VantageVisit Vantage74-89% of retail CFD accounts lose money
PepperstoneVisit Pepperstone74-89% of retail investor accounts lose money when trading CFDs
XMVisit XM77,37% of retail investor accounts lose money
AxiVisit Axi69.6% of retail investor accounts lose money
IC MarketsVisit IC Markets74-89% of retail CFD accounts lose money
EasyMarketsVisit EasyMarkets75% of retail investor accounts lose money
Moneta MarketsVisit Moneta Markets74-89% of retail CFD accounts lose money
AvaTradeVisit AvaTrade79% of retail investor accounts lose money
Fusion MarketsVisit Fusion Markets(Your capital is at risk)
FP MarketsVisit FP Markets74-89% of retail CFD accounts lose money
In this article, you will find the best forex brokers that offer accounts denominated in JPY, or that allow withdrawals and deposits in Yen currency.
To choose the best JPY forex brokers, we took the following factors into consideration:
- The overall quality of the broker
- The availability of making deposits and withdrawals in JPY
- The availability of trading accounts in JPY
- The broker’s minimum spread, and the average spread for major JPY pairs
- The JPY deposit and withdrawal methods offered
- The presence of Japanese forex regulation
|JPY Forex Brokers||JPY Deposit Methods||JPY Account|
|Vantage||Wire transfer, credit/debit cards, JCB||Yes|
|Pepperstone||Wire transfer, credit/debit cards, PayPal, Neteller, Skrill, Union Pay||Yes|
|XM||Wire transfers, credit/debit cards, Skrill, Neteller, WebMoney||Yes|
|Axi||Wire transfer, credit/debit cards||Yes|
|IC Markets||Wire transfer, credit/debit cards, broker to broker||Yes|
|easyMarkets||Credit/debit card, Astropay, Sticpay, Webmoney, and bitwallet||Yes|
|Moneta Markets||Wire transfer, credit/debit cards, Sticpay and JCB||Yes|
|AvaTrade||Wire transfer, credit/debit cards, Neteller, Skrill||Yes|
|Fusion Markets||Wire transfer, credit/debit cards, PayPal, Perfect Money, Jeton Wallet, SEPA||Yes|
|FP Markets||Wire transfer, credit/debit cards, Neteller, Sticpay, broker to broker||No|
What are the best forex brokers with JPY accounts?
How does a JPY account work?
A JPY account is a trading account provided by a broker that is based on the Japanese Yen. All trading (opening and closing positions) and non-trading (deposits and withdrawals) transactions on a JPY trading account are conducted in JPY.
In the case of forex trading, this has several implications:
The forex world is USD-based, so all Japanese yen trades on forex (except for the USD/JPY pair), will charge conversion fees. For example, to trade the USD/EUR pair, brokers first convert the order to USD/JPY (because the account is in yen), and then from USD/EUR. Because of this, trading costs may be higher than in a classic USD account.
It may also be less convenient to scalp, as the speed of order execution may be affected by the double conversion.If you withdraw money from your JPY trading account, but the trader’s bank account is not in the japanese currency, the bank and/or broker may charge additional fees for deposits and withdrawals.
To avoid these charges on deposits and withdrawals, you can open a bank account in Japan (but only if you are a resident of the country), or ask the bank to open a second bank account denominated in JPY.
How to choose a forex broker with a JPY account?
The most important factors to consider when choosing a broker with a JPY account are:
- JPY transaction fees;
- Deposit and withdrawal methods accepted;
- Japanese regulation if you are a resident of Japan.
Commissions are important to consider because they are additional costs that reduce the profit margin, and increase the loss margin. Not all deposit methods accept Yen. If one is a resident outside Japan, it is possible that Yen deposits will charge additional fees. If the trader is a resident of Japan, the broker must have local regulation. Otherwise, it is sufficient to trade with forex brokers regulated by other bodies such as the FCA.
How to open a JPY trading account for forex trading?
Most brokers make you choose the account currency at the time of registration. The account currency cannot be changed, however, you will be able to open a secondary trading account denominated with another currency.
Search for the “account base currency” information, and select JPY. Below is an example of XM’s account opening form:
Other brokers won’t let the trader select the currency, but they denominate the account in the currency of the deposit (e.g. if you fund a new account in yen, the account base currency will automatically be set to the Japanese currency).
Are JPY forex pairs available on any platform?
JPY forex pairs are available on every trading platform. These pairs, just like other forex pairs, can be categorized in: major, minor, exotic:
- Major: are the most traded and liquid, such as USD/JPY;
- Minor: liquid forex pairs that do not include the USD, such as EUR/JPY;
- Exotic: low liquidity pairs such as ZAR/JPY.
Most trading platforms make Major forex pairs available.If you wish to trade less liquid jpy forex pairs you need to choose a trading platform such as MT5, which makes available a wide range of markets and assets compared to MT4.
You should trade less liquid forex pairs only if you are an expert. They are low liquidity (might not be able to close your trading positions), have high spreads, and high volatility at times.
Also, make sure that the broker of your choice makes these currency pairs available.
The following chart shows some of the categorization of pairs with the JPY:
|JPY Currency Pairs||Category||Bid Currency|
|USDJPY||Major||USD = US Dollar|
|EURJPY||Minor||EUR = Euro|
|GBPJPY||Minor||GBP = British Pound|
|CHFJPY||Minor||CHF = Swiss Franc|
|NZDJPY||Minor||NZD = New Zealand Dollar|
|CADJPY||Minor||CAD = Canadian Dollar|
|AUDJPY||Minor||AUD = Australian Dollar|
|MXNJPY||Exotic||MXN = Mexican Peso|
|NOKJPY||Exotic||NOK = Norwegian Krone|
|SGDJPY||Exotic||SGD = Singapore Dollar|
|TRYJPY||Exotic||TRY = Turkish Lira|
|ZARJPY||Exotic||ZAR = South Africa Rand|
How to simulate JPY accounts trading commissions?
Many forex brokers offer demo accounts. These demo accounts can be used to trade forex with virtual currencies so there is no risk. A demo forex account simulates a live trading environment. You can use it to simulate rollover fees or conversion fees when trading jpy forex pairs.
In fact, forex brokers allow traders to choose their own base currencies on their demo account. Select the base currency you might be using in the future on the real account in order to better simulate the fees.
What are the foreign exchange risk when using JPY accounts?
When using an account other than that of your country of residence, you need to pay attention to foreign exchange risk, which is the devaluation of one currency against another.
If you are a U.S. resident but want to trade with a JPY trading account. If $100 is worth 10,000¥ and the JPY loses value against the USD. Now that 10,000¥ is worth $90. So it is like having lost money, even though you have not been trading.
The below table charts the value of 1,000,000¥ against the EUR, USD and GBP over the past 10 years from January 1st, 2013.
|1 million JPY to USD||11540 USD||7627 USD||-3913 USD (-33,91%)|
|1 million JPY to EUR||8742 EUR||7110 EUR||-1632 EUR (-18,67%)|
|1 million JPY to GBP||7103 GBP||6304 GBP||-799 GBP (-11,25%)|
What are the pros and cons of JPY forex trading accounts?
- No currency exchange risk if you are based in Japan
- No currency conversion fees for yen deposits
- Currency exchange risk if not based in Japan
- Currency conversion fees for deposits in currencies other than yen
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