How to choose a Taiwan Forex trading platform in 2025? Regulation, fees, leverage—everything you need to know in one article

Looking to open an account for forex trading but don’t know where to start? The biggest frustration is often not finding a platform, but dealing with too many options and chaotic information, which can easily lead to pitfalls. This article helps you clarify: what is a forex broker, how to choose a reliable platform, and which key indicators Taiwanese investors should focus on in 2025.

The First Step in Forex Trading: Understanding the Role of Brokers

A forex broker is your “ticket” into the forex market.

Their role is similar to stock market brokers—they act as intermediaries, receiving your buy/sell orders, connecting with trading counterparties, and allowing retail investors to participate in the 24-hour global currency market. Unlike banks that only offer basic currency exchange services, forex brokers can provide trading opportunities for over 100 currency pairs, some of which have large price swings, making them attractive for speculators.

It’s important to note that not all platforms claiming to be “forex platforms” are trustworthy. Choosing the right broker not only affects your trading experience but also directly relates to the safety of your funds.

Brokers Are Categorized into Two Types, with Different Trading Execution Methods

Market Maker (Dealing Desk, DD)

These brokers directly bet against you, acting as your counterparty. If you buy euros, they sell euros to you; if you sell, they buy from you. They profit from the bid-ask spread—buy low, sell high.

Risks: Market makers may have motives to hope you lose money (so they profit). Most keep your orders within their internal trading pool and do not send them to the actual market for execution. That’s why choosing a regulated market maker with proper licensing is crucial—regulation ensures they don’t play tricks.

No Dealing Desk (NDD)

These brokers do not act as counterparties but send your orders directly to the forex market, matching opposite trades. The prices you see are real-time quotes from global banks, and your order execution is at the final market price.

NDD brokers are divided into two types:

• STP (Straight Through Processing): They get quotes from multiple liquidity providers and add a small markup as commission.
• ECN (Electronic Communication Network): They offer raw prices without markup but charge a trading commission.

Regardless of type, NDD brokers profit from trading commissions whether you gain or lose, and tend to favor frequent trading.

Six Key Aspects When Choosing a Forex Platform

1. Regulation License Is Fundamental and Non-Negotiable

Legitimate forex brokers must hold licenses issued by financial regulatory authorities, such as:

• Taiwan: Financial Supervisory Commission (FSC), Central Bank
• Australia: ASIC (Australian Securities and Investments Commission)
• UK: FCA (Financial Conduct Authority)

How to check: Visit the broker’s official website, find the regulation info page, note the license number, and verify it on the regulator’s official website. If the broker cannot provide proof of regulation or the information is vague, exit immediately.

Why is this so important? Because being regulated means the broker must comply with industry standards, undergo regular audits, and keep client funds segregated. If issues arise, you can file complaints with the regulator and have legal protections. Platforms without regulation that run away or abscond with funds leave you with nowhere to pursue legal action.

2. Compare Trading Costs—Spreads, Commissions, Hidden Fees

Forex brokers mainly charge in three ways:

Spread

• Fixed spread: stable but usually wider, suitable for risk-averse investors
• Variable spread: changes with market volatility, very narrow during high liquidity, but can widen suddenly

Commission Some ECN platforms do not charge spreads but collect commissions per lot (e.g., $5-$10 per lot). High-frequency traders should calculate carefully, as total costs can sometimes be higher.

Hidden Fees to Watch For

• Withdrawal fees: some platforms are free, others charge $10-$20

• Inactivity fees: charged after 1-2 years without trading, e.g., $15-$18

• Overnight (swap) fees: interest paid for holding positions overnight

Small investors especially need to pay attention to these invisible costs, as they can silently eat into profits.

3. Leverage Ratios—High Leverage Is Attractive but Risky

The most appealing aspect of forex trading is leverage. Using a $1,000 margin with 20x leverage allows controlling a $20,000 position. But higher leverage means faster losses.

Common leverage ranges:

• 20-30x: used by many local Taiwanese platforms, relatively conservative
• 100-200x: common on international platforms, suitable for experienced traders
• 500-1000x: extremely high leverage, very risky, avoid for beginners

Regulatory tip: Legitimate platforms adjust leverage based on investor level. Retail clients are usually limited to 20-100x, while certified professional clients can apply for higher leverage. If a platform offers high leverage without differentiation, it’s a red flag.

