Securities and Futures Commission (SFC)
The Securities and Futures Commission (SFC) is the statutory regulatory body that oversees Hong Kong’s securities, futures, and leveraged forex markets. Known for its rigorous licensing and investor protection framework, the SFC is a leading regulator in Asia and a key authority for brokers offering forex services in Hong Kong.
The Securities and Futures Commission (SFC) is a globally respected regulator with strong oversight over forex brokers operating in Hong Kong. A Type 3 SFC license ensures that clients receive regulated, transparent, and professional forex services.
- No blanket cap, but leverage is assessed based on risk and must be disclosed in contracts
- Brokers are expected to implement risk management systems and comply with internal control guidelines
- Licensing of forex brokers offering leveraged foreign exchange trading
- Regulating conduct of licensed corporations and their representatives
- Supervising financial markets to maintain integrity and protect investors
- Enforcing anti-money laundering (AML), disclosure, and financial conduct rules
- Visit the SFC Public Register
- Use the "Public Register of Licensed Persons and Registered Institutions"
- Enter the broker’s name or CE number to confirm license type and status
- Type 3 License: Required to conduct leveraged foreign exchange trading
- Minimum Capital Requirements: HKD 5 million (varies by activity type)
- Client Fund Segregation: Mandatory for all licensed entities
- Disclosure of Leverage Risks: Clear client communication required
- Audit & Supervision: Annual filings, internal audits, and financial reviews
- Prohibition on Misleading Promotions: Marketing must follow SFC guidelines
Advantages
- High regulatory standards and investor protection
- Well-developed legal and financial framework
- Strict licensing and ongoing supervision of brokers
- Transparent broker register and public access to disciplinary actions
Limitations
- Leverage not standardized — risk varies across brokers
- Licensing process can be complex and expensive
- Primarily focused on Hong Kong resident protection
Country
Hong Kong
Established
1989
Contact
+852 2231 1222
Complaint bodies
Securities and Futures Commission (SFC) Financial Dispute Resolution Centre (FDRC)
Hotline
+852 2231 1222
Complaint email
Last updated on: March 27, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.