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Korean Stock Exchange

Korean Stock Exchange (KRX) brokers offer access to the only securities exchange based in South Korea. With a market cap worth over $2.46 trillion and a trading volume of 81 billion shares, day trading on the KRX is an attractive choice for investors. This review will look into its history, how the KRX works, market opening schedules, investing rules and more. We also provide comparison tips to help you choose between KRX brokers, including suggestions of the best brokers with access to the Korean Stock Exchange in 2024.

Top Korea Stock Exchange Brokers

These are the 4 best brokers for trading on the Korean Stock Exchange:

  1. Pepperstone
  2. eToro
  3. IG
  4. Interactive Brokers

#1 - Pepperstone

Why We Chose Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro)

Stock Exchanges

Pepperstone offers trading on 22 stock exchanges:

  • Australian Securities Exchange (ASX)
  • CAC 40 Index France
  • DAX GER 40 Index
  • Deutsche Boerse
  • Dow Jones
  • Euronext
  • FTSE UK Index
  • Hang Seng
  • Hong Kong Stock Exchange
  • IBEX 35
  • Japan Exchange Group
  • Korean Stock Exchange
  • London Stock Exchange
  • Nasdaq
  • New York Stock Exchange
  • Russell 2000
  • S&P 500
  • SIX Swiss Exchange
  • Shanghai Stock Exchange
  • Shenzhen Stock Exchange
  • Taiwan Stock Exchange
  • Toronto Stock Exchange

Pros

  • There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
  • Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
  • Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.

Cons

  • There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
  • Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
  • Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
Visit Pepperstone

#2 - eToro

Why We Chose eToro

eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.

"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, ETFs, Cryptos, Futures, Commodities, Bonds
  • Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
  • Platforms: eToro Web, CopyTrader, TradingCentral
  • Minimum Deposit: $50
  • Minimum Trade: $10

Stock Exchanges

eToro offers trading on 24 stock exchanges:

  • Australian Securities Exchange (ASX)
  • Borsa Italiana
  • CAC 40 Index France
  • DAX GER 40 Index
  • Deutsche Boerse
  • Dow Jones
  • Euronext
  • FTSE UK Index
  • Hang Seng
  • Hong Kong Stock Exchange
  • IBEX 35
  • Japan Exchange Group
  • Korean Stock Exchange
  • London Stock Exchange
  • Nasdaq
  • Nasdaq Nordic & Baltics
  • National Stock Exchange Of India
  • New York Stock Exchange
  • Russell 2000
  • S&P 500
  • SIX Swiss Exchange
  • Shanghai Stock Exchange
  • Taiwan Stock Exchange
  • Tokyo Commodity Exchange

Pros

  • The copy trading app facilitates a best-in-class social environment, with an engaging social feed and community chat
  • Top copy traders can receive annual payments up to 1.5% of assets under copy in the broker's Popular Investor Program
  • eToro has bolstered its investment offering, most recently with new crypto assets, now offering over 90 digital currencies

Cons

  • There are limited contact methods aside from the in-platform live chat
  • Traders will face currency conversion fees for account denominations other than USD
  • There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital
Visit eToro

#3 - IG

Why We Chose IG

Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
  • Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
  • Platforms: Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:250 (Pro)

Stock Exchanges

IG offers trading on 20 stock exchanges:

  • Australian Securities Exchange (ASX)
  • Bombay Stock Exchange
  • Borsa Italiana
  • Deutsche Boerse
  • Dow Jones
  • Euronext
  • Hong Kong Stock Exchange
  • IBEX 35
  • Japan Exchange Group
  • Korean Stock Exchange
  • London Stock Exchange
  • National Stock Exchange Of India
  • Russell 2000
  • S&P 500
  • SIX Swiss Exchange
  • Shanghai Stock Exchange
  • Shenzhen Stock Exchange
  • Tadawul
  • Taiwan Stock Exchange
  • Toronto Stock Exchange

Pros

  • As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust
  • The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading
  • The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met

Cons

  • Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
  • IG has discontinued its swap-free account, reducing its appeal to Islamic traders
  • IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
Visit IG

#4 - Interactive Brokers

Why We Chose Interactive Brokers

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

- DayTrading Review Team
  • Instruments: Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
  • Regulator: FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB
  • Platforms: Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
  • Minimum Deposit: $0
  • Minimum Trade: $100
  • Leverage: 1:50

Stock Exchanges

Interactive Brokers offers trading on 15 stock exchanges:

  • Borsa Italiana
  • CAC 40 Index France
  • Chicago Mercantile Exchange
  • Euronext
  • IBEX 35
  • Japan Exchange Group
  • Korean Stock Exchange
  • London Metal Exchange
  • London Stock Exchange
  • Nasdaq
  • Nasdaq Nordic & Baltics
  • New York Stock Exchange
  • Russell 2000
  • Shenzhen Stock Exchange
  • Toronto Stock Exchange

Pros

  • With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
  • IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
  • There's a vast library of free or paid third-party research subscriptions catering to all types of traders, plus you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.

