Best American online stock brokerage firm investing/trading accounts for Chinese, Taiwan and Hong Kong citizens in 2016
Scottrade offers its services to Chinese, Taiwan and Hong Kong citizens and it even provides a chinese version of its website.
Scottrade is a solid, well-established firm in the United States that has been in business for over 30 years. It offers
flat rate trading commissions. We ranked it one of the
Top Brokerage Firms in 2016.
Scottrade keeps customers happy by not charging any unnecessary fees: IRA fees, maintenance and account
Scottrade is an excellent broker for beginner investors, for those who invest in mutual funds, and
long-term, "buy and hold" investors (mainly because of no investment account inactivity charges).
Because Scottrade is a stable, seasoned stock brokerage firm with a very good reputation, it is also
a natural choice for people nervous about trusting their money to newer companies but not wanting to pay
$10+ for trades and multiple fees at other big brokers. Read full Scottrade review here.
Etrade also offers brokerage services to Chinese, Taiwan and Hong Kong citizens and it has chinese version if its website.
Etrade stock and ETF commission is $9.99 per trade, options commission is $9.99 plus $0.75 per contract. Mutual funds are priced much more reasonably at
$19.99 per transaction.
No brokerage account maintenance and inactivity fees make Etrade a good option for buy-and-hold investors.
Read full Etrade review here.
Best ETFs for China to Buy
With China becoming a stronger economic force within the world economy with every passing year, it is no small wonder that many investors are looking to find the best ETFs for China. Buying stock in a Chinese company can sometimes seem like a feat in itself. After all, to truly trade on the Hong Kong Exchange, you must be a resident, at least if you want to invest in Class A stocks. An ETF simplifies the process. An exchange traded fund or ETF that focuses on Chinese investments allows you to invest in the explosive growth that China is experiencing without the challenges that exist when it comes to dealing with finance and business in China, like tax laws, trade barriers, and the unique traditions of the Chinese people. In other words, with an ETF, you can expose your portfolio to the Chinese market.
China and ETFs
When it comes to investing in China, investors are at a loss because they have everything from tax rules to Chinese traditions
working against them to prohibit them from cashing in on a market that is experiencing phenomenal growth. One way to get this
type of exposure for this market is with an ETF like FXI from iShares FTSE/Xinhua China. This ETF tracks Chinese sectors like
communications, energy, construction, and banking with just one investment.
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Investing in the BRIC Market
When some investors hear their friends talking about the BRIC market, they may be confused. The BRIC market encompassed Brazil, Russia, India, and China.
It represents regions that are quite popular on the investment scene, and as such, there are now BRIC investments that invest solely in products and companies from this area.
A BRIC ETF can help you to gain exposure to China as well as the other three countries in this block to increase your overall foreign exposure at the same time.
Emerging Markets ETF
Another way to invest in China via ETFs is to invest in an emerging market ETF. This is often a better choice for those investors who find the BRIC to be a bit
limited or who want to focus on emerging markets. Emerging market ETF that follow Chinese assets are a good bet. For instance, the PXH
contains Chinese stock as well as stock from Taiwan, Korea, and Brazil.
You can invest in an Asian market fund to gain exposure to the entire Asian region. These ETFs allow you to focus on this region of the world while also investing
in China. One such fund to consider if you are looking for an Asian ETF is the AAXJ from iShares. This fund targets investments with direct Asian ties.
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International Bond Funds
You can also increase your foreign investment exposure and diversify your portfolio with China-related and other regions with an international bond fund or ETF.
This type of ETF is ideal for investors looking to hedge Chinese interest rates. For creating a steady stream of income, this is also a great investment choice
for the most part.
Chinese Currency Funds
Funds that directly include the Yuan are also available. These ETFs can actually help to protect your Chinese investments if you have risks in the Chinese interest rate or in the Yuan. Some currency ETFs only track the Yuan, but there are some ETFs that focus other currencies, and are known as broad or wide currency ETFs. A currency ETF that gives you exposure to the Yuan as well as other currencies in a single investment is a desirable choice here. For example, you might buy into CEW or WisdomTree Dreyfus Emerging Currency ETF. This ETF tracks the currency in sixteen regions, and includes the Yuan.
Although doing business in China can be difficult, investing in the Chinese market does not have to be a huge challenge. As with any other type of investment, talk with your broker about the ins and outs of Chinese ETFs prior to sinking your investment dollars into one. It is also important to remember that not all ETFs are profitable, and not all are a good choice. Your broker can help you understand the financials for each of the ETFs that interest you, and can also help you to make a sound judgment call on which would be the best bet for your particular investing goals.
Updated on 2/22/2016.