The popularity of retail forex trading is on the rise in Taiwan, particularly among younger, tech-savvy, and financially literate residents. The increasing accessibility of online retail brokers and the abundance of educational resources also contribute to the growing interest. The Financial Supervisory Commission (FSC) is the primary regulator of forex trading in Taiwan, issuing licenses and ensuring compliance with local investor protection requirements.
The Securities and Futures Bureau, a subdivision of the FSC, oversees the operations of derivatives and futures brokers in the island country. As local derivatives brokers typically do not provide direct retail CFD access, locals often resort to international firms licensed outside Taiwan. In this article, we explain the regulatory requirements for forex brokers in Taiwan, discuss the tax considerations for traders, and offer tips on identifying reliable brokers.
Top 9 Forex Brokers in Taiwan
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
-
HFM
- Up to 1:2000 leverage in specific countries
- Supports trading in micro lots (1,000 units)
- A $6 round-turn commission per standard lot for Zero accounts
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
-
FXCM
- FXCM offers Trading Station and MT4, which combine advanced charting tools and algorithmic trading capabilities.
- Trade forex, stock indices, commodities, and cryptocurrency CFDs with competitive spreads.
- FXCM is regulated by the FCA, ASIC, and FSCA, ensuring secure and transparent operations.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
-
CMC Markets
- Provides a choice of 10,000+ trading instruments
- Supports MT4 and Next Generation (proprietary platform)
- Spreads for EUR/USD from 0.5 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
-
easyMarkets
- Innovative tools like to manage risk effectively.
- EasyMarkets provides access to Forex, Indices and Stocks
- Proprietary EasyMarkets platform available, as well as MetaTrader 4 (MT4), to suit both beginner and experienced traders.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Forex Forwards
- Forex Options
- Indices CFDs
- Metal Options
- Metals CFDs
- Share CFDs
-
GO Markets
- Segregated client funds
- Excellent support
- Free TradingView subscription
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- ETFs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Treasuries
-
Interactive Brokers
- Providing access to more than 135 global markets: Forex, Cryptocurrencies, Bonds, Commodities and Stocks
- Seamless integration with third-party research platforms and API access for automated trading and portfolio management.
- Advanced trading tools, such as algorithmic trading options, which allow professional-level trading executions.
Trading InstrumentsDeposit Methods- Bond Futures
- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Mutual Funds
- Share CFDs
- Stock Options
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| ActivTrades | |
$0 |
| HFM |  |
$0 (Zero, Premium, Cent), $5,000 (Premium Pro), €100 (Pro) |
| FXCM | |
$50 |
| CMC Markets | |
$0 |
| easyMarkets | |
$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP) |
| GO Markets | |
$0 |
| Interactive Brokers | |
$0 |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
| HFM | |
1:400 (FCA | Premium Pro), 1:30 (FCA | Retail Account), 1:2000 (FSCA), 1:2000 (SVGFSA) |
| FXCM | |
1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:30 (FSCA | Retail Account), 1:100 (ISA | Retail Account) |
| CMC Markets | |
1:500 (ASIC | Pro Account), 1:500 (FCA | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (BaFin | Retail Account), 1:30 (FCA | Retail Account), 1:20 (MAS | Retail Account) |
| easyMarkets | |
1:500 (ASIC | Pro Account), 1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:2000 (FSAS | Retail Account) |
| GO Markets | |
1:30 (ASIC), 1:30 (CySEC), 1:500 (FSAS), 1:500 (FSCM), 1:500 (SVGFSA) |
| Interactive Brokers | |
1:30 (ASIC | IBKR Lite), 1:30 (CBI | IBKR Lite), 1:30 (FCA | IBKR Lite), 1:25 (JFSA | IBKR Lite), 1:20 (MAS | IBKR Lite), 1:500 (Pro Account) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, TradingView |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
| HFM | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile |
| FXCM | |
MetaTrader 4, TradingView |
| CMC Markets | |
MetaTrader 4 |
| easyMarkets | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web, TradingView |
| GO Markets | |
cTrader, MetaTrader 4, MetaTrader 5 |
| Interactive Brokers | |
Proprietary Mobile, Proprietary Web |
Comprehensive Comparison of the Best Taiwanese Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.5 pips |
|
|
 |
$0 (Zero, Premium, Cent), $5,000 (Premium Pro), €100 (Pro) |
|
AVG 1.3 pips |
|
|
 |
$50 |
|
AVG 1.3 pips |
|
|
 |
$0 |
|
MIN 0.5 pips |
|
|
 |
$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP) |
|
MIN 0.8 pips |
|
|
 |
$0 |
|
AVG 1 pips |
|
|
 |
$0 |
|
MIN 0.2 pips |
|
Legal Ways to Trade Forex in Taiwan
In Taiwan, forex trading is legally conducted through various financial instruments, each designed to cater to different trading strategies and risk preferences. The primary legal forms include:
- Spot Trading
This involves the immediate exchange of one currency for another at the prevailing market rate. Transactions are typically settled within two business days. Spot trading is straightforward and appeals to traders seeking direct exposure to currency price movements. - Contracts for Difference (CFDs)
CFDs are derivative instruments that allow traders to speculate on the price movements of currency pairs without owning the underlying assets. They offer the flexibility to profit from both rising and falling markets. However, it’s important to note that while CFDs are popular globally, their availability and regulation in Taiwan may be subject to specific restrictions. - Futures Contracts
These are standardized agreements to buy or sell a specific currency at a predetermined price on a set future date. Futures are commonly used by traders aiming to hedge against currency risk or to speculate on future price movements. - Options
Options provide the right, but not the obligation, to buy or sell a currency at a specified price before a certain date. They offer traders the flexibility to capitalize on currency movements while limiting potential losses to the premium paid. - Forwards
Similar to futures, forward contracts are customized agreements between two parties to exchange currencies at a future date and agreed-upon rate. Unlike futures, forwards are over-the-counter (OTC) instruments, allowing for more tailored terms. - Spread Betting on Currency Pairs
While less common in Taiwan, spread betting involves placing a bet on the price movement of a currency pair. Profits or losses depend on the accuracy of the prediction and the extent of the price movement.
