The clauses you cannot skim in a brokerage agreement are the ones that shift responsibility onto you: the obligations and liabilities sections of the service and dealing agreements, any authorisation letting another person operate your account, and the payment and settlement terms. This matters most to first-time account openers and to anyone handed a pre-filled authority form to sign.

AI-generated by Orbi for Jolvex. This article is general education, not investment or lending advice.

The service agreement and the dealing agreement

A client agreement is the bundle of contracts you sign when opening a brokerage account. It usually contains two documents worth separating. A service agreement sets out how the account runs — statements, communications, fees and charges. A dealing agreement sets out how orders are placed, confirmed and settled. The Investor and Financial Education Council (IFEC), in its “Brokers” guidance (retrieved 9 October 2026), advises reading and understanding both before signing and asking the broker to clarify anything unclear about your obligations and liabilities. That clarification step is the point of the documents: they record who is responsible for what.

Obligations and liabilities: who pays for what

The liabilities clauses answer one question: when something goes wrong, who bears the cost? Read for the passages that make you responsible — for settling trades on time, for the accuracy of the instructions you give, and for decisions made under any authority you granted. This article's reading, not a quotation: do not expect these clauses to give you compensation for ordinary market losses. A price that falls after a correctly executed order is your outcome, not a broker error, and any liability limitation must be read alongside the broker's stated duties and the agreement's allocation of responsibility.

Authorising someone else to operate the account

A third-party authorisation is a clause or form letting a named person place orders on your account. A discretionary authority goes further: the person chooses what and when to trade without asking you each time. IFEC's guidance is direct here — use discretion when authorising someone to operate an account, and do not casually sign away trading decisions. Before signing, confirm in the actual terms: the authorised person's name, any monetary or product limits, how long the authority lasts, and how you can revoke it in writing.

Payment dates and sufficient funds: a worked example

Settlement is the transfer of money for shares you have bought; a contract note is the statement the broker issues after each trade, confirming the details and the amount due. The contract note's due date is when your money must be received, not merely sent.

All figures below are round illustrative numbers, not any real product's terms:

  1. Assume you buy 1,000 shares at HK$10.00 on Monday 5 January (illustrative date), for a total of HK$10,000.
  2. Assume the contract note lists itemised charges of HK$30, so HK$10,030 is due.
  3. Assume the agreement sets T+2 settlement — the trade date plus two business days — so funds must be received by Wednesday 7 January.
  4. Assume your bank transfer takes one business day to arrive. Initiating it on Tuesday 6 January means receipt on Wednesday 7 January, on time; initiating on Wednesday risks arrival on Thursday, which is late.
  5. Check your account shows at least HK$10,030 of available funds — a pending deposit may not be usable the same day.
  6. Read what your own agreement says happens if funds fall short; that answer is in your contract, not in this article.

Common mistakes and the correct reading

  • “It is a standard form, so the details do not matter.” Standard forms still allocate obligations and liabilities; read both agreements and clarify anything unclear before signing.
  • “Signing a trading authority is just paperwork.” An authorisation can let someone trade without asking you each time; check the scope, limits and revocation process first.
  • “If the trade loses money, someone will compensate me.” Ordinary market losses are not compensation events; the liabilities clauses define when the broker is responsible, and correctly executed orders leave the outcome with you.
  • “Settlement dates are flexible.” The due date is a receipt date; send funds early enough for them to arrive by it.

Checklist before you sign

  • [ ] Read the service agreement and dealing agreement in full.
  • [ ] Ask the broker to clarify obligations and liabilities in plain terms.
  • [ ] Match any authorisation to a named person, with limits and a written revocation method.
  • [ ] Note the payment terms: due date, accepted methods, receipt requirement.
  • [ ] Keep contract notes and statements from day one.

When you are ready to compare providers' actual published terms, browse Jolvex's product listings or the provider's official documents.

Source: IFEC (Investor and Financial Education Council), “Brokers”, retrieved 9 October 2026. AI-generated; not investment advice.