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Rakuten Securities Hong Kong

Rakuten Securities Hong Kong Review
Trader's rating 5
Editor's rating 4.4

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  

 

KorBit

KorBit Review
Trader's rating 1
Editor's rating 3.8

Trading Accounts

 

Account type Leverage Maker Fee Taker fee Deposit Fee
Standard N/A Max 0.08% Max 0.20% Free

 

KorBit was the first Korean cryptocurrency exchange to offer BTC/KRW trading. They are an entry-level service (i.e. accept fiat currencies) but also offer a decent trading platform. The company is still one of the top-rated exchanges in the country, which drives relatively high trading volumes.

 

KorBit Advantages

 

Competitive fees –   The trading fees at KorBit are divided into the “maker” and “taker” category. Market makers are the traders who place a new entry in the order book, while takers are those who enter at the best available price. The fees at KorBit start from 0.08% and 0.20%, respectively. They can go even lower if you trade with bigger volumes. 

 

Cold storage – KorBit claims a majority of the coins they keep are kept in cold storage. This is a measure, applied by a lot of companies and drastically increases the security of wallets.

 

Several altcoins featured  – There are some alternative coins available at KorBit, but this is by no means the main benefit of the exchange (as is the case with Poloniex or Bittrex). The full list currently includes: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Calassic, Ripple, Litecoin, Dash, Zcash, Monero, Augur and Steem. They are all traded against KWR.

 

KRW bank transfers accepted – Bank transfers from Korean banks are accepted at KorBit. More importantly, the company does not charge fees on any incoming transactions (although the banks involved in the process will). 

 

>> Purchase Bitcoin with a credit card<<

 

Credit cards are a much more preferable option for some users, although the commissions involved in the process can be pretty harsh. As an example Bitsatmp charges 8% on such transactions. 

 

 

Positive user feedback – While the non-Korean reviews of this exchange are relatively few in number, they are all positive. The company seems to operating legitimately, and with the competitive fee structure, most customers should be happy.

 

Nice trading platform – The web-based platform delivered by KorBit looks solid. Charting is provided by TradingView, which is always nice. Additionally the order book and tape (trading history), which are located below the chart also seem well-designed. Her is how they look: 

 

BTC/KRW chart. While the default template is simplistic it can easily be changed via the TradingView package.

 

The easy to read order book and tape.

 

KorBit Disadvantages

 

 

Focus on Korea – The issue, which a lot of locally focused exchanges have is also present at KorBit. They accept only Korean bank transfers and likely require such an account for the verification of your main trading account. The presentation in English, while not terrible is also not ideal.

 

 

Trading against KWR –  All of the trading activity at KorBit is done against the Korean Won (KWR). This may seem nice for local clients, but limits their ability for currency diversification and the option of quickly converting one coin into another.

 

Withdrawal fees – KorBit applies fees on withdrawals. They may not seem significant, but especially the ones imposed on blockchain transfers are annoying. Here is the list which also states all deposits are free of charge:

 

 

No leverage provided  – Margin trading isn’t supported by KorBit, which isn’t that big of a flaw. Cryptocurrencies are so volatile, that most traders don’t have the need to further increase the risks they are exposed to. For those of you who are willing to take even more aggressive steps, we must will recommend trading with as forex broker.

 

>>Leveraged Bitcoin trading brokers<< 

 

That being said, we must also underline the fact this style of trading is not suitable for long term investing. Trading with such brokers is done via the so called CFDs and is very different from going through a crypto-exchange. Read all of the important points here.

 

Conclusion

 

KorBit is one of the oldest cryptocurrency exchanges in Korea. The company has earned a solid reputation and is still very popular. That being said, their main flaw (from our perspective) is the domestic focus of this exchange. While they are not unique in that regard, as other Korean companies, like Coinone and Bithumb also operate in the same manner. 

 

The trading conditions at this exchange are solid – the instrument list features some altcoins, the platform is nice and the fees are up to date with the offers from other exchanges.

 

That being said, when dealing with cryptocurrencies, you must always consider the fact, there will be a certain level of uncertainty. Most veterans in the field would advice you to transfer any larger amounts of coins to a private wallet, whose private keys you control (or even a hardware wallet, like the Trezor or Ledger Nano). With that in mind, the forex brokers, which we mentioned earlier are often much safer alternatives. Click the link below for more details.

 

>>Tightly regulated Bitcoin forex brokers<<

 

And here is the final summary of this exchange (keep in mind, we are viewing it form an outside perspective, as we are not based in Korea):

 

Pros Cons
Competitive Fees Focus on Korea
Cold Storage Trading against KWR
Several altcoins featured Withdrawal fees
KRW bank transfers accepted No leverage provided
No deposit fees  
Positive user feedback  
Nice trading platform   

 

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