anyone here trading HK options/warrants? which brokers? i find the commission/spreads too expensive to trade frequently.
I would love to know myself. Commissions are hefty throughout Asian markets, brokers poor, software terrible. Day trading with stocks has so far been impossible for me due the massive costs it would imply. Also, most stocks carry a high beta. But if anyone knows any good broker, please let us know.
IB has direct access to the exchanges, is licensed and regulated in HK and have very competitive commissions in Hong Kong. If you're talking equity options, the bulk of the cost is from exchange fees. They charge 1 to 3 HKD per contract depending on the tier the exchange sets for the option class which is often an extreme multiple over what we receive as we charge in basis points. Non-US single name security options are not allowed for US residents w/o a no-action letter. This isn't going to happen any time soon as the exchange needs to apply for each option individually and it is quite a costly and time consuming process. The SEC and CFTC rules were put in place before electronic trading and before the free flow of information on the internet. If you object, the best you can do is complain to your congressman and the regulators. Given the current environment though, I would imagine they would not have much interest in changing the rules. Warrants and CBBCs (callable bull bear contracts) trade on the SEHK (stock exchange as opposed to the futures exchange HKFE). I'm not a fan of them for personal reasons (I don't like the fact that you can't short them - which gives the issuers full pricing power and the risk of getting knocked out complicates the pricing on the CBBCs). Nevertheless, they are marketed relentlessly and some are very active.
i do agree that IB is one of the best brokers for the HK market. it is still expensive (not IB's fault) to daytrade these names. the stamp duty and what-not fees just add up