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You have made your decision to start trading forex in Hong Kong. Excellent choice.
Now the only thing left to do is choose a top Hong Kong forex broker. This is where we can help!
We have put together this collection of great choices to help you select the best forex broker HK has to offer. That is not all though. Along with picking the best forex broker for your needs, you will also have the chance to review more important information.
Points like how to get started with a broker, things to look out for, and even the tax and legal side of trading forex in Hong Kong are things we have covered.
Let’s jump straight in.
Table of contents
Is Forex Trading legal in Hong Kong?
Yes. Forex trading in Hong Kong is completely legal. It is regulated there by the Securities and Futures Commission of Hong Kong (SFC) which was established in 1989 and has an excellent reputation within the industry as a top regulator.
Trading forex in Hong Kong you can expect to find leverage of up to 20:1 on forex, though negative balance protection in HK is not mandatory so this is something to be mindful of, particularly as a new trader.
How to trade forex in Hong Kong
Trading forex in Hong Kong is much like in any other country, you will be asked by a regulated broker when you sign up to confirm a couple of key details with certain documents.
This means providing proof of ID, a passport is best, and proof of residence which you can provide through a bank statement or utility bill that is recent. These should allow you to pass the verification process, and go on to fund your account which you may be asked to do at that time.
Top 10 Best Forex Brokers in Hong Kong
Here is a closer look at all of the best Hong Kong forex brokers we have found:
Hongkongese trader? Here’s what to look for in a forex broker
Trading in Hong Kong as with in any location, there are a few key points to look out for when choosing your forex broker. Below are a few important tips you can take on board:
- Give priority to HK regulated brokers
Local regulation from the SFC not only means you have a well-trusted regulator in your corner, but if the broker is regulated locally, this can also make it easier to solve any issues or challenges if they do arise.
- Negative Balance protection
Since negative balance protection is not mandatory in Hong Kong, it is not offered by every broker. This means that if you do want to have this feature which can be very useful in helping you stay protected, then you should seek out a broker who does offer it.
- Choose a broker with a great demo account if you are a beginner
Any kind of trading can be risky. Particularly if you are new to trading, and definitely if you trade using leverage. For this reason, you should definitely try to take advantage of some of the excellent demo accounts offered by the brokers above. This is a risk-free way to learn more.
How to verify if a forex broker is regulated in Hong Kong
Of course, you may want to verify that your broker is regulated in HK as they say. This is easy for you to double-check and you can do so by visiting the official SEC of Hong Kong website that should have all the information you need available.
Is forex trading taxable in Hong Kong?
Forex trading is taxable in Hong Kong. With that said, there is no Capital Gains Tax in HK. There is however a progressive rate of tax that you will be subject to. This is based on your net chargeable income and starts from 2% with an upper cap of 17%.
- Disclaimer: we are not tax advisors and you should always consult with a tax professional for more details on tax issues in any region.
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