4. Variety of Trading Instruments—Ensure Your Desired Assets Are Available

Markets offer anywhere from 50 to over 12,000 financial products. Confirm that the assets you want to trade (EUR/USD, gold, oil, cryptocurrencies, etc.) are available on the platform.

For beginners, start with mainstream assets:

• Major currency pairs (EUR/USD, GBP/USD, USD/JPY)
• Commodities (gold, oil)
• Major indices (S&P 500, NASDAQ)

Practical Choices for Taiwanese Investors

Local Platforms vs. International Platforms, How to Choose?

Advantages of local brokers:

• Regulated directly by Taiwan’s FSC, with complaint channels
• Support TWD deposits and withdrawals, avoiding currency conversion losses
• Customer service in Traditional Chinese, no language barrier

Disadvantages: Leverage limits (mostly 20-30x), fewer trading instruments, sometimes higher fees.

Advantages of international platforms:

• More flexible leverage (up to 100-200x)
• Richer trading instruments
• Usually narrower spreads

Disadvantages: TWD deposits/withdrawals are more complicated, regulation is overseas, and rights are harder to defend if issues occur.

Practical advice

If you are a beginner or very cautious about fund safety, prioritize local platforms regulated by the FSC (like futures brokers). Once familiar, you can open accounts on international platforms to access more products and higher leverage.

But regardless of choice, regulation license is non-negotiable. Platforms without proper regulation, no matter how cheap or fancy, should be avoided.

How Do Forex Brokers Make Money? Understanding This Helps You Spot Pitfalls

Profit Model of Market Makers

Market makers mainly profit from the bid-ask spread. Sometimes, they act as your counterparty, betting against you. This practice is legal because market makers provide liquidity, enabling quick transactions. But it also means your losses are their gains.

That’s why choosing a regulated market maker is crucial—regulation can limit misconduct.

Profit Model of NDD Platforms

NDD brokers do not bet against you but earn through commissions. They want you to trade more and larger volumes, regardless of profit or loss. From this perspective, NDD is somewhat more “neutral.”

However, NDD isn’t always better. Some NDDs have wide spreads and high commissions, making the overall cost higher.

The key is to compare total costs, not just the mode.

3 FAQs to Ask Before Opening an Account

How to verify the authenticity of a broker?

First: Visit the official website and find the regulation info page. Legitimate brokers will clearly list:

• Name of the regulatory authority
• License number
• Official website of the regulator

Second: Visit the regulator’s official site and search for the broker’s license number. For example, on ASIC’s website, check if the broker is listed as regulated.

Third: Check the license status. Be aware of different states: “Licensed,” “License revoked,” “Application pending,” etc. A revoked license indicates past issues; be cautious.

If the broker cannot provide clear regulation info or the license cannot be verified, exclude it immediately.

What leverage should a beginner choose?

Most beginners should opt for 20-30x leverage for the simple reason:

High leverage may seem to amplify profits, but it also magnifies losses. An account with 100x leverage can be wiped out by just 2% price movement. Even with a good strategy, sudden volatility can trigger stop-outs.

After 1-2 years of consistent profitable trading, you can gradually try higher leverage. Protect your principal first, then aim for bigger gains.

What if the broker encounters problems—what happens to my money?

Regulated brokers implement “client fund segregation”—your trading funds are kept separate from the broker’s own funds, usually in trust accounts at banks. Even if the broker goes bankrupt, your money can be recovered (though it may take time).

Some countries also have investor compensation schemes (e.g., UK’s FSCS, Australia’s ASIC schemes) that compensate clients under certain conditions.

But if the platform is unregulated, and problems occur, you have little recourse. Therefore, regulation is your last line of defense.

Summary: Core Checklist for Choosing a Forex Trading Platform

Before opening an account, check this list:

✓ Verify regulation license is valid ✓ Clear calculation of trading costs (spread + commission + hidden fees) ✓ Leverage suitable for your experience level ✓ All required trading instruments are available ✓ Deposit/withdrawal methods meet your needs ✓ Customer service can communicate in Chinese and responds promptly ✓ Platform reviews checked, no obvious blacklist records

Doing thorough homework before opening an account is not a waste of time but a layer of protection for your funds. Wishing you smooth forex trading!