Cons

  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
Visit Interactive Brokers

How To Compare KRX Brokers

As part of the KRX program rules, you are required to open an account with licensed brokers to start investing on the exchange. Here are the key factors to look at when choosing between KRX brokers:

Fees

It is important to be fully aware of any trading fees or charges. Don’t get caught out by unexpected or hidden costs. As a day trader who places a high volume of trades throughout the day, commissions can add up and take away from profits. Therefore, you want to choose a provider with low commissions and tight spreads to make investing worthwhile.

Also consider other charges such as account funding fees, exchange data subscriptions and withdrawal costs. The best KRX brokers will publish all this information on their website so you can review this before committing to a live account. eToro, for example, offers commission-free stock and ETF investments, including on the iShares MSCI South Korea ETF (EWY). Nonetheless, a 0.15% spread fee applies to all non-US instruments.

Instrument

KRX brokers offering stocks are few and far between. Interactive Brokers is an outlier, offering access directly to the exchange and allowing traders to purchase stocks such as Kia, Samsung and LG Electronics.

However, for the majority of retail traders, the best way to trade the KRX is through an ETF. ETFs are funds that contain a mixture of instruments, often stocks, that aim to track a market or industry’s performance. The most liquid and widely offered ETF is the iShares MSCI South Korea ETF (EWY), which gives traders exposure to the South Korean economy. 

Platforms

KRX brokers that offer a choice of trading platforms and software should rank highly in your comparison. This is where you will likely spend most of your hours when executing KRX trades, and will display the pricing information for your investment decisions. Check that the platform offers the right tools, price data, charts and graphs for technical analysis.

If you want the option of on-the-go investing, you should opt for KRK brokers with a mobile app.

Customer Service

When your trades are on the line and you encounter any issues, you will need KRX brokers with a responsive customer support team. Make sure that there are multiple ways to contact them and in the methods that suit you. This may include toll-free telephone numbers or live chat services. Additionally, most customer support teams have 24/7 opening hours, available in several languages. Pepperstone, for example, offers a 24-hour non-UK telephone, available seven days a week. Alternatively, retail traders can contact the brokers’ support team via live chat or WhatsApp.

What Is The Korea Exchange (KRX)?

History

The Korea Exchange was established in 1956 and initially operated independently. In 2005, the KRX we know today was formed when the Korean Stock Exchange, the Korean Securities Dealers Automated Quotations (KOSDAQ) and the Korean Futures Exchange joined forces. The merger occurred as an outcome of the Korea Stock & Futures Exchange Act, which aimed to reduce costs and improve investor efficiency in response to rapidly changing financial markets. The result was the creation of three divisions: the Stock Market Division, the KOSDAQ Market Division and the Derivatives Market Division.

The company is headquartered in Seoul and Busan, South Korea but the Korean Exchange Bank has numerous trade centre branches around the world.

How Does The KRX Work?

In 2021, the Korea Stock Exchange listed 2,448 companies, totaling a market cap of USD 2.6 trillion. In April 2021, the KRX trading volume reached over 86 billion shares, with a trading value of over 620 billion KRW (USD 540 million) in the same month. There are several large-cap, mid-cap and small-cap indices that hold a variety of companies arranged by market capitalization and other factors.

Under each market division, investors have a wide choice of tradable instruments. Access will vary between KRX brokers:

KOSPI Market Division

KOSDAQ Market Division

Derivatives Market Division

KRX Indices

The Korean Stock Exchange has a total of 372 indices as of April 2021, covering equities, derivatives/commodities, fixed income, and more. The following are the standout KRX  indices:

Korea Composite Stock Price Index (KOSPI)

KOSPI was initially introduced in 1983 and is calculated based on market capitalization. It is the stock market index that is representative of South Korea in the same way as the S&P 500 represents the United States. Consisting of the most common stocks listed on KOSPI, it is also considered Korea’s key economic indicator that gauges the overall health of the KOSPI market. The KOSPI and its subsidiaries are the most popular global indices.

