Forex trading is big business in Hong Kong. There are hundreds of Forex brokers and platforms for Hong Kong based FX traders to choose from. Online forex trading is a legitimate business regulated by the Hong Kong Securities and Futures Commission. Anyone with the skills and capital can get into FX trading in Hong Kong.
One of the most important steps towards a successful FX trading venture involves choosing a good brokerage platform. Newcomers into the business often fall victim to aggressive online marketers who convince them to join the wrong FX platforms. Since the platform plays a key role in a trader’s success, you need to be careful when choosing one.
Here are a few tips to help you choose the right FX broker and trading platform in Hong Kong.
Choose A Registered FX Broker
There is always a broker behind any online trading platform you choose. As mentioned before, the Hong Kong Securities and Futures Commission (SFC) regulates the entire FX trading business in Hong Kong. They also safeguard Hong Kong based brokerages from risky foreign traders that could affect the local currency market.
How Reliable is the Trading Platform?
Some trading platforms are so unreliable that they end up affecting your profits or trades. A forex platform should guarantee a high level of availability and reliability at all times. Forex trading is a fast-paced business since trends often change within seconds and milliseconds.
You can check the reliability of a trading platform through the following ways;
- Sign up for demo account and test the platform for a couple of weeks before going live.
- Check their reviews on Google Business, Yelp, Glassdoor and other business review sites in Hong Kong.
- You can also use online website performance tools such as IONOS to check the platform’s reliability and security scores. You only need to copy the URL and do a quick check.
Reliability also includes the platform’s ability to take trading deposits, process withdrawals and record transactions without delay. A delayed response can be the difference between being on the losing side or making a profit in FX trading. It is, and will always be about timing.
Minimum and Maximum Deposits
Some trading platforms impose a maximum deposit limit as a safeguard against money laundering while most accept tiny deposits. Always check the deposit limits offered by your broker. Also check whether they have any offers and deposit tiers for different clients.
Platform Charges and Commissions
Forex brokers in Hong Kong have varied ways to make money on their FX trading platforms. With this in mind, it’s always good to inquire from the broker about the charges associated with their platform. What is the cost per trade on the FX brokerage platform and is it based on currency spread? For instance, do they charge a commission on trades or a flat fee for account maintenance?
The Trading Portfolio- The Currency Pairs Offered
The number of currency pairs available on a trading platform will affect the way you approach your trades. Most FX traders trade with a combination of the most popular and easy to track currency pairs such as; USD/GBP, EUR/JPY, GBP/AUD, etc. You will need a trading platform with a healthy amount of currency pairs available to trade with. A diverse trading portfolio allows you to try new strategies and hedge.
A Fully Featured Trading Platform
A good trading platform should have all the features you need to trade without having to leave the platform. Go for a platform that offers inbuilt indicators, newsfeed, granular control over trades and any other tools you might need to trade. Beginners should also consider going for a platform that offers copy trading tools as they learn the ropes and start using their trading strategies.
A good trading platform will help you transition into frequent FX day trading easily. FX brokers are your partners for success and should be selected wisely. All the best in your future trades and be a disciplined FX trader while at it!