Comprehensive Guide to Online Stock Trading in Vietnam

Online stock trading has become the primary choice for modern investors due to its convenience, speed, and lower costs compared to traditional trading at the stock exchange. However, with dozens of different trading platforms, finding the most reputable stock exchange in Vietnam that suits your needs requires a deep understanding of the market. This article will help you grasp the important aspects of online stock trading in Vietnam.

Two Main Investment Approaches in Vietnam’s Stock Market

1. Domestic Equity and Warrants Investment

Investing in stocks and warrants accounts for the majority of stock trading activities in Vietnam. On the two major stock exchanges, HOSE (Ho Chi Minh City Stock Exchange) and HNX (Hanoi Stock Exchange), there are currently about 750 stock and fund certificate codes. Additionally, the Upcom market offers 872 registered stock codes, giving you access to over 1,600 domestic securities.

Trading methods:

• Buying and selling with cash directly
• Margin trading (margin) with a maximum ratio of 1:2 according to the regulations of the State Securities Commission
• Margin interest rates range from 10% - 18% annually

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

Important notes:

• Settlement time: T+2 (2 business days after the transaction)
• Transaction fees range from 0.15% - 0.5% of the transaction value depending on the exchange
• To profit from margin trading, you need a minimum profit of about 20% per year to cover interest and taxes

2. Derivatives Trading - Futures Contracts

Domestic derivatives focus on the VN30 index — comprising 30 stocks with the highest market capitalization and liquidity on HSX. The main advantages of derivatives are:

• Placing short sell orders to profit when the market declines
• Using leverage up to 1:10 domestically
• T+0 trading (instant settlement)

To trade international derivatives such as the S&P 500, Nasdaq, or commodities like gold and oil, you need to use international trading platforms with higher leverage (up to hundreds of times).

Popular strategies: Swing trading and technical indicator analysis are widely used in derivatives trading due to high volatility.

Major Stock Exchanges in Vietnam

HOSE (Ho Chi Minh City Stock Exchange)

HOSE is a subsidiary of the National Securities Commission, where large companies list their stocks, bonds, and warrants. As of now, the exchange has over 539+ securities trading.

Trading information:

• Trading hours: 9:00 - 15:00, Monday to Friday
• Order matching methods: periodic, continuous, negotiated
• Trading units: odd lots (10, 20, 30…)
• Settlement time: T+2 (except bonds T+1)

HNX (Hanoi Stock Exchange)

Established in 2005, HNX supports trading of stocks and warrants. According to restructuring plans, HNX will mainly focus on derivatives and bonds, while stock trading will transfer to HOSE.

Upcom Market

Upcom is the platform for trading stocks that do not meet the listing requirements on HOSE and HNX. Currently, there are over 800 stock codes on this market, including stocks of many large companies.

Features:

• Price fluctuation range larger than (more than 15% per day, double that of HOSE)
• Less transparent information compared to HOSE and HNX
• Opportunities for high profits but also higher risks

OTC Market (Over-The-Counter)

The OTC market trades stocks from Upcom and unregistered securities based on the “buy low - sell high” principle. Although regulated by securities law, it carries high risks due to lack of transparency and weak liquidity.

Online Securities Companies

Besides the main exchanges, many securities companies offer large-scale online trading services in Vietnam, supporting full range of securities products including stocks, warrants, ETFs, bonds, derivatives, and open-end funds.

Stock Trading Hours in Vietnam

Domestic exchanges have consistent trading hours from 9:00 - 15:00 on each working day (Monday to Friday):

• 8:45 - 9:00: Opening auction
• 9:00 - 11:30: Morning continuous trading
• 11:30 - 13:00: Lunch break (pause)
• 13:00 - 14:45: Afternoon continuous trading
• 14:45 - 15:00: Closing auction

International trading platforms offer more flexible hours, allowing 24/7 trading on products like forex, cryptocurrencies, and commodities.

Effective Stock Investment Strategies

Strategy 1: Long-term Investment in Quality Stocks

Long-term investors typically allocate funds into major indices and blue-chip stocks of well-known corporations. This strategy offers stable profits, lower risks, and is suitable for those patient enough to wait for market growth.

Strategy 2: Investing in High-Growth Stocks

Even during tough economic times, some stocks experience strong growth, especially in healthcare, medical, and information technology sectors. Short-term investors can exploit these opportunities with smaller capital.

Strategy 3: Trading Based on Price Movements

Derivatives allow profits in both directions — when the market rises and falls. Investors can use short selling orders to swing trade and profit from price volatility.

Trading Tips for Beginners

Golden Rules:

1. Start Small: When entering the market, use small amounts of money, the smallest lot sizes, and the lowest leverage possible.

2. Record and Analyze: After each trade, note the results, reasons for profit/loss to learn valuable lessons and improve strategies.

3. Always Set Stop Loss: Use stop-loss and take-profit orders to protect your capital from unexpected risks.

4. Understand the Products: Before trading, thoroughly research the product, its mechanisms, and factors affecting prices.

5. Risk Management: Only use money you can afford to lose and never risk your entire capital on a single trade.

How to Start Online Stock Trading

Step 1: Choose a Suitable Platform

To trade domestic stocks (HOSE, HNX, Upcom), you need to register with a reputable securities company. For international stocks, forex, cryptocurrencies, or commodities, you will need to use international trading platforms.

Step 2: Create an Account

Most platforms offer two types of accounts:

• Demo Account: Allows practice trading with virtual money, risk-free
• Real Account: For trading with real money

Step 3: Deposit Funds and Start Trading

After creating an account, deposit money, select your desired products, and execute buy/sell orders according to your strategy.

Most Reputable Securities Platforms in Vietnam - Evaluation Criteria

When choosing the most reputable stock exchange in Vietnam, consider these criteria:

• Licensing and Regulation: Check if the platform is licensed by reputable regulatory agencies
• Trading Fees: Compare fees, commissions, and other costs across platforms
• Order Execution Speed: Fast processing helps you implement strategies better
• Customer Support: Assess service quality, especially for deposit/withdrawal issues
• Trading Platform: User-friendly interface, comprehensive analysis tools, risk management features
• Product Diversity: Wide range of products to diversify your investment portfolio

Conclusion

Online stock trading in Vietnam offers many opportunities but also involves significant risks. The most important thing is to choose a reputable stock exchange platform that aligns with your goals and experience level.

Start by thoroughly understanding the market, selecting suitable strategies, and always managing risks prudently. With patience, continuous learning, and disciplined trading, you can develop your trading skills and build a successful investment portfolio.