Investing and retiring frequently asked questions (FAQs) | HSBC


Investing and retiring frequently asked questions

What is a financial review from HSBC Securities (USA) Inc.?

A financial review is a meeting in which you and a financial professional1 from HSBC Securities will review your current finances, investment goals, risk tolerance, liquidity needs, time horizon, income, investment experience and other relevant factors so that your financial professional can more clearly understand what motivates your investing plans. He or she can then work with you effectively and efficiently to design and implement a personalized strategy. Simply call 866.586.4722 or email us to schedule a complimentary financial review.

What expertise does HSBC Securities provide?

HSBC Securities (USA) Inc. has extensive investment capabilities and information resources to help as you build and manage your investment plan. An HSBC Securities financial professional can help you select from a wide range of investments, including HSBC asset allocation solutions2, mutual funds3, fixed income products4, and more.

In addition, the HSBC Multimanager5 team comprises research analysts from around the globe. These dedicated investment professionals screen, select and routinely monitor third-party funds so that our clients have access to carefully researched investment opportunities from around the globe.

What does it cost to receive guidance from HSBC?

We offer complimentary financial reviews to our customers and there is no cost associated with meeting with our HSBC Securities financial professionals.

I understand that there are commissions and other fees – is there any way I can avoid some of these fees?

Yes. In addition to the banking and lifestyle benefits that come from being an HSBC Premier client, you will not be charged inactivity fees, IRA maintenance fees or confirmation fees associated with your HSBC Securities account. To qualify for an HSBC Premier relationship, you need to open an HSBC Premier checking account and maintain $100,000 in combined U.S. personal deposit and investment balances. Business owners may use their commercial balances to qualify for personal HSBC Premier relationship. A monthly maintenance fee of $50 will be incurred if minimum balance requirements are not maintained.

The various charges that may be incurred by investing with HSBC Securities (USA) Inc. are listed on the Commission and Fee Schedule.

Can I write checks from my brokerage account?

We currently do not offer the ability to write checks from a brokerage account, however you can set up a link between your brokerage account and an HSBC Bank checking account so that any settled cash balances will automatically sweep to the specified HSBC Bank checking account.

Is there a fee to open an account?

No, there is not.

Can I have online access to my brokerage account?

Yes, our Personal Internet Banking website provides you with the ability to view your brokerage account balance, holdings, statements and confirmations online. Online trading capabilities are also available, limited to stocks and mutual funds, for individual accounts in the U.S.

Is my account insured, and by how much?

HSBC Securities (USA) Inc. is a member of the Securities Investor Protection Corporation (SIPC®). As a result, securities in your account are protected up to $500,000 (of which $250,000 can be for claims for cash awaiting reinvestment). For details please see SIPC. Please note that SIPC does not protect against loss due to market fluctuation.

Why should I choose HSBC as my broker-dealer?

HSBC Securities (USA) Inc. has extensive investment capabilities and information resources to help as you build and manage your investment plan. An HSBC Securities financial professional can help you select from a wide range of investments, including exclusive HSBC asset allocation solutions, mutual funds, fixed income products, and more.

A financial professional from HSBC Securities can not only provide access to the competitive funds managed by HSBC, but also help you choose from a broad selection of third-party mutual funds. Each of these funds is thoroughly screened and regularly reviewed by Multimanager5 – a global team of research analysts dedicated to identifying third party money managers with competitive advantages in their asset classes to enhance our clients' portfolios.

Do you offer mobile trading and/or banking applications?

HSBC's mobile banking application launched in the U.S. in late 2011. At this time, however, we do not offer mobile trading capabilities.

What types of assets can I transfer into an HSBC account?

We would be happy to help you transfer all types of assets, including but not limited to equities6, mutual funds3, fixed income securities4, and options7 that you may have. We are also able to facilitate the trading of many non-U.S. currencies. Please call us at 866.586.4722 or email us with questions about specific asset classes or currencies.

Can I combine all of my brokerage accounts into one statement?

Managing all of your accounts can be complicated and time consuming, but we can help you get organized and keep track of your multiple accounts. With our complimentary service, you can link all of your accounts that share the same mailing address. For instance, statements from individual retirement accounts for yourself and for your spouse can be consolidated, prepared with a summary cover page, and mailed to you in one package. You may also choose paperless eStatements with Personal Internet Banking. We provide you the option of enrolling in electronic delivery of account communications, which offers the following benefits:

  • Convenience and flexibility
  • Increased security
  • Centralized recordkeeping

What happens if my financial professional leaves?

In this event, your relationship will be assigned to a new HSBC Securities financial professional as soon as possible.

What types of accounts does HSBC Securities (USA) Inc. offer?

