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Forex Trading in South Korea • Forex Strategies • Benzinga

In an uncertain global market driven by COVID, South Korea is actively examining its forex policies. The quick actions of the Bank of Korea (BOK) and other financial regulators during the crisis helped to avoid initial market panic from spreading. The country’s positive relations with the U.S. and China have also helped to stabilize its…

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In an uncertain global market driven by COVID, South Korea is actively examining its forex policies. The quick actions of the Bank of Korea (BOK) and other financial regulators during the crisis helped to avoid initial market panic from spreading. The country’s positive relations with the U.S. and China have also helped to stabilize its financial market even considering the won’s exchange rate against major currencies.

Attribution: Flickr

As a result, many forex brokers are able to offer commission-free trade executions in South Korea. Because the country is also well-positioned in the middle of 3 huge forex exchanges — Japan, Singapore and Hong Kong — South Korean investors can easily access the Asian trading session. South Korea is also a wide-open market for alternative foreign investments like the green market, flexibility which helps to fortify the won.

Get Started with Forex in South Korea

You can trade forex reliably in South Korea through the following steps:

  1. Connect to the internet.  You need a strong internet connection to participate in the forex market. The best strategies don’t matter if you can’t execute the investment when you want, and you will need good internet to connect to your broker and trading platform.
  2. Choose your broker.  There are many offshore brokers that operate in South Korea. These companies should be regulated through the financial authorities in their countries or through international organizations.
  3. Connect your broker to your bank.  Your broker facilitates your investments using money from your other bank accounts. You will need to hold money in your investment account in order to facilitate timely investments.
  4. Fund your broker account.  Be sure to choose a broker that allows timely withdrawals of your funds. Check the online reviews of the broker before funding your account.
  5. Choose a trading platform.  You can choose a 3rd-party trading platform and work with your broker or use the user interface that your broker controls.
  6. Invest.  Your forex career begins with your 1st trade. However, reputable brokers will allow you to practice with a virtual account before investing with real money. Using a virtual account with fake money allows you to get used to the interface and how the market moves.

South Korea Forex Trading Strategies

Now that you have your setup to properly trade forex, you can begin to dig down into the strategies that will help you profit. These trading strategies will provide a framework for you to apply your daily tactics. Choose the one that is most appropriate for your personality and risk tolerance.

Attribution: Shutterstock

Momentum Trading

Momentum trading is a short-term technical investment strategy that focuses on capturing profit from a strong trend. Momentum traders ignore uncertain economic activity and focus on currencies that are moving in 1 direction. The direction could be up or down. This kind of momentum usually corresponds with an important change in the economic or political climate of the country backing a currency — an internal policy change, acts of war, political upheaval or a significant change in gross domestic product (GDP).

Swing Trading

Swing traders capture short-term trends regardless of what those trends may be. If you are trading a swing, you may hold a position for a few weeks at a time. The trend may not be straight up or down as in momentum trading; the currency may trade in a range. This kind of activity may correspond more with normal economic activity, which is an important skill to learn. The natural ebb and flow of currency exchange provide smaller opportunities to profit, but those opportunities are much more frequent.

Position Trading

The position trader is looking past short-term trends into the long-term activity of a currency. An expanded investment horizon usually smoothes out the short term fluctuations of day-to-day news cycles and events. The primary trend of a currency will likely continue for months or years barring a huge event, and long-term investors can profit from the irregularities in daily movements and the primary trend.

Forex Trading Example in South Korea

KRW/USD is trading at 0.00083/0.00087. You want to buy ₩500,000 now and sell when the price goes up. The margin rate for the currency pair is 9.22%. You will need $39.19 cash in your account to control ₩500,000 with these terms. 

After 11 hours of market activity, you want to sell because KRW/USD is trading at 0.00095/0.00099. This is a 0.8 point increase, and your final profit is $40 — 

(KRW500,000 x 0.00095) – (KRW,000 x 0.00087).

