What is the best Forex broker in Asia and how to find it?

The foreign exchange market in Asia is regulated by different authorities. But there is no single market regulator like ESMA in Europe. Instead, each Asian country has its own supervisory body. The most notable authorities are found in Japan (the Financial Services Agency, FSA), in Singapore (the Monetary Authority of Singapore, MAS), in Dubai (Dubai Financial Services Authority), India (the Securities and Exchange Board of India), and a few more. However, a significant part of the region is still unregulated necessitating Asian Forex traders to look for internationally regulated brokers.

The most dominant Asian currency appearing in the tradable Forex major currency pairs is the Japanese Yen (JPY). JPY is an actively traded Forex asset found in the top 7 major currency pairs together with USD, EUR, GBP, and CHF. Therefore, it is the most popular financial instrument for Asian Forex traders. However, few other Asian currencies also appear on the list of the tradable exotic currencies including Hong Kong Dollar (HKD), Singapore Dollar (SGD), Thai Baht (THB), and several more.

There are some countries in Asia where Forex trading is either not taxed at all or is subject to very low tax. In the United Arab Emirates, Forex traders are exempt from paying taxes. Similarly, in Hong Kong, there is no Capital Gains Tax to charge the Forex traders on their incomes. Some countries, like Singapore, have very low proprietary Forex CGT rates that could reach a maximum of 22% of net earnings.

Asian Forex traders have a diverse list of payment methods when it comes to depositing and withdrawing the funds with the broker. All popular payment solutions are supported with the best Forex brokers in Asia including the traditional methods like Visa/Mastercard payments, as well as online e-wallets and payment systems like Skrill, Neteller, and PayPal. There are no deposit and withdrawal charges imposed by the brokers on transactions.

Top Forex brokers list in Asia

Most of the Asian brokerage companies operating on the Forex market are relatively new. Since the experience is one of the crucial aspects for the brokers, most of the leading brokerage firms are in fact, international companies. They have headquarters in almost every region around the world and serve millions of active clients every month. Many of these brokers are approved by leading Asian authorities like the DFSA and Israel Securities Authority (ISA). Below is the list of the most popular and valued brokerage companies, including the top 10 Forex brokers in Asia.

AvaTrade

Review of AvaTrade – Broker with over 15 years of experience

Minimum deposit

$100

Regulation

CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA

Bonus

Maximum leverage

1:400

Year founded

2006

Trading platform

MT4, MT5, WebTrader, AvaTradeGO

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

30:1

Year founded

2009

Trading platform

MT4, MT5, WebTrader

Capital.com

Capital.com Forex Broker – Detailed Review

Minimum deposit

20$

Regulation

ASIC, FSA, FCA

Bonus

N/A

Maximum leverage

1:200

Year founded

2016

Trading platform

MT4, TradingView, Mobile, Web

HotForex

HotForex Review – Trade 1,000+ of Symbols with this Broker

Minimum deposit

$5

Regulation

SVGFSA, FCA, DFSA, FSCA, FSA

Bonus

From 30% to 100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

CM Trading

CM Trading FX broker review – Is it legit?

Minimum deposit

$250

Regulation

FSCA

Bonus

Maximum leverage

1:200

Year founded

2012

Trading platform

MT4, WebTrader

ForexMart

ForexMart Review – High-class trading experience

Minimum deposit

15

Regulation

CySEC

Bonus

30%

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4, WebTrader

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

IQ Option

An in-depth IQ Option Review of fees, opportunities and more

Minimum deposit

$10

Regulation

Risk Warning: YOUR CAPITAL MIGHT BE AT RISK

Bonus

N/A

Maximum leverage

1:1000

Year founded

2013

Trading platform

Proprietary

Exness

Exness Broker Review – Should You Trade With It?

Minimum deposit

10 USD

Regulation

FCA, CySEC, FSA

Bonus

N/A

Maximum leverage

1:Unlimited

Year founded

2008

Trading platform

MT4, MT5, WebTerminal

RoboForex

RoboForex review – Everything that this broker has to offer

Minimum deposit

$10

Regulation

IFSC

Bonus

Maximum leverage

1:2000

Year founded

2009

Trading platform

MT4, MT5, cTrader, R WebTrader, R MobileTrader, R Trader

OspreyFX

OspreyFX review – regulations, features and possibility of OspreyFX scam

Minimum deposit

$10

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2019

Trading platform

MT4, custom

EagleFX

EagleFX review – Start trading with safe and secure broker

Minimum deposit

$10

Regulation

Bonus

Maximum leverage

1:500

Year founded

Trading platform

MT4

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

easyMarkets

Can You Trust easyMarkets? There Are Things You Need To Know

Minimum deposit

$25

Regulation

ASIC, CySEC, FSA, BVI

Bonus

50%

Maximum leverage

1:400

Year founded

2001

Trading platform

WebTrader, MT4, TradingView

Pepperstone

Pepperstone FX Broker – Everything You Need To Know About This Broker?

