Futu Securities Company

　　

Futu Securities Company: A Comprehensive Overview

　　

1. Company Overview

　　

Founding Date and Background

　　Futu Securities Company, officially known as Futu Securities International (Hong Kong) Limited, was founded in October 2012 by Leaf Hua Li. The company emerged as a significant player in the online brokerage sector, aiming to provide innovative financial technology solutions to individual investors.

　　

Parent Company/Ownership Structure

　　Futu Securities is a subsidiary of Futu Holdings Limited, a publicly traded company listed on the Nasdaq stock exchange under the ticker symbol "FUTU." The parent company has garnered substantial backing from prominent investors, including Tencent Holdings, Matrix Partners, and Sequoia Capital, which have supported its growth through various funding rounds.

　　

Headquarters Location

　　The company's headquarters is located at 34/F, United Centre, 95 Queensway, Admiralty, Hong Kong. This strategic location allows Futu to maintain close ties with the financial markets in Hong Kong and beyond.

　　

Global Business Scope

　　Futu Securities operates across multiple regions, including Hong Kong, the United States, Singapore, Australia, Japan, Canada, and Malaysia. The company serves over 24 million users globally, offering access to a wide range of financial markets and investment products.

　　

Main Regulatory Bodies

　　Futu Securities is regulated by the Hong Kong Securities and Futures Commission (SFC), holding multiple licenses (Type 1, 2, 3, 4, 5, 7, and 9). The company is also a member of the Hong Kong Stock Exchange (HKEX) and the Singapore Exchange (SGX).

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2. Company History and Development

　　

Key Milestones

　　Since its inception, Futu Securities has achieved several key milestones, including:

• 2012: Official launch as a licensed brokerage in Hong Kong.
• 2019: Futu Holdings listed on Nasdaq, raising $90 million in its initial public offering (IPO).
• 2020: Registered clients exceeded 1 million, and the company began offering U.S. stock options trading.
• 2023: User base surpassed 20 million, and Futu opened its first physical store in Hong Kong.

　　

Business Expansion Journey

　　Futu Securities has strategically expanded its services and market presence over the years. Initially focused on the Hong Kong market, the company has successfully entered international markets, including the United States, Japan, Singapore, and Australia, under its brand "Moomoo."

　　

Customer Base Growth

　　As of September 30, 2024, Futu has over 24 million users and 4.28 million registered clients. Its growth trajectory reflects a strong market demand for digital brokerage services, particularly among tech-savvy investors.

　　

Platform Development History

　　Futu's proprietary trading platform, Futubull, offers real-time market data, trading services, and educational resources. Over the years, the platform has undergone significant enhancements, including the introduction of advanced analytical tools and a user-friendly interface.

　　

Important Awards or Recognitions Received

　　Futu Securities has received numerous awards, including:

• Best Digital Financial Service at the HK CAMA-Bloomberg Offshore China Fund Awards (2021).
• Top Broker awards from HKEX in various categories, including equity derivatives and currency futures.
• Recognition as one of Fortune's 100 Fastest Growing Companies in 2022.

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3. Trading Services Offered

　　

Forex Trading Options

　　Futu Securities offers a diverse range of forex trading options, providing access to over 50 currency pairs. This extensive selection allows traders to engage in various global currency markets.

　　

Stock Trading Options

　　The company facilitates trading in both Hong Kong and U.S. listed stocks, allowing users to invest in a wide array of companies across different sectors. Futu has positioned itself as a leader in retail trading volume in Hong Kong.

　　

CFD Trading Products

　　Futu Securities provides Contracts for Difference (CFDs) on various assets, enabling traders to speculate on price movements without owning the underlying asset. This includes CFDs on stocks, indices, and commodities.

　　

Other Financial Instruments

　　In addition to traditional stock and forex trading, Futu has recently expanded its offerings to include cryptocurrencies and commodities. The company has introduced secure, licensed, and zero-commission crypto trading services in Hong Kong, catering to the growing interest in digital assets.

　　

Special Services or Unique Advantages

　　Futu Securities differentiates itself through its technology-driven approach, offering features such as:

• Zero-commission trading on Hong Kong stocks.
• Advanced analytical tools, including AI-driven trend projections and comprehensive financial data analysis.
• A robust online community where users can share insights and investment strategies.

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4. Regulatory and Legal Background

　　

Detailed Regulatory Information

　　Futu Securities is regulated by several key bodies:

• Hong Kong Securities and Futures Commission (SFC): The primary regulator overseeing its operations in Hong Kong.
• Financial Industry Regulatory Authority (FINRA): Regulating its U.S. operations.
• Monetary Authority of Singapore (MAS): Overseeing its activities in Singapore.

　　

Legal Entity Structure by Region

　　Futu operates as a licensed brokerage in each jurisdiction it serves, ensuring compliance with local regulations. The legal entity structure includes:

• Futu Securities International (Hong Kong) Limited in Hong Kong.
• Futu Singapore Pte. Ltd. in Singapore.
• Futu Australia in Australia.

　　

Client Fund Protection Measures

　　Futu Securities implements stringent client fund protection measures, including:

• Participation in the Hong Kong Investor Compensation Fund, which protects investors up to HKD 500,000.
• Coverage by the U.S. Securities Investor Protection Corporation (SIPC) for assets held in the U.S.

　　

Countries/Regions Served

　　Futu Securities serves clients in over 200 countries and regions, providing access to global financial markets and investment opportunities.

　　

Compliance History

　　Futu has maintained a strong compliance record, adhering to regulatory standards set forth by the relevant authorities. However, in late 2022, the China Securities Regulatory Commission (CSRC) ordered Futu to cease onboarding new customers from mainland China, reflecting ongoing regulatory scrutiny in the region.

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5. Competitive Landscape

　　

3-5 Main Competitors

　　Futu Securities operates in a competitive landscape, with several key competitors, including:

• Tiger Brokers: Another digital brokerage focusing on U.S. and Hong Kong markets.
• Interactive Brokers: A well-established global brokerage offering a wide range of investment products.
• Charles Schwab: A major player in the U.S. brokerage space, known for its comprehensive services.

　　

Positioning in the Industry

　　Futu Securities positions itself as a technology-driven online brokerage, focusing on user experience and innovative financial solutions. Its strong presence in Hong Kong and growing international footprint allow it to capture a significant share of the retail trading market.

　　

Market Differentiation Factors

　　Futu distinguishes itself through several factors:

• Zero-commission trading on Hong Kong stocks, attracting a large number of retail investors.
• An advanced trading platform with powerful analytical tools and a vibrant community for knowledge sharing.
• Continuous innovation and expansion into new markets, such as cryptocurrencies and equities in Japan.

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　　Futu Securities Company has established itself as a leader in the online brokerage space, leveraging technology and innovation to provide exceptional services to investors. With a commitment to user experience and a robust regulatory framework, Futu is well-positioned for continued growth in the global financial landscape.

　　For more information about Futu Securities Company and its offerings, learn more here.