Trading fees erode Hong Kong investor gains, Ipsos finds

Investors pay $7.34b in annual trading fees across Hong Kong and US stocks.

Hong Kong retail investors pay an estimated $7.34b in annual trading fees for Hong Kong and US stock transactions, averaging $2,094 per person, according to an Ipsos study.

The 2026 Hong Kong Investor Trading Behaviour Study—commissioned by Webull HK—found that trading fees reduce long-term returns through compounding effects.

Under a hypothetical 10% annual return, active traders could lose more than 20% of gains over five years and more than 50% over 10 years due to fees.

It reports that about 65% of investors underestimate the impact of trading fees, whilst 35% have never calculated their annual costs.

A further 84% do not fully understand the components of the fees they pay, including platform, custody, depository, and dividend-related charges.

“This indicates a widespread underestimation of the long-term compounding effect of trading fees,” the report said.

Online brokerages account for 59% of trading activity in Hong Kong and US stocks, rising to 78% in US equities.

Online brokers also charge an average of $1,188 per person annually, compared with $1,444 at banks and $2,112 at traditional securities firms.

Investors rank product and user experience as the top factor when selecting a trading platform at 74%, followed by trust and service at 68%, and costs and fees at 62%.

“These results indicate that when choosing a trading platform, investors are not simply looking for the lowest fees, but rather consider platform stability, brand credibility, fee transparency, and overall service quality in a comprehensive manner,” the report said.

The report states that trading friction becomes more significant as execution frequency increases in automated strategies, as artificial intelligence systems execute trades more frequently.