3 Best HKSFC Regulated Forex Brokers in the United States

Choose your quick section of our best HKSFC Regulated Forex Brokers in Hong Kong below.

Our 3 Best Handpicked HKSFC Regulated Forex Brokers in Hong Kong Revealed:

• ✔️Forex Time (FXTM)
• ✔️FXCM
• ✔️Saxo Bank
• A Brief History of Forex Trading in Hong Kong
• Local Regulator of Forex Brokers in Hong Kong
• What is a HKSFC Regulated Forex Broker?
• Forex Trading Restrictions in Hong Kong

The HKSFC was introduced by the Hong Kong authorities during the 80’s as an independent agency tasked with the regulation of all financial companies and individuals who deals with the Hong Kong securities and futures market. Here is an overview of the Top 3 HKSFC Regulated Brokers in Hong Kong .

Forex Time (FXTM)

FXTM or ForexTime was founded in 2011 and  is a registered brand name of Exinity Limited, regulated by the Financial Services Commission of Mauritius.  FXTM offers three accounts which are offered under the Standard category.  Forex Time (FXTM) is a Metatrader broker which offers forex and CFD traders multiple account options for both MT4 and MT5 platforms.

Pros and Cons

FXTM provides research in the form of daily technical and fundamental news analysis.

Trading Benefits

Customer Service is available phone, email, online chat options – WhatsApp, live chat, Viber, Telegram or Messenger.

FXCM

Forex Capital Markets Limited or FXCM is a Spread Betting, CFD and Forex trading broker, authorised and regulated by the UK Financial Conduct Authority under Forex Capital Markets Limited and is part of the Leucadia Company, which offers users the ability to trade on Forex, Indices, Commodities and Crypto on its own proprietary Trading Station platform for Desktop, Web and Mobile, as well as on MetaTrader4, NinjaTrader and ZuluTrade.

Pros and Cons

FXCM offers traders 4 main types of trading accounts to choose from, including  Spread Betting, CFD Trading, Active Trader and Professional Clients. A Free Demo account is also made available.

Trading Benefits

Customer Support is available via Live Chat, Phone, Email and SMS.

Saxo Bank

Saxo Bank, a globally regulated, multi-asset class broker offers traders the option to trade on more than 40,000 instruments covering Forex, CFDs, Stocks, Options, ETFs, Commodities, Futures, Bonds and Mutual Funds from a single account across multiple platforms including their own – SaxoTraderGO and professional-grade SaxoTraderPRO.

Pros and Cons

The Saxo Group is regulated in 15 jurisdictions including authorisation from the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Financial Services Agency of Japan (FSA) and many more.

Trading Benefits

Customer support is available in nearly 30 different languages via phone, email and an FAQ section.

A Brief History of Forex Trading in Hong Kong

It is important for investors to have an understanding of the history of forex trading in order to understand the FX market as it is today. The Hong Kong Securities and Futures Commission was formed after the occurrence of the Black Monday stock market crash which occurred in October, 1987. Although the problem started in the country, it eventually spread to Europe and the United States of America. At this time multiple stocks had lost their margins. A second financial meltdown in Asia led to calls for better regulatory framework. This occurred after the Thai currency collapsed due to a lack of foreign reserves to support its peg to the USD. Hong Kong also had massive foreign debt, which almost led to bankruptcy. At this time, forex trading was not developed but the changes which followed led to the regulations made to date. The Hong Kong Securities and Futures Commission is now known as a leading regulator – globally!

Local Regulator of Forex Brokers in Hong Kong

The HKSFC of Hong Kong operates entirely independent of the Hong Kong government and derives its operating guidelines from the Securities and Futures Ordinance of the Hong Kong legislature. The HKSFC raises its funds for operational expenses through membership fees and other transactional levies. The HKSFC is fully committed to the safety of the investors who fall under their supervision and takes into account all aspects of regulating the global financial markets in order to ensure that the Hong Kong Forex community is not subjected to any negative influences from fraudulent financial practices. The HKSFC is also in charge of all customer complaints. All in all, the HKSFC is the main regulatory authority.

What is a HKSFC Regulated Forex Broker?

