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Best Forex Brokers in Hong Kong 2020

FX Empire Editorial Board
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Despite the fact Hong Kong is part of China, it is one of the biggest strongholds of capitalism, investing and one of the key centers of financial markets. If you have not yet found a broker to trade with we do recommend working with HKSFC regulated ones. Inside you will find our list of the very best brokers.
The brokers below represent the best forex brokers for trading in Hong Kong.
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BrokerRatingOfficial SiteRegulationsMin DepositMax LeverageTrading PlatformsFoundation YearPublicly TradedTrading Desk TypeCurrenciesCommoditiesIndicesStocksCryptoCommission on tradesFixed spreadsoffers promotionsOfficial Site
First Prudential Markets Pty Ltd
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Your capital is at risk

ASIC, CySEC

$100

1:500

IRESS, MT4, MT5, webtrader

2005

No dealing desk

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Your capital is at risk

Plus500
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80.5% of retail CFD accounts lose money

ASIC, CySEC, FCA, FSB, ISA, MAS

$100

1:30

Plus500

2008

No dealing desk

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80.5% of retail CFD accounts lose money

FBS
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Your capital is at risk

CySEC, IFSC

$1

1:3000

MT4, MT5

2009

ECN, No dealing desk, STP

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Your capital is at risk

FXCM
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73.05% of retail investor accounts lose money

ASIC, FCA, FSP

$50

1:30

MT4

1999

Dealing Desk, Market Maker

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73.05% of retail investor accounts lose money

Pro Tip: Most of these brokers offer free demo accounts so you can test the brokers and their platforms with virtual money. Give it a try with some play money before using your own cash.

Here’s a list of The Best Forex Brokers for trading in Hong Kong

Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.

FP Markets

Regulated By:ASIC, CySEC

Foundation Year:2005

Headquarters:Level 5, Exchange House 10 Bridge St Sydney NSW 2000, Australia

Min Deposit:$100

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Your capital is at risk

The broker offers the ability to trade on more than 10,000+ financial instruments covering Forex, Equities, Metals, Commodities, Indices and Cryptocurrency CFDs. Users have access to a range of accounts including the Standard Account (commission-free) and Raw Account (commission-based) for MetaTrader users, both offering ECN pricing and maximum leverage of 500:1. Users can also access Iress Accounts which are commission-based.

FP Markets also offers a range of education and market analysis resources through the Traders Hub which includes technical analysis and fundamental analysis articles and videos, as well as, trading ebooks and video tutorials. Users can access live support via telephone, email and live chat 24 hours a day, 5 days a week.

Pros: Cons:
  • ASIC regulated.
  • ECN pricing and DMA trading available.
  • 10,000+ tradable financial instruments.
  • Wide range of trading platforms and trading tools available.
  • Excellent customer support and education tools.
  • The volume of choice of markets and accounts may be overwhelming for beginner traders.

Plus500

Regulated By:ASIC, CySEC, FCA, FSB, ISA, MAS

Foundation Year:2008

Headquarters:Building 25, MATAM, Haifa, Israel

Min Deposit:$100

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80.5% of retail CFD accounts lose money

Plus500 is a leading CFD trading platform with support for stocks, indices, cryptocurrencies, and Forex. This commission-free brokerage charges very low spread-rates and offers fast trades on a great platform. Plus500 supports complex trades, includes negative balance protection, and makes trading an educational and hopefully profitable venture.

You can start with a free demo account to test the platform and any trading strategy. Real money accounts offer leverage of up to 300:1. This broker is based in Israel and regulated by the Financial Conduct Authority (FCA) in the UK.

Pros: Cons:
  • Support for 2000+ products to trade across global markets,including Forex, commodities, shares, indices
    and cryptocurrency CFDs
  • No commission and low spread costs
  • Advanced trades and fast execution
  • Licensed in several regulatory hubs, and publicly listed
  • Only CFDs, no direct Forex trades
  • High rates on margin/leverage accounts
  • Less research data than some competitors

FBS

Regulated By:CySEC, IFSC

Foundation Year:2009

Headquarters:N/A

Min Deposit:$1

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Your capital is at risk

FBS Markets Inc. is a Forex and CFD broker that offers its services across the globe. The company was established in 2009 and since then, the brand has grown in size, capacity and technology. It offers currency pairs, CFDs, stocks, metals and cryptocurrencies on MT4 and MT5 platforms.

FBS Markets offers 37 currency pairs, 4 metals, 3 CFDs, 4 cryptocurrencies and 32 stocks.

FBS provides the MT4 and MT5 trading platforms as WebTrader, desktop applications and mobile applications. For leverage accounts, this brokerage offers leverage of up to 3000:1.

Pros Cons
  • Broker is regulated by CySEC and the IFSC
  • Access to investor compensation in case of broker fraud
  • Comprehensive trader education
  • Good variety of research tools
  • Low capital requirements for account opening
  • Spreads are higher than many retail brokers
  • Regulation of global brand is not as robust as the EU brand
  • Leverage offered on global brand is too high (careful risk management is a must)

FXCM

Regulated By:ASIC, FCA, FSP

Foundation Year:1999

Headquarters:20 Gresham Street, 4th Floor, London EC2V 7JE, United Kingdom

Min Deposit:$50

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73.05% of retail investor accounts lose money

FXCM Group is an international online forex and CFD brokerage brand. Founded on 1999, The company is based in the UK. The brokerage firm also maintains offices in several jurisdictions such as Australia and South Africa.

In terms of tradable products, FXCM offers trading in the spot forex markets, cryptocurrencies, Treasury bond (the bund) and Contract for Difference (CFDs) for market indices and commodities. Due to the new ESMA regulation, the maximum leverage offered by FXCM is now restricted to 1:30 for major currency pairs.

Pros:  Cons:
  • Regulated Broker
  • Multiple choices of trading platforms
  • Numerous free trading tools provided
  • Low minimum deposit requirement
  • Comprehensive educational section
  • Limited product portfolio
  • No longer accepts US clients after losing US regulatory license

How to Choose a Forex Broker as a Hong Kong trader

Despite the fact that  Hong Kong has a strict regulator, there are still plenty of scammers around trying to lure customers to trade with them and then run off with their money. There are a few things you have to consider while in search of a Forex broker in Hong Kong.

Firstly, it has to be regulated by HKSFC. Then, it has to provide its customers with an easy to use trading platform. It also has to offer low commissions, as trading with high commissions eats up your profit. You should also expect to be offered a number of accounts to choose from depending on the amount of money you are planning to invest.  The broker must have excellent customer service. And, although it is not compulsory, a lot of additional valuable services should be there. They show the broker‘s attitude towards you and their willingness to invest their own money in the business.

General Regulation & Hong Kong Regulation

The world has been moving forward in terms of the regulation of financial markets. Despite the fact that in some developing countries Forex regulation is not clear and in some it is even considered to be illegal to trade currencies, in the Western world it is legal and strictly regulated. Each financial crash around the globe has brought about stricter rules for brokers, lowered maximum leverage, increased margin requirements and ousted lots of unregulated brokers. Some countries, which did not have any regulation in the area have already started forming a legal framework for supervision and monitoring of local Forex markets.

As Hong Kong is one of the centers of financial markets it does have a strict regulator – HKSFC, which stands for Hong Kong Securities and Futures Commission. It came about in 1987 after stock markets around the World crashed. The crash started with the Hong Kong stock market and spread to the rest of the World. So, the newly founded regulator introduced strict regulatory measures so that similar events would not happen again. HKSFC issues licenses to brokers who want to operate in the area and then supervises and monitors those brokers how they comply with the rules set by the agency. It carefully monitors all markets operations in Hong Kong and authorizes every product before it is offered by its regulated brokers to their customers. It also analyses complaints from investors about their brokers and punishes the guilty party according to its transgression.

Trading Platform & Software

The trading platform will be your tool to trade currencies or any other securities so you need to check what a regulated broker offers you. First of all, you will have to download a demo version from their website and familiarize yourself with it. You will be able to see if it is good enough, easy enough to use and if it has all the necessary features that you need. If not, you can go to another broker and see what platform he has. Nowadays, most brokers will offer the popular Metatrader 4 platform and a browser version of their own webtrader. Choose whichever platform you want, but do not forget to test it before opening a real money account.

Commissions & Spreads

On each trade you make a broker gets paid. How? By means of a spread. A spread is the difference between the buy and sell price. The most popular pair EUR/USD typically has 1 or 2 pip spread between buy and sell prices. So, when you open a buy or sell position in the pair you have a loss of those 1 or 2 pips. That is your broker‘s commission. The same is true with other pairs with higher spreads. You should choose a broker with the lowest spreads because each operation reduces your profits and if spreads are high your profits will decrease significantly.

Account Types

After you have tried a demo account and got to know how things work on your best broker‘s platform you may proceed to open a real money account and you may start with a micro.

Micro account

The account is good for those who have very little money to invest ($100-500). Most brokers will offer you that and you will be able to trade real money with small risk. One micro lot size is 1 thousand US dollars and one pip price is just $0.10.

Mini account

If you have tried micro or you simply want to trade bigger amounts of money a mini account could be just for you. You can open it with $500-2000 (recommended amount is $2000) and start trading mini lots (the size  $10 000).

Standard account

If you intend to become an independent trader and have over $10000 you may consider opening a standard account. The recommended amount for it is 20 thousand US dollars and a standard lot size is 100k. As you may understand risks increase exponentially with trading such big volumes, so you need to control your risks or you may lose all of your invested money.

Customer Service

Not all brokers treat their customers equally. You need to find a broker who shows the greatest care for his clients. The minimum that you should expect is service in your local language or dialect, online live help customer line that is there 24 hours on the working days and a functional problem-solving team that will reply to your request in a fast, caring and efficient manner.

Additional Services

Forex brokers often offer a lot of extra free services. That is a sign of good business culture. They invest their own money to give their clients as much in return as possible. They hire economists and financial people to write or record various analytical materials, give insights into the state of global economy and predictions about changes in policy of Central Banks. You may get free Ebooks on a variety of topics and with some brokers can even participate in trading contests and get big money prizes.

Conclusion

A Hong Kong trader has excellent opportunities to find a regulated broker and more or less safely invest in the biggest market of the World. The article outlined the key points which will help you to choose the best brokers among the regulated ones. We have created a list of the very best Hong Kong brokers below based on our own in depth research. We wish you great success in your career as a trader.

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Trade With A Regulated Broker

  • Your capital is at risk