HSBC InvestDirect Review
Canadian Online Brokerage Review
InvestDirect by HSBC (short for Hongkong and Shanghai Banking Corporation) is one of a very small number of discount brokerages that lets you trade on the Hong Kong Stock Exchange in addition to the North American stock exchanges. It is a subsidiary of HSBC Securities Canada Inc. and is the online brokerage of HSBC Bank Canada.
HSBC InvestDirect is an interesting option for individuals looking to do overseas stock trading in addition to trading on North American markets. Clients have access to 30 domestic and international markets and the ability to settle transactions in 10 different currencies. One thing that has to be factored in for pricing is the foreign exchange rates, as InvestDirect doesn’t offer US dollar registered accounts (TFSAs, RRSPs, and RESPs).
The pricing, account balance, and trading volume requirements for best commission pricing have been lowered to be more competitive with the other Canadian online brokers. There are some inactivity fees that are levied if your account balance falls below $10,000 on non-registered accounts or if your trading activity is less than once per quarter. That said, from a pricing perspective, if you are an active trader who wants the flexibility of international trading, you may want to consider HSBC. If you are a less-active trader, you need to know what your investing or trading requirements on a monthly basis will be in order to calculate if HSBC InvestDirect will be the most cost-effective option for you.
Pricing Fees
In late 2017, HSBC InvestDirect introduced flat rate pricing of $6.88 per trade for online North American equity trades with commissions for options of $6.88 + $1.25 per contract. Clients qualify for ‘Active Trader’ status by completing 150+ trades per quarter and enjoy $4.88 pricing with commissions for options set at $4.88 + $1.25 per contract.
Account Types
You can hold direct-trading, registered, foreign currency, personal, corporate and more. Registered account options include: TFSAs, RRSPs, RRIFs, RESPs, LIRAs / LRSPs and LIFs / LRIFs. For registered accounts you cannot use margin or short stocks. Options trading in registered accounts is limited to buying and selling options and there is no writing of options allowed in these accounts. In the non-registered investment account category, clients advanced options trades can be made and stocks may also be shorted.
HSBC InvestDirect Brokerage Experience
HSBC InvestDirect has a poor general app experience with their banking, for this reason it seems unlikely HSBC InvestDirect will be making an app for trading anytime soon, given that it most likely will focus on improving the banking experience first. HSBC InvestDirect allows for international trade which is great for users who are seeking to explore other markets that are not available in the US.
Can I use HSBC InvestDirect Brokerage to buy Bitcoins or other cryptocurrencies?
HSBC InvestDirect does not exchange any sort of cryptocurrency. This means that HSBC InvestDirect does not trade Bitcoin, Ethereum or any other forms of cryptocurrency in the market.
Additionally, HSBC InvestDirect is not crypto friendly at all, going as far as to ban stock tickers for owning crypto. If you are an invested crypto trader, it’s recommended to stay away from HSBC InvestDirect as HSBC has a very anti-crypto stance.
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How does HSBC InvestDirect Brokerage compare to other Brokerages?
HSBC InvestDirect is restrictive in some ways such as the poor existing apps and non existent trading apps, as well as the anti-crypto stance, however the ability to internationally trade gives it a great advantage over other brokerages. HSBC InvestDirect may not comply with crypto as it could interfere with international market trading, however this is just speculation.
Who is HSBC InvestDirect Brokerage Best For?
HSBC InvestDirect grants access to 30 domestic and international markets and allows to settle transactions in 10 different currencies, for this reason HSBC InvestDirect is great for traders looking to trade into foreign markets that may not traditionally be accessible through other brokerages.
Does HSBC InvestDirect Brokerage Have an app? Full review!
HSBC InvestDirect also does not have an app for iPad, when we checked; since there is no app for iPhone, or iPad that means HSBC InvestDirect does not have an app for Apple, or the iOS platform, or Mac standalone app.
HSBC InvestDirect currently does not have an app for Android, Google, or Samsung.
Therefore, HSBC InvestDirect does not have any apps available at the moment.
What is HSBC InvestDirect Brokerage Fees?
North American trading commissions
- Benefit from HSBC Premier or HSBC Advance customer discounts, with trades starting at $6.88
- Take advantage of discounted telephone trade commissions (Equities, exchange-traded funds (ETFs) and options telephone trade commissions
- Choose from more than 4,000 commission-free mutual funds
Global trading commissions
- Receive a flat rate of HK$288 for online trades on the Hong Kong Stock Exchange (for trade values of HK$ 0-1,999,999).
- Benefit from HSBC Premier or HSBC Advance customer discounts on international online trades
- Minimize your foreign exchange exposure by investing and settling in 10 different currencies
- Access more markets than any other online discount broker in Canada
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What account types does HSBC InvestDirect Brokerage offer?
Does HSBC InvestDirect Brokerage have TFSA accounts?
HSBC InvestDirect Brokerage offers TFSA accounts in both Canadian and US Dollar. Is there a fee to use the TFSA accounts? No, there is no fee to use the TFSA accounts.
Does HSBC InvestDirect Brokerage have RRSP accounts?
HSBC InvestDirect Brokerage offers RRSP accounts in both Canadian and US Dollar. Is there a fee to use the RRSP accounts? No, there is no fee to use the RRSP accounts.
Does HSBC InvestDirect Brokerage have RESP accounts?
HSBC InvestDirect Brokerage offers RESP accounts in only Canadian Dollar. Is there a fee to use the RESP accounts? No, there is no fee to use the RESP accounts.
Does HSBC InvestDirect Brokerage have Cash accounts?
HSBC InvestDirect Brokerage offers Cash accounts in both Canadian and US Dollar. Is there a fee to use the Cash accounts? No, there is no fee to use the Cash accounts.
Does HSBC InvestDirect Brokerage have Margin accounts?
HSBC InvestDirect Brokerage offers Margin accounts in both Canadian and US Dollar. Is there a fee to use the Margin accounts? No, there is no fee to use the Margin accounts.
How to switch to HSBC InvestDirect Brokerage?
To transfer your account to HSBC InvestDirect from another financial institution, access the forms here.
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How to switch from HSBC InvestDirect Brokerage?
To switch from HSBC InvestDirect Brokerage, please refer to the guide for the brokerage you are looking to transfer from. SparxTrading takes pride in providing up to date information, please see the brokerage review you are looking to transfer to for assistance on how to transfer to that brokerage.
