| Updated: December 2, 2024Traders seeking brokers that will offer them the best forex trading experience in South Korea can use our list of top South Korean brokers as a reference for their research. Our trading experts have explored every factor that could make or break your trading experience online, opening real-money accounts with every broker to fully evaluate the services offered by every brand. Each of the brokers on our list is regulated and offers safe and fair trading conditions to traders based in South Korea.
Fusion Markets74-89% of retail CFD accounts lose money
AxiThe vast majority of retail client accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Forex.com77.7% of retail investor accounts lose money
Spreadex64% of retail investors lose money
IC Markets70.64% of retail investor accounts lose money
Markets.com74.2% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
Plus50082% of retail investor accounts lose money
Vantage FXSouth Korean Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. Axi | 2,371 | 4.8 ⭐ |
| 3. IC Markets | 39,709 | 4.5 ⭐ |
| 4. Forex.com | 1,668 | 4.5 ⭐ |
| 5. Spreadex | 113 | 4.5 ⭐ |
| 6. Global Prime | 161 | 4.5 ⭐ |
| 7. Markets.com | 1,198 | 4.4 ⭐ |
| 8. Eightcap | 2,668 | 4.2 ⭐ |
| 9. Plus500 | 14,038 | 4.1 ⭐ |
| 10. Vantage FX | 4,089 | 3.5 ⭐ |
South Korean Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 2. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 3. Markets.com | 0.6 | 0.7 | 0.9 | 0.9 |
| 4. Spreadex | 0.6 | 9 | 0.9 | 0.8 |
| 5. IC Markets | 0.8 | 0.8 |
| 0.8 |
| 6. Vantage FX | 0.2 | 0.5 | 0.3 | 0.4 |
| 7. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
| 8. Forex.com | 1 | 1.2 | 1.3 | 1.3 |
| 9. Axi | 1.2 | 1.4 | 1.1 | 1.2 |
| 10. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
South Korean Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. Forex.com | $0 for Standard accounts; $5 per standard lot per side for Raw accounts |
| 2. Plus500 | $0 |
| 3. Eightcap | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| 4. Spreadex | $0 |
| 5. Markets.com | $0 |
| 6. Vantage FX | $3 per side on Raw; $1.50 per side on Pro |
| 7. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 8. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 9. Axi | $0 on Standard Account; $7 round trip on Pro Account |
| 10. IC Markets | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
Important Note: The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) are the authorities responsible for the regulation of the forex trading sector in South Korea, ensuring the fairness and stability of financial markets within the country. To be able to participate in the local forex trading market, non-Korean entities are required to open a local branch. However, this condition will most likely be dropped by the end of 2024, further opening the South Korean trading market to foreign brokers. You can find more information about the FSC by visiting its website or following its X account.
Top 10 FX Brokers in South Korea
Fusion Markets Broker Details Supports Korean No Korean Currency (KRW) Yes Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView Trustpilot Rating 4.9 out of 1,862 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencie CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.07
USDJPY: 0.13
EURGBP: 0.23
GBPUSD: 1.01Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
- Has no FCA license
Global Prime Broker Details Supports Korean No Korean Currency (KRW) No Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.5 out of 161 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencie CFDs: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 1.11Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
Forex.com Broker Details Supports Korean No Korean Currency (KRW) No Regulators ASIC, MAS, FCA, CIRO, JFSA, CFTC, CySEC, CIMA, SFC, CySEC Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, TradingView, WebTrader, NinjaTrader Trustpilot Rating 4.5 out of 1,668 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1
USDJPY: 1.2
EURGBP: 1.3
GBPUSD: 1.3Forex Commission per Lot per Trade $0 for Standard accounts; $5 per standard lot per side for Raw accounts Deposit Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Key Pros
- Supports a great selection of trading platforms
- Enables easy mobile trading
- Offers over 80 currency pairs
- Provides a vast variety of products
- Forex spreads can be very competitive
Key Cons
- Navigating platforms can be difficult for beginners
- Instruments on MT4 platforms are significantly fewer than other platforms
- Charges monthly fee after 12 months of inactivity
