SFC regulated forex brokers
Securities and Futures Commission · 🇭🇰 Hong Kong
The Securities and Futures Commission (SFC) is the financial regulator for Hong Kong, established in 1989. ForexLicenses.com classifies it as tier 1 (top-tier regulation). We currently match 3 brokers in our database to an SFC licence.
Leveraged foreign exchange trading in Hong Kong is a regulated activity — Type 3 under the Securities and Futures Ordinance — and only a small number of firms hold that licence because of high capital and conduct requirements. The SFC caps retail leverage at 20:1 and publishes a public register of licensed persons and registered institutions, along with an alert list of suspicious websites and unlicensed entities. Many brokers that market to Hong Kong residents do so from offshore entities without a Type 3 licence, so checking the register matters here.
Key rules for retail clients
- Tier
- Tier 1 — Top-tier regulation
- Compensation
- Investor Compensation Fund does not cover leveraged OTC FX
- Leverage
- 20:1 on FX for retail
- Negative balance protection
- Not a regulatory requirement
- Client money
- Client money held in segregated accounts
- Complaints
- Financial Dispute Resolution Centre (FDRC)
Brokers licensed by the SFC 3
Frequently asked questions
How do I check if a broker is SFC regulated?
Search the firm's name or licence number on the SFC official register (https://apps.sfc.hk/publicregWeb/searchByName), confirm the status is current and that the website domain you're using is listed, then check the SFC warning list for clones.
Does the SFC offer investor compensation?
Investor Compensation Fund does not cover leveraged OTC FX
What leverage do SFC-regulated brokers offer?
20:1 on FX for retail
Is negative balance protection required by the SFC?
It is not a regulatory requirement under the SFC, though some brokers offer it contractually.