HKEX Review 2024
Website: www.hkex.com.hk
Min. Deposit: US$
Leverage: 10% | 100%
Trading Platforms: OTP-C Trading Platform, Stock Connect
Regulation: SFC
Headquarters: Hong Kong
Founded: 2000
Regulatory Licenses:
- Hong Kong Exchanges and Clearing Limited (HKEX) - regulated by SFC (Hong Kong) registration no 388
Updated on April 18, 2024
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In crafting this comprehensive review of HKEX (Hong Kong Exchanges and Clearing Limited), we have meticulously compared its offerings, fees, trading platforms, and overall trading conditions against those of over 1000 other brokers in the forex and financial trading space. Our goal is to provide an unbiased and detailed analysis that helps traders make informed decisions.
Hong Kong Exchanges and Clearing Limited, commonly known as HKEX, is a premier financial exchange located in Hong Kong. It offers a broad array of trading products to its clients, including but not limited to equities, derivatives, foreign exchange (FX), stocks, commodities, metals, Exchange-Traded Products (ETPs), and more. HKEX made a significant technological leap in 1986 by introducing a computer-assisted trading system, which was later upgraded to the "Automatic Order Matching and Execution System", eventually evolving to a third-generation system in 2000. The exchange operates under the strict oversight of the Hong Kong Securities and Futures Commission (SFC), ensuring a regulated and secure trading environment.
HKEX stands out as a well established and comprehensively regulated financial exchange, offering its global clientele access to a wide array of trading products. It boasts of providing state-of-the-art trading technologies and platforms that cater to both investors and professional traders. One of the key attractions of trading with HKEX is the competitive fees and favorable trading conditions it provides, coupled with the advantage of not requiring a minimum deposit.
Pros
Wide range of trading products
Advanced trading technologies and platforms
Competitive fees and trading conditions
No minimum deposit requirement
Cons
Variable fees based on product and platform
Lack of 24/7 customer support
HKEX Review Summary in 10 Points
Headquarters: Hong Kong
Regulation: SFC
Platforms: OTP-C Trading Platform, Stock Connect, etc.
Instruments: Equities, derivatives, FX, stocks, commodities, metals, ETPs
EUR/USD Spread: Commission charge
Demo Account: Provided
Minimum Deposit: No minimum deposit
Base Currencies: HKD, EUR, USD, GBP
Education: Provided
Customer Support: 24/5
Overall HKEX Ranking
HKEX secures a reputable position in the financial exchange domain, offering competitive trading conditions alongside relatively tight spreads. Clients are availed of a variety of advanced trading tools and platforms. Based on our exhaustive research and comparison with over 1000 brokers, HKEX's Overall Ranking stands impressively at 8.5 out of 10.
HKEX is far from being a scam. It is a reputable and regulated financial exchange under the strict supervision of the Hong Kong Securities and Futures Commission. This regulatory body enforces rigorous rules and guidelines on HKEX's operations, ensuring a secure trading environment.
Is HKEX Legit?
Absolutely, HKEX is a legitimate and regulated entity. With years of operation under its belt, its reputation as a reliable exchange is well-founded. Despite the inherent risks associated with trading, HKEX implements robust risk management policies and practices to safeguard client funds and ensure their security. Our Ranked HKEX Trust Score is 8.9 out of 10, reflecting its commendable reputation and service quality.
How Are You Protected?
HKEX's operations are regulated by the SFC of Hong Kong, tasked with supervising the securities and futures markets in the region. Furthermore, HKEX adheres to the principle of segregating client funds, thus ensuring that these funds are exclusively used for clients' trading activities and not for any other purposes.
HKEX itself does not provide traditional leverage as it is primarily a platform for trading equities and securities. The margin requirements vary by the product, with Hong Kong-listed equities typically requiring a margin of 10% of the trade value. It's important to note, however, that some brokers offering access to HKEX may provide leverage for trading derivatives and other products.
Account Types
HKEX does not provide a variety of account types. Instead, it offers a unified account system that enables traders to engage with a diverse array of financial instruments such as stocks, futures, options, and more. This single account setup supports transactions in multiple currencies, including but not limited to HKD, EUR, and USD. For those new to trading, HKEX provides an opportunity to get acquainted with trading dynamics through a free trial period, allowing practice trades without financial risk.
How to Open HKEX Live Account?
Initiating an account with HKEX is straightforward. Prospective clients are guided through the following steps:
Navigate to and select the “Open Account” form on the website.
Fill in the necessary personal information such as name, email address, and phone number.
Submit required verification documents, including proof of residence and identification.
Complete an electronic questionnaire to assess your trading experience.
Following account verification, proceed with depositing funds to activate trading capabilities.
Trading Instruments
HKEX grants access to an extensive portfolio of trading instruments, encompassing equities, derivatives, foreign exchange, stocks, commodities, metals, futures, and more. Its derivatives offerings are particularly noteworthy, including options and futures on indices, currencies, commodities, and interest rates. This diverse range of investment options is designed to meet various risk profiles and investment goals. With its comprehensive selection of traditional trading instruments, alongside Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs), HKEX caters to investors aiming for diversified investment portfolios. The broker’s Market Range Score stands at 4.3 out of 5, reflecting its broad selection of trading instruments.
