What to know about universal account upgrades
1. What is a universal account？
A universal account is a type of account offered by FUTU HK. With a universal account, you can trade securities, futures, and forex across various markets (such as Hong Kong, the US, China Stock Connect, and Japan) using multiple currencies.
All the images displayed are for reference only and do not constitute any investment advice.
2. What is an account upgrade?
You can upgrade one or multiple single-market accounts to a universal account, and trade all types of investment options across all markets. All current features will be retained, and you can enjoy enhanced functionality.
3. What are the benefits of a universal account?
Streamlined Trading Experience
Previously, traders had to maintain separate accounts for trading in diverse markets such as Hong Kong, the US, A-share, and Japanese stocks. A universal account simplifies and streamlines the process by allowing users to trade many products seamlessly through one account that supports multiple currency settlements.
Expanded Trading Capabilities
One significant advantage of a universal account is its enhanced trading abilities, particularly in US stock trading. Exclusive features, such as US fractional shares trading and US stock regular saving plans, are accessible only through universal accounts.
Innovative Order Functionality
A new order feature known as "order trigger conditions" has been introduced in universal accounts. This feature allows traders to execute options trading based on the price movements of underlying stocks and stocks based on index prices. By setting trigger times, users can automate order placements, empowering them to trade anytime and anywhere. It's important to note that this advanced feature is not available in older account versions.
Transparent Cost Analysis
In a universal account, traders can use an order preview that provides visibility into each fee and the total cost before placing an order. This transparency enables users to make more informed investment decisions by accurately calculating their investment costs upfront. In contrast, older accounts rely on commission calculators for cost estimates, with actual deductions reflected in subsequent statements.
4. Does every account need to be upgraded?
Yes. To access new features, all existing accounts will be upgraded by October 2024.
5. When will my account be upgraded?
Account upgrades are scheduled for weekends from July to October.
Your account upgrade will be postponed until the following week if your account has any of the following: 1) assets in transit; 2) pending mutual fund shares and RSPs; or 3) pending transactions such as deposits, withdrawals, cash transfers, stock transfers, or option exercises.
Your account upgrade will take place in September if you have any of the following: 1) a stock incentive account; 2) multiple accounts exclusive to a single market; 3) an old fee plan.
6. Can I still use my old account? Will the records be kept?
After the upgrade, the old account will no longer support order placing, trading, or other features. All records, including order history, fund details, and statements, will be retained and accessible by switching to the old account.
All the images displayed are for reference only and do not constitute any investment advice.
7. Will my cash account automatically become a margin account with unified buying power?
No, your cash account will remain as a cash account after the upgrade. Currently, unified buying power is only available for margin accounts.
8. Can I use the buying power I have from my Hong Kong and US stock accounts to trade Japanese stocks on margin?
Yes, the new account supports multi-currency settlement. Buying power for Hong Kong stocks, US stocks, JP stocks, and China A-Shares accounts is unified. Currently, the buying power for futures and leveraged forex has not been unified yet. Please stay tuned for future updates.
9. Will my fee schedule change?
After the upgrade, the universal account will maintain the same fee schedule as your original Hong Kong/US/China A-Shares account. Any benefits tied to the old account, for example, the commission-free seed, will also be transferred to the new universal account.
10. How do I conduct cross-currency transactions after the upgrade?
With the new account, you can trade across currencies directly if you have enough buying power. If you incur a debt in a different currency, you'll need to clear it by exchanging currencies, or you'll be charged interest after settlement.
11. Will there be any changes to the margin interest? Will the sequence of margin interest deduction change?
The margin interest rates remain the same. The deduction of margin interest will follow the original logic, deducting in the order of the corresponding currency: first in the local currency, then in HKD, and finally in USD.