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Rakuten Securities Hong Kong

Rakuten Securities Hong Kong Review
Trader's rating 5
Editor's rating 3

Trading Accounts

 

Account type Minimum deposit Minimum trade size Maximum leverage Average spreads
Rakuten FX None 1k unit 1:20 0.9 pips
Trading Station None 1k unit 1:20 0.4 pips + US$0.08/lot (roundturn)

 

Rakuten FX Spread Highlight

Currency Pair
Spread
Currency Pair
Spread
Currency Pair
Spread
USD/JPY
0.9
EUR/USD
0.9
GBP/USD
1.6
NZD/USD
2.1
EUR/GBP
1.8
EUR/CHF
2.7
USD/HKD
3.0
HKD/JPY
4.0
AUD/USD
1.3
EUR/JPY
2.2
GBP/JPY
2.2
CHF/JPY
2.6
CAD/JPY
2.2
AUD/JPY
1.9
NZD/JPY
2.4
GBP/CHF
3.0
AUD/NZD
2.6
CNH/JPY
2.3
AUD/CHF
2.3
NZD/CHF
5.4
ZAR/JPY
4.6
NOK/JPY
4.3
TRY/JPY
3.7
SGD/JPY
4.6

 Spreads on Rakuten FX platform

 

Rakuten Securities Hong Kong offers trading in 40 currency pairs on two robust platforms. Potential clients can register and download its Rakuten FX trading platform demo for trial before account opening or actual trade.

 

Note that there is a difference in the margin requirement for hedging in the two types of accounts. Both Rakuten FX and Trading Station platforms require margin only on one side and margin counts on the side requires larger amount.

 

 

The Company. Security of Funds

 

Company Country Regulation
Rakuten Securities Hong Kong Hong Kong SFC

 

Rakuten Securities Hong Kong (Rakuten Securities HK) is a subsidiary of the Japanese forex giant Rakuten Securities, one of the three largest forex brokers in Japan, and also a pioneer in leveraged foreign exchange trading in Hong Kong.

 

Rakuten Securities, Inc. (“Rakuten Securities”) is the securities division of Rakuten Group which operates as Japan’s largest E-Commerce provider. Rakuten Group is based in Japan, but operates globally through various subsidiaries offering business services like e-commerce, travel, banking, securities, credit card, e-money, portal and media, online marketing and professional sports, etc.

 

Actually, Rakuten Securities acquired the Hong Kong brokerage from FXCM in the autumn of 2015 and subsequently rebranded and relaunched it in 2016.

 

Rakuten Securities HK is regulated by the local Securities and Futures Commission (SFC). This means that the client trading accounts are well protected and fully within Hong Kong's legal jurisdiction.

 

The SFC licensing procedure is a long and complicated one, involving submission of various documents, a test for officials representing the firm, and maintaining adequate accounting and control systems. The commission also exercises supervision over licensed companies, performing on-site reviews and off-site monitoring. There are also stringent capital requirements for the brokers. Since 2015 there is also the requirement that the license holders allow investors to claim damages if the intermediary is selling or recommending a financial product that is not reasonably suitable for the client. 

 

 

Trading Conditions

 

Minimum initial deposit

Rakuten Securities HK does not have a minimum deposit requirement. Naturally, in order to trade, one does need to put in some money in their account.

 

Spreads and commissions

Rakuten Securities HK offers fairly tight spreads. The Trading Station account has tighter spreads, but there is also a commission. The calculation of this fee appears to be a somewhat complicated affair, measured in pips, and ultimately turns out to be less favorable. As per Rakuten's own calculations, the commission is around 0.8 pips, which added to the spread, amounts to a total of 1.2 pips, compared to only 0.9 pips on Rakuten FX platform.

 

Leverage

The leverage of Rakuten Securities HK is 1:20, which is not much, but many jurisdictions have imposed caps on leverage at similar levels. For example, the maximum leverage allowed to retail clients in Japan is 1:25 and in Europe – 1:30 (as of August, 2018). The reason for such restrictions is the fact that using high leverage levels involves significant risk of loss.

