Best HKSFC Regulated Forex Brokers in Hong Kong

 Best and Trusted Hong Kong Forex Brokers Regulated HKSFCHong Kong is a significant center of the financial markets and one of the leading strongholds for entrepreneurship and investing. Forex trading is a significantly attractive investment for traders, thanks to its strict regulation and low taxes that allows traders to make profits in a safe trading environment. Although Hong Kong’s forex trading is strictly regulated, there are still some unscrupulous FX brokers looking to take advantage of unknowing investors and traders. If you are looking to find a trusted broker in Hong Kong, here are a few factors you should take into consideration;

  • Regulation

HKSFC (Hong Kong Securities and Futures Commission) is the principal regulator of all securities and futures markets in Hong Kong. This regulatory body was incepted in 1989 after stock markets around the world crashed. The crash started with the Hong Kong stock market and then spread across the globe. It is for this reason that HKSFC was created to help strengthen the market and provide a stable securities and futures setting. It also aims to promote fairness and competitiveness in the industry without affecting the reliability of the market.

HKSFC is accredited by the Securities and Futures ordinance among other appropriate legislation. It has investigative departments and disciplinary sanctions which make it an active regulator whose ultimate goal is to promote and protect the integrity of the Hong Kong market. HKSFC regulated FX brokers are provided with a set of rules and guidelines, which should be adhered to the latter by all members.

HKSFC’s Rules and guidelines for FX brokers

FBS Forex No-Deposit Bonus $50All HKSFC forex brokers come directly under the regulatory supervision of the HKSFC. These brokers are only granted a license after undergoing a rigorous and comprehensive scrutinizing procedure to determine if they are capable of adhering to the agency’s code of conduct. The brokers are then expected to provide detailed documentation of investment products coupled with numerous risk disclaimers that help both retailers and institutional investors understand the risks of the market before trading.

Policies of the HKSFC
While the HKSFC is very strict in its dealings, it makes an effort to be fair. It provides comprehensive assistance to investors across the nation that have suffered in the hands of malicious brokers by initiating legal action against them.

  • The HKSFC does not hesitate to take action when they suspect malicious activities taking place. However, they don’t bother or harm a broker’s reputation for no reason
  • This commission is involved in risk assessments and is always working to impose higher requirements to reduce risk
  • The HKSFC is partnered with its regulated entities and strive to keep a close relationship with them to create an optimal climate for business
  • HKSFC emphasizes transparency from all brokers in Hong Kong

HKSFC is responsible for setting up rules and regulations that govern financial markets in Hong Kong. It is also responsible for licensing brokers looking to operate in the area and monitors all their functions to ensure they are compliant with these set of rules. This regulatory body supervises all operations and approves each product before it is put on the market by its regulated brokers.

HKSFC also analyzes complaints from an investor about their brokers and penalizes the guilty party depending on its transgressions.

  • Trading Platform & Software

A trading platform is an essential aspect of forex trading as it is where you trade currencies and any other securities. Hence, you need to make sure an HKSFC forex broker offers you one that meets your trading needs. Most brokers provide traders with a demo version of the trading platform, where they can familiarize themselves with it before signing up for the service. So make sure to try them out to see if it is user-friendly, robust and contains all the necessary features that you need for smooth trading. If a trading platform does not meet your needs, consider looking for a different FX broker.

  • Commissions & Spreads

Brokers get paid through spreads. A spread is a difference between buying price and selling price. The EUR/USD for instance typically have a 1 or 2 pip spread between the buy and sell prices. Hence, whenever you open a buy or sell position in this pair, the broker gets those 1 or 2 pips as commission. For great forex trading, we advise you to pick brokers with the lower spreads since, the bigger the spread, the lower your profit.

Recommended Low Spread Forex Brokers

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OCTAFX forex broker Min Deposit: $5
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xm best forex broker Min Deposit: $5
Spread: From 0 Pips
Leverage: 500:1
Regulation: ASIC, CySEC, FCA (UK), IFSC Belize
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exness forex broker review Min Deposit: $1
Spread: From 0 Pips
Leverage: 2000:1
Regulation: FCA UK, CySEC, FSP, BaFin, CRFIN
35% of the account DepositVisit Broker
Forex.com Gain Capital review USA Min Deposit: $50
Spread: Starting 0 Pips
Leverage: up to 400:1
Regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA
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No Deposit Bonus Instaforex Broker Min Deposit: $1
Spread: Fixed Spread From 3 Pips
Leverage: Up to 1:1000
Regulation: CBR, CySEC and FFMS
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Pepperstone review best forex broker in Australia Min Deposit: $200
Spread: Starting 0 Pips
Leverage: 500:1
Regulation: ASIC Australia, FCA UK
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iq option best binary options brokers Min Deposit: $10
Spread:
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Regulation: CySEC
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etoro best forex broker USA Min Deposit: $200
Spread: From 3 Pips
Leverage: 400:1
Regulation: NFA, FCA, CySec
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City Index forex broker Min Deposit: $100
Spread: Starting 0 Pips
Leverage: up to 500:1
Regulation: FCA UK, ASIC Australia, MAS Singapore
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  • Account option

HKSFC forex brokers offer their customers three types of accounts;

  • Micro account: This account is recommended for those looking to trade with as little as $100 to $500. For this account, one micro lot size is $ 1,000, and one pip price is $0.10.
  • Mini account: This one is for those looking to trade more than $500 but less than $2,000. To minimize your risk, consider opening it with $2000 and start with mini lots the size of $10000.
  • Standard account: This account is recommended for those who intend to become independent traders and have more than $10,000. To minimize your risk, we recommend opening the account with $20,000 with a standard lot size of 100k.

When choosing an account, it is crucial to note that the risks increase with trading big volumes. So be careful to control your risk as you may lose all your invested money at a go.

  • Customer service

This is another important factor to consider when choosing an HKSFC forex broker. First, make sure that they can communicate in your local language, offer online live customer service, and that their line is open 24 hours 5 days a week. The customer service team should also be able to solve your issues in the shortest time possible in a caring and efficient manner.

  • Additional services

Different brokers offer varying extra services to their customers. This is a sign of good business culture. Make sure to choose a broker who provides additional services that can help improve your trading experience.

Finding the right forex broker is crucial to your trading as you can devote more of your time and attention to analyze and develop smart trading strategies if you have confidence in your dealer. Hong Kong forex traders have an excellent opportunity to find a reputable broker to safely invest in one of the biggest markets of the world. With the points highlighted above, you can choose a trusted forex broker to trade with quite easily.

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