Securities and Futures Commission Regulatory Details
Hong Kong, China 🇭🇰 · AAA · Trust Score 98
Securities and Futures Commission
Key Highlights
About
The Securities and Futures Commission (SFC), established in 1989, is Hong Kong's independent statutory regulatory body. The SFC regulates the securities, futures and leveraged foreign exchange trading markets in Hong Kong, maintaining market order and protecting investor interests.
The SFC is one of the most influential financial regulators in the Asia-Pacific region, known for its strict regulatory standards and efficient enforcement capabilities. Forex brokers holding SFC licenses must comply with the Securities and Futures Ordinance, meeting capital adequacy, client asset segregation and risk management requirements.
Regulatory Functions & License Types
Main license types issued by SFC for forex brokers:
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Type 3 License (Leveraged Foreign Exchange Trading) ：Permits leveraged forex trading, capital requirement ≥ HK$5,000,000
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Type 1 License (Dealing in Securities) ：Permits securities trading, can be combined with Type 3 for comprehensive services
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Type 2 License (Dealing in Futures Contracts) ：Permits futures trading, can be combined with Type 3 for comprehensive services
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Type 9 License (Asset Management) ：Permits asset management services, managing client investment portfolios
Note: SFC requires licensed corporations to have at least two Responsible Officers (RO) and maintain a physical office in Hong Kong.
Investor Protection & Rights Mechanisms
SFC provides the following investor protection mechanisms:
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Client Asset Segregation ：Licensed corporations must hold client assets separately from company assets in trust or segregated accounts
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Investor Compensation Fund (ICF) ：If a licensed corporation defaults, each client can claim up to HK$500,000
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Leverage Limits ：Retail client forex leverage limits vary by product, some products capped at 1:20
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Capital Adequacy Requirements ：Type 3 licensed corporations must maintain minimum paid-up capital of HK$5,000,000
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Complaint Handling ：SFC has dedicated complaint channels to investigate licensed corporation misconduct
Rights channels: ① First contact broker customer service; ② If unresolved, complain to SFC (sfc.hk); ③ If licensed corporation defaults, claim compensation from ICF.
License Verification Tutorial
- Visit SFC Registry of Licensed Persons: sfc.hk/en/Regulatory-Standards/Licensing-information/Registry-of-Licensed-Persons
- Select search method: Licensed corporation name, license number or responsible officer name
- Enter broker name or license number (typically 3 letters + numbers)
- Click on the company name in search results to view details
- Check "Licensed Regulated Activities": confirm it includes "Type 3" (Leveraged Foreign Exchange Trading)
- Check "Status": should show "Active"
- Verify the registered address and contact details match the official website
Tip: Legitimate SFC-licensed corporations have license numbers in format AAX, ABX, etc. (e.g., AAB, ABC). If the search result only shows "Type 1" or "Type 4" without "Type 3," the firm cannot conduct leveraged forex trading.
Enter broker name or license number to verify regulatory status directly on the official website.
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