A beautiful securities trading app does not make a securities company: brokerage is a licensed business line, and the app is only a distribution channel of a legal entity licensed by the State Securities Commission with full capital and personnel conditions.
Legal basis to know
The Securities Law 54/2019/QH14, amended by Law 56/2024/QH15, governs securities activities and the securities market, under which securities brokerage is a business line only a securities company licensed by the State Securities Commission may perform, subject to charter capital, facilities and practitioner conditions. Decree 155/2020/ND-CP details implementation of the Law, including licensing dossiers and operating conditions for securities companies. Individuals providing securities investment advice must hold a securities practising certificate issued by the Commission. Foreign investors join the market through a securities trading code and accounts at custodian members under the foreign investor trading mechanism.
How this applies in practice
The common fintech startup mistake is assuming that being ‘only technology’ avoids securities licensing: if the app takes orders, matches orders or advises customers, that is in substance brokerage and advisory activity requiring a licence, whoever owns the interface. The lawful model for startups is a formal partnership with a licensed securities company, with the responsibility boundary for orders, money and customer data written clearly. For foreign investors, online account opening is increasingly convenient thanks to electronic identification, but the indirect investment capital account and foreign ownership limits at listed companies remain an unavoidable compliance layer.
What to do now
- A startup building a trading app must choose between partnering with a licensed securities company or applying for its own licence with full capital and personnel conditions.
- All advisory content on the app must be owned by practising certificate holders and logged under supervision rules.
- Design the foreign investor account opening flow with electronic identification, a trading code and an indirect investment capital account at a custodian bank.
Frequently Asked Questions
What licence does an online brokerage app need?
A brokerage app must belong to a securities company licensed by the State Securities Commission under the Securities Law 54/2019/QH14 and Decree 155/2020/ND-CP, with brokerage as a specifically licensed business line; a standalone technology company may not take brokerage orders from customers itself.
Can foreign investors open securities accounts online?
Yes, foreign investors can open securities trading accounts with electronic identification procedures at a securities company, after obtaining a securities trading code and opening an indirect investment capital account at a custodian bank under the foreign investor mechanism.
Does app-based investment advice need a practising certificate?
Yes, individuals performing securities investment advice, including via an app or digital content, must hold a securities practising certificate; algorithm-driven automated advice still needs a licensed entity taking responsibility and a human supervision mechanism.
This article has been quality-reviewed by the FLAW AI Legal Council