I have reviewed and analyzed the Japanese Forex market to compile my ranking of Forex brokers in Japan.
I have also included tips for starting Forex trading in Japan to shorten beginners' learning curves and help them avoid mistakes.
- Plus500, multi-asset and CFD broker.
- Octa, A commission-free broker with a proprietary copy trading service.
- FP Markets, ECN trading with leverage up to 1:500.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- XM, Exception range of assets + negative balance protection.
Comparison of the Forex Brokers in Japan
| | | | | |
Regulators | ASIC, CySEC, FCA, FMA, FSCA, MAS | CySEC, FSCA, MWALI International Services Authority | ASIC, CMA, CySEC, FSCA | FMA, FSA | ASIC, CySEC, DFSA, FSC Belize |
Year Established | 2008 | 2011 | 2005 | 2014 | 2009 |
Execution Type(s) | