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SHK Forex is a Hong Kong-based brokerage that offers online trading in 40 currency pairs, futures, stock options and stocks, as well as access to the Shanghai and Shenzhen Stock Exchanges.
Company. Fund security
The broker is part of the Sun Hung Kai Financial (SHKF) group, which is one of the first financial companies to offer online trading and is licensed by the Hong Kong Securities and Futures Commission (“SFC”). The group has an extensive network of branches and offices in Hong Kong, Macau and mainland China.
The SFC licensing procedure is long and complex. Each applicant must have a certain share capital in his account and carry out activities to record and control all monetary transactions.
In addition, in December 2015, the Code of Regulated Companies was amended to require SFC license holders to include clauses in client contracts allowing investors to claim damages if an intermediary sells or recommends a financial product that is not suitable for the client.
Trading conditions
SHK Forex offers a single commission account with NDD execution, up to 1:20 leverage, variable spreads and the ability to trade micro lots.
Minimum initial deposit
Traders need to deposit a minimum of $ 5,000 to open an account with SHK Forex. This is a very large amount that will stop many traders. In comparison, many regulated companies can open an account with $ 100.
Spreads and commissions
This broker offers floating spreads and does not charge any commission. The spreads differ depending on the platform the trader is working on. On MT4, spreads average 1.6 pips on EUR / USD (under stable market conditions).
For clients who choose to trade stocks, a flexible commission system is available: from 0.138% to 0.088% commission rate with a minimum transaction fee of $ 88.
Leverage
While most brokerages provide leverage levels from 1: 200 to 1: 400, SHK Forex offers up to 1:20 leverage, which is very low.
Trading platforms
The client can choose between two platforms, depending on their trading style:
EBSHK MT4 - customized version of the popular MetaTrader4
FX Trader Pro
MT4 has gained popularity among traders due to a wide range of experts, a variety of indicators for technical analysis, and a set of charts. The terminal can be accessed via PC and mobile phone. So the client can trade from anywhere in the world, provided that he has an Internet connection.
FX Trader Pro is available from both a web browser and mobile devices. The terminal provides direct access to prices from major investment banks, provides useful tools and features, and API trading.
Promotions
There is no information on the promotions on the company's website.
Support service
Open Monday through Friday from 8 am to 10 pm (GMT + 8). You can contact employees of the company by e-mail, phone. Experts advise in Chinese and English. The live chat function is not available. You can also follow the company's news on social networks.
Ways of payment
SHK Forex customers can make deposits and withdrawals through credit or debit card payments, bank transfers and electronic funds transfer (EFT) through PPS. Detailed instructions for each method are presented on the website.
Pros:
regulated broker; competitive spreads; demo version; choice of trading platforms, including MT4 available.
Minuses:
high initial deposit.
SHKFOREX is a company whose task is to provide intermediary services to traders. Brokers / Crypto exchanges provide access to currency / cryptocurrency trading, first of all. Also, many of them, if we are talking about brokers, give the opportunity to make transactions with company shares, bonds, commodities, precious metals, indices, cryptocurrency and other assets. A private person can make transactions with all these instruments only on a trading platform, access to which is provided by a broker or a crypto exchange.
In addition, thanks to such companies, an individual can operate in the market with amounts significantly exceeding the amount of his own funds. This is called the provision of leverage. For example, having a deposit of 1,000 USD with a leverage of 1:400, a trader can make transactions for 400,000 USD.
As well, the broker / crypto exchange opens access to analytics, auxiliary tools, trading signals. Without all this, modern trading is impossible.
SHKFOREX profits from traders' trades, usually in two main ways
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First – most common. Using spreads. This word refers to the difference between the best prices for buying and selling a certain asset at a particular moment. Moreover, in a transaction between a trader and a broker, the price is one, and between the broker and market users - another. The mediator takes the difference.
The second method is easier to understand. This is a fee for each operation performed. Most often it has a standard value, but can also be measured as a percentage.
Therefore, the company is interested in attracting as many clients as possible and that they conduct active trading.
