Forex.comVisit Forex.com73% of retail investor accounts lose money
FP MarketsVisit FP Markets74-89% of retail CFD accounts lose money
HFMVisit HFM70.51% of retail investor accounts lose money
Saxo BankVisit Saxo Bank72% of retail investor accounts lose money
BDSwissVisit BDSwiss72.5% of retails investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
OandaVisit OandaCFDs are not available to residents in the United States
Interactive BrokersVisit Interactive Brokers74-89% of retail CFD accounts lose money
Hong Kong, a city and a special administrative region in China, holds a pivotal role in global financial markets as one of the world’s leading international financial centers. Its strategic location, robust legal framework, and ties to both Western and Eastern economies have facilitated its rise as a nexus for international trade and finance.
The official currency of Hong Kong is the Hong Kong Dollar (HKD), which is one of the most traded currencies in the world.
When it comes to regulatory oversight for retail forex trading, this responsibility lies with the Hong Kong Securities and Futures Commission (SFC). The SFC ensures that brokers and financial institutions operate within a framework of transparency and integrity, aiming to uphold Hong Kong’s reputation as a reliable and secure place for investment and trading activities.
In this article, we have included forex brokers that operate in Hong Kong or accept HK clients.
To compile the list of brokers we have taken into consideration a multitude of factors including:
- A regular HK forex license;
- The broker trustworthiness;
- The commissions charged;
- The overall service quality.
What are the best forex brokers in Hong Kong?
Below is our curated list of the best forex brokers for traders living in Hong Kong, with details and information about the country laws, the features, and the characteristics.
Is forex trading legal in Hong Kong?
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 forex 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.
What should Hong Kong traders look for in a forex broker?
Trading in Hong Kong, 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:
1. 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.
2. 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.
3. Choose a broker with a great demo account
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
You may want to verify that your broker is regulated in HK.This is easy for you to double-check and you can do so by visiting the official SEC of Hong Kong website which 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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