Wealth management is an activity that varies depending on what you want to do with your resources. If what you want is to accumulate wealth and gain profit from your capital, it can be an interesting yet complicated task. 

Today, there are dozens of alternatives for people to invest and try to gain more profit from their assets or resources, and choosing between one of them could be crucial to the success of people that want to see their wealth grow. 

Also, investors have more options to look into opportunities outside their home country, so they have even more possibilities to consider fulfilling their will of increasing their wealth. 

And one of the best options to do so is Hong Kong. This city is one of the biggest financial centers of all the world. There are plenty of new business opportunities in which individuals can venture profit from their wealth. Some of these activities are becoming increasingly popular among the investors that want to keep up with modern economic trends.

Currently, there are many ways in which you can invest in international markets through technology. This kind of investment is becoming a trend today all around the world, especially in Hong Kong.

One of these current trends gaining more and more followers day by day is international currency investment. Known as "Forex" (which is an acronym that stands for Foreign Exchange), this kind of financial venture involves buying and selling various currencies from around the world to obtain profit from those transactions. 

In recent years, this new trend has grown exponentially in Hong Kong, with the region becoming one of the biggest Forex centers worldwide. It has some of the most important and innovative broker's centers (offices that conduct the operations between buyers and sellers of international currency) in the world. Like any other economic activity, you will need to be continuously informed about the state of the market minute by minute to know each currency's value in real-time.

Why should Hong Kong become your Forex destination?

• It is a fully whitelisted jurisdiction with one of the most reputable regulators in the world.
• Top financial technology and telecommunications in the world.
• First-level tax system. It is territorial, and the corporate tax rate is a two-tier system between 8.5% and 16.5%
• Hong Kong has some of the best service providers on the planet.
• A simple combination of licenses can allow you to operate a wealth management and Forex business easily
• The process is transparent, yet stringent. It is a good balance between simplicity and compliance.

As with any economic venture where market trends are important, Forex is an activity that requires individuals to be informed minute by minute of the value of the currencies they want to buy or sell to make the right decisions and be successful in their task. 

Could Forex be a form of passive income?

If people are just looking for a profit through investment in passive incomes, foreign exchange could be an interesting venture in which individuals can look into. People looking to invest in some business that does not require all their attention and capacities should consider Forex in Hong Kong.

This kind of economic activity can be an active or passive way to earn income; it all depends on the knowledge, the resources, and the time individuals are willing to put into this financial venture. Given that you need all the three things mentioned before to earn profit through Forex, if you want to enroll in these markets, you must be willing to learn, invest money and hours of your day to gain money from this activity. 

As you may see, Forex is an activity that can be a very effective investment for people looking to invest in new ways to earn profit. With the exponential growth that this financial venture is currently seeing, the investment opportunities, the availability of expert advisors, and the possibilities of success can only grow from this point onwards.

Hong Kong: Your next Forex destination

Suppose you are interested in investing in this modern financial venture or becoming an expert advisor that helps people accumulate wealth through this platform. In that case, there are some regulations and procedures that you must be aware of if you are doing these activities in Hong Kong or operating in its markets.

First and foremost, those exploring this kind of financial activity to gain profit must learn about the Securities and Futures Commission (SFC). The SFC is the institution that regulates operations and businesses in Hong Kong that operates in its markets, and it is empowered by the Securities and Futures Ordinance (SFO). This governmental entity grants different licenses to people and enterprises that want to enroll in the territory's financial activity. These licenses vary depending on which kind of businesses you want to undertake.

Types of licenses for a Forex or wealth management business

Keeping in mind that we are referring to investment in foreign exchange, the next step will be to know the appropriate license to apply to operate Forex and wealth management in Hong Kong. Depending on the financial activity that you want to run, you may need more than one license to be legally able to perform operations in that particular market. In both cases, it is recommended that you get these types of licenses:

• Type 1: Dealing in securities
• Type 4: Dealing in futures contracts
• Type 9: Asset management.

To get these types of licenses, you must pay a fee that currently costs up to $400.000. You also need to have an office from which you will run your operations, hire a representative officer with a monthly salary, and have an adequate trading system software that allows you to do foreign exchange.

Once you have these licenses, you can and must self-apply for the type 3 license for "Leveraged foreign exchange trading" to operate in Hong Kong markets related to this activity.

Obtaining the license

To obtain all these licenses, you must comply with multiple requirements to fulfill the SFC regulatory regime's rules. This list of requirements includes:

• A legal structure as a Hong Kong incorporated company or an overseas company registered in the region.
• Fit and Proper Criteria, which means that individuals or companies must demonstrate the financial status and reputation of the business that they will conduct.
• Fit and proper substantial shareholders, senior management and other employees related to the project.
• Senior management bureau including directors of the corporation, responsible officers (ROs), and Manager in Charge of core (MICs).
• All personnel working in the company regarding financial activities regulate by the SFO must be properly authorized as Licensed Representatives (LRs).
• Financial resources, maintaining paid up-capital and liquid resources according to the SFO rules.

As well as these requirements, individuals or companies must present application documents that focus on the business profile and clientele, demonstrate financial strength/sustainability, present the management personnel, and, finally, risk management and internal control measures. 

The requirements are similar to all four types of licenses that you need to run your Forex operations. As you may see, you will need to present plenty of documents to the SFC so you can get the license you need. All the information you give to the SFC should focus on the type of business you want to run, your potential clients, how the corporation will be managed, and the risk control measures. These last documents will inform the SFC about the type of financial activity you want to conduct and help them know which kind of license you may need to start operating.

Additionally, there are some fees that the government requires individuals and corporations to pay in order to be able to operate in Hong Kong legally. These fees are related to the type of business you are conducting, so the percentage may vary depending on the financial venture that entrepreneurs will start. For brokers, the fee is 0.25% of the transaction's total value, and for traders, it represents 0.005% of the operations amount.

What can we do for you?

Nonetheless, it takes a lot of time and effort to apply to these licenses. You can let the task of obtaining the license to an expert that will take care of all the requirements needed to obtain it, so you just have to worry about the moment's market trends and start running your operations in Forex.

Knowing the benefits of managing and accumulating wealth through Forex, the ways you can make a profit in this financial venture as an active or passive investor. If you want to become an advisor, you know what your clients will be looking for when searching for the ideal expert advisor to invest successfully in this market. As for the licensing process, do not worry; this seemingly complicated process can be handled by our experts that will help you to comply with the requirements so you can start your businesses whenever you fill ready.

We have a first-level duly-licensed team of experts in Hong Kong. They offer an all-comprehensive package that includes:

• Incorporation of a corporate structure in Hong Kong
• Opening a bank account for the company
• Preparing an application package for the licenses
• Keeping in touch with the regulator
• Providing representative officer services
• Providing secretarial and accounting services
• Tax and auditing advice

Contact us right now, and start your Forex business in Hong Kong. 

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