At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.
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.
Table of contents
Round-up of the best forex brokers in Japan
- Forex.com: best broker overall
- IG Markets: wide range of services
- Saxo Bank: best for high-volume traders
- Oanda: best for beginners
- Dukascopy: best for trading flexibility
- AvaTrade: best for fixed spreads trading
- Interactive Brokers: best for professional traders
- IC Markets: great for algo-traders
- Vantage: very low spreads on forex
- NAGA Markets: best for copy trading
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money
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 2022
Here’s our list of the best Japanese forex brokers for you to choose from:
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.
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