BASIC INFORMATION
A forex brokerage with a Hong Kong registration is called HK Golden Crown. It offers a large leverage and the MetaTrader4 trading platform. The maximum leverage available to traders is 1:100. There is also a large selection of trading goods to choose from, however the spread on EUR/USD is 2.6 pips, plus there is a $30 charge, which is not at all advantageous for traders. The minimal investment amount, however, is only $100.
HK Golden Crown regulation & safety of funds
According to the broker's website, HK Golden Crown Trading Ltd., a business with its headquarters in Hong Kong, owns and runs the broker brand. To our amazement, we later discovered that the National Futures Association in the US is purportedly in charge of overseeing the firm.
The Securities and Futures Commission (SFC) must provide a license to brokerages registered in Hong Kong in order for them to lawfully conduct business there. We may confidently assume that the brokerage is not an NFA member after pointlessly examining the NFA registration. Trading in forex should be avoided if you provide such inaccurate and misleading information on your website, and traders should avoid HKGoldenCrown.
TRADING PLATFORM
Leaving this aside, the brokerage offers the MetaTrader4 terminal, the current industry-leading online trading platform. We could use a demo account to try out the platform.
SPREAD, LEVERAGES AND COMMISION
A spread of 2.6 pips, which is much higher than the industry average of 1.5 pips, may be present. Additionally, we discovered that there is a $30 charge each lot, which adds three additional pips to the spread, making the cost of trading unnecessarily expensive in our opinion and raising the question of whether the brokerage actually offers such a spread. Trading leverage is offered at 1:100, which is generous yet fair. The needed minimum deposit is only $100, although brokerages often demand at least $250. Leaving this aside, the absence of regulation and the brokerage's offshore location lead us to believe that potential clients' cash may be at risk.
PAYMENT METHOD
Potential clients of the brokerage may deposit or withdraw via VISA and MasterCard, Bank wire and popular e-wallets Skrill. While going through the brokers terms and conditions we couldn‘t find anything especially unsettling besides a minimum withdrawal amount of $100 which is pretty common. However, we can’t be sure whether the brokerage wont charge any unexpected fees once the initial deposit is made.
HK Golden Crown Advantages
Access to MT4, solid leverage
Like the majority forex brokers, HK Golden Crown provides its services on the MetaTrader 4 (MT4) platform. There are numerous reasons for the popularity of this piece of trading software among traders. First, the MT4 is very intuitive and its programming language is fairly easy to learn. Second, it has proved its reliability over the years. Third, it has a lot of professional tools and features – great charting, support for automated trading via Expert Advisors, good back-testing environment, customization options and more.
HK Golden Crown Disadvantages
Not licensed
This broker says to be owned and operated by HK Golden Crown Trading Ltd., a company allegedly based in Hong Kong.
Trading conditions not disclosed
Another worrisome sign regarding HK Golden Crown is the broker doesn‘t provide much details about the trading environment they provide. Its website does not include information on different account types, nor essential trading conditions like spreads, leverage ratios, etc. We only found some specifications for trading in spot gold and silver on the broker’s website.
very little in the way of products
Another issue we saw on HK Golden Crown's sample MT4 is that there aren't many trading options available from the broker. There are just 11 currency pairings, as well as CFDs on the WTI Spot oil, Gold, Silver, the HK50 index, and Bitcoin. The majority of brokerages provide at least 20 forex pairs and several CFDs.
The bogus broker Golden Day Profit Kamyip may be connected to this.
A different Hong Kong-based broker, Golden Day Profit Kamyip, came to mind when we browsed the HK Golden Crown website and evaluated their platform. Both the two brokers' website designs and logos are identical. We are confident that HK Golden Crown and Golden Day Profit Kamyip are both managed by the same individuals because their MT4 trading terms are identical.