 

 

Trading platforms

 

Rakuten Securities HK offers two trading platform and neither of them is MetaTrader 4, which is relatively rare among brokers. Instead, it has Rakuten Securities Japan's proprietary platform Rakuten FX, iSpeedFX and Trading Station, which was “inherited” from FXCM.

 

All platforms have applications for mobile devices and web versions.

 

Rakuten FX is an award-winning user-friendly platform with robust functionality and an AS Streaming trading function that allows speedy user execution and one click order execution. The platform features 7 order types, notifications, real time reports, trading from charts, 9 types of charts, 44 basic and advanced indicators and customizable parameters.

 

Click on image for larger view

 

Trading Station allows users to trade raw spread directly from top liquidity providers with No Dealing Desk (NDD) execution with a low fixed commission and using the essential functions of the proprietary Marketscope charting tool. The platform supports five order types, hedging, trading from charts and 60 basic and advanced indicators. It also offers one click or double click order execution and “simple” and “advanced” dealing rates, real time news and customization.


 

Click on image for larger view

 

   

Methods of payment

 

Rakuten Securities HK accepts client payments through ATM, internet banking and bank counter, for Hong Kong residents. For international clients the funding options are bank wire and post office wire (for clients in China). The broker also accepts checks and e-checks.

 

 

Conclusion

 

The mere fact that Rakuten Securities HK is regulated by SFC and is a subsidiary of a Japanese broker suggests it is stable and reliable. Hong Kong is not such a large market in itself, but China is, which makes the regulation lucrative. Besides, the trading conditions of Rakuten Securities HK are transparent and more than attractive: low spreads, no minimum investment requirement, three great trading platforms available.

 

To sum up the above:

 

 

Pros Cons
Regulated in HK, part of an international group No MetaTrader
Tight fixed spreads Low leverage
No deposit requirement  
Two user-friendly trading platforms, individual training  

 

Ethfinex

Ethfinex Review
Trader's rating 4.7
Editor's rating 3.8

Trading Accounts & Conditions

 

Account type Leverage Maker Fee* Taker Fee* Deposit Fee Withdrawal Fee**
Standard 1:3.3 0.0% - 0.1% 0.1% - 0.2% 0.1% for Bank Wire only 0.01 ETH

 

* Trading fees depend on users’ trading volume.

**Withdrawals in Status (SNT) & Golem (GNT) are free of charge.

 

As it name suggests, Ethfinex is a cryptocurrency exchange, which is heavily connected to Ethereum. Another thing one could tell by this venue’s name is that it belongs to a group of companies around one of the oldest and most popular exchanges, Bitfinex. Its parent company also runs the Tether.to platform.

 

Trading is live on Ethfinex for all existing Bitfinex users since December 29th. New signups will be available from January 15th. Currently still in beta, Ethfinex platform allows for trading in ERC-20 compatible tokens and Ethereum-based crowd sales with options for margin trading, as well as access to a peer-to-peer funding market. By the time of writing of the present review, the exchange is in the top 15 by trading volume at CoinMarketCap.


In addition, it offers a token of its own, called the Nectar token (or NEC). It is given for free to token market makers in proportion to the volume of trades they participate in on the exchange.

Ethfinex’s security is based on the expertise gained by Bitfinex’s team. The majority of system funds are stored in offline, in ‘cold’ wallets. Only around 0.5% of all crypto assets are accessible in ‘hot’ wallets for day-to-day platform operations. 

 

Ethfinex Advantages

 

Hybrid decentralized exchange, part of a trusted group

Ethfinex is planned as a hybrid decentralized exchange. In the long term, the company plans to move towards a completely trustless exchange, steadily decentralizing ownership of the platform to its community of users. The company’s team has learned the hard way that running an exchange on a centralized server is dangerous. Bitfinex was hacked in 2016, and approximately US$72 million was stolen in the form of Bitcoin. Eventually, the company managed to pay back the money to all its clients.

