Hong Kong investors collectively pay over HK$7.3 billion in annual trading fees, according to a recent survey. The study, conducted by a financial research firm, found that 65% of investors underestimate the impact of these fees on their investment returns.
The survey, which polled 1,000 retail investors in Hong Kong, revealed that many are unaware of how trading costs erode long-term gains. For example, frequent trading can reduce annual returns by up to 2 percentage points, the report noted.
The rise of AI agentic trading could further amplify trading friction, as automated systems may execute high-frequency trades that incur additional fees. Experts warn that investors should be mindful of these costs when using algorithmic trading tools.
Financial advisors recommend that investors review their trading habits and consider lower-cost options, such as exchange-traded funds (ETFs), to minimize fees. The Hong Kong Securities and Futures Commission has also urged greater transparency in fee disclosures.
