Supervision of foreign exchange trading platforms in Hong Kong
We will find that many traders claim that their companies are located in Hong Kong and regulated by the SFC.
Let's see if Hong Kong's forex (外匯交易) trading platform is worth investment? We must first understand the provisions of the SFC.
The SFC does not regulate the foreign exchange margin business of licensed brokers operating outside Hong Kong. The Hong Kong Investor Compensation Fund provides insurance of HK $150000. However, the fund does not protect investors trading in HKEx products. Leveraged foreign exchange transactions (such as contracts for foreign exchange differences) are not included in the fund.
It should be noted that the leverage of foreign currency dealers subject to regulatory compliance in Hong Kong shall not exceed 20 times. The services of local brokers in Hong Kong are uneven. In addition, precious metals are not regulated.
On June 17, 2019, the Hong Kong Securities Regulatory Commission announced on its official website to remind licensed securities companies that foreign currency deposit transactions outside Hong Kong are not subject to the supervision of the Hong Kong Securities Regulatory Commission.
Conclusion: Hong Kong fx trading brokers can only attract customers in Hong Kong. The SFC does not regulate clients outside Hong Kong. In addition to stock traders, any behavior indicating that the Hong Kong foreign exchange trading platform solicits Taiwan or mainland customers to open accounts and deposit funds should be treated with caution and found out whether it is compliant. The SFC does not regulate many foreign exchange companies. If you deposit on the fraud platform, the funds cannot be guaranteed.
Inquiry methods of foreign exchange companies regulated by the Hong Kong Securities Regulatory Commission
You can go there https://www.sfc.hk/ Check whether the foreign currency trading platform in Hong Kong is compliant and look for the regulatory number of the revenue dealer.
You can also contact them through the website of SFC. They are also happy to answer inquiries by telephone, e-mail, or e-mail.
Below is the query method of gmo-z.com Forex HK Limited. (regulatory No. AZE792) first, input the regulatory No. AZE792 of GMO-Z.com Forex HK Limited on the official website of the Hong Kong Securities Regulatory Commission. You can also search for it!
The search results will show that z.com Forex is compliant and holds a valid license.
How to choose a suitable foreign exchange trading platform?
Unless you are a Hong Kong resident, the above inquiry will not affect you. Globally, the current trend of foreign exchange margin shows that large countries such as Australia, Britain, and Europe are leveraging. These rules mean that opening an account will double your investment cost, so it makes no sense.
Choosing a sizeable foreign exchange company with a strong brand, long operation time, and strength is best. GMO Financial Holdings, Inc. is the leading provider of financial services in Japan and NUMBER ONE largest retail forex broker by trading volume. Z.com Forex is a top foreign exchange trading platform with high popularity and over 10 years of operation. Provide a variety of product risk management tools, including a series of powerful technical analysis tools, which can help manage transactions, formulate strategies and reduce transaction risks.
This is a personal recommendation and is not intended as an investment advisory.
