Hong Kong is one of the biggest and the major strongholds of investments and financial centers of Asia, which holds an important and truly necessary role in the Forex industry and the economy itself too. For the last years, the region has seen a significant increase in brokers’ representative offices that establish HK branches. That happened due to Hong Kong status of a liberal offshore center along with its increasing Asia operations that in reverse attracts many Forex companies and foreign investment firms. Yet, the majority of the global companies opening their offices in HK with the goal to cover the important financial area while headquarters based elsewhere.
The responsible body for Forex trading regulation and licensing of Hong Kong Forex Brokers was another important step towards industry growth and is provided by the Hong Kong Securities and Futures Commission (SFC). Meanwhile, the financial system is supervised by the Monetary Authority of Hong Kong which fully supervises SFC respectively, which means that every firm that holds operation in HK should be authorized in order to deliver its services.
|1||ADSS||2011||FCA, SFC, Central Bank of UAE|
|2||HYCM||1977||CySEC, FCA, MiFID, DFSA, SFC|
|3||Swissquote||1996||DFSA, FINMA, SFC|
The Hong Kong Commission makes an effort to be firm but fair. The SFC makes known that it will not hesitate in taking actions when suspicious actions are in place, but they will neither bother brokers for no reason nor harm their reputation in any way. The Commission is also involved in risk assessments and strives to impose higher requirements to reduce the risks. The SFC is a partner in business to its regulated entities. They maintain close relationships with the SFC licensed companies, and cooperate with other regulatory bodies (three other regulators in Hong Kong) to create an optimal climate for business deals. They also try hard to transfer their principles into visible actions through implementation of guidelines, rules and laws. They also rather rely on negotiations and open dialogue with their partners than dictatorship to achieve desired results.
To identify if a forex broker is regulated by SFC, the first step is to identify the name of the entity from the disclosure text on the broker's homepage. For example, here's the key disclosure text from ADSS's website.
ADSS holds a banking license issued by its supervisory authority the SFC.Next, look up the firm on the list of supervised institutions listed on SFC's website to validate the firm's current regulatory status. Here is the official SFC page.
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