Guide to Choosing the Right Online Stock Trading Platform for Vietnamese Investors

Online stock trading has become the top choice for investors today due to its convenience, fast processing speed, and significantly lower costs compared to traditional trading. To find a reputable stock trading platform that suits your needs, you need to understand the important criteria and knowledge about different types of investments.

The Two Main Methods of Stock Investment in Vietnam

Stock and Securities Investment

This method accounts for the majority of the domestic stock market. On the local exchanges, there are over 1,600 listed securities, including stocks and fund certificates of Vietnamese companies.

Profit calculation: Profit/Loss = Selling Price - Purchase Price - (Tax + Transaction Fees)

Types of investment:

You can use cash to buy stocks directly, or pledge your existing stocks with a securities company to borrow capital and trade on margin (margin). The loan amount depends on the number of certificates owned, timing, and regulations of each company.

According to current regulations, the margin ratio for domestic stocks is 50% (leverage 1:2). The interest rate usually ranges from 10% - 18% per year. To invest in international stocks or US stocks, you need to open an account on international trading platforms in the form of CFDs.

Important notes:

• Settlement time (T+2): 2 business days after transaction confirmation
• Transaction fees: 0.15% - 0.5% of transaction value (depending on the platform)
• Margin interest rates are quite high; you need to earn at least 20% profit annually to break even after deducting interest and taxes

Derivative Stock Investment - Futures Contracts

Domestic derivatives mainly focus on the VN30 index (gathering 30 stocks with the largest market capitalization and liquidity). The advantage of derivatives is that they allow you to profit from both market directions - buying or short selling to make money even when prices fall.

Key advantages:

• Max leverage of 1:10 for domestic derivatives
• Settlement time T+0 (trades occur instantly)
• Flexible strategies: day trading, technical indicator analysis

To invest in international derivatives (indices like S&P 500, Nasdaq, commodities, gold online), you need to use international trading platforms. Depending on the product, you can use leverage up to hundreds of times your margin capital.

Criteria for Choosing a Reputable Stock Trading Platform

The market currently has over 100 international stock trading platforms and about 70 domestic ones. To select the right platform, consider the following factors:

Domestic Trading Platforms

HOSE (Ho Chi Minh Stock Exchange)

• Number of securities: over 500
• Trading hours: 9:00 - 15:00 (Monday - Friday)
• Order matching methods: periodic, continuous, negotiated
• Settlement time: T+2 (except bonds T+1)

HNX (Hanoi Stock Exchange)

• Mainly manages derivatives and bonds
• Trading hours: 9:00 - 15:00 (Monday - Friday)
• Restructured to focus on derivatives

Upcom (Unlisted Public Company Market)

• Over 800 stocks not eligible for listing on HOSE/HNX
• Price fluctuation limit: over 15% daily (twice as much as HOSE)
• But less transparent than major exchanges

OTC (Over-the-Counter)

• Trades stocks on Upcom and unregistered stocks
• High risk due to lack of information and liquidity
• Managed under securities law

International Trading Platforms

International platforms offer dozens of different assets:

Trading products:

• 60+ Forex currency pairs (EUR/USD, GBP/USD, USD/JPY…)
• 10+ international indices (S&P 500, Nasdaq 100, DAX, Hang Seng…)
• 9 commodities (gold, silver, crude oil, natural gas…)
• 5+ major cryptocurrencies (Bitcoin, Ethereum, Ripple…)
• 30+ large company stocks (Apple, Microsoft, Tesla, Google…)

Main advantages:

• Fast order execution (under 40 milliseconds)
• Competitive spreads with no commission
• High leverage support from 1:200 to 1:2000
• 24/7 trading with T+0 settlement
• Support deposit/withdrawal via domestic banks

Account types:

• Real account: trade with real money, can receive bonuses when opening an account
• Demo account: simulate real market, no real money involved

Online Stock Trading Hours

Domestic exchanges have additional sub-periods: 8:45 - 9:00 (pre-market), 11:30 - 13:00 (lunch break), 14:45 - 15:00 (pre-close).

How to Choose a Reputable Stock Trading Platform

Key Factors

1. Suitable investment type

• Long-term investing: choose domestic platforms with bluechip stocks
• Short-term trading: international platforms with low fees and high leverage

2. Trading costs

• Spread: lower is better
• Commission: some platforms do not charge or charge low fees
• Deposit/withdrawal fees: check if they support domestic banks

3. Liquidity

• Large platforms have many traders, making order matching quick
• Smaller platforms may have delays or difficulty matching orders

4. Customer support

• Support 24/7 or only during business hours
• Support in Vietnamese

5. Trading tools

• User-friendly platform
• Features: charts, technical indicators, market news
• Stop-loss/limit orders for risk management

Trading Tips for Beginners

Basic rules:

When starting out, begin with small amounts, the smallest lot size, and the lowest leverage. After each trade, record and analyze the reasons for profit/loss to learn lessons.

Always set protective orders:

• Stop-loss orders: to limit losses
• Take-profit orders: to lock in gains

Practice with a demo account before trading with real money. This helps you get familiar with the interface, understand the trading mechanism without risking capital.

Investment Strategies for Different Investors

Depending on your goals, knowledge, and risk tolerance, each investor can choose different strategies:

( Long-term Investment - Allocate Capital to Large-cap Indices and Stocks

Choose to trade stocks of large companies )bluechip### or indices (S&P 500, Nasdaq 100) for long-term goals. This strategy is less risky, allowing time to generate profits.

( Short-term Trading - Swing Trading Growth Stocks

Allocate capital to stocks or indices with sudden growth. When the trend changes, quickly exit the market. This method suits active traders who monitor the market daily.

) Price Volatility Trading - Using Derivatives

Derivatives markets allow profits from both rising and falling prices. You can “short sell” ###sell before the product exists### and profit when prices decline. This strategy requires higher technical analysis skills.

Final Advice

Choosing a reputable stock trading platform is the first and most important step. Don’t just look at rankings; carefully consider factors such as costs, support tools, credibility, and whether it matches your investment type.

Second, continuously learn about trading strategies, leverage use, and risk management before trading with real money. Stock trading is not a quick way to get rich but a means of long-term wealth accumulation if you have sufficient knowledge, discipline, and the right strategies.