There are many reasons to dive into the world of Forex as a new investor, such as the fact that it’s accessible, fast-paced, and offers the possibility of making quick returns (as well as the risk of quick losses).
As such, Forex trades are understandably attractive. In order to make a trade, though, you will need a brokerage account – and not every brokerage is the same. Brokerages are impacted as much by the country they are based in as their assets, platforms, and the services they offer.
Hong Kong has become a hub for Forex brokers that moved away from the US market following the Dodd-Frank Act of 2010. This presents a range of opportunities for new traders.
Why Choose a Broker in Hong Kong?
As one of the major financial centers of Asia, Hong Kong is in competition with Tokyo, Shanghai, and Singapore. While their Forex trading options have been small, domestically, in the past, the number of reputable, local Forex firms has been on the rise in recent years. As more firms have set down roots, individual traders have also started to consider Hong Kong brokerages as an option.
While less regulated than US brokers in many senses, Honk Kong Forex brokers are still subject to more regulation than many European brokers. This balance of having liquidity requirements and consumer-protecting restrictions on oversized leverage and risky strategies while remaining more flexible than many American brokerages makes Hong Kong somewhat of a sweet spot for Forex traders.
The 3 Best Brokers in Hong Kong for Newbies
One of the downsides of seeking Forex brokers in Hong Kong is the sheer number now available. If you are a newcomer to Forex trading, it can be hard 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 suits your needs:
Interactive Brokers (1978)
An older brokerage in Hong Kong, Interactive Brokers is a stable brokerage with experienced brokers and the capability to support new traders to a high standard. While they only support wire transfer as a method of funding, which is quite limiting, they offer a wide range of assets and instruments, as well as a reasonable 1:50 leverage level.
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 reason why it attracts so many new traders and investors.
The 1:30 leverage level and low spreads make Saxo Bank a relatively low-risk brokerage, but they offer a range of assets and instruments, allowing individual traders to tailor their experience further. Saxo Bank also accepts credit cards alongside wire transfer, adding an extra layer of protection for clients.
Z.com Trade (2011)
As a fairly young brokerage in Hong Kong, Z.com Trade is based in both London and Hong Kong. It’s accessible to small traders, thanks to its low deposit threshold of 50 USD and wide range of accepted funding methods (including PayPal, credit cards, and Stripe). The downside is that they focus solely on currencies, crypto, indices, energies, and metals, which is fairly limiting. Nonetheless, they have low spreads and a 1:30 level of leverage that makes them a friendly face for new traders.