The 4 best Forex Brokers and platforms in South Korea – Comparison and reviews

Forex trading has become so popular in South Korea. Forex deals have increased in South Korea every year over the past five years.

See the list of the best Forex Brokers in South Korea:

Forex Broker:
Review:
REgulation:
Spreads:
Assets:
Advantages:
Open account:
1. BlackBull Markets
BlackBull Markets logo
FSPR, FSCL
Starting 0.0 pips & negotiable commission per 1 lot
500+
(64+ currency pairs)
+ ECN Broker
+ Deep pool execution
+ High liquidity
+ Best execution
+ Leverage 1:500
+ MT4/MT5
Live-account from
$ 200(Risk warning: 79% of retail CFD accounts lose money)
2. RoboForex
RoboForex logo
IFSC
Starting 0.0 pips & $ 4.0 commission per 1 lot traded
9,000+
(50+ currency pairs)
+ Huge variety
+ Micro accounts
+ Free bonus program
+ Leverage up to 1:2000
+ ECN accounts
+ MT4/MT5/cTrader
Live-account from $ 10(Risk warning: 79% of retail CFD accounts lose money)
3. Pepperstone
FCA, ASIC, DSFA, SCB
Starting 0.0 pips & $ 3.5 commission per 1 lot
1,000+
(40+ currency pairs)
+ Fast execution
+ Large FX Broker
+ Good service
+ MT4/MT5/cTrader
+ TradingView Charts
Live-account from
$ 200(Risk warning: 74-89 % of retail investor accounts lose money when trading CFDs)
4. IQ Option
IQ Option logo
CySEC
Starting 0.1 pips variable & no commission
500+
(25+ currency pairs)
+ Easy to use
+ Binary Trading
+ Support 24/7
+ Min. Deposit 10$
+ Lowest spreads on main trading hours
Live-account from $ 10(Risk warning: Your capital might be at risk.)

Advancements in technology, more comprehensive internet coverage, and a steady increase in competition among forex platforms in South Korea, have caused Forex trading to be easy to access. Thus, resulting in reduced trading costs.

Top 4 Forex Brokers and platforms in South Korea

  1. BlackBull Markets
  2. RoboForex
  3. Pepperstone
  4. IQ Option

1. BlackBull Markets

The official website of the Forex Broker BlackBull Markets

BlackBull Markets is an authorized Forex broker known for quality service. It was founded in 2014, having Auckland, New Zealand, as its headquarters.

Currencies such as EUR, USD, and GBP are used to deposit funds. The option used in the deposit must tally with the withdrawal method. A 30-day demo simulator is offered with $100,000 virtual funds.

To create a BlackBull Markets account, submit an online application form, carry out an ID verification process, confirm your email address and wait a while for permission.

Advantages of BlackBull Markets :

  • Its spread in 2021 for Standard accounts was 1.25 pips, with an average trading cost;
  • SSL-encrypted data;
  • There is an open selection of assets, as BlackBull markets have an unending list of assets; and
  • BlackBull Markets allows traders from South Korea, the UK, South Africa, Italy, UAE, and other countries.

Disadvantages of BlackBull Markets 

  • Investors from the US are not granted access; and
  • Withdrawal fees.

(Risk Warning: Your capital can be at risk)

2. RoboForex

The official website of the Forex Broker RoboForex

RoboForex was awarded the Most Trusted Broker in 2021 by the International Business Magazine Awards. It has been operating since 2009. 

The minimum deposit is $10 with a spread starting from 0 pips. To open a RoboForex account, sign up, then fill out the online application form, and make an initial deposit.

RoboForex has clients from 170 countries and supports 18 languages. With various clients, RoboForex offers excellent assistance throughout the process with educational tools, customer support, and analytical research.

There are different deposit methods and withdrawal options to select. Five currencies are approved: USD, EUR, RUB, GOLD, and CNY. RoboForex has eight classes of assets. 

RoboForex is known for its recognized trading experience, significant technological provisions, and quality customer support. Before creating a real account, traders can use the RoboForex demo account to verify the conditions offered.

