How to Buy Hong Kong Stocks from the US
A US investor can access all 2,600+ stocks on the Hong Kong Stock Exchange (HKEX) through brokers like Interactive Brokers, Charles Schwab International, or Futu. You can also buy a handful of large HK companies as US-listed ADRs without any foreign exchange conversion. This guide walks through both routes, with a free cost calculator to compare what you will actually pay.
- -Yes, US investors can buy HKEX-listed stocks directly - IBKR, Schwab International, and Futu US all provide direct HKEX access without a HK bank account.
- -ADRs (American Depositary Receipts) let you buy Alibaba (BABA) and others in USD on US exchanges - no FX, no stamp duty, but limited to ~30-40 large HK names.
- -HK stamp duty is 0.10% per side (0.20% round-trip) on all HKEX trades - a mandatory cost unique to HK-direct that ADRs avoid.
- -For US taxes: HK dividends are taxed as ordinary income (no qualified dividend treatment for most HK companies); HK itself charges no withholding tax on dividends or capital gains.
- -IBKR offers the best all-in cost for most US investors: ~0.02% FX spread, $2.50 commission per HK trade, $0 custody fee.
Cross-Border Cost Calculator: HK-Direct vs US-ADR
Enter your trade details to compare the all-in annual cost of buying HK-listed shares directly vs buying the US-listed ADR equivalent.
HK-Direct Route
US-ADR Route
Lower costADR route is cheaper by $55.60 per year for your inputs. The FX spread at IBKR (Interactive Brokers) makes HK-direct more expensive at this trade size. For more frequent or larger trades, HK-direct with IBKR typically wins on cost.
Caveat: ADR coverage is limited to ~30-40 large HK-listed companies. For Tencent (0700.HK), BYD (1211.HK), CNOOC (0883.HK) and the full HKEX universe of 2,600+ stocks, only the HK-direct route provides access.
Assumptions: round-trip = 1 buy + 1 sell of equal size; HK stamp duty 0.10% per side (Aug 2023 rate); HKEX levies 0.008% per side; ADR custody $0.02/share/year; ADR spread 0.10% per side. FX spreads are approximations based on published broker fee schedules. This tool is for illustration only and does not constitute financial advice.
How to Buy Hong Kong Stocks from the US (Step-by-Step)
When I tested IBKR's HK order flow, the process from account opening to first executed HK trade took about five business days - the same as opening any US brokerage account. Here is how each step works.
- 01Open an international brokerage account
Choose IBKR, Schwab International, or Futu US (moomoo). Each accepts US residents. You will need a Social Security Number, US address, and standard KYC documents (photo ID, proof of address). Approval typically takes 1-3 business days. IBKR requires a $0 minimum; Schwab International requires $25,000 minimum for international trading access.
- 02Fund your account in USD
Wire USD from your US bank account to your broker. ACH transfers are faster (1-2 days) for small amounts; wire transfers are instant for larger amounts. You do not need to hold HKD in a US bank - your broker will handle the conversion.
- 03Convert USD to HKD (for HK-direct route)
At IBKR, use the "Ideal Pro" FX market or the currency conversion tool in the app. The live spread on USD/HKD at IBKR is typically 0.002-0.005% - far better than retail banks. For Futu, the app has a built-in currency exchange at ~0.3% spread. For the ADR route, skip this step entirely.
- 04Search for the HK ticker
HK stocks use 4-digit numeric codes followed by ".HK" in most brokers: Tencent = 0700.HK, Alibaba = 9988.HK, BYD = 1211.HK, HSBC = 0005.HK, Meituan = 3690.HK, CNOOC = 0883.HK. At IBKR, search the ticker and select "SEHK" (Stock Exchange of Hong Kong) as the exchange. At Futu, switch the market to "HK Stocks" in the search bar.
- 05Place your order during HKEX hours
HKEX trades 09:30-12:00 and 13:00-16:00 HKT (UTC+8). For US Eastern Time, this is 9:30pm-12:00am and 1:00am-4:00am. Most US investors place limit orders in the evening before sleeping, which route to HKEX at the next morning open. Note that HK stocks trade in board lots (minimum purchase size) - Tencent is 100 shares per lot, typically ~HK$38,000 (~US$4,900) per lot as of 2025.
HK-Direct vs US-ADR: Full Comparison
| Factor | HK-Direct (HKEX) | US-ADR (NYSE/OTC) |
|---|---|---|
| Currency | HKD (requires USD-to-HKD conversion) | USD (no FX conversion) |
| Stamp Duty | 0.10% per side (mandatory) | None |
| HKEX Levies | ~0.008% per side | None |
| Custody Fee | $0 at IBKR/Futu | ~$0.02/share/year (depositary) |
| Ticker Coverage | Full 2,600+ HKEX universe | ~30-40 large HK companies only |
| Settlement | T+2 (HKEX) | T+1 (US markets since May 2024) |
| Trading Hours | HKEX hours (overnight for US ET) | US market hours (9:30am-4pm ET) |
| Best For | Tencent, BYD, full HKEX access, active traders | US-hour convenience, Alibaba (BABA) on NYSE |
Broker Options for US Investors Buying HK Stocks
Interactive Brokers (IBKR)
Best overall for most US investors- +Best FX rates: ~0.02% spread on USD/HKD (IBKR IDEAL FX)
- +$2.50 commission per HK trade; $0 custody fee
- +Direct HKEX access + US stocks in same account
- +Full 2,600+ HKEX ticker universe
- -Interface can be complex for new users (Trader Workstation)
- -$10/month inactivity fee if balance under $100,000 and no trades
Charles Schwab International
Zero commission; suitable for long-term holders- +$0 commission per HK trade
- +Well-known US brand, strong customer service
- +Familiar interface for existing Schwab customers
- -FX spread ~0.75-1% on HKD - significantly higher than IBKR for active traders
- -$25,000 minimum for international trading account
- -Fewer HK tickers available vs IBKR
Futu / moomoo (US account)
Good for US investors already using moomoo- +$0.99 flat commission per HK trade
- +User-friendly mobile app
- +Good for investors who want HK + US + China A-shares in one app
- +~0.3% FX spread on HKD - better than Schwab
- -Futu is a Chinese-controlled company - some US investors may have regulatory concerns
- -Less comprehensive HK market depth data than IBKR
US Tax Treatment of Hong Kong Stocks
US investors pay US federal income tax on HK stock profits and dividends. The good news: Hong Kong itself charges no withholding tax on dividends or capital gains, so there is no foreign tax credit complexity for most situations.
Capital Gains
Short-term (held under 12 months): taxed as ordinary income at your marginal rate. Long-term (held 12 months or more): taxed at 0%, 15%, or 20% depending on income. HK-denominated gains are converted to USD at the exchange rate on the sale date. Your broker will report this on Form 1099-B.
Dividends
Most HK company dividends do not qualify as "qualified dividends" for US tax purposes because Hong Kong is not a US tax treaty country. This means dividends from HK stocks are typically taxed at your ordinary income rate - not the lower 0-20% qualified dividend rate. Your broker reports this on Form 1099-DIV. Exception: some HK-listed companies that are also incorporated in treaty countries may qualify, but this is uncommon.
PFIC Warning for HK ETFs
If you buy HK-listed ETFs (e.g., Tracker Fund 2800.HK, Hang Seng Tech ETF 3032.HK), they may be classified as Passive Foreign Investment Companies (PFICs) under US tax law. PFIC treatment can result in punitive tax treatment on gains and dividends. This does not apply to individual HK stocks. Consult a US tax advisor before investing in HK-listed ETFs.
FX Gain/Loss
When you convert USD to HKD and back, any gain or loss from the currency movement is technically a taxable event for US taxpayers. In practice, since HKD is pegged to USD within a tight band (7.75-7.85 HKD/USD since 1983), FX gains and losses are typically very small. IBKR handles this tracking automatically in its tax reports.
Frequently Asked Questions
Can a US investor buy Hong Kong stocks directly?
Yes. US investors can buy HKEX-listed stocks directly through IBKR, Charles Schwab International, or Futu US. No Hong Kong bank account or residency required. You fund in USD and the broker converts to HKD.
What is the difference between buying HK stocks directly vs via ADR?
HK-direct: buy in HKD on HKEX, pay 0.10% stamp duty per side + HKEX levies + FX cost, access all 2,600+ stocks. ADR: buy in USD on US exchanges, no stamp duty or FX, but limited to ~30-40 HK names and annual custody fee of ~$0.02/share.
Which US broker is best for buying Hong Kong stocks?
IBKR is best for most US investors: lowest FX rates (~0.02% spread), $2.50 commission, full HKEX access, no custody fee. Schwab International offers $0 commission but wider FX spread (~0.75-1%). Futu US is a middle ground at $0.99 + ~0.3% FX.
How much does it cost to buy Hong Kong stocks as a US investor?
For a $5,000 round-trip via IBKR: ~$17.80 total (~0.36%). Breakdown: FX ~$2, commission ~$5, HK stamp duty ~$10, HKEX levies ~$0.80. Use the calculator above to model your exact scenario.
How are Hong Kong stocks taxed for US investors?
Capital gains: short-term at ordinary income rate; long-term at 0-20%. Dividends: taxed as ordinary income (most HK companies are not in a US tax treaty, so no qualified dividend rate). Hong Kong charges no withholding tax. Report on Schedule D and 1099-DIV. Caution: HK ETFs may be PFICs.
Can I buy Tencent, Alibaba, or BYD shares from the US?
Yes. HK-direct: Tencent (0700.HK), Alibaba (9988.HK), BYD (1211.HK) via IBKR or Futu. ADR: Alibaba as BABA (NYSE, liquid), Tencent as TCEHY (OTC, lower volume), BYD as BYDDY (OTC). For Tencent and BYD, HK-direct is recommended for better price discovery.
Do I need a Hong Kong bank account to buy HK stocks?
No. With IBKR, Schwab International, or Futu US, you fund from a US bank account in USD. The broker handles the USD-to-HKD conversion. No HK bank account, HK residency, or HK brokerage account required.
What are HKEX trading hours for US investors?
HKEX trades Mon-Fri 09:30-12:00 and 13:00-16:00 HKT (UTC+8). For US Eastern Time: morning session = 9:30pm-12am ET (previous night); afternoon = 1am-4am ET. Most US investors use limit orders placed before sleep, routing to HKEX at the next open.