A complete guide to top brokers in South Korea

The Republic of Korea is a shining example of how the well-established economic policy can bring the country to one of the most successfully developed economies in the region. South Korea is a country in East Asia located in the southern part of the Korean Peninsula, with a large border with the neighboring ( and quite hostile) North Korea.

The country’s overall territory reaches 100, 363 square kilometers, and almost half of the South Korean population ( 25 million people)  of 51 million people live in Seoul, the world’s fifth-largest metropolitan area. South Korea is considered a developed country, with the third-highest Human Development Index, succeeded only by Singapore and Japan.

As the country’s economy is flourishing, the field of Forex trading is also growing in popularity. In this guide, we will have a closer look at how the FX market is regulated, provide you with some tips on how to choose the best Forex broker in South Korea, and discover how one can be legally eligible to become a Forex broker in this country.

List of top brokers in South Korea

One thing that many traders are usually not happy doing is finding a reliable brokerage to join. Regardless of whether you are an experienced trader, or just starting your career as a Forex trader, finding a broker that is right for you is never easy. The market is so overflown with the variety of brokerage, that the choice is often overwhelming and it is often hard to differentiate between a legitimate brokerage and what can potentially be a fraud scheme that will cost you your hard-earned funds in the long run.

In order to save you the time and effort spent on researching and choosing one of the top Forex brokers in South Korea, we decided to examine the available options ourselves. What we came up with is a full list of our top picks that you can find below.

XM Group

XM Group Forex Review

Minimum deposit

5 USD

Licences

CySEC, IFSC, ASIC

Maximum leverage

1:30*

US Clients

No

Exness

An in-depth review of Exness Forex broker

Minimum deposit

1 USD

Licences

CySEC, FCA, FSA

Maximum leverage

1:Unlimited

US Clients

No

IQ Option

IQ Option Review – can the broker be trusted?

Minimum deposit

10 USD

Licences

CySEC

Maximum leverage

1:1000

US Clients

No

EagleFX

EagleFX Review – Is it worth your time and money?

Minimum deposit

10 USD

Licences

N/A

Maximum leverage

1:500

US Clients

No

RoboForex

RoboForex Broker

Minimum deposit

0 USD

Licences

CySEC, IFSC

Maximum leverage

1:2000

US Clients

No

How is the South Korean FX market regulated?

The main financial regulatory body in South Korea is the Financial Supervisory Service (FSS) that operates under the broad supervision of the Financial Services Commission (FSC). The FSS is responsible for supervising and examining the country’s capital market and various financial institutions including banks, non-bank financial investment companies, insurance companies, financial holding companies, or any other financial institutions.

When it comes to Forex trading, there are a number of regulations in South Korea that you need to be aware of. To begin with, the Electronic Financial Transaction Act is aimed at regulating any electronic financial transactions in South Korea and underlines the rights of the parties involved in all electronic financial transactions. This act also applies to the local FX market, as the participants of this market exchange currencies on electronic platforms.

Overall, one can see that Forex trading in South Korea is quite well regulated, and the participants of the market are protected there. Nevertheless, it does not mean the South Korean Forex market is completely free of scam schemes. In order to ensure that your funds are completely safe at all times, we recommend that you only join the regulated Forex brokers with an official license from a reputable regulatory authority.

When it comes to the international Forex brokers operating in South Korea, we can assure you that there is no danger in joining one, should the brokerage in question be licensed by a well-known and trustworthy regulatory authority, such as the CySEC, or FCA. However, you should also keep in mind that the license information that the broker discloses on its website is not always accurate, which is why it is so important to contact the relevant regulatory authority directly and make an inquiry about the brokerage that you wish to join.

How can you become a Forex trader in South Korea?

As in many other countries in the world. the main legal requirement that you, as an aspiring Forex trader need to meet is being aged 18 or older. This regulation is put in place in order to prevent minors from entering what can potentially become a risky financial enterprise. Having met that, the only other requirements that you need to worry about is the conditions that your brokerage of choice has in place – those usually range from your employability status to the size of your monthly income.

Many beginners often wonder whether it is free to become a Forex trader. the answer is yes and no at the same time. It is, indeed, free to sign up with a brokerage and even use the demo account to practice your trading skills. However, if you wish to access the actual market, you will need to make a deposit.

The size of the deposit depends on the brokerage that you end up joining, however, it is in no way an indicator of how good or bad a certain brokerage is. For example, on the list of best Forex brokers in South Korea that we provided earlier, you will be able to find anything from 5 – 500 USD or equivalent. A good way to approach the size of an initial deposit is to remember to only deposit what you will feel comfortable losing.

What are the best online trading platforms in South Korea?

Since the field of Forex trading is quite well-developed in South Korea, you will be able to find a variety of trading platforms to choose from. Some brokers will offer their own, custom-made platforms, while others prefer some of the most popular pieces of software, such as cTrader, MetaTrader 4, and MetaTrader 5. A trading platform is one of the most important components of your future success as a Forex trader, as it will define both the efficiency of your order execution and the exposure to various trading instruments and markets.

When it comes to beginners, most professional traders recommend using MT4 or MT5. Developed back in 2005 in Russia, by a company called MetaQuotes, this piece of trading software has established itself as both reliable and user-friendly. It is used by almost 90% of the brokers worldwide, which means that by learning it once, you will not have to learn it again when switching between the best Forex brokers in South Korea in 2021. Moreover, the community of MetaTrader users is quite large, and you will always be able to contact it in order to get some insight into how to use it best or find answers if you come across any difficulties.

What are the main pros and cons of trading Forex in South Korea?

It is never easy to decide whether or not you should join the field of Forex trading, as along with the potential profit that it can bring, it can also be the source of some devastating financial losses. Below you will find the list of the main advantages and disadvantages of joining one of the best South Korean Forex brokers.

Pros: 

  • The market is well regulated, and it is safer than most of the FX markets in this region
  • The local national economy is very advanced, and you, as a Forex trader, can really benefit from all the perks that it has to offer

Cons: 

  • Despite the regulations, there are still some scammers disguised as legitimate brokers in South Korea, so you need to approach the market carefully

So, should you join one of the best South Korean Forex brokers?

Overall, the South Korean Forex market is easy to recommend. The country’s economy is striving, and the financial markets are well regulated. Of course, it does not mean that you can be completely reckless and trust every single brokerage that you come across, however, you can still be sure that you, your rights and hard-earned funds, are well protected in South Korea.

If you are a citizen of South Korea with an interest in Forex trading, we can definitely advise you to explore that local market further by joining one of the regulated Forex brokers in South Korea.