Plus500 Broker Details Supports Korean No Korean Currency (KRW) No Regulators FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727), BaFin registration, SCB (SIA-F250) Min Deposit $100 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.1 out of 14,038 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 (1:5 via FSA)Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Withdrawal Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free CFD trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
Eightcap Broker Details Supports Korean No Korean Currency (KRW) No Regulators SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, TradingView, Capitalise.ai, FlashTrader Trustpilot Rating 4.2 out of 2,668 reviews Number of CFD Forex Pairs to Trade 50+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.1
EURGBP: 1
GBPUSD: 1Forex Commission per Lot per Trade $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPay Withdrawal Methods Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay Key Pros
- Commission-free FX trading via standard accounts
- Spreads from 0 pips on major currency pairs
- Accepts cryptocurrency deposits
- Fantastic variety of deposit and withdrawal methods
- Insights section with webinars, trade ideas, and weekly forecasts
Key Cons
- Below-average range of tradable instruments
- Crypto withdrawals incur transaction fees
Axi Broker Details Supports Korean No Korean Currency (KRW) No Regulators ASIC, FCA, CySEC, DFSA, FSA (Saint Vincent and the Grenadines) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 WebTrader, Axi Mobile Trustpilot Rating 4.8 out of 2,371 reviews Number of CFD Forex Pairs to Trade 80 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.2
USDJPY: 1.4
EURGBP: 1.1
GBPUSD: 1.2Forex Commission per Lot per Trade $0 on Standard Account; $7 round trip on Pro Account Deposit Methods Visa, Mastercard, Bank Transfer, Neteller, Skrill, AstroPay, Fasapay, Przelewy24, Boleto, Pix, Bitcoin, Ethereum, Ripple, Litecoin, Tether, Stellar, POLi, iDEAL, Sofort, Giropay Withdrawal Methods Mastercard, Visa, Bank Transfer, Przelewy24, Fasapay, Skrill, AstroPay, Pix, Boleto, Neteller, Bitcoin, Ripple, Ethereum, Litecoin, Tether, Stellar Key Pros
- Provides multilingual customer support
- Standard and Pro accounts available in 10 base currencies
- No minimum deposit requirements on Pro and Standard accounts
- Over 70 FX pairs tradable from zero pips
- Swift order execution and tight spreads
Key Cons
- A limited choice of trading platforms
- Below-average number of tradable symbols
Spreadex Broker Details Supports Korean No Korean Currency (KRW) No Regulators FCA (No. 190941) Min Deposit $0 Trading Platforms TradingView, proprietary software Trustpilot Rating 4.5 out of 113 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.6
USDJPY: 9
EURGBP: 0.9
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Mastercard, Visa, Maestro, Direct Debit, Check, Bank Transfer Withdrawal Methods Visa, Maestro, Mastercard, Bank Transfer, Check Key Pros
- Provides access to over 10,000 tradable symbols
- Well-designed and intuitive mobile trading app
- Offers spread betting on FX pairs
- Commission-free FX trading with tight spreads
- Seamless registration process
Key Cons
- No support for MetaTrader 4 or 5
- Licensed by a single financial regulator (FCA)
- Deposits under $/£50 may incur additional charges
IC Markets Broker Details Supports Korean Yes Korean Currency (KRW) No Regulators FSA (Seychelles), CySEC, ASIC Min Deposit $200 Trading Platforms MetaTrader4, MetaTrader5, cTrader, ZuluTrade Trustpilot Rating 4.5 out of 39,709 reviews Number of CFD Forex Pairs to Trade 61 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 0.8
USDJPY: 0.8
EURGBP:- 0.00 (Raw)
- 1.00 (Standard)
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT Deposit Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, CardPay, Bpay, FasaPay, Poli, RapidPay, Klarna, Nuvei Withdrawal Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, FasaPay, Poli, RapidPay, Klarna Key Pros
- Offers a large number of forex pairs to trade
- Great for forex traders due to low spreads
- Supports all industry-standard trading platforms
- Supports a wide range of payment solutions
- Low forex trading commission
Key Cons
- Non-EU customers have no investor protection
- Not listed on stock exchange
- List of products can be further expanded
Markets.com Broker Details Supports Korean No Korean Currency (KRW) No Regulators ASIC (license no. 424008), FCA (license no. 481853), CySEC (license no. 092/08), FSCA (license no. 46860), FSC (license no. SIBA/L/14/1067), FSA (license no. 27030 BC 2023) Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, WebTrader, Mobile App, TradingView Trustpilot Rating 4.4 out of 1,198 reviews Number of CFD Forex Pairs to Trade 54 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.6
USDJPY: 0.7
EURGBP: 0.9
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank Transfer Key Pros
- Offers tight spreads and low fees for FX traders