KOSPI 200

The KOSPI 200 index, otherwise known as the Korean blue-chip index, was established in 1994. It served as an underlying index for futures and options. The 200 companies listed are market and industry leaders from the Stock Market Division, which features decent liquidity. With a 70% market value of the KOSPI, this index moves alongside it. More importantly, KOSPI 200 is listed on the futures and options markets and is one of the most highly traded indices in the world.

KOSDAQ 150

The KOSDAQ 150 index was introduced in 2015 and represents the technology sector in Korea. It is currently used as the underlying index for futures and ETFs. The constituents listed are calculated based on market capitalization, sector representativeness, and liquidity. When KRX investing on the KOSDAQ 150, retail traders are speculating on the rise and fall of top global names such as Samsung, Kia and LG Electronics.

KRX 300

The KRX 300 index was created to maximize the market cap coverage of both KOSPI and KOSDAQ. Therefore, it represents a combination of 300 sector leaders in both of these markets. The shares listed on the KRX 300 are chosen for their market capitalization, liquidity, and sector representation standards. It was created in 2018.

Korea Stock Exchange Program Rules

If you wish to trade on the Korea Stock Exchange, there are a few basic KRX rules to consider. Korea-based investors must open an investment account through licensed securities companies or brokers that have obtained a KRX membership. KRX orders can only be placed through these members. On the other hand, foreigners need to obtain an Investors Registration Certificate from the Financial Supervisory Service. The FSS is Korea’s integrated supervisory authority. Afterwards, foreigners need to open an account with a local custodian bank that provides custody, money transfer and security settlement services.

Korea Stock Exchange Listing Requirements

Admission

Before a firm can be traded via KRX brokers, let’s consider what it takes for a company to be listed on the exchange. The South Korea Stock Exchange has set out strict criteria that companies must meet to float on the exchange. The KRX  rule system is divided into quantitative and qualitative criteria, which differ from the KOSPI to the KOSDAQ to the KONEX market. Some formal listing review requirements are as follows:

Quantitative Criteria To Be Listed On KOSPI:

Qualitative Criteria:

KRX Exchange Opening Hours

Sessions on the KRX work similarly to other major stock markets around the world. Whether you’re investing in stocks, futures markets, derivatives or trading on the KOSPI, they can all be executed within the times below. The regular schedule including extended hours are as follows:

Trading days: Monday to Friday (GMT +9:00):

The South Korea Exchange trading hours are a total of 6 hours and 30 minutes per day, whereas other markets can be open anywhere between 5 to 7 hours a day. Shorter sessions can mean increased liquidity, less volatility, tighter spreads and more efficient markets.

According to the South Korea Stock Exchange calendar, there are some market holidays to consider. These will be reflected in all KRX brokers’ published calendars. The trading holidays work in a similar pattern each year. It might be worth referring to previous Korea Stock Exchange 2020 and 2021 trading calendars for example. Typical holidays include New Year’s Day, Korean New Year, Independence Day, Chuseok Festivity and Children’s Day.

Biggest Players

You can find the largest businesses that dominate the KRX on the KOSPI indices. Typically, Korea is famous for its technology and automotive companies, many of which are well-known around the world. For example, Samsung currently leads with a market cap of over $470 billion. Other familiar brands include Hyundai ($44.82 billion), Kia ($30 billion) and LG Electronics ($27.44 billion). As you can see, these companies have outstanding valuations that are worth considering when day trading shares on the KRX. These equities are likely to be the most frequently traded via KRX brokers, with high trading volumes suitable for intraday traders.

Why Trade The Korea Stock Exchange?

As one of the top exchanges around the world, there are many reasons why investors are flocking to find KRX brokers that support trading on the exchange. The following are just some of the benefits of investing on the Korea Stock Exchange:

KRX Trading Tips

Strategy

Before you start investing on the Korea Stock exchange, it is key that you have an effective strategy. More often than not, unnecessary losses are due to poorly managed decisions. Nowadays, KRX brokers offer a plethora of stock charts, graphs, historical prices and market data that you can utilize for effective technical analysis. While some KRX brokers may charge fees for market data, there are still many resources that are free of charge. By utilizing the right tools, it can help you visualize a pattern, which will facilitate in making more accurate price predictions.

