Offers two ways to trade: Forex, CFDs
CySEC, Financial Services Boar...
Popular for HK 50!
566 traders clicked on Markets.com this month.
The Ultimate Guide to
Choosing a Broker
For HK 50
Not sure which broker is right for you?
Don’t worry - we’ve got you covered. In this guide, you’ll learn:
- Why Markets.com scored high for hk 50 (Jump to section)
- Who Markets.com is (and isn’t) suitable for (Jump to section)
- An in-depth feature comparison of the top #3 brokers (Jump to section)
- An overview on hk 50 (Jump to section)
What is the Best Trading Platform
for HK 50?
Markets.com scored best in our review of the top brokers for hk 50, which takes into account 120+ factors across eight categories. Here's the full list of all the brokers we considered.
The following brokers allow hk 50 on their platform:
Here are some areas where Markets.com scored highly in:
- 10+ years in business
- Offers + instruments
- A range of platform inc. MT4, MT5, Web Trader, Tablet & Mobile apps
- 24/7 customer service
- Tight spreads from pips
- Used by + traders
- Allows hedging
- 2 languages
- Leverage up to 100:1
Markets.com offers two ways to trade: Forex, CFDs. If you wanted to trade HK50 through copy trading or other means, skip to part two.
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Markets.com have a B trust score, which is good. This is largely down to them being regulated by CySEC, Financial Services Board, segregating client funds, being established for over 10 years, and much more. For comparison:
Trust Score comparsion
|Regulated by||CySEC, Financial Services Board|
|Uses tier 1 banks|
|Segregates client funds|
The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.
Who Markets.com is (& Isn’t)
As mentioned, Markets.com allows you to trade in two ways: Forex, CFDs.
- CFD Trading
- Forex Trading
Markets.com offer a wide range of instruments to trade including forex pairs, stocks, indices, and cryptocurrencies . In fact, they’re one of the few brokers to offer not only Bitcoin trading but also Ripple, and many more. In the following section we’ve listed Markets.com’s spreads for a range of popular instruments. You can also see a more detailed breakdown of how Markets.com’s spreads compare in this Markets.com review
Finally, Markets.com isn't available in the following countries: AF, DZ, AS, AO, AU, BE, BA, BR, KH, CA, CN, CU, KR, GU, GY, HK, ID, IR, IQ, IL, JP, LA, MO, MY, MM, NZ, MP, PA, PG, PH, PR, RU, SG, KR, SD, SY, TW, TH, TR, UG, VI, VU, USA, VN, YE.
A Comparison of Markets.com vs. vs.
Want to see how Markets.com stacks up against and ? We've compared their spreads, features, and key information below.
Spread & fee comparsionThe spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
|FTSE 100 Spread||2|
Comparison of account & trading features
|Accounts offered||Mini account, Islamic account, standard account, VIP account|
|Platforms||MT4, MT5, Web Trader, Tablet & Mobile apps|
|Risk management features||Limit order, one click trading, trailing stops, price alerts and negative balance protection|
|Funding methods||Payoneer, Credit cards, Bank transfer, PayPal, WebMoney, DebitCard,|
Hang Seng (HSI) Index
The Hang Seng Index (HSI or HK50), follows the movements of largest and most liquid stocks listed on the Hong Kong Stock Market (HKEx). The 50 companies included represent approximately 60% of the entire Hong Kong Stock Exchange. HSI is the main indicator for determining the overall performance of the Hong Kong stock market. The index was launched on the 24th November 1969 and was backdated to 31st July 1964.
The HSI represents companies from Hong Kong and Mainland China from 11 different industries. These industries include energy, materials, industrials, consumer goods, consumer services, telecommunications, utilities, financials, properties & construction, information technology and conglomerates. The largest industry representation within the index is financials. This industry comprised 48.2% of the HSI as at June 2017.
Which companies are listed on the HSI?
The HSI is reviewed on a quarterly basis in order to determine if the index needs to be changed or adjusted.
Companies are added or removed from the index according to their free float market capitalisation. The formula for market capitalisation involves multiplying the stock price by the number of shares outstanding. In determining market capitalisation, all shares are included. The index is comprised of A shares, B shares, H shares, Red Chip and P Chip (see notes).
Top ten current components by weight:
|Company Name||Industry Classification||Share Type||Weighting (%)|
|HSBC Holdings||Financials||HK Ordinary||10.67|
|Tencent||Information Technology||Other HK-listed Mainland Co.||10.3|
|China Mobile||Telecommunications||Red Chip||6.21|
|Bank of China||Financials||H Share||3.71|
|Ping An||Financials||H Share||3.27|
|CKH Holdings||Conglomerates||HK Ordinary||3.27|
How is the value of the HSI derived?
The Hang Seng Index is a capitalisation weighted index. Each company within the index is weighted according to the total market value of the company’s outstanding shares.
No single company can represent more than 10% of the HSI. This is done in order to avoid single stock domination.
On a daily basis, the performance of the HSI is determined by calculating the percentage difference between the market capitalisation at the close of the day and the market capitalisation at the start of the day.
How to trade the HSI
The HSI is traded on various futures exchanges around the world. The majority of the daily volume from the HSI occurs on the Japan Exchange Group (JPX). The Japan Exchange Group was formed by the merger of the Osaka Exchange and the Tokyo Stock Exchange in 2013.
Another way to trade the HSI is through CFDs (contracts for difference). CFDs are fairly similar to a futures contract. The major similarity between the two instruments is the amount of leverage involved. Both types of contracts offer a great degree of leverage, but generally CFDs tend to be slightly more leveraged than futures contracts. The actual amount of leverage offered will depend on the broker and the regulatory requirements.
Advantages of trading the HSI as a CFD
CFDs are convenient as they give traders the chance to speculate on a market without having to actually own the individual stocks that the product tracks. They also allow traders to go “short” on an instrument, which means that the trader can take advantage of an index when it is going down, and not just when it is going up.
Another advantage is that there is usually no commission charged on a CFD transaction. The broker will normally collect their fee from the spread price, the difference between the sell and the buy price for the instrument.
The minimum trade size is 0.01 lot with the value of 1 lot or pip being HKD 50. A margin requirement of 1% is required.
The minimum requirements for a buy trade on the Hong Kong Index CFD would, therefore, be HKD 13.53 (27054*0.1*50*0.01% = HKD 13.53).
*All information collected from LCG as at 30 July 2017. Please refer to the LCG website for full terms and conditions.
Current Value of Hang Seng Index
Source: Yahoo Finance
A Hong Kong 50 Index is also calculated by two other data providers, STOXX Limited and FTSE International Limited. These data services use a market capitalisation weighted formula for calculating the value of the index on a daily basis. However, STOXX and FTSE use different components in their index. The prices, therefore, vary between the three indices.
A shares are securities of Chinese incorporated companies quoted in Chinese Yuan that trade on either the Shenzhen or Shanghai stock exchanges.
B shares are securities of Chinese incorporated companies that trade on either the Shenzhen or Shanghai stock exchanges. They are quoted in US Dollars.
H shares are securities of People’s Republic of China incorporated companies. The shares include a nomination process by the Central Government for listing and trading on the Hong Kong Stock Exchange. They are quoted in Hong Kong dollars.
Red Chip is a company incorporated outside the People’s Republic of China, trading on the Hong Kong Stock Exchange. It represents a company that is substantially owned by Mainland China state entities. Most of their revenue is from mainland China.
P Chip is a company that is controlled by mainland individuals, The company must originate in mainland China. It must be incorporated outside of the People’s Republic of China (PRC) and traded on the Hong Kong Stock Exchange with a majority of its revenue derived from mainland China.
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