1. Home
  2. Stock Trading For Beginners

Hang Seng

Hang Seng brokers allow traders to track the changes of the 50 largest and liquid companies on the Hong Kong Stock Market. The Hang Seng Index (HSI) is a market capitalization-weighted stock market index, and whilst it is the most quoted measure of Hong Kong’s economic performance, it also attracts aspiring day traders looking to yield profits from short-term price fluctuations via online brokers.

This page will cover how to review and compare the best brokers with access to the Hang Seng. We also look at the origins of the index and its purpose, plus charts, forecasts, trading hours, and our top tips.

Hang Seng Brokers

These are the 5 best brokers for trading on the Hang Seng:

  1. AvaTrade
  2. Pepperstone
  3. XM
  4. IC Markets
  5. Eightcap

#1 - AvaTrade

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

Stock Exchanges

AvaTrade offers trading on 15 stock exchanges:

  • Australian Securities Exchange (ASX)
  • Borsa Italiana
  • Deutsche Boerse
  • Euronext
  • Hang Seng
  • IBEX 35
  • Japan Exchange Group
  • London Stock Exchange
  • Nasdaq
  • Russell 2000
  • SIX Swiss Exchange
  • Shanghai Stock Exchange
  • Shenzhen Stock Exchange
  • Taiwan Stock Exchange
  • Toronto Stock Exchange

Pros

  • AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more
  • Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
  • The broker offers reliable 24/5 multilingual customer support with fast response times during testing

Cons

  • Traders from the US are not accepted
  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
  • It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
Visit AvaTrade

#2 - Pepperstone

Why We Chose Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro)

Stock Exchanges

Pepperstone offers trading on 22 stock exchanges:

  • Australian Securities Exchange (ASX)
  • CAC 40 Index France
  • DAX GER 40 Index
  • Deutsche Boerse
  • Dow Jones
  • Euronext
  • FTSE UK Index
  • Hang Seng
  • Hong Kong Stock Exchange
  • IBEX 35
  • Japan Exchange Group
  • Korean Stock Exchange
  • London Stock Exchange
  • Nasdaq
  • New York Stock Exchange
  • Russell 2000
  • S&P 500
  • SIX Swiss Exchange
  • Shanghai Stock Exchange
  • Shenzhen Stock Exchange
  • Taiwan Stock Exchange
  • Toronto Stock Exchange

Pros

  • Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
  • Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
  • There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.

Cons

  • Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
  • Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
  • There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
Visit Pepperstone

#3 - XM

Why We Chose XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

- DayTrading Review Team
  • Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
  • Regulator: ASIC, CySEC, DFSA, FSC, FSCA
  • Platforms: MT4, MT5
  • Minimum Deposit: $5
  • Minimum Trade: 0.01 Lots

Stock Exchanges

XM offers trading on 14 stock exchanges:

  • Australian Securities Exchange (ASX)
  • Borsa Italiana
  • CAC 40 Index France
  • DAX GER 40 Index
  • Deutsche Boerse
  • Dow Jones
  • Euronext
  • FTSE UK Index
  • Hang Seng
  • IBEX 35
  • Japan Exchange Group
  • Nasdaq
  • S&P 500
  • SIX Swiss Exchange

Pros

  • Transparent and low fees with spreads from 0.0 pips that will help protect day trading profit margins
  • The broker offers premium research including market sentiment, fundamental insights and strategy builders
  • Accessible trading accounts with a $5 minimum deposit and fast account opening

Cons

  • PayPal deposits are not supported
  • There's $5 inactivity fee after only 3 months, though this won't affect active traders
  • There is weak regulatory oversight through the global entity
Visit XM

#4 - IC Markets

Why We Chose IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
  • Regulator: ASIC, CySEC, FSA
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
  • Minimum Deposit: $200
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)

Stock Exchanges

IC Markets offers trading on 12 stock exchanges:

  • Australian Securities Exchange (ASX)
  • CAC 40 Index France
  • DAX GER 40 Index
  • Dow Jones
  • Euronext
  • FTSE UK Index
  • Hang Seng
  • IBEX 35
  • Nasdaq
  • New York Stock Exchange
  • Russell 2000
  • S&P 500

Pros

  • As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
  • You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
  • IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.

Cons

  • The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
  • Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
  • While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
Visit IC Markets

#5 - Eightcap

Why We Chose Eightcap

"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities
  • Regulator: ASIC, FCA, xCySEC, SCB
  • Platforms: MT4, MT5, TradingView
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots

Stock Exchanges

Eightcap offers trading on 16 stock exchanges:

  • Australian Securities Exchange (ASX)
  • CAC 40 Index France
  • DAX GER 40 Index
  • Dow Jones
  • Euronext
  • FTSE UK Index
  • Hang Seng
  • Hong Kong Stock Exchange
  • Japan Exchange Group
  • London Stock Exchange
  • Nasdaq
  • New York Stock Exchange
  • Russell 2000
  • S&P 500
  • SIX Swiss Exchange
  • Toronto Stock Exchange

Pros

  • Having excelled across all key areas for day traders, Eightcap outperformed more than 490 competitors to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title.
  • After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
  • With tight spreads from 0 pips, low commission fees, and high leverage up to 1:500 for certain clients, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.

