| Updated: June 23, 2025Forex enthusiasts seeking brokers that will offer the best trading conditions in South Korea have come to the right place. By opening real-money accounts and exploring every factor that could make or break your trading experience online, our team of experts fully evaluated the services offered by every brand featured on our list. Our assessment includes product selection, execution speed, the types of platforms users can utilize, and the like. Moreover, all of the brokers we have selected are regulated and characterized by their safety and fairness, making them suitable for traders based in South Korea.
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
ActivTrades72% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Global Prime74-89% of retail CFD accounts lose money
AxiThe vast majority of retail client accounts lose money
Eightcap59.57% of retail investor accounts lose money when trading CFDs with this provider.
IC Markets70.64% of retail investor accounts lose money when trading CFDs with this provider.
Vantage FX
Markets.com74.2% of retail investor accounts lose moneySouth Korean Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. IC Markets | 45,311 | 4.8 ⭐ |
| 2. Forex.com | 2,069 | 4.7 ⭐ |
| 3. Fusion Markets | 3,162 | 4.7 ⭐ |
| 4. Global Prime | 247 | 4.6 ⭐ |
| 5. Axi | 3,793 | 4.5 ⭐ |
| 6. Spreadex | 145 | 4.4 ⭐ |
| 7. Vantage FX | 7,440 | 4.3 ⭐ |
| 8. Eightcap | 3,052 | 4.2 ⭐ |
| 9. Markets.com | 1,219 | 4.1 ⭐ |
| 10. Plus500 | 15,556 | 4.1 ⭐ |
South Korean Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Fusion Markets | 0.93 avg (Classic) | 1.7 avg (Classic) | 1.09 avg (Classic) | 1 avg (Classic) |
| 2. Global Prime | 0.96 avg (Standard) | 1.47 avg (Standard) | 1.19 avg (Standard) | 1.12 avg (Standard) |
| 3. Markets.com | 1.3 | 1.2 | 1.0 | 1.2 |
| 4. Spreadex | from 0.6 | from 0.7 | from 0.9 | from 0.9 |
| 5. IC Markets | 0.8 | 0.8 |
| 0.8 |
| 6. Vantage FX | 0.0 (Raw ECN) | 0.4 (Raw ECN) | 0.3 (Raw ECN) | 0.5 (Raw ECN) |
| 7. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
| 8. Forex.com | 1.0 min (Standard) | 0.9 min (Standard) | 1.3 min (Standard) | 1.3 min (Standard) |
| 9. Axi | 1.2 | 1.3 | 1.1 | 1.3 |
| 10. Plus500 | 1.4 | 2.2 | 1.5 | 1.9 |
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 4.7 out of 3,162 reviews Number of CFD Forex Pairs to Trade 80+ 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: 0.93 avg (Classic)
USDJPY: 1.7 avg (Classic)
EURGBP: 1.09 avg (Classic)
GBPUSD: 1 avg (Classic)Forex 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, MT4 Webtrader, MT4 Android; for VFSC clients MT4, MT5, and GP Copy Trustpilot Rating 4.6 out of 247 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: 0.96 avg (Standard)
USDJPY: 1.47 avg (Standard)
EURGBP: 1.19 avg (Standard)
GBPUSD: 1.12 avg (Standard)Forex 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
ActivTrades Broker Details Supports Korean No Korean Currency (KRW) No Regulators FCA (UK), CMVM (Portugal), CVM (Brazil), SCB (Bahamas), FSC (Mauritius) Min Deposit $0 Trading Platforms ActivTrader, TradingView, MT4, MT5 Trustpilot Rating 4.5 out of 1,460 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:30 (1:400 Bahamas)
Index CFDs: 1:20 (1:200 Bahamas)
Cryptocurrencie CFDs: 1:2 (1:20 Bahamas)Spread EURUSD: 0.50
USDJPY: 0.50
EURGBP: 0.80
GBPUSD: 0.80Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, PayPal, Apple Pay, Google Pay, Skrill, Neteller, Bank Transfer, Cryptocurrencies Withdrawal Methods Visa, Mastercard, PayPal, Skrill, Neteller, Bank Transfer, Cryptocurrencies Key Pros
- Holds an FCA license since 2009
- Safeguards all traders with negative balance protection
- Stores customer funds at first-tier banks like Barclays and Lloyd’s
- Supports free PayPal deposits and withdrawals
Key Cons
- Additional fees on deposits with cards
- Charges administrative fees after 50 weeks of inactivity
Forex.com Broker Details Supports Korean No Korean Currency (KRW) No Regulators ASIC, MAS, FCA, CIRO, JFSA, CFTC, CySEC, CIMA, CySEC Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, TradingView, WebTrader, NinjaTrader Trustpilot Rating 4.7 out of 2,069 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.0 min (Standard)
USDJPY: 0.9 min (Standard)
EURGBP: 1.3 min (Standard)
GBPUSD: 1.3 min (Standard)Forex Commission per Lot per Trade $0 for Standard accounts; $5 per standard lot per side for Raw accounts Deposit Methods Visa, Mastercard, Skrill, Neteller, Wire Transfer, PayPal Withdrawal Methods Visa, Mastercard, Wire Transfer, Neteller, Skrill, PayPal Key Pros
- Supports a great selection of trading platforms
- Enables easy mobile trading
- Offers over 80 currency pairs
- Provides a vast variety of over 6,000 products
- Forex spreads can be very competitive
Key Cons
- Navigating the platforms can be difficult for beginners
- Instruments on MT4 are significantly fewer than other platforms
- Charges monthly fee after 12 months of inactivity
FP Markets Broker Details Supports Korean No Korean Currency (KRW) No Regulators ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines), SCB (Bahamas) Min Deposit $50 (AU$100) Trading Platforms MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView Trustpilot Rating 4.9 out of 8,641 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 1.2
USDJPY: 1.4
EURGBP: 1.4
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Standard Account; $6 round turn on Pro Account Deposit Methods Visa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker, PayPal, XPay, Rapyd Withdrawal Methods Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal Key Pros
- Offers plenty of educational trading tools
- Broker with competitive spreads
- Allows easy trading on the go
- Regulated by reputable authorities
- Offers a decent number of currency pairs
Key Cons
- Supported trading platforms are a tad outdated
- Could expand selection of products
- No negative balance and investor protection for clients under ASIC
BlackBull Markets Broker Details Supports Korean Yes Korean Currency (KRW) No Regulators FSA (Seychelles) (No. SD045), FMA (No. FSP403326) Min Deposit $0 (Standard)$2,000 (Prime)$20,000 (Institutional) Trading Platforms MetaTrader4, MetaTrader5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade, BlackBull Invest, ZuluTrade Trustpilot Rating 4.8 out of 1,876 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:500
Index CFDs: 1:500
Cryptocurrencie CFDs: 1:500Spread EURUSD: 0.9
USDJPY: 1.2
EURGBP: 1.7
GBPUSD: 1.2Forex Commission per Lot per Trade $0 Standard; $6 per lot Prime; $4 per lot Institutional Deposit Methods Visa, Mastercard, Neteller, Airtm, Skrill, Bank Transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, Fasapay, China Union Pay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar Withdrawal Methods Visa, Mastercard, Bank Transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China Union Pay, Boleto, Fasapay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin Key Pros
- Uses proprietary copy-trading platform
- Swap-free trading via ECN Standard and Prime accounts
- Multi-platform support
- Provides a 24/7 customer support service
- Great Education Hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 fee on withdrawals
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 15,556 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: 1.4
USDJPY: 2.2
EURGBP: 1.5
GBPUSD: 1.9Forex 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), SCA Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, WebTrader, TradingView, Capitalise.ai, FlashTrader Trustpilot Rating 4.2 out of 3,052 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), FMA Min Deposit $0; $5 (EU and UK) Trading Platforms MetaTrader4, MT4 WebTrader, Axi Mobile Trustpilot Rating 4.5 out of 3,793 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: 1.3
EURGBP: 1.1
GBPUSD: 1.3Forex 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 4.4 out of 145 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: from 0.6
USDJPY: from 0.7
EURGBP: from 0.9
GBPUSD: from 0.9Forex 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 (Cyprus), ASIC (Australia), SCB (Bahamas), CMA (Kenya) Min Deposit $200 Trading Platforms MetaTrader4, MetaTrader5, cTrader, ZuluTrade Trustpilot Rating 4.8 out of 45,311 reviews Number of CFD Forex Pairs to Trade 62 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, UnionPay, Local Online Banking 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 its low spreads
- Supports all industry-standard trading platforms
- Supports a wide range of payment solutions
- Low forex trading commissions
Key Cons
- Non-EU customers have no investor protection
- Not listed on a 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 4.1 out of 1,219 reviews Number of CFD Forex Pairs to Trade 54 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.3
USDJPY: 1.2
EURGBP: 1.0
GBPUSD: 1.2Forex 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 like MT4/MT5
Key Cons
- Offers only CFD products
- Charges inactivity fee
- No dedicated platform for copy trading
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 Koreans. However, due to a series of strict regulations, the onshore forex trading sector in South Korea is rather limited. This forces local traders to opt for offshore brokers.