Our full-service brokerage account offers trading in stocks6, ETFs3, mutual funds3, bonds4 and options7. For more details on the other types of accounts we offer, please review our complete list of products and services below:

  • Trust accounts:
    Invest and manage a brokerage account on behalf of a pre-nominated beneficiary.
  • Estate accounts:
    Invest and manage a brokerage account as the court-appointed executor on behalf of an estate.
  • Retirement:
    Traditional IRA
    Roth IRA
    Direct Rollovers at Retirement
    Indirect Rollover at Retirement
    401(k) Retirement Plan
    403(b) Retirement Plans
    SEP Retirement Plans
  • Managed accounts:
    HSBC World Selection Spectrum Account
    Managed Portfolio Accounts
  • Education planning:
    529 College Savings Plans (529s)
    Coverdell Education Savings Accounts (ESAs)
    Custodian Accounts (UGMA/UTMA)
  • Structured products:
    Market-linked Structured Certificate of Deposit
    Structured Notes without Principal Protection
  • Insurance and annuities:
    Whole Life Insurance
    Term Life Insurance
    Variable Life Insurance
    Universal Life Insurance
    Single Premium Life Insurance
    Long-Term Care Coverage
    Disability Insurance
    Fixed Annuity
    Variable Annuity8

Investment and certain insurance products, including annuities, are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. In California, HSI conducts insurance business as HSBC Securities Insurance Services. License #: OE67746. HSI is an affiliate of HSBC Bank USA, N.A. Whole life, universal life, term life and health insurance products are provided by unaffiliated third parties and are offered through Insurance Agents of HSBC Insurance Agency (USA) Inc., which is a wholly owned subsidiary of HSBC Bank USA, N.A. Products and services may vary by state and are not available in all states. California license #: OD36843.

Investment, Annuity and Insurance Products:

All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.

Research backgrounds of brokers and brokerage firms for free by visiting FINRA's BrokerCheck website

1 HSBC Securities financial professional refers to Premier Wealth Advisors (PWA)/Premier Relationship Advisors (PRA) and Licensed Sales Professionals. PWA/PRA's provide a full suite of investment products that are available with HSBC based on individualized customer financial needs and objectives. Licensed Sales Professionals have access to more simplified product sets created to meet customers' key life-cycle needs, e.g., education, retirement, wealth transfers.

2 Asset allocation is a method of diversification that positions assets among major investment categories. This tool may be used in an effort to manage risk and enhance returns. However, it does not guarantee a profit or protect against a loss. It also cannot eliminate the risk of fluctuating prices and uncertain

3 Mutual funds, money market funds, and Exchange Traded Funds are sold by prospectus. Please consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus, which contains this and other information, can be obtained by calling your HSBC Securities (USA) Inc. PWA/PRA or call 800.662.3343. Read it carefully before you invest.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

4 Fixed income products are subject generally to interest rate, credit, liquidity and market risks, to varying degrees. Fixed income products are also subject to the credit risk of the issuer are generally the obligations of the issuer and are not, either directly or indirectly, an obligation of any third party. Any payment to be made on the investments with credit risk, including any return of principal or coupon payable at maturity, if applicable, depends on the ability of the issuer to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of an issuer may affect the market value of an investment with such credit risk and, in the event an issuer were to default on its obligations, you may not receive the amounts owed to you under the terms of the investment.

5 HSBC Multimanager is a research and asset management capability utilized by certain HSBC companies in various regions around the world. In the U.S. the company offering these capabilities is HSBC Global Asset Management (USA) Inc.

6 Equity securities include common stocks, preferred stocks, convertible securities and mutual funds that invest in these securities. Equity markets can be volatile. Stock prices rise and fall based on changes in an individual company’s financial condition and overall market conditions. Stock prices can decline significantly in response to adverse market conditions, company-specific events, and other domestic and international political and economic developments.

7 Options trading has a high degree of risk and is not appropriate for all investors. Please read Characteristics and Risks of Standardized Options, before investing in options, and prior to applying for an option account. An investor should understand these and additional risks before trading. Options trading privileges subject to HSBC Securities (USA) Inc. review and approval.

8 Investments in variable products will fluctuate and values upon redemption may be less than the original amount invested. Variable annuities are designed to be long-term investments and frequently involve substantial charges such as administrative fees, annual contract fees, mortality & risk expense charges and surrender charges. All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. When investing in tax-deferred annuities additional risks apply and may not be suitable for all investors. Early withdrawals may impact annuity cash values and death benefits. Early surrender charges may also apply. An additional 10% IRS penalty may apply to withdrawals prior to age 59 ½. If you are investing in a variable annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a variable annuity. Under these circumstances, you should only consider buying a variable annuity if it makes sense because of the annuity's other features, such as lifetime income payments and death benefit protection. Features that provide lifetime income are optional and can be purchased at an additional cost. For more complete information, contact your Financial Professional to obtain a current prospectus. Please read the prospectus carefully before investing or sending money.

United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non-U.S. accounts including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts ("FBAR")). U.S. persons should consult a tax adviser for more information.

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