Author: Bitkoala Finance
Tiger Brokers has built its reputation among retail investors in the stock market, but its move into cryptocurrencies in Hong Kong marks a new chapter for the well-known brokerage.
Many of you may already be familiar with Tiger Brokers, a trading platform approved by the Monetary Authority of Singapore (MAS) that offers a wide range of investable products, including stocks, futures, ETFs, options, warrants, etc. However, there is one asset class missing from the platform: cryptocurrency.
But now, that’s finally about to change, if you’re in Hong Kong.
According to Bitkoala, for professional investors, Tiger Brokers allows you to trade 18 cryptocurrencies in Hong Kong as well as stocks, futures, US Treasuries, and of course Hong Kong's newly launched Bitcoin ETF. So, what is a professional investor? Such investors must have an investment portfolio worth more than HK$8 million and a corporate entity with assets exceeding HK$40 million.
Tiger Brokers, which operates under local regulatory supervision, has partnered with HashKey Exchange to offer services with a competitive transaction fee of just 0.2%, instant settlement and 24/7 availability for digital asset trading. The Nasdaq-listed exchange plans to expand these services to retail investors upon regulatory approval. It may also launch additional features such as virtual asset spot withdrawal and deposit services.
To further understand why Tiger Brokers embraces cryptocurrency, Kelvin Liu, the company's vice president of engineering and head of cryptocurrency, gave a detailed interpretation. Kelvin Liu previously worked in the online advertising and fintech industries and has more than 15 years of experience as an architect and manager. He currently leads more than 300 talented engineers focused on building Tiger Brokers' trading systems, data and growth platforms, and user products.
Seize institutional clients
Whether you are a trader or someone who is indifferent to investing, if you have been in Singapore, you have more or less seen one of the many advertisements for Tiger Brokers. From bus stops to social media, Tiger Brokers has been actively trying to attract retail users and make trading as seamless as possible.
However, as institutions are embracing cryptocurrencies, Tiger Brokers is also moving closer to institutional clients, Kelvin Liu explained: "While Tiger Brokers may have had a large customer base of retail investors 10 years ago, it has always sought to expand and customize its products to suit investors, regardless of their background and experience."
But Tiger Brokers has not ignored their retail base, in fact the exchange plans to expand its products for Hong Kong users. Kelvin Liu added that "recognizing the growing interest of retail investors in cryptocurrencies and traditional asset products, we eventually plan to open virtual asset trading to them in the future, subject to regulatory approval. Once approved, Tiger Brokers aims to provide retail investors with the same diverse trading options as current professional clients."
Taming the tiger? Taming cryptocurrencies?
How dangerous are cryptocurrencies? Of course, the risks are high—just ask SBF—but for Tiger Brokers, investing in digital assets is a cautious process. The appeal of cryptocurrencies lies primarily in their potential returns, but Tiger Brokers still wants to ensure its clients are investing safely.
Kelvin Liu said: "Investing in cryptocurrencies has its own unique risks and rewards, and recent regulatory developments, such as the Hong Kong Securities and Futures Commission's (SFC) approval of cryptocurrency ETFs, are key steps in integrating virtual assets into traditional financial markets. However, due to the volatility of cryptocurrencies, cryptocurrencies should be approached with caution and a sensible strategy should be developed. While cryptocurrencies may offer high returns and be an effective diversification tool, it is critical for investors to conduct a thorough market assessment, consider their investment preferences, and develop a sound risk management strategy before investing."
To achieve this goal, Tiger Brokers provides a “safe and transparent trading environment and strongly encourages investors to make informed decisions based on comprehensive research and analysis rather than blindly following the crowd.
Achieving expectations
Institutional investors already have a plethora of options for trading digital assets. To stand out, Tiger Brokers is trying to address some of the dissatisfaction these customers face. Kelvin Liu believes that institutional investors often face the inconvenience of managing multiple accounts across different platforms to access various digital assets and markets, and Tiger Brokers' platform integrates these needs into a single integrated solution, allowing investors to trade a variety of assets in one place, including virtual assets such as Bitcoin and Ethereum as well as stocks, options, futures, funds and ETFs, without having to open and manage multiple accounts. This not only simplifies the trading process, but also improves operational efficiency and reduces management burdens.
Tiger Brokers currently lists 18 cryptocurrencies in Hong Kong, and will continue to “monitor the cryptocurrency market, identify promising new currencies that meet the criteria, and plans to expand cryptocurrency products in the future, subject to regulatory approval and market conditions.”
Hong Kong is the perfect place for cryptocurrency
Hong Kong has become a major hub for virtual asset trading. Although its ETFs have disappointed in terms of inflows, there is no doubt that Hong Kong is the leading city for cryptocurrencies among the rest of Asia.
Tiger Brokers has observed a surge in demand for virtual assets among global investors, especially in Hong Kong, and its entry into cryptocurrency products is a direct response to this trend, enabling it to provide eligible clients with the ability to trade cryptocurrencies, as well as other global products, on a single platform. The timing of the Hong Kong Securities and Futures Commission’s (SFC) approval of a cryptocurrency ETF creates an “excellent time” for Tiger Brokers to launch its cryptocurrency products.
Hong Kong may also offer a wider range of products than the United States.
Kelvin Liu said: "Recent reports that Hong Kong is considering allowing direct investment in Ethereum exchange-traded funds (ETFs) for staking could unlock a passive income source that has been excluded from potential U.S. issuers' plans. The regulatory development suggests a progressive approach to promoting the development of the digital asset ecosystem, which may encourage more institutional participation."
Working with Hong Kong regulators is also very important for the exchange. The strong compliance framework includes comprehensive KYC and AML procedures. Tiger Brokers follows the Hong Kong Securities Regulatory Commission's cryptocurrency product guidelines and has taken strict security measures to protect customers' assets and personal information, using advanced encryption technology and regularly updating our systems and protocols.
Kelvin Liu continued: "As a financial services provider, Tiger Brokers values the role of regulators in creating a safe and transparent trading environment. Regulation should strike a balance between investor protection and the promotion of innovation. Therefore, it is very important for the industry to accept these regulatory changes and adapt to increasingly stringent regulatory expectations to create a stable and reputable environment. As an innovative financial tool, we believe that regulation will find the best balance between market development and investor protection. By establishing a reasonable and effective regulatory framework, we can ensure a convenient and secure experience in storing and using digital assets while safeguarding public interests and financial stability."
Looking ahead, Tiger Brokers believes that the market will continue to mature with the emergence of more complex financial products such as crypto structured products and ETFs. Not only that, the SEC's approval of the Bitcoin ETF is a "clear indication of the direction of development in the digital asset field," and regulators in Asia such as Japan, Hong Kong, and Singapore will continue to develop guidelines and regulations, so institutional adoption of digital assets "will definitely increase."
