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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  

 

XM

XM Review
Trader's rating 3.4
Editor's rating 4.7

Trading Accounts

 

Account type  Minimum deposit  Minimum trade size  Maximum leverage  Average Spreads
Micro  $5  0.01 1:500 1.7 pip on EUR/USD
Standard  $5 0.01 1:500 1.7 pip on EUR/USD
Zero  $100 0.01 1:500 0.1 pips on EUR/USD + $7 / lot (round trip) 

 

XM offers its clients three types to choose from: Micro, Standard and Zero. You may choose from commission-free trading (in Micro and Standard accounts) or tighter spreads, involving commission fees and higher initial deposit (Zero account). The broker offers high leverage levels and floating spreads. Beginners can sign up for Micro accounts with as little as $5, and micro lots are available for trade on all accounts.


What is more, swap-free (Islamic) accounts are available, designated for clients who are not willing to earn interest for religious reasons.


The Company. Security of Funds

 

Company Country Regulation
Trading Point of Financial Instruments Ltd. Cyprus  CySEC
Trading Point of Financial Instruments UK Limited UK FCA
Trading Point of Financial Instruments PTY Ltd. Australia ASIC

 

Based on the sunny island of Cyprus, XM offers great trading conditions for trading in a wide range of instruments, including currency trading, CFDs on commodities, indices, precious metals, energies and stocks on two trading platforms (MT4 and MT5). What is more, XM provides ultra-fast execution (99.35% of all trades executed in less than 1 second), as well as awesome bonuses & promotions.

 

XM is a brand name of Trading Point Holdings Ltd, which wholly owns Trading Point of Financial Instruments UK Ltd (XM UK), Trading Point of Financial Instruments Pty Ltd (XM Australia) and Trading Point of Financial Instruments Ltd (XM Cyprus).

  

FCA, CySEC and ASIC apply certain rules and requirements to regulated firms, which are not as stringent as those in the US, for instance, however they provide a good level of credibility. Besides, licensed brokers are required to keep customer funds in segregated accounts, separated from the company’s operating funds.

 

As a further guarantee to clients’ funds, all companies regulated in UK and Cyprus are covered by compensation schemes as additional guarantee to clients funds. All deposits with a UK regulated forex broker up to £50,000 per client are guaranteed by the Financial Services Compensation Scheme (FSCS) - UK’s statutory compensation scheme for clinets of authorised financial services companies. Similarly, Cypriot Investment Firms are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR, If the company is in default.

 

Currently, however, Australian forex brokers are not covered by any compensation scheme.

 

Trading Conditions


Minimum Initial Deposit

In order to open an account with XM, traders have to invest just $5. Such low minimum initial amount is rather attractive, as typically brokers require $100 - $300 as a start.


Spreads & Commissions

This broker offers variable spreads. The typical ones on commission-free accounts amount to 1.7 pips on EUR/USD. According to us, the conditions on the Zero account are better: spreads averaged 0.1 pips on EUR/USD and commission $3.5 per standard lot traded (per side). So, basically trading costs on the Zero account amount to around 0.8 pips, commission included, which is a great offer. What is more, you can open a Zero account with just $100.


Leverage
XM offers flexible leverage between 1:1 to 1:500. Using leverage means that you can trade positions larger than the amount of money in your trading account. Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.


Trading Platforms

 

When trading with this broker, you will be offered both MetaQuuotes;s platforms - the Metatrader 4 (MT4) and MetaTrader 5 (MT5).

 

MT4 is an internationally acclaimed trading software, offering a full array of trading tools and features: more than 50 built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options for them. Traders can download ready-made or create their own EAs and let the program do all the work, no human emotions involved. The MT4 with XM is availavle in all forms and shapes: desktop, web, and mobile.

What is more, XM provides MT4 MultiTerminal, which offers a practical and convenient way to manage multiple accounts simultaneously from a single interface (PAMM).

 

Recently MetaQuotes has been putting a stronger emphasis on the MT5: the hedging function was finally added to it and all versions of the platform have been ehanced. As a result, the number of brokers that support the platform has been on the increase. XM also followed suit and added it to its offerings. 


Besides, free Virtual Private Server (VPS) hosting is offered to both new and existing customers of XM who deposit a minimum of $5,000 and trade at least 5 round turn lots per month. VPS hosting allows the execution of orders 24 hours, 5 days a week.


Promotions

 - Free VPS for clients who maintain a balance (Equity-Credit) USD 5,000 or currency equivalent. No end date for this promotion;

 - $30 Non-Deposit Trading Bonus for new clients only. No end date for this promotion;

 - The two-tier deposit bonus offers 50% deposit bonus up to $500 and 20% deposit bonus up to $5,000. No end date for this promotion;

 - The XM Loyalty Program offers the clients XM Points (XMP) per lot traded. These XMP can be redeemed at any time for credit bonus which can be used for trading purposes only. No end date for this promotion.

 

*Clients registered under Trading Point of Financial Instruments Ltd are not eligible for bonuses. 

 


Deposit/Withdraw Methods


XM accepts the most commonly used Local Payment methods today including Credit/Debit Card, Neteller, Skrill, Bank Wire Transfer, etc. Their coverage is quite extensive and adds more flexibility on adding funds into the account


XM covers all deposit and withdrawal transfer fees for payments made via Neteller, Moneybookers and all major credit cards (including VISA, VISA Electron, MasterCard, Maestro and China UnionPay). Additionally, all deposits and withdrawals above 200 USD processed by wire transfer are also included in our zero fees policy.


Conclusion


XM is a EU award-winning broker that offers wide range of trading products and account types on two great platforms under competitive conditions. What is more, it provides Negative Balance Protection, as well as lucrative bonuses to its clients. To sum up the above, here are the advantages and drawbacks with regards to this broker:

 

Pros  Cons
Well-regulated (FCA, ASIC and CySEC licenses) No significant disadvantages
Negative Balance Protection  
Low trading costs on the Zero account  
MT4 and MT5 available  
Attractive Promotions  
Fast execution speed  

 

Why XM?

- Licensed in UK and Australia
- Tight Spreads from 1 Pip
- Leverage up to 888:1
- Deposit bonus up to 5000 USD
- 24 Hour Support
- No Requotes
- Personal Account Managers
- Automated Trading
- Loyalty Program
- Phone Trading
- Hedging Allowed
- Islamic Account

Registered with

- FSA, UK 
- BaFin, Germany 
- CNMV, Spain
- AFM, Netherlands
- FI, Sweden
- FIN, Finland
- PSZÁF, Hungary
- CONSOB, Italy
- ACP, France
- KNF, Poland

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