Forex Trading Restrictions in Taiwan
In Taiwan, the regulatory authorities have implemented specific measures to ensure the stability and integrity of the financial markets, particularly concerning high-risk trading instruments. Key restrictions include:
- Contracts for Difference (CFDs) Involving Cryptocurrency Crosses
The Financial Supervisory Commission (FSC) has imposed stringent regulations on CFDs that involve cryptocurrency pairs. Given the inherent volatility and speculative nature of cryptocurrencies, these instruments are subject to enhanced scrutiny. As of November 30, 2024, new anti-money laundering (AML) rules mandate that all virtual asset service providers (VASPs), including those offering cryptocurrency CFDs, must register with the FSC and establish a local presence in Taiwan. Non-compliance can result in penalties, including fines up to NT$5 million and imprisonment of up to two years. - Binary Options
Binary options are generally prohibited for retail investors in Taiwan due to their high-risk profile and the potential for significant financial losses. The FSC has not officially promulgated specific rules regarding binary options; however, the absence of formal regulation implies a restrictive stance towards these instruments.
These restrictions reflect Taiwan’s commitment to protecting investors from high-risk financial products and ensuring the overall stability of its financial markets. Traders are advised to stay informed about the latest regulatory developments to ensure compliance and make informed trading decisions.
Regulations on Forex Trading in Taiwan
In Taiwan, the regulation of forex trading is primarily overseen by two key institutions:
- Financial Supervisory Commission (FSC): Established in 2004, the FSC is the central regulatory authority responsible for supervising and regulating financial markets, including banking, securities, and insurance sectors. Within the FSC, the Securities and Futures Bureau (SFB) specifically oversees activities related to securities and futures trading, ensuring that forex trading practices adhere to established laws and regulations. The FSC’s comprehensive regulatory framework aims to maintain market integrity, protect investors, and promote the sound development of financial markets in Taiwan.
- Central Bank of the Republic of China (Taiwan): The Central Bank plays a pivotal role in managing Taiwan’s monetary policy and foreign exchange regulations. It is responsible for maintaining the stability of the New Taiwan Dollar (NTD) and implementing foreign exchange policies. The Central Bank regulates foreign exchange transactions, including those related to forex trading, to ensure orderly financial markets and to prevent excessive volatility in the currency markets.
Together, the FSC and the Central Bank establish and enforce the regulatory framework governing forex trading in Taiwan. Their coordinated efforts ensure that forex trading activities are conducted in a fair, transparent, and secure manner, thereby safeguarding the interests of investors and maintaining the stability of Taiwan’s financial system.
Requirements on Forex Trading in Taiwan
Forex brokers operating in Taiwan must adhere to a comprehensive set of regulatory standards designed to ensure market integrity and protect investors. Key requirements include:
- Licensing and Capitalization
Brokers are required to obtain authorization from the Central Bank of the Republic of China (Taiwan) and a business license from the Financial Supervisory Commission (FSC). Domestic brokers must be structured as companies limited by shares with a minimum registered capital of NT$100 million. Foreign brokers establishing branches in Taiwan are also required to allocate at least NT$100 million as operational funds. - Investor Protection Measures
- Negative Balance Protection: Brokers must implement mechanisms to prevent clients from incurring losses that exceed their account balances, thereby safeguarding traders from significant debt obligations.
- Fund Segregation: Client funds are to be maintained in segregated accounts, separate from the broker’s operational funds, ensuring that client assets are protected in the event of the broker’s financial instability.