HKSFC Forex Brokers are brokers which operates locally or, Global Forex Brokers who which to offer their Forex Trading services to Hong Kong residents. Simply put, Hong Kong Forex Brokers, local or global, must be licensed or registered with the SFC, unless stated otherwise.  In Hong Kong it is considered as fraudulent when a Forex Broker offers their services without a license from the HKSFC.  Trading with an Unregulated Forex Broker will result in a high risk of losing capital, as they do not have to answer to any set rules or regulations. Local Investors should keep in mind that Forex Trading in Hong Kong should not be attempted with an unregulated entity. An Unregulated Broker should come with a flashing sign stating “Warning – Your capital is at risk” or that “You need to reconsider!”. Unfortunately – Scammers are not this considerate. Scammers will make their website so attractive that the flashing sign basically says “You should give us all of your capital!”. Carrying out Regulated Activities such as leveraged foreign exchange trading without the proper authorisation in Hong Kong is seen as a serious offence and all local investors must ensure that their chosen Broker complies. Such Offences in Hong Kong are subject to serious disciplinary action. Local investors in Hong Kong will not have a tough time finding a Brokerage firm who gladly complies.

Here is an overview of the set basic approval criteria set forth by the regulator – which all Hong Kong Brokers must meet:

• The Applicant Broker must be able to satisfy the HKSFC that they are fit to offer their Services in the country.
• The applicant Broker will be assessed for financial status, solvency, educational and other qualifications, plus industry experience.
• A corporation which wishes to join the best HKSFC regulated brokers will require a proper business structure which includes qualified personnel and good internal systems

Forex Trading Restrictions in Hong Kong

The Forex Markets in Hong Kong are relatively open and the honest economy does not impose any severe restrictions on trading with HKSFC Forex Brokers. Although the HKSFC place no restrictions on its investors in the FX markets, the Hong Kong authorities do advise  investors to maintain a trading account with one of the available HKSFC Forex brokers as they derive their operating guidelines from the Securities and Futures Ordinance. As mentioned before, Hong Kong Investors should ask themselves one question – “Can you afford to take the high risk of losing your investment?” “If you have money to lose – sure!” or “If you want to gamble away your saving, go ahead!” But no Forex Trader has expendable capital so the truthful answer – No! The answer should be “You can afford to take the financial risk when trading forex and CFDS with a Broker regulated by the HKSFC!”. If anything on the Brokers website sets of a red flag – see the warning sign as “You are at risk of losing your money!”

Conclusion

As a Hong Kong trader, investors will have excellent opportunities to find a regulated broker and safely invest in the biggest market Worldwide. This article has outlined the key points which will assist traders to choose the best broker and there are three of many options, mentioned above. This list was created based on in depth research, but the final choice will lie with the trader alone. Investors who make use of one of these Brokers will have access to the best trading platforms, best possible min deposit and account options available. A Min Deposit will differ between brokers, as well as their offered account types will come with a varied min deposit. A Min Deposit is the amount needed to trade live with a wide selection of retail investor accounts. There is generally speaking,  account options available for both beginners and pros. However, it is advised, but it is not compulsory for Investors to choose an HKSFC Broker as multiple globally regulated brokers from across the world, also accept local investors. As an investor, a level of due diligence will also be required. As the old saying goes – “You should invest your time, before you invest your money”. Hong Kong investors should also take note that a number of platforms will refer to the regulators as the SFC.  The SFC is the HKSFC, and traders can take both into account.  The SFC simply refers to the Securities and Futures Commission, whereas, on the other hand, HKSFC adds Hong Kong to the title.

Hong Kong, officially known to the locals as the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR), an urban area and special administrative region of the People’s Republic of China situated to the east of the Pearl River Delta of the South China Sea. Hong Kong is considered as one of the major financial markets in the continent of Asia and the countries Forex Brokers have had a significant influence in the Forex trading market. Any Broker in Hong Kong will need to be licensed in order to legally operate.

Hong Kong is a globally regarded, major contributor in the retail FX trading industry along with other industry leaders such as Japan, Singapore, and China. Hong Kong is known as one of the greatest investment destinations in Asia and a preferred country for setting up a business practice. Hong Kong’s falls in close proximity to Shanghai.  Shanghai is one of the strongest emerging economies in the world, and the country is a provider of multiple opportunities for investors who are looking for more modern and up to date approach to setting up a business. Forex trading in Hong Kong has gained significant popularity.

FAQs

What is HKSFC?

HKSFC stands for Hong Kong Securities and Futures Commission.  The HKSFC is an independent origination which is tasked with the responsibility of overseeing Broker operating in Hong Kong.

What does the HKSFC do?

The HKSFC is set in place to protect investors in Hong Kong.  The entity has a long list of responsibilities, including enforcing market regulations.

Are HKSFC Regulated Brokers Safe?

HKSFC Brokers are seen as a relatively safe option.

How do I make a complaint to HKSFC?

If a trader wants to lodge a complaint, they can get in touch with the Investors Compensation Company Ltd.

How can I check for HKSFC regulation?

Simply look at the brokers website.  The needed information is usually visible in the footer of the page or in the companies About Section.