- Traders can choose from over 50 currency pairs
- Supports a wide range of payment methods
- Mobile trading available through dedicated app
- Supports popular trading platforms
Key Cons
- Offers only CFD and FX products
- Charges inactivity fee
- No dedicated platform for copy trading
Vantage FX Broker Details Supports Korean Yes Korean Currency (KRW) No Regulators FCA (license no. FRN: 590299), VFSC (reg. No. 700271), ASIC (license no. no. 428901), FSCA (license no. 51268), CIMA (no. 1383491) Min Deposit $50 Trading Platforms MetaTrader 4, MetaTrader 5, ProTrader, TradingView, Copy Trading Trustpilot Rating 3.5 out of 4,089 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.2
USDJPY: 0.5
EURGBP: 0.3
GBPUSD: 0.4Forex Commission per Lot per Trade $3 per side on Raw; $1.50 per side on Pro Deposit Methods Visa, Mastercard, Union Pay, Boleto, Bank Wire, Skrill, Neteller, Crypto, POLi, FasaPay, Perfect Money, BPay, Pagsmile, AstroPay, JCB Withdrawal Methods Visa, Mastercard, Union Pay, Bank Wire, Skrill, Neteller, Crypto, AstroPay, Perfect Money, JCB Key Pros
- Regulated by reputable authorities
- Offers over 1,000 CFD products
- Supports various popular platforms
- Enables easy copy trading on mobile app
- Tight spreads and low commission for forex traders
Key Cons
- Some banking methods are exclusive to certain markets
- Could add more currency pairs to its products
- Limited educational materials
Is Forex Trading Legal in South Korea?
Forex trading is a regulated and legal activity in the territory of South Korea, with the FSC and FSS overseeing the operations of brokers catering to South Korean traders. That said, the local forex trading market is rather limited, with only two brokers licensed by the government offering local traders forex trading with the South Korean currency, the won.
Currently, due to a series of strict regulations, the onshore forex trading sector in South Korea is rather limited, with no licenses provided to major brokers to operate locally. This forces traders from the country to head to offshore brokers, licensed and regulated by other authorities across other major trading markets.
Residents of South Korea will also have issues with funding their trading accounts with offshore brokers. This is due to the ban imposed on the use of credit cards as deposit solutions at offshore forex brokers. Under local regulations, South Koreans can use only wire transfers to deposit into their trading accounts offshore. This regulatory measure was introduced by the South Korean regulators to prevent uncontrolled speculation on funds that have been borrowed.
Traders from the Asian country are allowed to participate in margin trading but they must go through vigorous account check-ups and are required to have a rather high minimum capital to be allowed to open margin trading accounts.
Since there are no local brokers authorized to offer forex trading services to South Koreans, traders from the country can head to offshore brokers regulated in jurisdictions like Cyprus, the UK, Australia, and others. For those who do not feel comfortable trading with offshore brokers, the Korea Exchange offers a few onshore options, with currency futures contracts like USD/KRW, CNY/KRW, JPY/KRW, and EUR/KRW being available. These can be traded at the two government-regulated brokers, Korea Money Brokerage Corp and Seoul Money Brokerage.
Regulatory Actions Imposed by South Korean Financial Market Regulators
As already mentioned, the financial market and forex trading in South Korea are regulated by the FSC and the FSS. Despite the local authorities issuing licenses to no foreign broker companies, they are still adamant about providing fair market prices and a secure trading environment for South Korean traders.
Since there is no law forbidding trading with offshore brokers, locals can pick trading brands regulated and licensed in different jurisdictions. That said, they are still required to operate in accordance with local laws to make sure they are trading currencies legally.
South Korean regulators have introduced quite limiting regulations to maintain a safe trading sector, with the FSS issuing multiple warnings about the risks related to forex trading with offshore brokers. That said, there have not been any official bans on joining trading websites regulated in different jurisdictions. Despite that, traders who choose to join unregulated brokers may face some penalties from the local regulators.
Rigorous KYC (Know Your Customer) checks and extremely low leverage limits are also among the measures introduced by South Korean regulators who wish to limit the risks linked to leverage trading. Credit card deposits to offshore broker accounts have also been banned by local authorities, leaving South Korean traders no other option but to fund their accounts via wire transfers.