Merits of RoboForex

  • For every newly registered that signs up, RoboForex provides a bonus of $30 in initial funds;
  • RoboForex operates a rule of negative balance protection, which protects clients’ deposits from losses; and
  • Favorable trading terms with a low minimum deposit.

Demerits of RoboForex

  • Clients from Australia, the US, Japan, and Canada are not permitted to trade; and
  • There are limited tools when trading on the R Trader platform.

(Risk Warning: Your capital can be at risk)

3. Pepperstone

The official website of the Forex Broker Pepperstone

Pepperstone is known for its quality research and multiple platforms for copy trading. It was founded in the year 2010. It has low risk with a total Trust score of 93 over 99. Pepper stone started operating in South Korea after getting its license from BaFin.

Pepperstone provides security to its clients by segregating the clients’ funds from their funds. Withdrawal of funds in pepper stones takes up to 1-3 business days, with a wide variety of withdrawal options.

Pepperstone provides two types of accounts: the standard account and the razor account. The razor account is recommended for traders who want lower fees. Pepperstone account opening involves; registering your email and password, confirming your email, and moving to the secured area for clients.

Benefits of Pepperstone 

  • It is featured on daily market commentary and an economic calendar;
  • 24/7 Customer Service;
  • Low spreads; and
  • It trades over 72 currencies.

Downsides of Pepperstone

  • US traders are not permitted; and
  • Only 90% of your free margin can be withdrawn.

(Risk warning: 74-89 % of retail investor accounts lose money when trading CFDs)

4. IQ Option

The official website of the forex broker IQ Option

IQ Option was established in the year 2013, with a minimum deposit of $10. IQ Option has a user-friendly platform.

Forex trading tools include; multi-chart layouts, technical analysis, economic calendars, volatility alerts, and market updates. The IQ Option is available in 13 languages.

IQ Option provides competitive spreads and currency pairs, including EUR/USD, USD/JPY, GBP/USD, USD/CAD, AUD/USD, NZD/USD, and USD/CHF. Recently, the IQ Option has 50 Forex pairs on its platform.

The withdrawal process when using the IQ Option platform takes up to 3 days to verify the client’s identity. The option of withdrawal must correspond with the deposit or payment option.

Payment options with IQ Option
Payment options with IQ Option

Spreads in the IQ Option depend on the volatility, time, and liquidity. Countries such as South Korea, Qatar, Kuwait, Italy, Thailand, UAE, Luxembourg, and others are accepted.

IQ Option provides a free demo account with virtual money of $10,000. Demo accounts can be used as long as possible to assess trading strategies and become familiarized with the platform before depositing real money.

An IQ Option client doesn’t have to fill in any information to use the demo account. Nevertheless, some other brokers require you to fill in certain information to have access to their demo account.

Pros of IQ Option

  • Demo accounts can be used as long as possible to assess trading strategies;
  • Unlike other platforms, you are not required to fill in your details before accessing the demo account platform; and
  • No processing fees are charged for funds deposits. 

Cons of IQ Option

  • Deposits can take up to 2-3 working days; and
  • Withdrawal limitations.

(Risk warning: Your capital might be at risk.)

What are the financial regulations in South Korea?

The Foreign Exchange Transactions Act controls forex operations, the exchange rate system, receipts, forex payments, and the movement of funds. They are responsible for outlining the forex business and forex institutions’ responsibilities.

The Foreign Exchange Transactions Act is backed up by the presidential body, law enforcement agencies, decrees, and regulations. The act designs the system’s framework, which is administered using the rules.

The decrees are given by the Officer of Finance and are subject to periodic and subsequent modifications. The Officer may assign some of his authority to regulate to other agencies, including South Korea’s Central Bank, the FSC, and many more.

Bank of Korea logo

The other acts involved in forex laws and guidelines that assist the Foreign Exchange Transactions Act include:

  • The International Trade Act; and
  • The Foreign Investment Promotion Act.

