5 Best Forex Brokers in Hong Kong for 2024

List of Top Forex Brokers in Hong Kong

Forex Trading Landscape in Hong Kong

Forex trading in Hong Kong is governed by the Securities and Futures Commission (SFC), which ensures the stability of capital markets and monitors financial securities and derivative instruments. Traders in Hong Kong have the option to choose between brokers regulated by the SFC or those under international regulatory bodies. When selecting a broker, it’s essential to consider safety features like segregated funds, negative balance protection, and participation in a compensation scheme.

While the SFC does not require brokers to offer negative balance protection, it does contribute to the Investor Compensation Fund (ICF), insuring retail traders up to HKD 500,000. Additionally, the SFC has set a cap on retail leverage at 1:20, a measure aimed at mitigating trading risks.

How Did FX Empire Select the Best Forex Brokers in Hong Kong?

• Safety and Transparency. We selected brokers that adhere to the strictest safety requirements in the industry and are regulated by the Hong Kong SFC or abroad.
• Hong Kong Client Accessibility. Each of our picks accepts traders from Hong Kong.
• HKD Base Currency Options. Our picks offer the Hong Kong Dollar as a base currency.
• Localized Resources. For the convenience of Hong Kong traders, we only considered brokers that must have at least one of the following: a website, platform, or customer support available in Chinese.
• Instruments from Asian Markets. Due to the vast discrepancy between the Asian and European/US trading sessions, we chose brokers with a decent offering of instruments from Asian markets, with a higher preference for instruments from the Hong Kong Stock Exchange.
• Low Trading Fees. We evaluated the spreads and commissions charged by brokers and selected those whose trading fees meet or fall below the industry average.
• Intuitive and Feature-Rich Platforms. We selected brokers offering user-friendly platforms with a range of trading tools that cater to both beginners and experienced traders.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s dive into the selected brokers.

How to Choose a Forex Broker in Hong Kong?

In this part, I will outline what traders need to consider when looking for a trustworthy broker in Hong Kong.

How to verify if a broker is regulated?

There are several steps you can take to verify if a broker is regulated and to identify the regulatory body overseeing it. Upon visiting a broker’s website, scroll down to the bottom of the page to find the entity’s legal name. This is where the regulatory information is usually stated. You need to look for a reference/licensing number, which you can then use to verify the entity by going to the regulator’s own website and checking its registry of authorized entities.

You also need to assess a broker’s transparency about order execution and whether it can be trusted not to manipulate price action. You need to check whether the broker has a ‘best execution policy,’ publishes regular quality execution statements, and states its average execution speed.

Read more about Best regulated forex brokers.

How to check a broker’s protection level?

To find a trustworthy partner, make sure that the broker’s entity you choose is tightly regulated and complies with most industry safety requirements.

I have broken down the most important safety mechanisms to look for in a broker below:

• Segregation of client funds. Brokers must keep their clients’ funds in separate bank accounts from the ones used for their corporate capital. This is crucial for mitigating the risk of accounting errors.
• Negative balance protection. Negative balance protection means that a trader’s losses cannot exceed their account balance. This protection is indispensable when trading high-risk instruments, such as Contracts for Difference (CFDs).
• Limited market exposure. Limiting market exposure protects traders against adverse price fluctuations. That is why most top-tier regulators cap the maximum leverage allowed at 1:30, whereas less strict regulators can allow leverage as high as 1:2000.
• Compensation scheme. Depending on the jurisdiction where a broker is situated, a compensation scheme may also protect its clients against the company’s credit risk and liabilities. For instance, brokers regulated by the Cyprus Securities and Exchange Commission (CySEC) participate in the Investor Compensation Fund (ICF). In the unlikely event of the company becoming insolvent, traders can be compensated by up to 20,000 EUR. The Financial Services Compensation Scheme (FSCS) – under The Financial Conduct Authority (FCA) in the United Kingdom – protects traders by up to 85,000 GBP.

Check out our guide on Best European regulated brokers.

Why do execution standards matter?