Cons

  • Despite a useful library of educational guides and e-books, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
  • Eightcap needs to continue bolstering its suite of instruments to match category leaders like Blackbull Markets with its 26,000+ assets, featuring a particularly weak selection of commodities.
  • The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
Visit Eightcap

Comparing Hang Seng Brokers

Day trading on the Hang Seng is relatively straightforward. However, before you put your strategy to the test, you will need an online broker that can cater to your needs. But with so many Hang Seng brokers out there, how do you know what to look for? We cover some of the main considerations below:

What Is The Hang Seng?

The HSI is a free float-adjusted market capitalization-weighted stock market index. It looks to represent the biggest movers and shakers found on the Hong Kong exchange. It currently accounts for around 65% of the exchange’s total market capitalization.

Members of the Hang Seng are broken down into four sub-indices:

Leading Hang Seng brokers offer stocks on companies that form each of these four industries.

A Brief History

The HSI was first published on the 24th November 1964. It is managed by Hang Seng Indexes Company Limited, a subsidiary of the Hang Seng Bank, which is headquartered in central Hong Kong. The bank is currently one of the largest banks by market capitalization listed in Hong Kong.

Its responsibilities also include the maintenance and publishing of a number of other Hang Seng stock indexes:

Hong Kong Stock Exchange

Its humble beginnings trace back to the founding of China’s first formal securities market, the Association of Stockbrokers in Hong Kong, in 1891, and a second market that opened in 1921, merged to create the Hong Stock Exchange in 1947.

Today you will find around 1,200 companies listed on the exchange at Hang Seng brokers. There are several key dates to be aware of:

Economic Gauge

Whilst the index is supposed to provide a snapshot of the health of Hong Kong’s stock market, it also serves another purpose. Because of Hong Kong’s status as a special administrative region of China, both economies are closely linked.

So, the index serves as a proxy for the wider Asian market. In particular, China’s stock market, which is often mispriced as a result of capital restrictions. This also means you will find many large Chinese companies listed on the Hong Kong Exchange at Hang Seng brokers.

On top of the most frequently quoted Hang Seng Index, there also exist a number of other major related indices, including smallcap and midcap indexes. Note, not all Hang Seng brokers offer access to every product.

All the indices below provide access to mainland and China-affiliated companies. These are, the Hang Seng:

How It Works

Capitalization-Weighted

To understand how the Hang Seng operates, you first need to know how capitalization-weighted indices work. Quite simply, the index lists components in order of total market capitalization. So, the biggest constituents hold a higher percentage weighting, whilst the smaller constituents carry lower weights.

Many of the global markets today have indices that work in this manner. These include the FTSE 100, S&P 500, and the Nasdaq.

Calculation

Finding the value of a capitalization-weighted index is relatively straightforward. You simply need to multiply each constituents’ market price by the total outstanding shares, to give you the total market value. The size of this value in comparison to the overall market value of the listed companies, will then give you a component’s weight.

The best Hang Seng brokers offer straightforward metrics and stats on the weight of companies listed.

Classification System

The Hang Seng further divides components into different sectors. To do that, it uses the Hang Seng Industry Classification System (formerly the Hang Seng Stock Classification System), created by Hang Seng Indexes Company Limited.

Classification guidelines are relatively simple. They consider the following factors:

Below is a list of industry sectors:

Admission Criteria

For a Hang Seng nominee to warrant entry, they have to meet a number of criteria:

Once a company has ticked the initial boxes, a final decision is made based on market capitalization, turnover rankings, reflections of the sub-sectors in question, plus financial performance.

Performance

Hang Seng brokers and websites publish prices, results and key performance details. Some of the highs and lows have been as follows:

Biggest Players

The top 30 constituents that have featured on the Hang Seng in recent years are as follows:

Many of the top Hang Seng brokers will provide detailed insights into leading stocks, along with key financial metrics.

Hang Seng Trading Hours

The timeline for the standard market day goes as follows:

Opening hours in GMT are 02:45 – 05:30 for the first session and 07:30 – 09:15 for the second session.

Admittedly, trading from Singapore may offer more sociable working hours than if you are based in the UK or Europe, but this doesn’t appear to be deterring too many traders. Also note, no trading will take place during market holidays. This, plus all intraday timelines, will be reflected within your Hang Seng brokers calendar.

Hang Seng Live Chart

INDEX-HSI Chart by TradingView

Why Day Trade The Hang Seng?

Regardless of location, in the last 10 years, an increasing number of day traders are turning their attention to Hang Seng brokers. The question is, why?

Hong Kong is a relatively free economy, not to mention one of the world’s leading financial hubs. It offers minimal taxes, international financial markets, plus low-cost port trade.

These characteristics have helped the Hong Kong Stock Exchange flourish into the sixth largest stock market in the world, and the third largest in Asia, following Japan’s Tokyo Stock Exchange and China’s Shanghai Stock Exchange.