HKEX Fees
Our analysis reveals that HKEX’s fee structure varies with the traded product and volume, primarily based on commission rates. For trading equities and funds, fees range between 0.003% to 0.005% of the transaction amount, with a minimum charge of HKD 0.50 and a cap at HKD 100. Derivatives trading incurs fees between HKD 1.5 to HKD 3.0 per contract. Additionally, clearing fees for equities and funds are imposed at 0.002% of the transaction value, ranging from a minimum of HKD 2.0 to a maximum of HKD 100. Derivatives clearing fees vary from HKD 0.5 to HKD 1.5 per contract. Positions held beyond a single day attract overnight or swap fees. When benchmarked against a pool of 1000 brokers, HKEX’s fees are considered average, with an overall rating of 4.3 out of 5.
Unlike brokers that rely on spread-based trading, HKEX adopts a commission-based fee structure, applying commissions to each trade. The commission rates are subject to change based on the asset type and prevailing market conditions. Consequently, traders are advised to conduct thorough research and comparison of fees across different brokers before settling on HKEX. Despite the absence of spread-based trading, HKEX is known for offering competitive and variable spreads across various assets, which fluctuate in response to market dynamics.
Pros of HKEX Funding Methods:
Diverse Payment Options: Offers bank wire transfers, credit/debit cards, and e-wallets like PayPal and Skrill.
Multiple Account Base Currencies: Provides flexibility in choosing the base currency for the account.
No Minimum Deposit: Allows traders to start trading without a mandatory initial deposit.
Cons of HKEX Funding Methods:
Potential Fees: Some deposit and withdrawal transactions might incur fees.
Key Points:
HKEX Funding Methods Rating: Rated 8.9 out of 10.
Minimum Deposit Recommendation: While no minimum deposit is required, many traders start with around $5,000, compared to other brokers' typical $500 minimum.
Withdrawal Process: Withdrawals are primarily through bank transfer, taking 1-3 business days, with potential documentation requirements for completion.
Withdrawal Steps: To withdraw, log in, select 'Withdraw Funds', enter amount, choose method, complete request, confirm information, submit, and track via dashboard.
From our comprehensive testing, it has been observed that HKEX offers a diverse range of trading platforms to accommodate the varied demands of traders. The primary platform, HKEX Orion or OTP-C Trading Platform, delivers a swift and dependable trading experience. It features sophisticated order types, real-time market data, and integrated risk management tools. Besides the Orion Trading Platform, HKEX also provides Stock Connect, a novel trading link that bridges the Hong Kong stock market with the stock markets in mainland China, facilitating the trading of securities listed on both markets.
HKEX equips traders with the capability to access trading platforms via web, desktop, and mobile versions. These platforms are enriched with a variety of market data tools, including both real-time and delayed market data feeds, historical data, and analytics. Traders can leverage these tools to uncover insights into market trends, make well-informed trading decisions, and effectively manage risk. The HKEX Platform is esteemed highly, with an overall score of 4.5 out of 5, when compared against over 1000 other brokers.
HKEX delivers 24/5 supportive customer service through phone lines and email. The support team is comprised of trading professionals capable of assisting traders with a variety of issues, including technical support, analysis recommendations, general inquiries, and operational difficulties. The quality of customer support at HKEX is commendable, earning an overall score of 3.9 out of 5 based on our evaluations. Our interactions were met with prompt and knowledgeable responses, and the support team was readily accessible during working days.
HKEX offers an extensive array of educational materials for its clients, encompassing webinars, tutorials, articles, and videos on a wide range of trading topics such as technical analysis, risk management, and trading strategies. The educational offerings from HKEX are rated highly, with an overall score of 4.5 out of 5 based on our assessments. The quality of educational materials, research, and analysis provided by the company is of notable caliber.
In summary, HKEX stands as a well-grounded exchange, presenting a broad spectrum of financial instruments for traders to engage in. Its trading platforms are intuitive and grant access to a plethora of trading tools and market data, rendering it an apt choice for both beginners and seasoned traders. While HKEX fees are generally reasonable, some traders might perceive them as high for certain assets in comparison to other brokers. Additionally, the absence of negative balance protection could pose a concern for some traders. The exchange offers reliable and responsive customer support alongside a comprehensive suite of educational materials, empowering traders to enhance their trading knowledge and skills. Nonetheless, we advise conducting your own due diligence prior to registering with HKEX to ensure it aligns with your trading needs and preferences. Based on our findings and financial expert opinions, HKEX is particularly suitable for: Traders from Asia, International traders, Currency trading, Beginners, Advanced traders, Investors, Professional traders, Partnerships, Competitive spreads, Comprehensive educational materials, Outstanding trading tools, and Supportive customer support.
