Below are what we believe the best forex brokers in JAPAN.
|Forex Broker's Name||More info||Broker's Rating||Bonus||Max. Leverage||Minimum deposit||Trading Platforms||Our Review|
|98%||Bonus ¥3000||888:1||$5||MetaTrader 4|
Established in 2010, XM Trading is the top forex trading platform in Japan.
Some of the benefits XM trading has to offer for Japanese forex traders:
- Maximum leverage up to 888:1
- 3000 ¥ bonus for new traders from Japan
- Bonuses up to $5000
- Excellent reputation among forex traders
- Japanese YEN as a base currency for your trading account
- Fast order execution, no requotes
- 56 currency pairs
- Integration with MT4 or MT5 makes it easy to connect with your favorite EA (Expert Advisor)
- Regulated in the most credible jurisdictions by FCA United Kingdom, ASIC Australia, CySEC.
Who regulates fx brokerages in Japan ?
There are two main financial market regulatory agencies in Japan.
The first and the most influential financial watchdog agency is JFSA – Japan Financial Services Authority.
The main function of JFSA is financial market supervision.
JFSA is supervising not only forex brokers, but also banking sector, securities agencies and insurance agencies.
The other one is called Financial Futures Association of Japan (FFAJ)
Both government agencies set strict regulatory rules for forex brokers, and try to maintain a safe forex trading environment. JFSA is also responsible for blacklisting overseas and japanese forex brokers that don’t play by the rules.
Currency trading is very popular among the Japanese forex traders. Some sources say that almost 33% of adult male population in Japan trades currencies. in some way. The way how the forex brokerage business is conducted in Japan is a little bit different than in the rest of the world. First of all, the market is over regulated. Since the many years, Japanese have been allowed to trade only with the leverage up to 1:25 which makes forex very expensive for them. On the other hand, as official authorities claim, low leverage is here to protect them. As a resulf of this, many Japanese open their forex trading accounts with overseas fx brokers, who are more than happy to accept them.
Tokyo Financial Exchange (TFX) is the place where foreign exchange takes place. Over The Counter or OTC trading is done through many forex brokers that operate on the Japanese market.
Currency pairs and other tradable assets
Japan fx brokers offer their clients, in addition to forex currency pairs, also trading of other asset classes. These are most often CFDs on stocks and indices, CFDs on precious metals and cryptocurrencies.
When it comes to trading services, many forex companies provide free online webinars on current topics. Recently, various analytical trading tools have also been popular that can help you make decisions.
We recommend choosing only an fx broker who communicates with you in the japanese language. If you are fluent in english, then ok. But local language suport will save you a lot of problems in the future. It is worth to check if your chosen fx broker provides non-stop support (Monday to Friday) by phone if the forex platform crashes during trading, some brokerages sadly have email contact and live chat only.
Majority of forex companies offer their clients a combination of their own inhouse webtrader platform plus MT4/MT5.
Webtrader is a forex platforms that runs on a web browser and there is no need to download anything. Trading does not put additional workload on your PC processor, and it allows you to trade using an older PC without a problem.
Metatrader 4 (MT4), Metatrader 5
Proven classic among forex robot enthusiasts that can be integrated via MT4. We do not recommend it for beginners as it requires some time. MT4 is demanding on the performance of your computer.
1. Market Maker (Dealing Desk)
Market Maker is a market maker or dealing desk broker. In practice, this means that the broker handles orders himself. This type of broker has its advantages and disadvantages. We especially recommend it for newcomers and those who are just starting out. The reasons are as follows: Low deposits, you can trade even mini or micro lots with little capital. If you trade small volumes of lots, it will be much cheaper for you than ECN.
2. ECN/ STP
In practice, ECN means that each trade order is sent to the free market where it finds a counterparty (No dealing desk broker). Therefore, this type of broker does not make traders a counterpart. It has its advantages and disadvantages. Spreads are clearly lower here, while you pay commissions for each trade. Not every trade can be settled to your satisfaction. We recommend experienced traders with many years of experience.
All of the above forex platforms are among the best and many of them will not only allow you to speculate on forex, but you can also learn how to trade stocks and how to choose a stock broker. If you like adrenaline and are interested in trading on the financial markets, also read one of our most popular articles on how to trade on the stock exchange and how to earn money systematically.