The ITA aims to give a country’s economic growth quota by achieving a non-constant equilibrium in its trade balance, promoting international trade growth, and establishing fair trade practices. 

The primary function of the International Trade Act is to control the flow of commodities; this makes it different from the Foreign Exchange Transactions Act. 

However, the Foreign Investment Promotion Act seeks to promote foreign capital investment and the innovation of an effective technological system in South Korea. This is done to control and use such foreign funds and technological innovations. 

Security for traders in South Korea – What you need to know

A couple of regulations exist that guide and control forex transactions in South Korea. For instance, the EFTA was created to direct electronic forex dealings in South Korea.

EFTA has a couple of provisions stating the parties’ rights in an e-transaction and the security of forex clients and licensed brokers. This also involves forex activities, where forex clients can convert currencies using the available e-platforms.

EFTA logo

The act requires forex platforms in charge of issuing or giving out e-currencies, e-funds, e-debt payment, e-settlement services, e-depository management, and other third parties that work with the client and broker.

Platforms that don’t operate electronically are required to gain approval and permission from the regulatory bodies in charge.

These include platforms in the financial system or platforms offering credit assistance to retail forex traders.

As a regulation, buying listed securities and selling them is prohibited in South Korea unless under exception by the regulatory agencies.

In South Korea, a set of guidelines have been initiated to reduce the volatility of finance in its markets.

In the country, forex platforms are permitted to operate interbank currency trade. The guidelines allow brokers to carry out OTC trades.

To simplify currency trading, South Korea canceled the cross-border transactions ban. Before, cross-border transactions were only made after receiving approval from the appropriate bodies. However, in 2005, clients trading currencies could now do so without the stress of the approval process.

EFTA Korea general information

The position of currencies in 2006 was restricted to 30% of the funds of Korean banks. However, in 2005, it was upgraded to 50%. This was done after a review of the number of forex traders involved.

Subsequently, South Korea’s financial regulators sought to promote forex trading through the amendment and modifications of currency forwards rules.

This was done to be sure that settlement mismatch risk was reduced. This reduction was made by investors from abroad that sell listed securities and convert them into foreign currencies.

Again, companies offering these services were permitted not to report their transactions to the regulatory bodies. This is done specifically for the transactions done OTC.

New regulations declared to make the forex regulations effective were; establishing new guidelines for liquidity risk control, a minimum requirement for safeguarding foreign currencies by the banks, and limiting the placement of transactions on currency forward by platforms not licensed by those regulatory bodies.

Is it legal to trade Forex in South Korea?

South Korea Flag

There is a misunderstanding that forex on the South Korean financial market is considered insecure. This doesn’t seem right, as Forex in South Korea is active.

Forex trading is permitted in South Korea. To operate, there must be an exchange of currency for Won. Foreign exchange is essential to import, export, and international investment.

The important thing is that when trading forex, you pick a safe and reputable broker that is regulated. South Korea Forex trading is not banned; many international online brokers offer favorable trading conditions.

How to trade Forex in South Korea – A quick overview

To trade forex in South Korea, you are advised to follow these steps below:

Open a Forex trading account

The first phase is to get registered with either an international broker or a South Korean broker. The advantage of using an international broker is to avoid currency translation risk. Likewise, the benefits of dealing with a South Korean broker include; the provision of yearly financial statements when filing tax returns and the knowledge and experience of using South Korean regulations.

In this step, Forex traders are encouraged to conduct proper research on the best Forex broker and also make a market analysis of the country’s economy they wish to operate in.

Start with a demo account or real account

Clients who wish to trade Forex in South Korea are advised to open a demo account first. Here, virtual funds are used. Some Forex brokers don’t need any of your details for you to be able to access this account. Newbies in Forex trading are encouraged to learn the basics and spot the best broker using the demo trading account.

A real account is then opened with proper registration and minimum deposits made. Here, real money is deposited, and real money is earned and withdrawn.