Making Money with Forex in South Korea

Attribution: Newsbreak

When you know what kind of investor you are, you can dive more deeply into the financial vehicles used to profit in the forex market:

  • Short selling: The traditional way of earning profit in forex is known as trading the “long” side. The short side involves selling a currency first at a high price before buying it back more cheaply later.
  • Contract for differences (CFDs): CFDs follow the price changes of currencies. If you buy and sell using CFDs, you never own that currency. However, the changes in price affect your account value in the same way.
  • Binary options: These are yes and no scenarios that provide investors with the chance to win or lose a large percentage of an investment in a short time.

Best Online Forex Brokers in South Korea

Choose from the best-regulated forex brokers to ensure the security of your trades and the protection of your personal information:

Account Minimum

$750

Pairs Offered

N/A

Account Minimum

100 of your selected base currency

Pairs Offered

80+

Account Minimum

100 of your selected base currency

Pairs Offered

80+

1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
  • Confusing margin requirements that vary by currency
  • Limited customer support options
  • Cannot open an IRA or other retirement account
Account Minimum

$50 USD

Pairs Offered

47

Account Minimum

$50 USD

Pairs Offered

47

1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade
Account Minimum

100 EURO

Pairs Offered

50+

Account Minimum

100 EURO

Pairs Offered

50+

1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
Commissions

$0.02 per share

Account Minimum

$200

Commissions

$0.02 per share

Account Minimum

$200

1 Minute Review

Pepperstone is an Australian broker focused on providing international forex, CFD and cryptocurrency trading. Though U.S. traders currently cannot open an account with Pepperstone, the broker remains an affordable and comprehensive option for international traders. 

Pepperstone offers traders access to over 61 forex markets, over 60 CFDs for index funds and stocks and 5 cryptocurrencies. Leverage options with Pepperstone are extensive; you may qualify for up to 500:1 leverage when trading currencies and up to 5:1 leverage when trading cryptocurrencies, for example.

There are a few areas where Pepperstone can afford to improve. We’d love to see Pepperstone add its own trading platform in the future instead of relying entirely on 3rd-party platforms. We’d also love to see direct stock and fund purchase options in the future. Despite these flaws, Pepperstone remains a very strong choice for international traders.

Best For
  • International traders interested in trading CFDs from foreign markets and currencies
  • Traders who are already familiar with the MetaTrader or cTrader platforms
  • Traders who are looking for leverage when trading cryptocurrencies
Pros
  • Access to over 61 forex pairs and over 60 stock CFDs
  • Leverage available for both forex and cryptocurrency trading
  • Wide range of educational tools and courses that both beginners and experts can use
  • 24/7 customer service
Cons
  • Not currently available to U.S. traders
  • No option to purchase stocks, bonds or mutual funds directly; only CFDs are available

Forex Terminology

You will need to know the terms that investors commonly use to represent important ideas in forex:

  • Pip: The smallest division of currency allowed in the forex market, equal to $0.0001
  • Lot size: The amount of currency in your forex orders
  • Orders: The description of how you will buy and sell currency in the market
  • Calls: A contract between a buyer and a seller to transfer a certain amount of money on a certain date at a certain price

Playing Its Part

South Korea plays a huge role in the $1.934 quadrillion global forex market although its currency is not considered one of the world’s strongest. As a central point of exchange between countries that don’t get along, the won is a great place to inhabit if you are looking to profitably move money and increase your personal financial value.

We want to be your hub of the world’s latest forex news and strategies. In order to succeed in forex, you should keep abreast of the changes that are sure to come. Bookmark this page and come back to the website for daily updates.

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Donald Trump blasts ‘fools’ who oppose good Russian ties

US President-elect Donald Trump has posted a progression of tweets censuring the individuals who contradict great relations with Russia as “‘dumb’ individuals, or nitwits”.

Mr Trump promised to work with Russia “to comprehend a portion of the numerous… squeezing issues and issues of the WORLD!”

His remarks came after an insight report said Russia’s leader had attempted to help a Trump race triumph.