At the moment of writing this review, the government of South Korea is also considering implementing tighter forex measures for cross-border trades with stablecoins. Due to the increased number of trading activities involving stablecoins, especially those pegged to the USD, the Ministry of Economy and Finance shared its plans to stabilize stablecoin cross-border forex trades. While it is yet to be announced how the local authorities will improve the regulation of stablecoin trading, the FSC announced that the new set of regulatory rules that will apply to stablecoins will be introduced during the second phase of the Virtual Asset User Protection Act.
How Can South Korean Traders Verify the Authorization of Forex Brokers?
While current regulations do not allow foreign brokers to operate in South Korea unless they launch a local branch, traders from the Asian country can still legally trade currency pairs with offshore brands. However, to make sure their funds are safe and they can still have access to additional security tools, South Koreans should pick properly regulated brokers.
Joining brokers licensed and regulated by authorities like the FCA, CySEC, and ASIC is usually a smart decision as these are determined to be some of the tier-1 regulators in the trading sector, meaning they are strict about issuing permissions to forex brokers. Of course, to make sure they have picked a properly regulated broker, South Korean traders are advised to verify the licenses of trading brands.
Authorization backup check is extremely easy as each of the aforementioned regulatory bodies has an official registry of licensed and regulated entities. These lists of brands are usually available on the official websites of said regulators, allowing traders to verify if a specific broker is currently regulated by the respective authority.
Are South Koreans’ Funds Safe When Trading with Forex Brokers?
It should be underlined that the safety of South Korean traders’ money generally depends on whether they have joined a properly regulated and reputable forex broker. Of course, joining the two government-approved brokers offers great security for your funds, but locals will have access to a limited number of future contracts. Meanwhile, offshore brokers welcoming South Koreans can offer a significantly larger selection of currency pairs to trade. However, to be sure that your money will be handled in the most secure manner, we suggest always joining brokers that have been licensed by some of the most reputable regulatory bodies in the trading sector.
If South Koreans pick a properly regulated forex trading company, they can be certain that their funds will be properly protected. Keeping customers’ money in segregated accounts is a common requirement for licensed brokers to meet, ensuring the safety of their clients’ funds. In addition, many regulators require licensed brokers to implement strict anti-money laundering (AML) measures to prevent fraudulent activities.
Minimum required starting capital is also a condition that brokers must meet when they apply for a trading license in most jurisdictions. Ensuring they are financially stable and can handle the orders of their clients is yet another indicator that investors’ money will be properly protected.
Do Brokers Catering to South Korean Traders Provide Negative Balance Protection?
Since South Korean traders depend on offshore brokers for their forex trading, the availability of the additional security tool known as negative balance protection depends on the regulatory conditions imposed on said brokers.
Authorities like the FCA, ASIC, and regulators across the EU require that licensed brokers are offering their clients negative balance protection. This type of security tool protects traders from accumulating losses that can exceed the funds available in their accounts, leaving them indebted to the broker. Having this additional layer of protection is especially useful for inexperienced traders who may often underestimate the risk of trading pairs with higher leverage.
The good news is that South Koreans will have plenty of options for brokers that offer negative balance protection. This will help them avoid cases when their losses may exceed the amount they have deposited into their accounts. Instead, their balance will simply be reduced to $0, without owning the broker any money.
Do South Koreans Pay Tax on Forex Trading Income?
As already mentioned, forex trading is legal in South Korea and is regulated by the local authorities, which include the FSC and FSS. Even though the majority of South Koreans resort to offshore brokers to trade different currency pairs, as long as they have joined a regulated brand, they should not face any legal issues. When it comes to the taxation of the earnings they have gained through their forex trading endeavors, South Koreans are obligated to pay a tax on their forex profits.
Under the current taxation regulations in South Korea, the earnings generated through forex trading fall under the category of miscellaneous income.
The exact tax rate that will apply to one’s income from forex trading may vary, which is why we recommend South Korean traders contact local tax experts. That way, they can be certain that they are compliant with the tax system and laws within their home country.
How Does the Available Leverage Allowed in South Korea Compare to the Leverage Offered by Brokers Regulated Offshore?
One of the reasons for South Korea’s limited forex trading environment is the high risk linked to this type of financial operation. Typically, traders enjoy making use of higher leverage while trading currencies, as high leverage ratios may indicate very lucrative returns. However, what many traders fail to assess is the risk related to trading with high leverage.