In addition, South Korean residents may have issues with funding their accounts depending on what other products they plan on trading. At the time of writing, South Korean officials are planning on banning the use of credit card deposits for crypto trading, for example.
Traders from the Asian country are allowed to participate in margin trading, but brokers typically only permit this if the trader has passed an assessment evaluation successfully, which is typically done during the registration process. Users should also keep in mind that when it comes to the trading of major currency pairs, the leverage cap stands at 1:10.
Since there are no local brokers authorized to offer extensive forex trading services to South Koreans, traders from the country can turn to offshore companies 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 involving the Korean won like USD/KRW, JPY/KRW, and more. 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. Although no licenses have been issued when it comes to foreign brokerages, many international brands have chosen to target 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. However, the country’s financial watchdogs have yet to ban the joining of trading websites regulated in different jurisdictions.
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 margin trading. Credit card deposits to offshore broker accounts have also been banned by local authorities.
As mentioned previously, a prohibition of the use of credit cards for deposits when it comes to cryptocurrency trading is also on the horizon, which could impact forex enthusiasts who are also interested in digital currencies. At the same time, the Ministry of Economy and Finance shared its plans to stabilize stablecoin cross-border forex trades. The FSC also 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. Additionally, there is a buzz around the potential issuing of a stablecoin pegged to the South Korean won.
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 supervisory bodies in the trading sector.
So long as a South Korean trader picks a properly authorized brokerage, they can be certain that their funds will be properly protected. Keeping customers’ money in segregated accounts is a common requirement that licensed brands must adhere to, seeing as it ensures the safety of their clients’ funds. In addition, many regulators mandate that licensees 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. This ensures that they are financially stable and can handle the orders of their clients.
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 offer 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 to pick from in terms of brokers that support this tool. This way, substantial losses will result in their balance simply being reduced to $0 as opposed to falling below that threshold.
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 utilize 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 the restrictions imposed by foreign regulators, these ratios are extremely low. In forex markets supervised by the FCA, ASIC, and CySEC, for instance, traders can use a much higher leverage of 1:30 on major currency pairs and 1:20 on exotic pairs. Meanwhile, brokers licensed in the US are allowed to offer their forex traders a leverage of up to 1:50 on major currencies. You may also come across leverage caps of 1:200, 1:500, or even higher in regions whose financial markets are governed by watchdogs with a more lenient approach to forex regulations, with the Seychelles’ FSA being an example.
Can South Koreans Apply for Professional Forex Trading Accounts?
The leverage caps we have discussed thus far typically apply to retail traders, and they are typically utilized in combination with negative balance protection to minimize the risks of currency trading. Forex devotees seeking to use hefty sums while participating in the forex market will typically seek higher leverage.
If you happen to be such a trader, it is worth considering 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 that include asking clients 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 typically involves trading in higher volumes, traders must prove they have the means of completing high-volume transactions. Thus, a financial portfolio of at least $/€500,000 is typically required.
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 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 software. 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 said brands.
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 products, MT5 offers a more advanced experience to traders. A wider selection of charts and tools for technical analysis makes MT5 the platform of choice for 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: cTrader is a platform that has been around since 2011. Compared to other options, it is often considered to elevate 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.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.