Minimum deposit

AUD$200

Regulation

ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA

Bonus

N/A

Maximum leverage

1:500

Year founded

2010

Trading platform

MT4, MT5, cTrader

HYCM

Can you trust HYCM Forex broker? What you need to know?

Minimum deposit

100

Regulation

FCA, CySEC, DIFC, CIMA

Bonus

N/A

Maximum leverage

500:1

Year founded

1977

Trading platform

MT4, MT5

FPMarkets

Is FPMarkets reliable broker? Is it licensed to trade?

Minimum deposit

$100 AUD

Regulation

ASIC

Bonus

N/A

Maximum leverage

500:1

Year founded

2005

Trading platform

WebTrader, MT4, MT5, IRESS

IMGFX

IMGFX Broker Review – Your Best Trading Experience

Minimum deposit

$50

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4

FXOpen

FXOpen Review – The most experienced broker

Minimum deposit

1 USD

Regulation

ASIC, FCA

Bonus

10 USD

Maximum leverage

1:500

Year founded

2005

Trading platform

MT4, MT5, WebTrader

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

best forex broker asia

Who are the biggest Forex regulators in Asia

Several major authorities in the region are famous across the globe as the most recognized official organs of the Forex market:

  • Securities and Futures Commission (SFC) in Hong Kong
  • Securities and Exchange Board of India (SEBI)
  • Financial Services Agency of Japan (FSA of Japan)
  • Monetary Authority of Singapore (MAS)

A single regulatory body can’t monitor the market for the whole Asian continent. Therefore, each region and countries on the continent have their own official authorities. However, some of the official regulators provide a bit complex procedures and vague recommendations or laws which urge international brokers to avoid obtaining a license from the Asian regulatory authorities. That is why only a few Asian brokers will actually have authorization from the Asian-based regulatory bodies.

top 10 forex brokers in asia SFC – Hong Kong

Hong Kong began regulating its financial sectors after 1974. The history of the regulations includes many different institutions, however, the last one and the most significant remaining is the Securities and Futures Commission. It is not a governmental body and is responsible for monitoring the securities and futures markets of the region. The main revenue of the organization comes from the fees associated with issuing the licenses, as well as the transaction levies. The SFC is the main provider of the market regulations and it is also running regular investigations on any breaches or misconducts.

best broker in asia SEBI – India

The Securities and Exchange Board of India has experience of over two decades. The organization was established in 1992 and actively participates in the financial market processes of the country. The institution has a clear structure with major functions of regulating the operations of securities custodians, market participants, foreign portfolio investors, as well as agencies that are busy with the credit rating. Furthermore, special committees work to find and punish any fraudulent behavior, unfair trade practices, or money-laundering crimes within the securities market. It is one of the key figures in the Forex trading Asia industry.

asia forex FSA – Japan

In contrast to many regulatory bodies, the Financial Services Agency is a governmental body. It is an official regulator of the financial sectors in Japan and oversees the banking, securities, and exchange sectors. It is directly reporting to the Minister of State for Financial Services of Japan. The FSA operates since 2000 as a result of the merger between the Financial Supervisory Agency and the Financial System Planning Bureau. The latest update on the laws and regulations existing in the country came on December 14, 2020. However, numerous changes are being prepared for the upcoming period in the securities industry.

top 10 forex brokers in asia MAS – Singapore

The Monetary Authority of Singapore has been in fact a central bank of the country which was formed back in 1970. After a year, it adopted the functions of the financial regulatory authority. The institution has various functions varying from currency issuance to regulating the securities and the financial sector, in general. The regulatory body conducts regular surveillance of the financial stability within the country, while at the same time also managing the assets and foreign reserves in Singapore.

Trade with FSA-regulated broker AvaTrade

Which countries have the best tax rates in Asia?

Best tax systems for Forex traders are found in Dubai, Hong Kong, and Singapore. In Dubai, there is no Capital Gains Tax imposed on Forex earnings, as the government has freed the industry from taxation recently in order to encourage the growth of the financial services in the region. Hong Kong also does not have a CGT, which means that Forex traders can freely claim their profits and earnings from trading Forex. However, if a trader cooperates with a locally based or regulated brokerage company then he or she might be liable to pay income taxes. Similarly, there is no Capital Gains Tax in Singapore, as well. That is why the local community engages in Forex trading so actively.

Some of the countries where Forex trading is active but taxed are Japan, China, Saudi Arabia, Pakistan, and Thailand. In fact, Thailand and Pakistan charge the lowest CGT, with Pakistan’s rate ranging between 5-20% depending on the size of the income and for Thai Forex traders CGT is fixed to 15%. Japan, China, and Saudi Arabia all have 20% Capital Gains Tax applicable to Forex earnings.

What are the biggest regional currency pairs?

The biggest regional Forex tradable currency in Asia is the Japanese Yen (JPY). It appears on the 7 major currency pairs of the Forex industry and represents one of the most popular trading assets worldwide. JPY is often paired with USD and GBP but from time to time can be found with several exotic currencies. USD/JPY can be traded with spreads as low as 0.015 with the average spread between 0.016-0.018. The Asian exotic currencies are also frequently present on the trading platforms of the leading brokerage companies in Asia. For instance, it is not rare to find Hong Kong dollar or Singapore dollar among the tradable Forex assets.

