Top 10 Best Forex Brokers in Japan for 2021
Are you a Japanese forex trader, or a forex trader based in Japan and looking for the best Japanese forex brokers? If the answer is yes, then you have found the perfect place.
Here we will examine many aspects of forex trading in Japan. This will provide you with all of the information you need, along with giving more information on some of the top, best recommended brokers you have to choose from when trading in Japan.
Is Forex Trading legal in Japan?
The first question to answer when you are looking to get into forex trading in Japan, is around whether forex trading in Japan is actually legal. Well you will be glad to note that 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 who oversees this sector.
Typically, as a retail trader trading in Japan, you can look forward to a 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 a 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.
Top 10 Japanese Forex Brokers Listing for 2021
Here’s our list of the best Japanese forex brokers for you to choose from:
Forex.com
Forex.com is the first broker to feature on our listing of top Japanese brokers. They are well-regulated by the JFSA under the number 291. They also offer an excellent range of assets to trade in which includes a selection of more than 12,000 in total.
Of this range of assets, they offer trading in 84 forex pairs which includes major, minor, and many exotic currency pairs. All of this is available with a minimum deposit that starts from￥50,000 depending on your account type choice. You can also look forward to trading through the much respected MT4 trading platform here where EAs are also permitted for autotrading and implementing new strategies. All of this is available with a very competitive trading cost in place too that starts with a low spread from 0 pips.
IG Markets
IG Markets are a massive broker and a huge presence in the world of forex trading. They are also one of the most experienced names in the business having been around since 1974. They have a large physical presence around the world and also operate an office in Tokyo where they are licensed under JFSA number 255.
With more than 10,000 assets available including 80 of these as forex currency pairs, you will have an ample range of trading choices available. They are also one of the brokers who offer negative balance protection even though it is not required by the regulator. You can get started with the broker if you have a minimum deposit from ¥35,000, and you can also look forward to some low trading costs and excellent spreads. Trading on the USD/JPY forex market for example, starts with a minimum spread of 0.2 pips.
Saxo Bank
Saxo Bank is a well-known and highly respected Danish bank who also offer a broad range of brokerage services. They are regulated under the JFSA number 239 and again offer a huge range of markets with more than 12,000 in total available across forex, options, futures, and other categories for a comprehensive offering.
At Saxo Bank, the minimum deposit ranges from ¥100,000, up to ¥1.000.000. This may make an account more suited to experienced traders, though if you do open an account you can expect to trade with a great number of features, in a highly compliant environment, and with one of the most established brokers in the business.
The trading costs are kept as low as they possibly can be across the board. These start with spreads from just 0.2 pips on the USD/JPY trading, and a 0.2% commission on stock trades.
Oanda
Next on our list of top Japanese forex brokers is another industry titan in the form of Oanda. They too have a longstanding reputation in the industry having been around since 1995. This makes them a highly experienced broker who are regulated under the JFSA number 1571.
Overall, Oanda are a major broker in the entire industry who offer a very comprehensive infrastructure and some of the deepest liquidity of any broker when it comes to trading and accessing the best prices possible. They also support new traders very well with a great range of account type choices and an extensive education section. The minimum deposit to get started trading at Oanda stands at ¥100,000 and you can get to know the broker better by trying out a demo account which is available for a 60-day trial.
Dukascopy
Next on our list of top Japanese brokers is a well-known Swiss broker name in the form of Dukascopy. They are regulated by the JFSA under the license number 2408 and you can get started trading here with a very competitive minimum deposit of ¥10,000.
When it comes to trading at the broker, you will have a good range of market choices available including a total of 38 forex pairs. Trading in these pairs starts with a very competitive spread from 0.3 pips on the major USD/JPY market which can rival all of the other major brokers in the sector.
The trading experience here is a comprehensive one too with both MT4 and the Java platform JTrade available depending on your needs. This JTrade platform is specifically designed with algo-traders in mind so it also showcases the flexibility allowed by this top broker.
AvaTrade
AvaTrade is the next broker to feature in our collection of top Japanese forex brokers and the Irish-founded broker has a lot to offer Japanese traders. They are firstly regulated by the JFSA under the number 1662.
AvaTrade offers trading in more than 60 forex pairs in total. This includes a range of major, minor, and exotic choices based on your needs, and spreads here can start from 1.1 pips on the USD/JPY market. These markets are accessible with a minimum deposit of ¥50,000. In addition to this competitive value in terms of forex trading, you can also engage in copy trading with the broker. This is made possible through the third party Duplitrade platform and provides excellent opportunities if you wish to copy the trades of signal providers and others.
The broker also allows for autotrading and a range of other great features and account types such as trading with EAs through a range of platforms both proprietary and third-party which are known for their excellent usability.
Interactive Brokers
One of the top American Brokers to make our list, Interactive Brokers offer a range of great services to Japanese traders and are regulated by the JFSA under number 187. They are huge in the industry and one of the largest US brokers specializing in stock and forex trading.
One of the great and unique features which helps keep the broker open to all is the fact that their international account (IBLLC Account), does not have any minimum deposit. Here you can trade in forex, and global stocks, though not in commodities as a retail trader.
Other account types are also on offer here depending on your needs, and these include the ability to trade in Japanese stocks under the domestic account (IBSK). which has a minimum deposit of ¥1.000.000. It is clear then that this globally recognized broker caters very well for Japanese and international traders alike with an excellent, and accessible range of options.
IC Markets
Next in our listing of top Japanese brokers, it is undoubted that IC Markets are one of the top names in the industry around the world. They are not directly regulated by the JFSA but do facilitate the opening of accounts through their Australian entity which is ASIC regulated under number 335692.
With IC Markets you can look forward to trading with a top broker who is highly compliant and has been in the industry for a very long time. Added to this, they are extremely accessible with no minimum deposit required. They are well-known as a top broker both for forex trading, and for new traders in the industry. They also provide an excellent environment in terms of trading costs with spreads that start very low from 0 pips. You can also look forward to some of the fastest trade execution in the industry at IC Markets.
Vantage FX
Again, Vantage FX are a top name in the sector and though they are not regulated by the JFSA, they still do accept Japanese traders through their international entity which is regulated offshore by CIMA under the number 1383491.
They are yet another top Australian broker who are a top choice both in the country and internationally if you are a forex trader. The ECN/STP style of the broker is favored by many traders who are new and experienced alike and feel that this can combine the very best in speed, transparency, and trading costs. The spreads are excellent here and start from rock bottom at 0 pips, while the minimum deposit is also a competitive ¥20.000 (around $200).
These are some of the reasons, along with the fact they are well-trusted having been active in the sector for many years, that Vantage FX are still a very popular choice of broker.
NAGA Trader
Last but not least in our listing of the top forex brokers for Japanese traders is Naga Trader. They again are not regulated by the JFSA but can accept Japanese-based traders through their international entity registered offshore in Saint Vincent and the Grenadines under number 24501.
They are an excellent broker of choice particularly for those interested in social and copy trading as they are a major force in both of these areas. Again, new traders flock to Naga Trader for the great value that is on offer combined with the quality They do not impose any minimum deposit. This helps keep them open for all to use while they also provide a very competitive environment in terms of keeping trading costs down. Their spread starts from 1 pip on major markets while another very unique and attractive feature to many is that you can make crypto deposits through Naga Trader.
Japanese trader? Here’s what to 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 certainly advisable to go with a broker who does offer 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 brokers status and that you are trading in a safe environment.
