With stock market investment barriers now lower than ever, retail investors commonly trade via internet brokerage apps. While transaction fees often appear negligible and are easily overlooked, a new survey highlights their significant long-term impact on returns.
On June 10, Webull Corporation and global research firm Ipsos released the 2026 Hong Kong Investor Trading Behavior Survey Report. The findings show that transaction costs have become a major factor eroding investment returns, with effects that cannot be ignored over time.
Key Highlights from Ipsos:
1. Hong Kong individual investors pay over HK$7.34 billion in transaction fees annually, significantly eating into long-term returns.
Assuming a 10% annualized return, the report estimates that active investors could lose more than 20% of their investment gains to transaction fees within 5 years, and over 50% over 10 years. The key issue lies in the “friction costs” generated by each individual trade.
2. 65% of investors underestimate the impact of transaction costs; 35% do not factor them into calculations at all.
65% of respondents viewed transaction fees as having only a moderate or minor impact. Additionally, 84% were unclear about what transaction fees actually consist of, leading to a widespread underestimation of their long-term effects.
3. Investors generally lack understanding of actual fee structures.
While 67% knew about transaction fees, only half were aware of platform fees. Awareness of other charges — such as stock custody fees, safekeeping fees, and dividend collection fees — was below 50%.
4. 59% use internet brokerages for trading, especially smaller to medium amounts; larger trades favor banks.
59% of respondents use internet brokerages, particularly for mid-to-lower value trades, including U.S. stocks. For larger investments, investors tend to rely on traditional bank investment services.
Annual Per Capita Transaction Fees by Broker Type (HK Stocks & US Stocks)
Webull HK CEO Haichen Wang said transaction friction costs represent a “hidden tax” on individual investors. In the AI era, tools that help analyze markets and optimize portfolios are increasingly important. That is why, since July last year, the company has offered zero-commission trading.
Zero-commission is no longer just a marketing gimmick. We hope this will drive progress across the brokerage industry.
Webull HK Chief Operating Officer Yuki Ma said the company expects to launch Korean stock trading services in the third quarter of this year. AI-powered services, which will help investors interpret financial information and capture market opportunities, are also targeted for launch as early as Q3.
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