Execution standards are crucial in trading, as a broker’s top-tier licenses don’t always guarantee fast and precise order execution. Risks like price manipulation can occur with less reputable brokers, impacting strategies like stop-loss orders. To safeguard interests, traders should check:

• Best Execution Policy: Legally mandated in a broker’s documents, it ensures clients receive the most favorable price quotes under current market conditions.
• Quality Execution Statements: These detail the broker’s annual execution performance, including execution venues, trades executed with positive or negative slippage, and more.
• Average Execution Speed Reports: Reputable brokers disclose their average execution speed, crucial for high-frequency traders to determine viable strategies.

Additionally, brokers offering Virtual Private Server (VPS) hosting typically provide enhanced order execution precision and speed. Ideally, brokers should achieve execution speeds of no more than 100 milliseconds.

Find your best broker with VPS hosting.

From my experience as a high-frequency trader, I understand the importance of quick and precise execution for strategies like scalping. Having faced price manipulation, I recognize the value of strict execution standards. Brokers with a ‘best execution policy,’ regular execution quality statements, and average execution speeds below 50 milliseconds are generally reliable in maintaining high execution standards.

How to assess if a broker’s trading fees are competitive?

Brokers often offer different account types with varied pricing mechanisms, and it’s important to choose one that suits your trading style. To illustrate, consider the differences between STP and ECN accounts:

STP accounts typically provide commission-free trading with floating spreads, while ECN accounts have fixed commissions and raw spreads (often starting from 0.1 pips). At first glance, STP accounts may seem more advantageous due to a single cost (the spread), but some brokers increase the spreads on these accounts, making them less competitive.

Read more about Best STP forex brokers and Best ECN forex brokers.

To compare the competitiveness of a broker’s ECN and STP accounts, consider a simple calculation using a common instrument like EURUSD. Assume the spread is 0.9 pips on an STP account and 0.1 pips on an ECN account, with a $6 commission for a 1 lot (100,000 units) contract. If the pip value for EURUSD is $10, calculate the cost of a trade using the formula: trade value = spread x pip value + commission. This calculation will reveal the more cost-effective account type for your trading needs.

This is just a hypothetical example, but hopefully, it illustrates how more can be less in trading. So it’s worthwhile evaluating the costs of a broker you consider opening an account with for yourself before doing so. And if you are still uncertain, you can always check out our database of reviews to sort out the most competitive brokers.

Check out our list of Best lowest spread forex brokers.

What are the local specifics of trading in Hong Kong?

There’s a significant time discrepancy between the Asian trading session and the 2-hour window when the European and U.S. sessions overlap. During this window, trading activity typically peaks, presenting the most viable opportunities. However, this peak often occurs after 11:00 p.m. Hong Kong time, which is less than ideal for local traders who prioritize a good night’s sleep. To align better with their lifestyle, I advise traders based in Hong Kong to select a broker that offers a wide range of instruments from local markets, especially from the Hong Kong Stock Exchange.

Read more about Best offshore international forex brokers.

How to choose a trading platform?

A trading platform is your window into the market. It allows you to observe price action behavior and study potential opportunities for placing orders. Technical traders use a platform’s array of indicators, drawing tools, and other features to examine various price patterns, changes in volatility, liquidity, and so on to gauge the most favorable times to enter or exit the market.

The best platforms are also the most versatile ones. They include a wide spectrum of technical indicators, such as Fibonacci retracement levels, oscillators, trend-based and range-based indicators, and others, as well as drawing tools, such as trend lines, channels, wedges, etc. They are also the ones that allow you to easily scale price action up and down.

The retail industry’s most popular platforms, MetaTrader 4 and MetaTrader 5, have established themselves as benchmarks for simplicity and reliability over the years. While they offer a decent range of technical indicators and drawing tools for multi-timeframe analysis, their rugged design becomes evident when compared to newer and sleeker platforms. Although MetaTrader is suitable for beginners, those seeking more advanced trading capabilities may require a sophisticated platform.

Read more about best MT4 brokers and best MT5 brokers.