How honest brokers / crypto exchanges should work and how they work, we found out. And now let's look at how scammers act, they are also called kitchens.
The most common way to cheat – is to twist quotes. Broker / crypto exchange gives the trader quotes that differ from the real market. There is a substitution of data in order to make operations unprofitable. The deposit is reduced, and then completely reset. At the same time, the trader thinks that his operations were made on the market, but in fact – just on the site of scammers.
Bonus – traps. They are generously distributed for anything: registration, account replenishment, etc. Only after that, in order for the client to withdraw his own money mixed with bonus money, it will be necessary to fulfill a number of actually impossible conditions. For example, to conduct trading operations in the amount of ten times more than the size of the deposit.
The User Agreement may also mask a clause that allows the broker / crypto exchange to dispose of the client's money. Inattention when reading such an agreement most often turns into a complete loss of the deposit.
One of the key points – it is the place of registration and regulation of the company's activities.
First let's talk about registration. As a rule, traders are more trusted by companies either from their own country or from an economically developed country, for example, a member of the European Union. Of course, compliance with UK law is reassuring, and compliance with the laws of an unknown island in the Indian Ocean does not mean anything to most at all.
On fact, most brokerage companies are registered offshore, and we are talking not only about small offices, but also about world leaders. Saint Vincent and the Grenadines, Belize, Marshall Islands, Mauritius are popular offshore zones among companies. Registering there, companies pay significantly less taxes than in the place of actual location, which is sometimes carefully hidden.
If a trader has claims against such a company, then it is likely that he will have to deal with it in accordance with the laws of the same conditional Belize. It is possible to be physically present there at court hearings. And this is extremely expensive and difficult.
No is it worth running like fire from just the word «offshore»? As an answer, we will cite the names of companies that are not related to brokerage, but with an impeccable reputation and also save on taxes with the help of offshore registration: Apple, Pfizer, Microsoft, General Electric, Intel.
And here we come to the second important point – this is the regulation of the broker / crypto exchange. First of all, it is carried out at the level of the state where the company is registered. Each country has its own regulatory body for brokering. So, in Russia it is the Central Bank of the Russian Federation. The trader can find permits on the websites of such authorities. But there are also supranational structures. For example, the International Financial Commission, which is an independent self-regulatory organization, specifies disputes between its members – brokers and their clients.
If there is no information on the broker's website / crypto exchange about the regulation of its activities or license, then it is almost certainly a scammer. Or on the site there is data on some license issued by him, but this information is not confirmed anywhere else. Most likely, these are also scammers.
When choosing a brokerage company, or crypto exchanges, study its history. Look at the links to its experts. If one of the leading TV channels in the economic news for 5 years in a row refers to the opinion of the analyst of the broker in question – this is good. If the broker / crypto exchange assures that it has been working for 15 years, but there is no information about it on the Internet at all – this is bad.
It is important to pay attention to reviews about the company. And read them not only on the website of the broker itself / crypto exchange. In the kitchen, they will certainly be only praiseworthy. It is better to view as many sites as possible.
Pay attention solely to the specifics in the offers on the websites of brokers / crypto exchanges. Honest companies openly write about interest, spread size, minimum deposit, etc. Scammers lure loud streamlined phrases about a rich tomorrow, a stable income, mislead with incomprehensible terms about multi-sites, superfunctions and so on.
Specify the company's connection with well-known brands, financial institutions, public organizations. For example, it can be sponsored. Large brokers / crypto exchanges sometimes hold social promotions. Scammers will definitely not do this.
Therefore, the process of choosing a broker / crypto exchange is complicated. But if you approach it carefully, it will allow you to enter the world of trading, which has made millions of people rich around the world
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Before any trade and choosing a broker You must always read reviews on this site and on other sites. Companies who are honest, have a rating of above 3.8. Also there is always the risk of loss when trading CFDs. Be careful and read the disclosure on the website of the company you chose. SHKFOREX received a score of 1 of 5 on our resource.