1. The scale and strength of securities firms The securities brokerage industry in the United States is not a state-owned monopoly industry, and there are countless stock brokerage companies, large and small. Investors should first choose well-known securities firms with large scale and strong strength, so that investment safety is relatively guaranteed. Currently, the top online traders in the U.S. stock market mainly include: Charles Schwab, TD Ameritrade, E*Trade, Fidelity, Interactive Brokers (IB), etc. For online traders, you cannot draw conclusions about the company's size and strength simply through the brokerage website. You must check the website of a third party or regulatory agency. For example, U.S. stock brokerages generally join the Financial Industry Regulatory Authority (FINRA), and you can check whether the brokerage is a member on FINRA's website. 2. Tradable varieties The trading varieties that Chinese investors are interested in generally include US stocks, ETFs, options, foreign exchange, Hong Kong stocks, futures and bonds, etc. The types of products that U.S. stock brokers can trade vary. You need to know in advance whether the broker you choose can meet your needs. U.S. stocks are the most basic trading variety and can be supported by all brokers. Hong Kong stocks are also the focus of Chinese investors due to their geographical location. Brokerages such as IB, E*Trade, and Charles Schwab can also provide Hong Kong stock trading. Options are a surefire way to play in U.S. stocks, and almost all brokers offer options trading. However, some brokerages will limit the option combinations that can be made. For example, Scott Securities does not allow investors to conduct naked short selling. This restriction can prevent novice investors from making mistakes, but for experienced investors, this restriction is not suitable for investors. Too convenient, because sometimes naked short put options can help investors reduce costs. ETF funds are also a common variety. In the U.S. market, there are many ETF funds linked to index, gold, oil, sectors, markets, etc., opening up convenient channels for asset allocation for ordinary investors. Most brokers can buy and sell ETF funds, but there are a few brokers such as SogoTrade that do not provide ETF trading. 3. Transaction Fees U.S. brokerages charge transaction fees in different ways. For investors who trade frequently, the difference in transaction fees per month between different brokers can be as much as hundreds of dollars, so you should carefully compare your options. Most online traders charge per transaction for U.S. stock transactions. For example, TD Ameritrade charges a fixed fee of $9.99 per transaction, regardless of the number of shares traded. Some brokerages, in addition to charging a fixed fee for each transaction, will also charge an additional fee if the number of shares per transaction exceeds the limit. For example, Charles Schwab charges $12.95 for each stock transaction. If the number of shares exceeds 1,000 shares, an additional fee of $0.015 will be added to the excess. share. Some brokerages charge based on the number of shares traded, while IB charges based on the number of shares traded, half a cent ($0.005) per share. In order to attract customers, some brokers offer free trading opportunities to investors who open new accounts. For example, SogoTrade provides 100 free transactions in the first month to new account opening customers, while Zecco provides 10 free transactions per month. Options investment is a necessary investment method for advanced investors. In this regard, most brokerages charge a fixed fee per transaction, and then charge additional fees based on the number of contracts traded. For example, Scott Securities options charge $7 to $1.25 per transaction. /contract fee. Brokerages targeting professional investors, such as IB, charge $0.7 per contract based on the number of options traded. In comparison, IB has a greater advantage in transaction fees. If you are an experienced investor, the financing interest rate is also a key factor to consider. The financing interest rate of some securities companies is 3, and some are as high as 9. If the financing scale is large, the cost difference will be huge. 4. The language barrier of Chinese services may be the biggest obstacle for many Chinese investors to enter the U.S. stock market. Many U.S. brokerages have already recognized China’s investment needs. Some only provide Chinese web pages and Chinese trading software, and those that do more in-depth will provide Chinese Customer service hotline, set up a branch in Hong Kong to directly serve Chinese investors.

Scottrade Securities has done a great job in providing Chinese cultural services and is deeply loved by Chinese investors and overseas Chinese. 5. Fund Security When investors put their money on the other side of the ocean, fund security must be considered. Fortunately, most well-known brokerages have participated in the insurance of the Securities Investor Protection Corporation (SIPC). SIPC provides protection of up to US$500,000 for each investor's account, including cash protection of up to US$100,000. In addition, some brokerages also purchase insurance from commercial insurance companies to provide additional insurance for investor accounts. For example, IB provides up to US$30 million in protection for its customer accounts through SIPC and Lloyd's of England. The above are the five major factors that need to be considered when choosing a U.S. stock brokerage. In addition, there are some details such as transaction speed, transaction spreads, investor education, etc. that investors also need to pay attention to. To choose a suitable securities firm, you need to comprehensively consider these factors based on your own investment needs and investment style. Only after careful comparison and selection can you find a securities firm that suits you.