The most popular pairings with the Japanese Yen (JPY) include:

  • USD/JPY
  • EUR/JPY
  • GBP/JPY
  • AUD/JPY
  • CHF/JPY

Trade JPY currency pairs with XM

Which countries have leverage caps?

Most of the countries in Asia where market regulators are present will have restrictions on the usage of leverage. All three dominant Forex trading regions of Japan, Singapore, and Hong Kong have introduced caps on leverage that restrict the flexibility of the leverage offered by the brokers. For instance, Singapore had a 50:1 restriction before 2019 for retail traders. However, the Monetary Authority of Singapore (MAS) has made the policy much stricter lowering the leverage limit down to 20:1. In Japan, the cap on leverage is set at 25:1. Few years ago the main regulator of the country was considering making the restriction even stricter and limiting leverage up to 10:1. However, as of now the leverage cap remains at 25:1 in Japan. In Hong Kong, you can trade leveraged Forex assets with a maximum leverage allowance of 40:1.

There are some ways to escape the limit on leverage. But in order to do so, you should become an authorized or certified investor, which is not an easy thing to do. Furthermore, it would much resemble self-employment meaning that you would be liable to pay income taxes even in the tax-free economies in terms of Forex trading.

What Payment systems are available in Asia?

Most popular payment methods in Asia include Visa/Mastercard debit and credit card payments, bank wire transfers, broker-to-broker transactions, e-payment systems like Skrill, PayPal, Neteller, and in some countries M-Pesa, as well. The best brokers in Asia will definitely support almost every payment solution mentioned previously. Furthermore, none of them will incorporate fees on deposits and withdrawals completed through any of these methods. However, the payment charges might be added by the payment solutions providers themselves. For instance, Visa/Mastercard might charge 1-2% and a fixed fee on instant withdrawals. If you are down to waiting for few working days then you can complete a transaction without any charge.

Use Skrill to trade with XM

What should you look out for when trading Forex in Asia?

One of the toughest and also the most important tasks that Forex traders have in Asia is to find a suitable and decent Forex broker. Not to mention the threat of losing all your financial resources, the wrong choice of broker might take away all your chances of ever making the profit in Forex trading. The reason is that the some brokers will most likely offer very expensive trading conditions, inconvenient spreads that are way above the market average, either sky-high leverage or unreasonable commission rates, and incompatible trading platforms. That is why you should seek the best brokers in Asia. Avoid brokers that have ‘too good to be true’ bonus offerings promising to triple your deposits with instant withdrawal options. In fact, some of the decent Forex brokers might not be able to offer bonuses at all due to market regulators often restricting such campaigns. Always check the regulation and licenses of the broker beforehand to avoid getting scammed.

FAQs about Asian Forex brokers

How to start trading Forex in Asia?

First, find a regulated Forex broker online that suits your trading goals. Register a demo trading account if you want to try out the brokerage services without committing, first. Later, you can open a live trading account. After registering the live trading account, the broker expects you to make your first deposit. The minimum deposit requirement can be within the range of 5 US dollars to 250 US dollars on Standard trading accounts. When you make your first initial deposit, your account will be activated and ready to trade. It is recommended to start trading with products that you are already familiar with. You might also look for the less risky assets within the Forex market. For example, it is always safer to trade on the popular currency pairs, such as EUR/USD, or USD/JPY. Moreover, these currencies do not fluctuate as much as the exotic ones. However, if your Asia broker gives you an option to trade your local currency, even if it is within the list of the exotic currencies, you are free to do so.

Is Forex legal in Asia?

Yes, Forex is legal in Asia. Most of the countries allow their residents to trade Forex without any restrictions. Furthermore, many of them also have designated regulatory bodies such as the Monetary Authority of Singapore (MAS), the Financial Services Agency of Japan (FSA), and the Dubai Financial Services Authority (DFSA) that protect the traders’ funds and ensure that the market remains within the legal framework. However, there are some countries where Forex remains illegal, such as Sri Lanka.

Which country in Asia is best for forex trading?

Japan, Singapore, Hong Kong, and the United Arab Emirates are the best countries to start trading Forex. Japan is one of the main financial centers of the Forex industry with one of the strongest Forex currencies – the Japanese Yen. Singapore, Hong Kong, and UAE on the other hand are those countries that encourage their residents to trade currency pairs without any inconveniences. They do not have Capital Gains Tax and all three of them have specific regulatory bodies that protect the traders.

Which is the best broker in Asia?

The best Asian brokers are AvaTrade, XM, and HotForex. These brokers are not Asian-based but are rather international brokerage companies. However, they hold numerous licenses including the ones authorized by the top-tier Asian market regulators. Furthermore, they are licensed to provide flexible leverages, tight spreads, promotional campaigns, and low starting capital requirements.