Reason for this visit

The international forex market in Hong Kong has been developing since the 1970s. Due to the removal of forex control in Hong Kong since 1973, there has been a large inflow of international capital, and an increasing number of financial institutions operating forex business have mushroomed. The forex market has become more and more active, developing into an international forex market. Hong Kong forex market is an invisible market without a fixed trading venue. Traders conduct forex transactions through various modern communication facilities and computer networks. Hong Kongs geographical location and time zone conditions are similar to those of Singapore, making it very convenient to trade with other international forex markets. Participants in Hong Kong forex market are mainly commercial banks and financial companies. There are three types of forex brokers in this market: local brokers, whose business is limited to Hong Kong; international brokers who have expanded their business to the Hong Kong forex market since the 1970s; international brokers that grow locally and has expanded their business to forex markets abroad. In an attempt to help investors or practitioners gain a more comprehensive understanding of current status of forex brokers in Hong Kong, WikiFX survey team determines to pay on-site visits to local companies.

On-site visit

In this issue, the survey team went to Hong Kong, China to visit broker Power Trading as planned according to its purported regulatory address that Unit 225-22, 2/F, Mega Cube, 8 Wang Kwong Road, Kowloon Bay, KL.

The investigators came to 8 Wang Kwong Road in Kowloon Bay for an on-site visit to the brokers office. The target building is located in a prosperous industrial and commercial area, and a variety of amenities, including shops, restaurants, residential buildings, and educational institutions, are situated nearby, which attract a constant stream of people due to its vibrant business. Upon reaching the commercial building, the survey personnel easily spotted a directory in the lobby, but it did not list the relevant information about suite 225 on the second floor, raising questions for the team.

The inspection team then arrived at the second floor, where the floor directory displayed that suites 222-225 were occupied by “VIVA WORKSPACE @V&G BUSINESS CENTRE.” The investigators accessed the office, which was actually used by VIVA WORKSPACE @V&G BUSINESS CENTRE rather than by Power Trading.

Through the on-site investigation, it is confirmed that Power Trading does not have a physical presence at the above address.

Conclusion

The survey team went to Hong Kong, China to visit forex broker Power Trading as scheduled, but did not find the companys name at the aforementioned address. It suggests that the broker does not have a physical business office at the place. Accordingly, investors are advised to make a sensible decision following much deliberation.

Disclaimer

The content is for informational purpose only, and shall not be taken as a final order for making a choice.