The physical layer security of a two‐way relay network (TWRN) in the presence of an eavesdropper is considered, where two multi‐antenna nodes try to exchange messages via a multi‐antenna two‐way relay node. It is assumed that the transmission occurs in two hops. Throughout the first hop, the messages are concurrently transmitted at the same time from two transmitting nodes to the relay, while an eavesdropper tries to overhear the signals. Throughout the second hop, to prevent eavesdropping, the relay broadcasts a combination of the received signals in the null‐space of the eavesdropper's channel gain vector. The objective is to explore the proper power allocation policy at transmitting ends as well as an effective beamforming strategy at the relay to address the secrecy rate balancing (SRB) problem. The radio frequency multiple‐input multiple‐output (RF‐MIMO) architecture design is proposed in which the relay can merely process one data stream; hence, the relay beamforming matrix is of rank‐one. The underlying problem is non‐convex. To tackle this issue, the original problem is divided into two sub‐problems, where using semi‐definite relaxation (SDR) and sequential parametric cone approximation (SPCA) techniques, are converted into convex forms, where suboptimal solutions are derived. Numerical results demonstrate effectiveness of the proposed method compared to the existing works addressed in the literature and also show that our proposed solution has better performance even for the secrecy energy efficiency (SEE) metric.