6 minute read
Is JustMarkets Legal in Hong Kong? A Comprehensive Review
from JustMarkets
by Exness_India
If you're wondering whether JustMarkets is legal in Hong Kong, the short and clear answer is no, JustMarkets is not regulated by Hong Kong's Securities and Futures Commission (SFC) and therefore is not legally authorized to offer its financial services to residents of Hong Kong. This lack of authorization from the SFC places JustMarkets outside the bounds of legality in Hong Kong’s tightly regulated financial environment.
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Understanding the Regulatory Landscape in Hong Kong
Hong Kong is known for having one of the most robust financial regulatory frameworks in the world. The key body that oversees and licenses financial institutions, including forex and CFD brokers, is the Securities and Futures Commission (SFC).
The SFC operates under the Securities and Futures Ordinance (SFO), which outlines strict licensing requirements to ensure investor protection, market integrity, and financial transparency. Only firms that are licensed by the SFC are permitted to provide services such as leveraged forex trading, derivatives, and asset management to Hong Kong residents.
Being licensed by another international regulator—such as the Financial Services Authority of Seychelles or the Financial Sector Conduct Authority (South Africa)—does not give a broker the legal right to operate in Hong Kong. Cross-border financial activity is tightly monitored, and the SFC routinely issues warnings against unlicensed entities attempting to solicit local clients.
Is JustMarkets Regulated?
JustMarkets is a global forex and CFD broker that operates under Just Global Markets Ltd, a company registered in Seychelles. It is regulated by the Financial Services Authority (FSA) of Seychelles, which is a known offshore regulator. While this might provide some form of basic oversight, the FSA does not offer the same level of investor protection or regulatory enforcement as the SFC.
As of the time of writing, JustMarkets does not hold an SFC license and is not included in the SFC’s list of licensed corporations. This means it cannot legally solicit clients, advertise its services, or offer trading accounts to residents in Hong Kong.
In fact, the SFC has a public record of issuing investor alerts against companies and trading platforms that operate without a license. Traders using unlicensed platforms in Hong Kong risk losing their funds, receiving no legal support in case of disputes, and violating local laws unintentionally.
Risks of Using an Unlicensed Broker in Hong Kong
Using an unlicensed broker like JustMarkets in Hong Kong carries significant risks:
· No legal recourse: If you lose funds due to fraud, manipulation, or insolvency, you won’t have access to legal protections or compensation schemes provided by Hong Kong’s regulatory system.
· Lack of transparency: Offshore brokers often lack robust auditing or accountability mechanisms. There's a higher chance of price manipulation, slippage, or unfair trading conditions.
· Violation of Hong Kong law: Clients who knowingly or unknowingly use unlicensed platforms may be violating the SFO. While enforcement focuses mainly on brokers, clients could still get entangled in legal or tax issues.
· No investor compensation fund: Brokers licensed by the SFC are members of the Investor Compensation Fund (ICF), which covers clients up to HKD 500,000 in the event of broker insolvency. With JustMarkets, you are on your own.
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Can Hong Kong Traders Access JustMarkets?
Technically, yes, residents of Hong Kong can access the JustMarkets website, open trading accounts, and fund them. However, doing so is not compliant with local financial regulations.
Many offshore brokers exploit this loophole—offering services online without actively marketing in the jurisdiction—but this doesn't change the fact that they are unlicensed. The SFC is well aware of these tactics and has taken steps to block and investigate suspicious platforms.
In recent years, Hong Kong authorities have grown increasingly aggressive in cracking down on illegal financial activities, including unlicensed online trading. This includes working with ISPs to block access to websites, freezing bank accounts, and coordinating with international regulators.
What Should Hong Kong Traders Do Instead?
If you reside in Hong Kong and are interested in forex, CFD, or cryptocurrency trading, the most responsible approach is to choose an SFC-regulated broker. These brokers must meet strict capital requirements, segregate client funds, and submit to regular audits. More importantly, they are subject to Hong Kong law and investor protection frameworks.
To verify whether a broker is licensed in Hong Kong:
1. Visit the official SFC website.
2. Use the “Public Register of Licensed Persons and Registered Institutions.”
3. Search for the broker’s legal name and licensing details.
If a broker is not listed, it is not authorized.
You may find some popular global brokers that hold multiple licenses, including one from the SFC. These brokers offer local customer support, trading platforms tailored for Hong Kong residents, and secure, transparent trading environments.
Why Do Traders Still Use JustMarkets?
Despite the legal risks, some traders in Hong Kong continue to use platforms like JustMarkets for various reasons:
· High leverage offerings (sometimes up to 1:3000) that are unavailable with regulated brokers.
· Lower capital requirements, allowing smaller traders to enter the market.
· Promotions and bonuses that attract new clients.
· Access to instruments not available on regulated platforms, including certain exotic pairs or crypto CFDs.
However, these benefits often come at the cost of security and legality. Traders need to weigh the short-term incentives against the potential long-term consequences, which can be severe.
Final Verdict: Is JustMarkets Legal in Hong Kong?
To summarize: JustMarkets is not legal in Hong Kong. It does not hold a license from the Securities and Futures Commission and is therefore not authorized to provide trading services to residents of the region. While its offshore regulation might cover basic operational oversight, it does not substitute the legal requirement for local licensing.
If you are a trader in Hong Kong, the best way to protect your capital and remain compliant with the law is to use a broker that is fully licensed by the SFC. The convenience or features of offshore brokers like JustMarkets may be tempting, but they come with unacceptable legal and financial risks.
For the sake of your funds and peace of mind, always verify a broker's regulatory status before opening an account—especially in a jurisdiction as serious about investor protection as Hong Kong.
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