News

Keeping up with the latest market news and market data is key. You need to be able to anticipate market moves and stay ahead of any factors that can trigger significant price shifts. There are several resources you can utilize, from live news reporting to updates or even forecasts. Some popular financial news sources include Bloomberg, FT and Yahoo Finance.

The best KRX brokers will also integrate this information into their platforms, so you can keep up to date with the latest market data. News websites can also provide KRX calendars with any significant market holidays.

Timing

As mentioned, KRX trading hours can offer opportunities for increased liquidity and more efficient investing. While you can trade during extended hours, it does not necessarily result in more profit potential. Pre-market hours will have less volume and may have different rules. It also means limited liquidity with increased volatility and larger spreads. On the other hand, earnings trade reporting and key market news are generally announced post-trading sessions. This can result in major price swings during the after-hours market.

It is important to note that not all KRX brokers will offer out-of-hours trading. Reach out to their customer service team if this information is not clear.

Automation

Once you’ve perfected your strategy, it could be time to consider automated trading. Automating your trades with a robot that follows predetermined criteria can open up more opportunities for increased profits beyond what you could perform manually. Algorithms can also help you save time so that you can focus on research or other matters. However, any bot that will trade on your behalf should be backtested. Run the automation on a demo account before letting loose on your live funds.

Journal

Keeping a journal is a great way to monitor your KRX performance and what can be improved over time. We recommend noting it down on a spreadsheet or any other specialist software. Some examples of useful information to keep track of include:

With the frequency of trades placed during the intraday, it can be hard to know what is working and what isn’t. Therefore, visualizing data on your KRX successes or failures will make identifying a fruitful strategy much easier. Many established KRX brokers offer a journal section within their platform interfaces, meaning you won’t need to switch between pages to access your trade information.

Final Word KRX Brokers

Day trading with KRX brokers offers multiple opportunities to profit from indices such as the KOSPI, KOSDAQ or KRX. With a large market cap and high daily trading volume, it’s no surprise that many are choosing to day trade on the Korean Stock Exchange. However, to gain an edge in a competitive market, it is crucial to be prepared with an effective strategy that utilizes news and market data. Additionally, take note of our top Korea Stock Exchange brokers to ensure you are getting regulated, high-quality investing conditions.

FAQs

What Tradable Instruments Are Available On The Korea Exchange?

There are many markets day traders can get involved with on the KRX. Separated into the KOSPI, KOSDAQ and Derivatives Market Division, traders can get involved with: stocks, bonds, ETFs, ELWs, REITs, Indices, Futures, Equities, Forex, Bonds and Commodities. Access to these instruments will vary between brokers.

Has The KRX Ever Activated A Trading Halt?

Yes. The Korea Stock Exchange triggered a trading halt on the KOSPI and KOSDAQ markets after it dived more than 8 percent. This is where KRX investing hours stopped on 12 March 2020. The activated circuit breaker suspended operations for around 20 minutes, which blocked trades on the KRX. The drastic fall was attributed to panic selling that was sparked by growing concerns over the global coronavirus fallout. Before that, the circuit breaker had only been activated the day after the 9/11 terror attacks in 2001.

Does The Korea Stock Exchange Have Extended Market Trading Hours?

Yes. The Korea Exchange has extended trading hours from Monday to Friday. The pre-trading session occurs between 8:00 to 9:00 am KST, while the post-trading session is from 3:30 pm to 6:00 pm. The post-market session is also known as the single price auction. Extended hours are trading times that occur before and after an official session. Look out for KRX brokers that offer this. Pre-market and after-hours trading will generally have less volume, which means limited liquidity, increased volatility and larger spreads. Additionally, the Korea Exchange is not open on Saturday or Sunday.

Does The KRX Have A Trade Repository?

Yes. The Depository Trust & Clearing Corporation (DTCC) and the Korea Exchange signed a Memorandum of Understanding (MOU) to cooperate on a Trade Repository (TR) solution in Korea. The trade repository allowed for better transparency of derivative markets, increased cooperation across jurisdictions and reduce risks of financial instability.

Are There Any Trading Fees Associated With KRX Brokers?

Market charges vary between KRX brokers. Your provider may impose commission fees, deposit minimums and deposit and withdrawal fees. It’s important to be aware of all fees when investing in the KRX, as they may eat into your profits over time.