 

On the other hand, decentralized exchanges do not store coins, funds, private keys or user information on centralized servers, thereby making it very difficult for hackers to compromise sensitive information.

 

Competitive fees

At Ethfinex market makers are charged up to 0.1% per trade, and market takers – up to 0.2%, which is in line with the average pricing in the crypto world these days. Those users who trade in large volume get discounts. By the way, Bitfinex has exactly the same trading fee structure.

 

Deposit and withdrawal fees by Ethfinex are also competitive. Deposits in digital assets are free of charge, while those in USD are charged with 0.1%. Withdrawal fees of this exchange are also in line with the average in the industry.

 

 

Leveraged trading available

Similarly to its older brother Bitfinex, Ethfinex provides margin trading. The maximum leverage level available at both exchanges is 1:3.3. If you want to speculate aggressively with the price of Bitcoin or Ethereum, there are some forex brokers that offer higher leverage ratios.

 

>>Forex brokers offering leveraged Ethereum trading<< 

 

We must mention that trading in volatile assets such as cryptocurrencies involves risk of loss, which are multiplied if you use leverage. So, be careful when trading on margin.

 

Many Ethereum-based coins available

Ethfinex offers trading in decent amount of Ethereum-based tokens, such as Ethereum, OmiseGO, EOS, Aventus, Status, Golem, and more. Although its crypto portfolio cannot be compared to the one offered by EtherDelta, the trading volumes at Ethfinex appear higher on most instruments.

 

Fiat accepted, bank wire transfers supported

This exchange accepts US dollars, one of the most popular “traditional” currencies.   This makes the services offered by Ethfinex more accessible to beginner traders, as it accepts cash payments via bank wire transfer.

 

Community vote for listing tokens

One of the biggest problems with most centralized exchanges is their reluctance to list tokens with a large community backing. That is why we consider Ethfinex’ decision to list new tokens after rounds of voting by the crypto-community as an advantage.

 

Ethfinex Disadvantages

 

No Bitcoin

As this platform is dedicated to Ethereum and ERC-20 tokens, you canot trade in Bitcoin on Ethfinex. However, you can always do that on the group’s Bitfinex platform. 

 

Registered offshore

While Bitfinex is operated by Hong Kong based iFinex Inc., the company operating this exchange, Ethfinex Inc., is registered offshore. According to its Terms of Service, the governing law is the one of the British Virgin Islands. Companies registered offshore generally do not inspire a lot of trust.

 

Dependent on the Ethereum network 

If there is serious backlog on the Ethereum network, the activity at Ethfinex will also become slow, as trading is done mostly against ETH.

 

Conclusion

 

Launched by an established group in the cryptocurrency world, Ethfinex seems like an attractive exchange, especially to fans of Ethereum and Ethereum-based coins. It is planned like a platform based on a hybrid decentralized architecture, that will allow decentralized exchanges to plug into it and trade with Ethfinex customers, as well as each other.

 

Now in beta, Ethfinex is accessible to Bitfinex account holders with competitive trading and transfer fees. There is a decent amount of altcoins available to trade at the exchange, and besides, cash is accepted. Similarly to Bitfinex, Ethfinex provides leverage up to 1:3.3, which is a nice extra feature that most exchanges do not offer.

 

Although little to no regulation is applied to the crypto-exchanges in most jurisdictions, we don’t like the fact that Ethfinex Inc. is registered offshore. As we mentioned above, some forex brokers offer CFDs on digital assets. For those ofyou who prefer to invest in regulated entities, we have prepared a list of well-regulated ones.

 

>> Regulated Bitcoin forex brokers<<

 

Here is our summary of this exchange:

 

 Pros

 Cons

 Hybrid decentralized exchange, part of a trusted group

 No Bitcoin

 Competitive fees

 Dependent on the Ethereum network

 Leveraged trading available

 Still in Beta

 Many Ethereum-based coins available

 Registered offshore

 Fiat accepted, bank wire transfers supported

 

 

 

Forex
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