Hong Kong is a very popular jurisdiction among all kinds of financial service providers, including a number of ECN forex brokers. What all brokers in Hong Kong have in common is that they are regulated by the Hong Kong Securities and Futures Commission (SFC). This is a highly respected financial regulator which is known to allow brokers more flexibility in the way they conduct their business, as compared to their American and European counterparts.
ECN forex brokers in Hong Kong and elsewhere differ from other forex brokers in that they do not take the “other side” of clients’ trades, but instead passes these trades directly on to a network shared with other financial institutions. In this network, trades are then matched automatically with each other, with the broker only acting as an intermediary. Because of this, the ECN model comes with lower spreads, and ECN brokers will typically charge a commission instead.