Forex.comVisit Forex.com81% of retail investor accounts lose money
IG MarketsVisit IG Markets68% of retail CFD accounts lose money
AvaTradeVisit AvaTrade76% of retail investor accounts lose money
IC MarketsVisit IC Markets74-89% of retail CFD accounts lose money
VantageVisit Vantage74-89% of retail CFD accounts lose money
Saxo BankVisit Saxo Bank72% of retail investor accounts lose money
OandaVisit OandaCFDs are not available to residents in the United States
NAGAVisit NAGA80.85% of retail investor accounts lose money
Interactive BrokersVisit Interactive Brokers74-89% of retail CFD accounts lose money
The country Japan stands as one of the world’s major economies, playing a significant role in both global trade and finance. As the third-largest economy by nominal GDP, it’s a vital hub for investors and traders.
The country’s official currency is the Japanese Yen (JPY), often used as a reserve currency alongside the US Dollar and the Euro, and is renowned for its significance in the foreign exchange market.
For retail forex trading activity, the regulatory oversight is provided by the Japanese Financial Services Agency (JFSA). This body ensures that the operations of financial institutions, including forex brokers, align with the rules set to protect market integrity and the interests of investors, thereby fostering a stable and transparent financial environment in Japan.
We have collected together some of the best forex brokers in Japan for you to have a detailed look at it. Here’s what was taken into consideration:
- The regulation of the broker and if physical offices were available;
- The minimum deposit of the broker for Japanese clients;
- Spreads and leverage on forex for Japanese clients;
- If local payments were available for Japanese clients;
- If there were any specific features offered by the broker for Japanese clients.
What are the best forex brokers in Japan?
Below is our curated list of the best forex brokers for traders living in Japan, with details and information about the country laws, the features, and the characteristics.
Is Forex Trading Legal in Japan?
It is legal to trade forex in the country.
With that said, it may not be the easiest place to find a broker since Japan is regulated by two of the strictest regulatory bodies in the region. These are the JFSA (Japanese Financial Services Authority), and the FFAJ (Financial Futures Association of Japan). If you are a forex trader, then the JFSA is the regulatory body that oversees this sector.
Typically, as a retail trader trading in Japan, you can look forward to maximum leverage of 25:1 while trading. You should remember that negative balance protection is also not mandatory as it is in some regions.
How to trade forex in Japan
Typically, Japanese forex brokers do not tend to accept international clients. This means that you should generally be based in Japan if you are registering an account. With that said, all of the brokers listed are international brokers operating around the world and servicing many countries.
Opening your account, you will need proof of your identity which can be your passport. You will also need to have some proof of residence to hand. This can be a recent bank statement or utility bill. Once you have these two items you can pass the verification process and you will then be asked to make a deposit in JPY usually.
You should also note that certain forex trading instruments such as options and futures, may only be available to professional traders, but CFDs are permitted.
What should Japanese traders look for in a forex broker?
With all of our best-recommended brokers, there are a few key points that you should always look out for when making your choice:
1. Give priority to FFAJ or JFSA regulated forex brokers
This is typically something essential which you must do. The reasoning here is due to the fact that brokers not regulated by one of the Japanese bodies, typically can’t offer services without any special concessions. Adding to that, both the FFAJ, and the JFSA are very well recognized as some of the most trusted regulators in the financial world.
2. Look for brokers with low forex costs and commissions
The next thing that you should certainly be on the lookout for, is a broker who offers low trading costs and competitive commission. The fees which you will commonly find are the overnight fee, and the spread. These are worth monitoring as there is some great difference between brokers which can certainly impact you as a trader. Good leverage which often comes from many brokers, is something to look for as well.
Generally speaking, any spread which is 0.6 pips or below starting out, can be considered good, though this depends on the assets you are trading.
3. Are you a beginner? Look for the Negative Balance Protection
Negative balance protection is a great feature for keeping your funds secure and making sure you can never lose more than you deposit. This is mandatory under many jurisdictions, but not in Japan. With that said, many major forex brokers still offer it. If you’re new to trading, it is advisable to go with a broker who offers this protection.
How to verify if a forex broker is regulated in Japan
You can verify your brokers’ regulation quickly and conveniently by visiting the JFSA official website if you want to know more and through contact with the local authorities.
You can also check directly through the JFSA list of allowed FIBO (Financial Instruments Business Operators). This will confirm your broker’s status and that you are trading in a safe environment.
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