- Guide to Opening a US Stock Trading Account
- Sample for Account Opening: Scottrade
- Guide to Opening a US Stock Trading Account（NYSE MKT：TKAT）
(Extracted from the Internet)
I. Selection of broker-dealers
The registration procedures, complexity, trading commission, service experience and fund security vary from broker-dealer to broker-dealer. Select a broker-dealer suitable for you first. Currently US stock broker-dealers on the market can generally be divided into traditional online broker-dealers and new online broker-dealers.
II. Fund security
Generally speaking, funds for US stock trading for non-US clients are maintained at overseas broker-dealers’ accounts, and the funds of broker-dealers are under insurance coverage of SIPC.
Securities Investor Protection Corporation (SIPC) was created under the Securities Investor Protection Act (SIPA) adopted by the US in 1970 as a non-profit membership organization for the purpose of providing insurance coverage to securities investors. A great majority of US local broker-dealers are SIPC members. SIPC is required to report regularly to US Securities and Exchange Commission (SEC). SEC has the right to regulate SIPC, examine its annual report and approve its articles of association and the amendments thereof.
As at late 2014, SIPC Fund exceeded US$2.1 billion, with a line of credit of US$2.5 billion with the US Treasury. When there are securities issues with investors’ funds, SIPC Fund will be used to make up for the deficiency of up to US$500,000 for each customer, including a maximum limit of US$250,000 for cash. The broker-dealers in China are US stock agents without SIPC membership, but the upstream broker-dealers to which they attached are SIPC members in general, the funds of clients’ accounts are protected by upstream broker-dealers.
III. US stock trading
1. Trading hours
EDT: Monday to Friday, 9:30 to 16:00
DST: Beijing time (21:30 – 4:00 the next day)
Winter time: Beijing time (22:30 – 5:00 the next day)
ST is in effect from early March to early November. Winter time is in effect from early November to early March.
In addition to Saturday and Sunday, other closings are:
January 1, New Year’s Day
Third Monday of January, Dr. Martin Luther King Jr. Day
Third Monday of February, Presidents’ Day
Two days before Easter Sunday, Good Friday
Last Monday of May, Memorial Day
July 4, Independence Day
First Monday of September, Labor Day
Second Thursday of November, Thanksgiving Day
Christmas Eve: closing three hours earlier
Christmas: Closed, if Christmas falls on weekend, closing the next day
(Extracted from the Internet and Applicable to Mainland China)
I. Account registration
1.Open the Chinese website of Scottrade (https://chinese.scottrade.com), click 亚太居民申请 (registration of Asia-Pacific residents) at the top right corner.
2. Fill in registration information
The country code of China is 86. Click 继续 (continue) after completion.
3. Fill in address and account information to continue
Address in Pinyin/English.
If the supporting documents submitted are passport and identity card (preferred), please fill in the address on identity card.
Note: Fill in passport details as far as possible if you have a passport.
4. Fill in employment details
Fill in actual details. Note: please provide information in English.
5. Fill in questionnaire information to continue
Make selection based on actual situation.
6. Review information, modify incorrect information to continue
7. Select additional account services, and fill in expected account activities
8. Complete “Final Step”
(1) Print and sign the application: click to download 《非美国居民经纪账户申请》(Application for Brokerage Account by Non-US Residents), then print, sign and scan it.
(2) Scan or take photo of the signed application form and the supporting identity documents, and send to firstname.lastname@example.org.After successful account opening, Scottrade will send an email to notify successful account opening.
(3) After receiving email, login to the account and submit a valid W-8BEN form. W-8BEN form is used by US Internal Revenue Service to identify foreign nationals.
Upon receiving the email from Scottrade about successful account opening, follow the instructions in the email to login to Scottrade, click “我的账户” (my account), select “我的资料和喜好” (my information and preferences), then click “W-8BEN”, tick your name and then click “继续” (continue) until completion.
Take All-in-One Securities Trading Account of China Merchants Bank Hong Kong Branch as an example:
1. Remittance purchase in local China Merchants Bank
Select “外汇管理” (foreign exchange) — “外汇购汇” (foreign currency purchase) in the professional version of local China Merchants Bank’s Internet banking to convert USD spot rate.
2. Remittance from local China Merchants Bank to Hong Kong
Select “转账汇款”(remittance transfer) —“境外汇款”(overseas remittance) —“汇香港一卡通”(remittance to All-in-One Trading Account) in the professional version of local China Merchants Bank’s Internet banking.
3.Remittance to Scottrade from China Merchants Bank Hong Kong Branch
Open professional version of China Merchants Bank Hong Kong Branch, select “转账汇款” (remittance transfer) — “香港本地转账” (Hong Kong local transfer)
The following is the transfer page, remember to fill in your Scottrade account number and name in the “remarks” column.
For more fund remittance methods, please refer to Scottrade’s Chinese website: https://chinese.scottrade.com/zh_CN/InternationalAccount/InternationalAccountFunding.html#tab0
【Example from Scottrade】
1.Go tohttps://trading.scottrade.com/default.aspx?lang=cnto enter the client trading site of Scottrade.
2.Fill in account number, password and click enter.
3.Enter "TKAT", stock code of HK Takung AE，in search column at the top right corner to begin the search.
4.Enter the stock information page of HK Takung AE, click “交易” (transaction)./p>
5.Enter stock quantity, stock code, type of order, validity of order in the order, click “查核订单”(check order).
6. After checking the order, click “送出订单”(submit order), when the deal is concluded the transaction is completed.
* Link for mobile client-side downloading: https://chinese.scottrade.com/zh_CN/online-trading/mobile-trading.html
Please refer to the websites and trading client terminals of broker-dealers for actual operation.