Funderstone

Overview of Funderstone

Funderstone, based in Hong Kong, is regulated by the Securities and Futures Commission of Hong Kong (SFCHK). It offers trading in securities, futures, and international stocks. The platform provides different account types including individual, joint, and corporate, with a minimum deposit requirement of HK$10,000. Spreads start from HK$125, varying based on transaction details. Funderstone's trading platforms include GoTrade Web Trading, GoTrade, and TradeGo. For customer support, they offer email, phone, and physical contact options. The company accommodates various deposit and withdrawal methods, including bank transfer, FPS, and cheque.

Is Funderstone legit or a scam？

Funderstone operates under the rigorous oversight of the Hong Kong Securities and Futures Commission. This adherence to regulatory standards is reflected in the distinct status of each of its licenses. Specifically, Funderstone Futures Limited, holding license number AAD847 for dealing in futures contracts, has maintained a status of 'Regulated' since December 19, 2005.

In contrast, Funderstone Securities Limited, with license number AAK018 for dealing in securities, has achieved a status of 'Exceeded' since the same date, indicating a level of compliance and operational excellence beyond basic regulatory requirements.

Similarly, Funderstone Asset Management (HK) Limited, licensed under number ACD757 for asset management, also holds an 'Exceeded' status. These designations underscore Funderstone's commitment to exceeding regulatory norms, thereby providing traders on the platform with an environment that is not only compliant but also excels in regulatory adherence, ensuring a high level of trust and security.

Pros and Cons

Pros:

1. Various Trading Options: Funderstone offers a variety of trading services, including international market access, accommodating different investment strategies.

2. Regulated by SFCHK: The platform is regulated by the Securities and Futures Commission of Hong Kong, ensuring compliance and reliability.

3. Flexible Account Types: Available for individual, joint, and corporate clients, the platform offers a wide range of account options.

4. Advanced Online Trading Platforms: Designed for modern trading needs, these platforms offer speed and accessibility.

Cons:

1. Complex Fee Structure: Navigating the various fees for different services and transactions can be challenging.

2. Minimum Charges for Overseas Stocks: These charges are not be cost-effective for smaller transactions in international markets.

3. Requires Documentation for Account Setup: The process demands several documents, potentially cumbersome for clients.

4. Limited Customer Service: The platform has restrictions in terms of customer support availability or accessibility.

Market Instruments

Funderstone provides a suite of trading assets and services to meet the various needs of its clientele.

Securities and IPO Financing: Funderstone offers a streamlined process for IPO subscription through phone or mobile app. The platform provides both Full Payment and Margin subscription options to accommodate a variety of investment preferences. Additionally, clients with margin accounts can engage in margin financing transactions.

Overseas Stock Trading: The service connects to major global markets, including China Connect, the United States, Canada, the United Kingdom, France, Germany, South Korea, and Thailand. This allows investors to access a wide range of international investment opportunities and diversify their portfolio and currency risks.

Futures Trading: Funderstone provides trading in Hong Kong futures and options, as well as foreign futures. This includes a variety of futures transactions in currencies, commodities, and indices.

External Asset Management Services: The platform offers Independent Asset Manager services for ultra-high net worth clients. These services are tailored based on an assessment of clients financial needs, with a focus on maximizing expected benefits.

Account Types

Funderstone offers two distinct account types: the Individual/Joint Account and the Corporate Account.

The Individual/Joint Account at Funderstone is tailored for individual investors or small groups, such as family members or friends, who prefer to manage their investments either individually or jointly. This account type is ideal for personal investment strategies, offering flexibility for single or joint decision-making in investment activities.

The Corporate Account, on the other hand, is designed for businesses, organizations, or corporate entities. It serves the investment needs of these entities, facilitating corporate-level transactions and investment strategies. This account type is suitable for entities requiring investment management under the corporate banner, often involving more significant investment volumes and more complex financial strategies.

How to Open an Account？

Opening an account with Funderstone involves a straightforward process, outlined in the following steps:

1. Online Account Opening:

1. Transfer HK$10,000 from your registered bank account to a designated account of Funderstone Securities Limited.

2. Prepare identity proof and address proof documents, along with your bank account information.

3. Use the provided web link or QR code to open a trade account via your mobile phone.



2. Open Account in Person or by Post:

• In Person: Visit Funderstone's office with the documents for certification by staff.

• By Post: Mail the required documents. Prior to posting, certify all documents by a suitable certifier or mail them with a crossed personal cheque (minimum HKD10,000.00, payable to Funderstone Securities Limited, drawn on a licensed bank in Hong Kong, bearing the same name and signature as on the Account Opening form).

• For Individual/Joint Account: ID card(s) or passport(s) of all account holders, proof of home address (bank statement or utility bill issued within the last 3 months), and bank account statement (if the designated bank account is outside Hong Kong).