Mr Trump said Democrats were to be faulted for “gross carelessness” in permitting their servers to be hacked.

In a progression of tweets on Saturday, Mr Trump said that having a decent association with Russia was “no terrible thing” and that “lone “idiotic” individuals, or simpletons, would believe that it is awful!”

He included that Russia would regard the US increasingly when he was president

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Bulls and Bears Took on More Currency Exposure in Week Through January

he most striking improvement among theoretical situating toward the finish of a year ago and the primary session of 2017 is not that modification were little. There was just a single gross theoretical position modification of more than 10k contracts. With sterling apparently not able to maintain even humble upticks, the bears added 13.1k contracts to the gross short position, lifting it to 120.2k contracts.

Or maybe, it is eminent that examiners for the most part added to positions, long and short, as opposed to close positions at the very end of the year. Examiners added to net long outside cash prospects positions, aside from in the Japanese yen and Swiss franc where 2.6k and 2.5k contracts were exchanged separately. Examiners likewise added to gross short positions. Here there was just a single exemption, the Japanese yen. Despite the fact that the dollar shut comprehensively higher in front of the end of the week, every one of the monetary forms we track here, spare the Mexican peso, picked up against the dollar in the three sessions since the finish of the CFTC reporting period.

Every once in a while it is helpful to review why many market members take a gander at the theoretical situating in the cash fates advertise. It is not that the outside trade is essentially a prospects showcase. It is principally an over-the-counter market in which every day turnover midpoints in abundance of $5 trillion a day.

Trade exchanged monetary forms and alternatives represented around 3% of the normal day by day turnover as indicated by the BIS study. Be that as it may, past reviews have discovered some contemporaneous connection between’s market heading and net position changes. We think it additionally offers knowledge into a specific market section of pattern supporters and energy brokers. It is not by any means the only device, yet one of a few data sources.

One ramifications of this is albeit theoretical positions in the money fates market are moderately extensive, it is still little contrasted and the money showcase. Along these lines, it is difficult to see the genuine essentialness of a record vast position, as though there is some market top. At some point, examiners are not driving the costs, possibly there is another fragment, national banks, enterprises, as well as genuine cash that is more essential at any given minute.

We invest some energy taking a gander at gross positions instead of just net theoretical positions, which is the more customary approach. We think a more granular look is frequently fundamental. There is a distinction between short-covering, for instance, and new purchasing, however it appears to be identical in the net. Additionally, the gross position is the place the introduction is not the net position. A net position of zero does not mean the market is nonpartisan. Net positions could be huge, which implies a short press or a negative stun could in any case troublesome. The positions that must be balanced are captured in the gross measure not the net figure.

We find numerous customers are likewise keen on theoretical situating in the US Treasuries and oil. The net and gross short theoretical Treasury position has swelled to new records. The bears added 23.8k contracts to the as of now record net short position, lifting it to 616.2k contracts. The bulls attempted to pick a base and added about 20k contracts to the gross long position, which now remains at 471.2k contracts. These modification prompted to a 3.8k contract increment in the net short position to 344.9k contracts.

The bulls delayed in the oil prospects toward the finish of 2016. They exchanged short of what one thousand contracts, leaving 608.1k gross in length contracts. The bears added 4.1k contracts to the gross short position, giving them 168k. These conformities trimmed the net long position by very nearly 5k contracts to 440.1k.

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3 ways to profit in the ‘year of the dollar’

In December, the Federal Reserve raised loan fees for the second time since the Great Recession and included the desire of a 2017 financing cost climb to its gauge. Furthermore, only a couple days prior, the abundantly anticipated minutes from the most recent Fed meeting demonstrated the most hawkish tone from the national bank in two years.

In the meantime, Europe has been dove into political turmoil after a year ago’s Brexit vote and the later abdication of Italy’s leader. Somewhere else, the Bank of Japan proceeds down the way of negative rates and forceful security purchasing.

Put it all together, and it isn’t astounding that the U.S. Dollar Index is up against 14-year highs.

Speculators may have missed so much discussion on account of babble about the Dow Jones Industrial Average at the end of the day almost hitting 20,000. Be that as it may, paying little respect to your assignment to stocks or your venture skyline, this sort of huge picture incline in the dollar implies right now is an ideal opportunity to position your portfolio to benefit and, maybe most critical, to keep away from a portion of the pitfalls that can originate from a solid local cash.

Here are a couple ideas dollar exchanges ought to consider:

Residential plays over multinationals

There’s a considerable measure of seek after shopper stocks in 2017 on account of an enhancing work market and any desires for a jolt under a GOP-controlled Congress and President Donald Trump. In any case, remember that not all retailers are made equivalent especially those with abroad operations that are adversely affected by the wide dissimilarity in monetary standards at this moment.

For example, retailer Wal-Mart Stores Inc.(WMT) said troublesome money trade rates shaved very nearly 2.5% off profit for each partake in the second quarter of 2016. On the other hand consider that in the monetary final quarter of 2016, athletic attire goliath Nike Inc.(NKE) saw its income development cut down the middle because of forex weights, from 12% year-over-year in consistent cash measures to only 6% including real money changes.

To take advantage of the “reflation” exchange that numerous financial specialists are counts on in 2017, you need to represent the headwinds that a solid dollar are making for multinationals at this moment. The most ideal approach to do that is to consider customer plays that do by far most of their business here in the U.S. – for example, Foot Locker Inc.(FL), which has been an uncommon splendid spot in retail throughout the most recent couple of years.

Supported money ETFs

Obviously, in the event that you need a steady portfolio, you can’t just purchase just local centered values. Geographic expansion is similarly as imperative as enhancement crosswise over parts and resource classes. Such a large number of financial specialists keep on holding worldwide plays in light of a legitimate concern for a balanced portfolio, regardless of the possibility that it implies battling a daunting struggle as a result of a solid dollar.

The uplifting news, notwithstanding, is that you don’t need to leave yourself to torment through a solid dollar and a powerless euro when you put resources into Europe. Nor do you need to stress over the yen-dollar conversion standard when you put resources into Japan. That is on account of there’s an entire group of cash supported ETFs to permit financial specialists to put their cash in outside business sectors yet keep away from forex issues.

Consider that Japan’s Nikkei 225 file is up around 25% from its July 2016 lows. The WisdomTree Japan Hedged Equity Fund(DXJ) is up 35% in a similar period on account of assurance from forex issues and a somewhat better-performing rundown of stocks – while the non-supported iShares MSCI Japan ETF(EWJ) is up only 10% in a similar period because of battling a difficult task against a solid dollar.

In the event that you need to differentiate your portfolio comprehensively, you ought to consider supported assets that incorporate the Japan-centered DXJ, the WisdomTree Europe Hedged Equity Fund(HEDJ) to play Europe or the iShares money Hedged MSCI EAFE ETF (HEFA) for developing markets.

Dollar list ETF

In the event that you are searching for an immediate play on a rising dollar as opposed to putting resources into stocks, figuring out how to exchange remote trade can appear like an overwhelming undertaking. Gratefully, there’s the PowerShares DB US Dollar Index Bullish Fund(UUP).

This ETF is attached to the U.S. Dollar Index, which is a measure of the greenback against a wicker container of other worldwide monetary standards including the yen and the euro. It’s a straight money play, however that doesn’t make it straightforward or hazard free. In the event that the dollar debilitates, you’ll lose cash similarly as though you’re putting resources into a stock that has fallen on difficult circumstances. Furthermore, obviously, PowerShares takes a little cut of your speculations en route that indicates 0.8% yearly, or $80 a year on each $10,000 contributed.

Still, in the event that you need to conjecture on the dollar or support against a solid U.S. cash keeping down other worldwide ventures on your rundown, it’s maybe the least demanding approach to do as such for generally financial specialists.

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