- Leverage Restrictions
To mitigate excessive risk exposure, the FSC imposes limits on the leverage that brokers can offer to retail clients. These restrictions are designed to prevent traders from assuming positions that could lead to substantial losses. - Risk Disclosure
Brokers are mandated to provide clear and comprehensive risk disclosures to clients, ensuring that traders are fully informed of the potential risks associated with forex trading. - Automatic Margin Closeouts
Brokers must have systems in place to automatically close out a client’s positions when their margin falls below a specified threshold, thereby preventing further losses and protecting both the client and the broker. - Reporting and Compliance
Brokers are obligated to submit regular reports to the Central Bank and the FSC, detailing their business operations and financial status. This includes daily turnover reports and monthly financial statements. Additionally, brokers must set aside reserves to cover potential losses arising from order execution errors. - Professional Qualifications
Senior dealers employed by forex brokers are required to meet specific experience criteria, such as having a minimum of one year of experience as a dealer in a reputable foreign or domestic forex brokerage, or two years as a dealer in a bank with relevant foreign exchange experience. At least half of the dealers employed must qualify as senior dealers.
Taxes on Forex Trading in Taiwan
In Taiwan, profits derived from forex trading are generally considered part of an individual’s taxable income and are subject to personal income tax. The tax rates are progressive, ranging from 5% to 40%, depending on the total taxable income. As of 2025, the tax brackets are as follows:
- Income up to NT$540,000: 5%
- NT$540,001 to NT$1,210,000: 12%
- NT$1,210,001 to NT$2,420,000: 20%
- NT$2,420,001 to NT$4,530,000: 30%
- Over NT$4,530,000: 40%
It’s important to note that while Taiwan does not impose a separate capital gains tax on securities transactions, profits from such activities are included in the calculation of personal income tax. Additionally, a securities transaction tax is levied on the sale of certain types of securities. The rate is 0.3% for stock trading and 0.1% for beneficiary certificates, warrants, and Taiwan Depositary Receipts (TDRs). Corporate bonds and government bonds are exempted from this tax.
For futures trading, a futures transaction tax is imposed on trades executed on the Taiwan Futures Exchange. The tax rates vary depending on the type of futures contract. For example, stock index futures contracts are taxed at 0.002% of the transaction price, while option contracts are taxed at 0.1% of the premium paid.
Given the complexities of tax regulations, it’s advisable for forex traders in Taiwan to maintain detailed records of all trading activities and consult with a tax professional to ensure compliance with local tax laws and to optimize tax obligations.
How to Identify a Reliable Forex Broker in Taiwan
Selecting a trustworthy forex broker is crucial for ensuring a secure and efficient trading experience. Here are key factors to consider when evaluating brokers that accept clients from Taiwan:
- Regulatory Compliance
Ensure the broker is regulated by reputable financial authorities. While Taiwan’s Financial Supervisory Commission (FSC) oversees domestic financial activities, many international brokers operate under licenses from well-known regulators such as the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC). Regulation by these bodies indicates adherence to stringent standards of conduct and financial stability. - Transparent Pricing
A reliable broker provides clear information about their fee structures, including spreads, commissions, and any additional charges. Look for brokers that offer tight spreads and low commissions, as these can significantly impact trading profitability. Be cautious of brokers with hidden fees or unclear pricing models. - Robust Trading Platforms
The quality of the trading platform is vital. It should be user-friendly, stable, and equipped with essential tools such as real-time charts, technical indicators, and risk management features. Popular platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are widely recognized for their reliability and comprehensive features. - Customer Support
Effective customer service is a hallmark of a reputable broker. Ensure that support is accessible through multiple channels, such as live chat, email, or phone, and that assistance is available during trading hours. Prompt and knowledgeable support can be crucial, especially during critical trading moments. - Account Security
Verify that the broker implements robust security measures to protect clients’ personal and financial information. This includes data encryption, two-factor authentication, and segregated accounts to ensure client funds are kept separate from the broker’s operational funds. - Educational Resources
Quality brokers often provide educational materials to help traders improve their skills and knowledge. This can include webinars, tutorials, market analysis, and trading guides, which are particularly beneficial for novice traders. - Deposit and Withdrawal Policies
Review the broker’s policies regarding fund deposits and withdrawals. Reliable brokers offer a variety of payment methods with reasonable processing times and do not impose excessive fees on transactions. - Reputation and Reviews
Research the broker’s reputation within the trading community. Reading reviews and testimonials can provide insights into other traders’ experiences and highlight any potential issues or red flags.
FAQs
What is the minimum deposit required to start forex trading in Taiwan?
The minimum deposit varies by broker. Some international brokers allow traders to start with as little as $10, while others require $100 or more.
How can I check if a forex broker is reliable?
Look for proper regulatory licenses, transparent pricing, secure trading platforms, good customer support, and positive reviews from other traders. Always verify the broker’s credentials with their respective regulatory authorities.
Can I trade forex with a Taiwanese bank?
Some Taiwanese banks offer forex trading services, primarily for large institutional clients or corporate entities. Retail forex traders typically use brokerage platforms instead.
Is forex trading risky?
Yes, forex trading carries significant risks, including market volatility, leverage exposure, and potential financial losses. It is recommended to use proper risk management strategies and trade with money you can afford to lose.
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When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 20 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.