• For Corporate Account: Refer to the “Checklist for Account Opening Document (Corporate AC)”.

1. Step 1: Download and read the “Terms and Conditions for Trading Account”.

2. Step 2: Complete the Account Opening Form.

3. Step 3: Prepare supporting documents:

4. Step 4: Submission methods:

3. Account Activation:

1. After opening the trade account, you will receive a trade account number.

2. For e-trade users, login details for the online trading platform will be sent separately by mail.

Spreads & Commissions

Funderstone's fee structure for Hong Kong Equities Nominee Services includes various charges. For instance, transfer deed stamp duty and share registration for scripless shares both have a fee of $5.00 per transfer deed. Physical scrip incurs a scrip fee of $2.50 per certificate plus a handling fee of $5.00 per certificate. Dividend collection charges are 0.5% of the dividend received, both in HKD and USD. Additional fees include $1.00 per board lot for bonus issue, with odd lots charged as full board lots, and $60.00 per stock for privatisation and takeover activities. Custodian fees for overseas securities are calculated monthly based on the security's quantity and market price, with a minimum fee of EUR 5 (or local currency equivalent) per month.

Funderstone's commission structure for trading varies based on transaction frequency, volume, and service level. For Hong Kong stocks, the minimum commission is HK$125.Stamp Duty is charged at HKD1 per HKD1,000 of total consideration. The SFC Transaction Levy and AFRC Transaction Levy are 0.0027% and 0.00015% of the total consideration, respectively. For grey market stocks, the minimum commission is HK$150. Overseas stock trading commissions are 1%, with minimum charges varying by market.

Trading Platform

Funderstone's online securities trading platform is characterized by its speed and stability, designed to facilitate timely investment opportunities for users. The platform provides a variety of trading systems to accommodate different preferences. These include GoTrade Web Trading for desktop users, along with mobile applications such as GoTrade and TradeGo, offering flexibility for trading on the go. This range of options allows clients to select the trading platform that aligns best with their individual requirements and trading styles.

Deposit & Withdrawal

Deposit:

Funderstone accepts payments through several methods:

1. By Mailing a Crossed Cheque: Clients can issue a crossed cheque made payable to “Funderstone Securities Limited”. It is important to write the six-digit account number with Funderstone on the back of the cheque for identification purposes. The cheque should be mailed to their office at Room 1802, Capital Centre, No. 151 Gloucester Road, Wanchai, Hong Kong.

2. By Bank Deposit, Transfer, or FPS: Payments can also be made via bank deposit, transfer, or the Faster Payment System (FPS). After making a deposit, clients are required to fax, email, or WhatsApp the pay-in-slip, bank advice, and any other supporting documents to Funderstone for verification. It is crucial to specify the client's name and number on the pay-in-slip or bank advice to avoid delays in crediting the account.

3. By Remittance: When making a remittance, clients need to indicate their name and the six-digit account number with Funderstone Securities Limited in the “By order of” section to ensure proper identification and crediting of funds.

Minimum Deposit:

The minimum deposit amount for account opening or trading is HK$10,000.

Withdrawal:

Customers need send instructions to our customer services email cs@funderstonesec.com, from their registered email address, or call (852) 2533 7302 to contact our customer services department.

Customer Support

Funderstone's customer support is designed to assist with registration and securities investment queries. Clients can contact their office at Room 1802, Capital Centre, No. 151 Gloucester Road, Wanchai, Hong Kong. For direct communication, customers can call at (852) 2845-7711 or send a fax to (852) 2845-2119.

Additionally, inquiries can be addressed via email at enquiries@funderstonesec.com. This setup ensures that clients have multiple channels for support for various preferences for communication and inquiry resolution.

Conclusion

Funderstone's platform presents a mix of advantages and disadvantages. Its strengths include a wide range of trading options, regulation by the SFCHK, flexible account types for different client needs, and advanced online trading platforms. These features make it a versatile choice for various investors.

However, the platform also has its drawbacks, including a complex fee structure that can be challenging to navigate, minimum charges for overseas stock trading that are ideal for small-scale investors, a document-intensive account setup process, and potentially limited customer service options. These aspects could influence the overall user experience on the platform.

FAQs

Q: What trading options does Funderstone offer？

A: Funderstone provides a wide range of trading options, including securities, futures, and international stock trading.

Q: Is Funderstone regulated？

A: Yes, it is regulated by the Securities and Futures Commission of Hong Kong (SFCHK).

Q: What types of accounts are available on Funderstone？

A: The platform offers individual, joint, and corporate account options.

Q: How user-friendly are Funderstone's trading platforms？

A: The online trading platforms are advanced and designed for modern trading needs.

Q: Are there any minimum charges for overseas stock trading on Funderstone？

A: Yes, there are minimum charges applicable for overseas stock trading.

Q: What is the account setup process at Funderstone like？

A: The process requires submission of several documents, making it quite document-intensive.