In response, some brokers have developed their own proprietary platforms, which offer convenience and additional features not found in MetaTrader. These platforms allow for instrument search by asset class, easy scaling of price action, and execution of complex box orders. Ultimately, the choice of the best platform for you boils down to a trade-off between simplicity and practicality.

Check out our dedicated guide on Best forex trading platforms.

What to Avoid When Choosing a Forex Broker in Hong Kong?

Here is a quick rundown of some of the most important things to avoid:

• Unregulated brokers. Trading with an unregulated broker exposes you to a higher risk of fraud or unethical business practices, as they are not bound by any regulatory standards or rules. Additionally, in case of any disputes or if the broker goes bankrupt, there might be no legal recourse or compensation schemes available to recover your funds.
• Lack of client protection. Avoid brokers that cannot ensure more than two of the following: segregated funds, negative balance protection, compensation scheme, and maximum leverage for retail traders no bigger than 1:100
• Low execution quality. Try to avoid brokers that cannot ensure more than two of the following: best execution policy, regular quality execution statements, and average execution speed under 100 milliseconds.
• High spreads and commissions. Sidestep brokers with floating spreads from 1.8 pips or above on STP accounts and with round-turn commissions above $7 on ECN accounts.

How to Avoid Forex and CFD Scams?

Scammers rely on the gullibility of traders. A common tactic fraudsters employ is to promise quick and easy profits at no risk to the trader. Often, scammers would use labels that closely resemble the brands of real and legitimate companies. That is why regulators like the FCA have registers where traders can read about such fraudulent companies pretending to be others.

The best and easiest way to protect yourself is to make sure you work with a trustworthy and transparent broker. You can find a comprehensive list of reliable brokers by jurisdiction here.

Another important consideration is online safety. Be cautious about where you leave your personal information. Registering your details on suspicious pop-ups that promise enormous profits could lead to your contact information landing on a scammer’s dialing list. Remember, no licensed broker would make unsolicited cold calls.

The next time you get contacted out of the blue with promises of becoming the next Warren Buffet, you must remember that you are most likely speaking to a scammer. I think that nowhere is the “if something sounds too good to be true…” saying more accurate than in the world of trading. That is why you should do your due diligence before opening an account with any broker.

Our Methodology

Here at FX Empire, we have pioneered a unique methodology for evaluating Over-the-counter (OTC) derivatives brokers worldwide. Our goal is to provide a comprehensive picture of a broker’s pros and cons so that our readers can make informed decisions. We understand their need to choose the best partner for their particular goals and needs.

Our team of dedicated professionals is working continuously to improve our system and keep it up-to-date with current market trends. We test each broker systematically by employing over 250 variables across nine categories:

• Trust
• Fees
• Account Types
• Tradable Instruments
• Platforms and Tools
• Deposits and Withdrawals
• Customer Support
• Research
• Education

We strive to be as objective as possible, which is why our rigorous examinations are devoid of any personal bias as much as possible. We review the licenses of all the subsidiaries of a broker and check the fine print in the Client Agreement. The reliability of a broker is further determined based on the regulation, fees, and general transparency of the website.

We collect essential information by opening a live account with a broker entity and testing its services in real time. We measure the spreads, swaps, and commissions on its most popular account type and compare our findings to the industry average.

We also test the functionality of the available platforms, the number and types of tradable instruments, the reliability of customer support, and the quality of the research and educational materials.

For this guide, we only considered brokers that accept clients from Hong Kong. We chose only those that comply with the strictest safety standards in the industry, ensuring they are regulated by either the Hong Kong SFC or comparable authorities abroad. We prioritized brokers that provide localized resources – websites, trading platforms, or customer support – and offer the Hong Kong Dollar as a base currency. Additionally, we focus on brokers offering a robust selection of instruments from Asian markets, especially those listed on the Hong Kong Stock Exchange.
We abide by our strict guidelines for editorial integrity based on the objective standards we have set for our reviews. You can read more about our review process here.

Meet Our Writers

The team of forex and CFD analysts and editors at FXEmpire is composed of trading industry professionals and seasoned financial journalists. Our experts have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

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