November 24, 2022
  • November 24, 2022

Best Forex Brokers for Beginners in Hong Kong

By on October 20, 2022 0

There are many reasons to dive into the world of Forex as a new investor, such as the fact that it’s accessible, fast, and offers the opportunity for quick returns (as well as the risk of quick losses).

As such, Forex trading is naturally attractive. However, to complete a trade you will need a brokerage account – and not all brokerages are the same. Brokers are impacted as much by the country in which they are based as by their assets, their platforms and the services they offer.

Hong Kong has become a hub for Forex brokers who have moved away from the US market following the 2010 Dodd-Frank Act. This presents a range of opportunities for new traders.

Why choose a broker in Hong Kong?

As one of Asia’s major financial centers, Hong Kong competes with Tokyo, Shanghai and Singapore. Although their Forex trading options have been reduced nationwide in the past, the number of reputable local forex firms has increased in recent years. As more and more businesses have taken hold, individual traders have also started to consider Hong Kong brokers as an option.

Although less regulated than US brokers in many ways, Hong Kong Forex brokers are still subject to more regulation than many European brokers. This balance of liquidity requirements and consumer protection restrictions on over-leverage and risky strategies while remaining more flexible than many US brokerages makes Hong Kong an ideal location for Forex traders.

Top 3 Hong Kong Brokers for Beginners

One of the disadvantages of research Forex Brokers in Hong Kong is the absolute number now available. If you are new to Forex trading, it can be difficult to identify the best brokers to approach. Therefore, we have curated this list of the top 3 FX brokers in Hong Kong for new traders to make it easier to find a brokerage that meets your needs:

Interactive Brokers (1978)

A former brokerage in Hong Kong, Interactive Brokers is a stable brokerage with experienced brokers and the ability to support new traders at a high level. Although they only support wire transfer as a method of funding, which is quite limited, they offer a wide range of assets and instruments, as well as a reasonable level of leverage of 1:50.

Saxo Bank (1992)

Having stood the test of time through financial turmoil and crashes, as well as changing and evolving with the times, Saxo Bank can seem indomitable. This is one of the reasons why it attracts so many new traders and investors.

The leverage level of 1:30 and low spreads make Saxo Bank a relatively low risk brokerage, yet they offer a range of assets and instruments, allowing individual traders to further tailor their experience. Saxo Bank also accepts credit cards in addition to wire transfers, adding an extra layer of protection for customers.

Z.com Commerce (2011)

As a relatively young brokerage in Hong Kong, Z.com Trade is based in both London and Hong Kong. It’s accessible to small merchants, thanks to its low $50 deposit threshold and wide range of accepted funding methods (including PayPal, credit cards, and Stripe). The downside is that they only focus on currencies, crypto, indices, energies, and metals, which is quite limiting. Nonetheless, they have low spreads and a leverage level of 1:30 which makes them a friendly face for new traders.