What were the key drivers behind any changes in user acquisition, average revenue per user, and trading volume during the quarter?

Key drivers of the Q2 shifts

1. User‑acquisition momentum – Futu’s Q2 saw a noticeable uptick in new accounts, largely fueled by a combination of aggressive digital‑marketing campaigns in mainland China and the rollout of a “zero‑commission” tier for entry‑level investors. The launch coincided with a broader retail‑trading rally sparked by heightened volatility in U.S. and Asian equity markets, prompting first‑time investors to seek low‑cost, tech‑enabled platforms. Additionally, the firm’s partnership with several fintech “super‑apps” expanded its on‑boarding funnel, accelerating the conversion of passive app users into active brokerage clients.

2. Average revenue per user (ARPU) dynamics – While the head‑count of new, cost‑sensitive accounts grew, ARPU was buoyed by higher‑margin activity among the existing, more affluent client base. Futu introduced a suite of premium research tools and a “margin‑plus” product line that commands a premium spread, encouraging deeper‑priced trades and higher‑frequency margin usage. The firm also benefitted from a modest shift toward higher‑ticket, cross‑border transactions (e.g., HK‑US ADRs) that carry larger commission and financing fees, offsetting the dilution effect of the low‑cost tier.

3. Trading‑volume drivers – Volume was amplified by macro‑induced market swings—particularly the mid‑quarter U.S. Federal Reserve rate‑policy signals and the resurgence of Chinese “A‑share” buying cycles. Futu’s upgraded execution engine, which reduced latency and improved order‑fill rates, attracted algorithmic and day‑trading participants seeking a reliable gateway. Moreover, the introduction of new product bundles (e.g., options‑plus ETFs) generated ancillary order flow, lifting overall turnover.

Trading implications

• Short‑term bullish bias: The confluence of expanding user base, premium‑product uptake, and heightened market activity suggests Futu’s top‑line could outpace peers in the next 6‑12 months, supporting a buy‑on‑dip stance if the stock has retreated on short‑term profit‑take.
• Watch‑list triggers: A slowdown in macro volatility or a pull‑back in the “zero‑commission” acquisition push could pressure volume and compress ARPU. Tightening of margin‑product credit standards would also be a red flag.
• Positioning: For traders with a bullish outlook, consider long positions with a 10‑12 % upside target, while maintaining a stop‑loss near the recent 20‑day low to guard against a reversal if the volume‑boosting catalysts fade.