852) 2971-5486 for Hong Kong clients and 400-678-0225 for clients in the People's Republic of China (PRC). Additionally, clients can communicate through email at QSeccs@quamgroup.com, allowing for written inquiries and prompt responses. These support channels ensure that clients can easily reach out for personalized assistance and receive timely and efficient support.
Educational Resources
China Tonghai Securities' Investor Education Centre provides a wide range of educational resources covering various investment topics. These resources include articles, videos, and guides on futures and options, warrant and CBBC trading, bond investments, structured products, mutual funds, ETFs, and leveraged and inverse products. Investors can access detailed explanations and insights into key concepts, trading mechanisms, and strategies associated with these instruments. The educational materials aim to empower investors with knowledge and understanding, enabling them to make more informed investment decisions and navigate the financial markets effectively.
Overall, China Tonghai Securities' Investor Education Centre serves as a valuable platform for investors to expand their knowledge, make informed investment decisions, and effectively manage their portfolios in the ever-changing financial markets.
Conclusion
In conclusion, China Tonghai Securities is a comprehensive broker offering a wide range of financial services and investment products. They provide access to various market instruments, allowing investors to diversify their portfolios and pursue different investment strategies. In addition to trading, China Tonghai Securities offers services such as institutional research, brokerage, placements, and financial advisory, catering to the diverse needs of their clients. They prioritize customer support, providing multiple channels for assistance and prompt response to inquiries. Furthermore, their Investor Education Centre offers educational resources to empower traders with knowledge and insights, enhancing their understanding of market instruments and trading strategies.
However, it is important to note that China Tonghai Securities operates without a license, which raises concerns about regulatory oversight, investor protection, and legal recourse. The absence of regulation exposes investors to potential risks, and caution should be exercised when considering engaging with an unlicensed broker.
FAQs
Q: Is China Tonghai Securities a regulated broker？
A: No, China Tonghai Securities does not have a license or regulatory oversight, which poses potential risks to investors.
Q: What are the types of accounts available for trading？
A: China Tonghai Securities offers cash or margin securities accounts, stock options accounts, and futures and options accounts, both for individual and corporate clients.
Q: What types of securities can I trade with China Tonghai Securities？
A: China Tonghai Securities offers stocks, futures, options, warrants, bonds, and more throughout markets in different countries and regions.
Q: What trading platforms does China Tonghai Securities provide？
A: China Tonghai Securities provides SPTrader and QPlus as trading platforms.
Q: Does China Tonghai Securities provide customer support？
A: Yes, customer support is available via hotline for account-related assistance and inquiries.
2023-03-17 11:36
