Hong Kong futures anyone?

Discussion in 'Index Futures' started by Wonderduck, Feb 8, 2002.

  1. Hello all,

    I have finally started trading at Hang Seng futures in Hong Kong, via IB. I have no real complaints about that.

    However, I'm looking for a backup of some sort.

    Can anyone recommend another brokerage to use as a backup?

  2. def

    def Sponsor

    send me a PM for what you are looking for and i'll give you a few names.
  3. XPRESSTRADE www.xpresstrade.com
    Quoted from their web site:

    " Access to Futures Exchanges Worldwide. We offer access to leading futures exchanges around the globe, including -- in addition to the U.S. markets -- LIFFE, EUREX, ParisBourse, IPE, Hong Kong, SIMEX, Sydney, and Winnipeg. Trade futures anytime, anywhere, all in U.S. Dollar-denominated transactions."

    They claim "XPRESSTRADE offers one of the lowest commission rate structures in the futures industry". Check it yourself. As you know we IB clients will find it to be ridiculously EXPENSIVE! But since you want is a backup to IB, as suggested (or required?) by IB to maintain an alternative broker account, I think their rate is acceptable. Besides, XPRESS's order routing system seems to be completely independent of that of IB's or the most popular PATSystem-based ones, and clears through ADM Investor Services, worldwide access, electronic and US-floor, all of these best qualify XPRESS as a backup, not only to the hang seng futures, but also to all your other futures accounts.

    Do I say "alternative", "backup"?

    If particularly for HK market, you may check CASH Group, www.cashon-line.com , HK's major local equities & commodities broker. English is ok. They charge the minimum commissions set by HK Exchange. You could choose to place order by phone call (due to your "backup" nature). Phone is picked up quickly. Again you could use it as backup to US and Europe's major stock index futures, and SGX-DT (was SIMEX) MSCI Taiwan Index or Nikkei 225, if you're interested.

    Of course Lind-Waldock and Man, just to name a few, will offer you access to HK market, too.
  4. Uhhh... excuse me for asking but:

    Why do you trade the Hong Kong Market?

    What do you like or dislike about Hong Kong Market?


  5. def

    def Sponsor

    why trade HK? the HK futures market is volatile, fully electronic on a reliable system, and trades from 9 PM - 3 AM NY time (this time of year). If you are on the west coast, 6-midnight isn't too bad if you're looking for something interesting to trade. the currency is also pegged to the dollar thus reducing currency risk. But the main reason to look for other markets to trade is opportunity. (i might be slightly biased as I've been stuck in this neck of the woods making markets in HK for the past 7 years).

    as for a backup, if fees are a consideration, you'll probably want to stick with a broker that clears or has an affiliate clear on the exchange (cost is the reason).

    One thing about the exchange minimums - they don't really exist and those charging the minimums are using the rule as an excuse to keep the fees high. All a firm needs to do is create a regulatoed non-member entity (take IB) and route orders to a member firm (timber hill). Timber Hill has to charge IB the minimums but IB can charge its clients as it pleases. (a number of firms have similar setups).

    One other thing to watch out for: exchange fees. If getting a quote on commissions, make sure the exchange fees are included in the quote.
  6. Basically for the same reasons def quoted:

    1- The hours work well with my schedule. I usually only trade up to the lunch break. I'm on Central time, so for me, that's 7:45pm to 10:30pm.

    2- Decent volatility

    Dislike? Uh.. the inability for me to find a decent quoting/charting package which will provide me HKFE data. But I don't use that much anyway, so it's not that big a deal.
  7. dozu888


    I have been using prosticks for about 2 months now... sometime they have crappy feed, but for 25 clams/month, not bad for a back up.
  8. I was reading in Futures Mag about select markets get favorable tax treatment 60%/40% and how others do not. Example DAX-yes, Hang Seng-NO

    Any comments? or are all you guys filing Mark-to Market tax handling as "market Makers"

  9. just checked xpresstrade, they charge $11 per e-mini / side ... wow ... that is probably the record of what i heard until today
  10. What issue?
    #10     Feb 11, 2002