Whilst an increasing number of traders look to buy and sell forex, speculating on Hang Seng stock price keeps things simple. For those wanting to avoid the sometimes complex world of currency trading, the Hang Seng continues to appeal. Look out for Hang Seng brokers that offer a range of instruments.

Hang Seng Futures

In May 1986, the Hong Kong Futures Exchange (HKFE) introduced HSI futures contracts in response to the growing interest in the Hong Kong Stock market. Many now trade futures live, using charts, quotes, and historical data.

It is worth noting, however, futures investing also comes with risks, and this alternative does not guarantee higher yearly returns.

There are a couple of reasons why trading the Hang Seng 40 futures appeals:

Having said that, nifty trading is still required, so you should still look for a Hang Seng volatility chart for futures. You should also check contract specifications.

You can find details on Hang Seng shares futures on Bloomberg, including trading hours and definitions of terms.

ETFs

As with many indices, the Hang Seng underlies many exchange-traded funds (ETFs), that promise straightforward exposure to Hong Kong’s economy via a single trading vehicle. In many ways, these securities offer an uncomplicated alternative to American Depository Receipts (ADRs). Many of the top Hang Seng brokers offer ETFs.

Hang Seng H-Share Index ETF

The H-Share Index ETF tracks the Hang Seng China Enterprises Index (HSCEI). Many of the constituents are Chinese as the index tracks and measures the performance of Chinese equities. With companies such as Bloomberg compiling and publishing data on the Hang Seng, it looks as if more traders, from all over, will look to commit their funds.

iShares MSCI Hong Kong Index Fund ETF (EWH)

Note there are no funds traded in the US. However, a suitable alternative is the iShares MSCI Hong Kong Index Fund ETF (EWH). This tracks the MSCI Hong Kong Index. Again, this is a capitalization-weighted index, that seeks to encapsulate approximately 85% of the Hong Kong’s total market capitalization.

There is currently around $2 billion in total net assets under management, giving the ETF a decent expense ratio of around 0.48% with 50 holdings in its portfolio. However, financials dominate the list with 33%. The next 28% is formed of real estate, and 11% is weighted towards consumer cyclicals.

How To Start Trading At Hang Seng Brokers

Prepare

Monitoring the Hang Seng stock exchange live shouldn’t be the beginning of your day. If you want to assert a competitive edge, you need to be at your desk prepping before the opening bell rings. You need to be looking for potentially undervalued stocks.

Ideally, by the time the morning session opens, you will have analyzed historical charts, screened stocks and have nailed down a few that you will keep a close eye on as the day progresses.

Importantly, the Hang Seng of 50 components can be used to gauge investor sentiment and the overall economic health of Hong Kong and Asian markets. Performance has had its fair share of ups and downs, but it continues to draw in aspiring day traders from differing time zones, including the USA, Europe, and Asia.

Demo Account

Before you start day trading the Hang Seng with your hard earned capital, why not try a demo account first? Funded with simulated money, these allow you to develop strategies and get familiar with market conditions.

Many Heng Seng brokers, including AvaTrade, now offer this service free of charge, making it a fantastic way to test a potential broker too. Then when your confidence has built and you have mastered weekly, 5-year, 10-year, 20-year, and 30-year charts, you can upgrade to a real-time, live account.

News

One of the top tips for day trading on the Hang Seng is to monitor the latest news. Live quotes and prices will change in response to major news announcements. Daily reports are a fantastic way to stay up to date with market developments and maintain a future outlook. The top Hang Seng brokers will integrate this information into their resources catalog, meaning you don’t have to switch between several internet tabs and information sources.

Some of the top Hang Seng news resources include:

The resources above can also provide annual reports, real-time price quotes, plus dividend yield history.

Education

Even experienced day traders never stop learning. The Hang Seng market can be unpredictable. So, seeking out resources to improve technical analysis, chart setups, and strategy, can all prove useful.

Some key Hang Seng resources worth considering are as follows:

The switched on day trader utilizes a range of educational resources, which are often offered by leading Hang Seng brokers. That way when that next 52 week high comes around, they can call on in-depth knowledge to capitalize on its profit potential.

Automation

Once you have crafted an effective strategy for day trading the Hang Seng, you may want to consider automated trading. Once you have programmed your criteria, these algorithms and robots will enter and exit positions on your behalf.

This could allow you to enter far more trades than you ever could manually. Having said that, automated systems do still require maintenance and attention, as drops in performance can still occur.

Journal

Although often overlooked, day trading journals can be a powerful weapon to add to your investing arsenal. You simply need to keep a track of the following:

Input this data and information into an Excel spreadsheet or another tool, and you’ll be able to quickly analyze your recent performance. You may find identifying flaws in your strategy a far simpler process.

Final Word On Hang Seng Brokers

Day trading at Hang Seng brokers in real time offers a dynamic and potentially profitable means of capitalizing on intraday price movements. However, the volatility of the Hang Seng also brings with it considerable risks. This is all the more reason to select trusted Hang Seng brokers, have an effective strategy in place, plus a thirst to learn and adapt to the markets.

Use our list of the top brokers with access to the Hang Seng to get started.