To minimize the risk levels, South Korean regulators have imposed extremely low leverage limits. While trading major currency pairs, South Koreans can enjoy a maximum leverage of 1:10. Meanwhile the leverage ratio on non-major currencies is even lower, standing at a maximum of 1:5. Compared to brokers regulated offshore, these ratios are extremely low, which explains why many South Koreans prefer foreign brokers.
If you compare the maximum leverage allowed by South Korean regulators to the limits introduced by regulators like the FCA, ASIC, CySEC, and more, you will get a much higher leverage of 1:30 on major currency pairs and 1:20 on exotic pairs. While significantly higher than the South Korean allowed maximums, the leverage limits at different regions can go significantly higher.
Brokers licensed in the US are allowed to offer their forex traders a leverage of up to 1:50 on major currencies. Meanwhile, you may have a leverage above 1:1,000 in some Asian countries and up to 1:5,000 in regions like the Seychelles where brokers operate under the regulations of the FSA.
Can South Koreans Apply for Professional Forex Trading Accounts?
The leverage limits typically apply to retail traders, with this type of security measure working in combination with negative balance protection to minimize the risks while trading currency pairs online. However, traders who enjoy trading with hefty sums will rarely appreciate such limitations, seeking ways to make use of higher leverage. Usually, this can be achieved through opening a professional trading account with the broker of your choice. South Korean traders that choose to trade with offshore brokers may also be eligible for this type of trading but they will be required to go through several steps to prove they can qualify for the professional trading status.
The conditions that need to be met to be eligible for professional trading may differ depending on the regulator overseeing the trading operations of the broker. That said, most jurisdictions have introduced similar requirements for professional broker clients, asking them to provide proof of their experience, trading knowledge, and financial stability. This can be achieved by completing a certain minimum number of high-volume transactions per a specific period of time. Meanwhile, professional traders may also confirm they are knowledgeable enough by having at least one year of experience working in the financial market sector.
Since professional trading accounts require higher deposit limits and overall trading in higher volumes, traders must prove they have the means of completing high-volume transactions. This is usually proven by having a portfolio consisting of financial instruments that are worth a specific minimum that may be around $/€500,000.
What Trading Platforms are Available to South Korean Traders?
Efficiency in trading is definitely a quality cherished by most South Korean traders who are looking for trading platforms offering smooth and fast executions of orders. Conveniently enough, brokers that cater to South Korean traders tend to support all popular platform variations, with some brokers also offering proprietary platforms. With MT4, MT5, and cTrader being the current popular options in the global trading scene, reputable brokers welcoming South Koreans will also feature at least one if not all of the popular trading platforms.
MetaTrader 4:There is hardly a trader who has not heard of the MT4 platform, which is one of the best options for both newbies and experienced forex traders. Covering enough markets and offering several tools that allow easy market evaluation, MT4 is a great platform that is commonly available to South Korean traders.
MetaTrader 5: Expanding beyond simple forex and CFD trading, MT5 offers a more advanced experience to traders. Offering a wider selection of charts and tools for technical analysis, MT5 is enjoyed by many expert traders. Adapted for both mobile and desktop devices, this platform is often adopted by a large number of brokers catering to South Korean traders.
cTrader: Compared to other platform options, cTrader definitely elevates the trading process for forex traders. Offering a wide range of advanced tools for better market evaluations and risk assessment, cTrader gives traders a better insight into markets. Fast execution of orders is also one of the platform’s strong features, allowing many South Korean traders an intuitive and modern trading experience.South Korean traders can inform themselves about the laws and regulations governing their local financial market by clicking the links provided in this section. Also included are links leading to the websites of several prominent regulators issuing operating permits to offshore forex brokers accepting clients from South Korea.
- The Financial Services Commission (FSC) broadly regulates South Korea’s financial industry and ensures its smooth operation. The regulator drafts legislation, grants licenses to local financial institutions, and safeguards consumers from unethical practices.
- The South Korea Financial Supervisory Service (FSS) helps monitor and supervise financial companies authorized by the FSC, including banks, insurance companies, and investment services providers.
- The FSS regularly publishes consumer warnings against fraudulent companies and products to alert residents of scams and other illicit operations.
- The Financial Disputes Settlement Committee (FDSC) functions as part of the FSS and assists in settling disputes between consumers and financial institutions.
- Look up the licensee registers of foreign regulators like Seychelles FSA, Belize’s IFSC, and Vanuatu’s VFSC to check whether your offshore broker is listed there.