Deposit money

Different Forex brokers have their standard minimum deposit fee and commissions, which may be free or not. The initial deposit is high for some brokers, while some are low.

There are a wide variety of deposit options. They include; bank-wire transfer, Fasapay, bank card, broker-to-broker transfer, Qiwi, bitcoins, Neteller, and others.

For most brokers, the initial deposit option must tally with the withdrawal method.

Different currencies such as EUR, USD, RUB, GOLD, GBP, JPY, CAD, AUD, NZD, CHF, CNY, and others are used to make payments.

Notice:

The payment methods are depending on your country of residence. Forex Brokers are offering all kinds of methods separately for each country.

Use analysis and strategies

MetaTrader 4 analysis
MetaTrader 4 analysis

There are two primary strategies used in South Korea. They are;

Fundamental analysis

The fundamental analysis examines the country’s economic situation and its trading strength. The one with the highest increase in their currency value is selected. Conditions to consider here include; interest rates, growth of GDP, the balance of trade, index of consumer confidence indexes, etcetera.

Technical analysis

The technical analysis involves a careful observation of price data and charts. Forex traders adopting this strategy pay little attention to the economic or political situation of the countries under observation. Factors to consider in this analysis method include; resistance levels, reversal signals, and breakout points.

Make profit

In South Korea, a Forex trader earns W83,798 on average. An experienced or advanced currency trader with massive deposits and good strategies makes a considerable profit.

Certain privileges are enjoyed by Forex trades in South Korea, unlike Forex traders in other countries. South Korea’s currency (Won), ranking 12th in the world’s financial system, is a secure currency to trade.

South Korea has a developed credit and banking system, making it almost impossible to secure any loss.

Wired transfers, e-wallets, debit cards, and credit cards are different withdrawal methods.

Newbie Forex traders are encouraged to be open-minded, as trading is difficult to comprehend. Nevertheless, training booklets and videos, the proper guidance, and experienced brokers can help them realize profits in no distant time.

Conclusion: The best Forex Brokers are available in South Korea

Regardless of your location, it is important to understand how forex trading works before delving into it.

These are some fees charged by forex brokers: interest rate, spreads, and commission.

Fees charged on instant financing, account fees, deposit fees, and withdrawal fees are all expenses incurred by the client. The result of instant financing is either a profit or net debit. Forex platforms and brokers offer two structures of price to clients. These include commission fees and the spread model. Commission fees are structured and mainly determined by trade volume.

Clients are not expected to deposit an extra spread here apart from the commission. Spread can be defined as the difference between purchase and sales prices between currencies. The spread fee requires forex brokers to earn funds by charging an extra spread. The gap between the spread fee and the additional fee is dependent on the demand of trade and the supply of trade.

The fees charged and spread can result in a massive sum of money. This depends solely on the frequency of trade. Therefore, you must consider your trading analysis and plan to identify and use the forex account best for you.

FAQ – The most asked questions about Forex Broker South Korea :

Which broker offers excellent forex trading services in South Korea?

There are not one but many excellent brokers in South Korea. For instance, you can choose brokers such as Pepperstone, BlackBull Markets, etc., to get the best trading services. These brokers are highly efficient and renowned for their great services. Moreover, they allow traders to access innovative features to simplify forex trading.

Is forex trading in South Korea risky?

Forex trading can be risky for a trader, no matter his location. However, an expert trading analysis can serve as a savior for a trader. A well-found trading analysis will always help a trader to come up with an accurate prediction. Interestingly, a trader can make the right prediction by using several trading platforms’ tools and techniques. Thus, traders should choose a broker wisely and consider everything it offers.

What is the potential of forex trading in South Korea?

There is a lot of potential for traders who love to trade forex in South Korea. The world is growing at an uncertain pace, and it offers them an opportunity to benefit from the fluctuating currency rates. Forex traders in Korea have a very high potential to earn money if they choose the right broker and make a good technical analysis. These five brokers help you choose to enhance your forex trading journey in South Korea.

Last Updated on October 20, 2023 by Andre Witzel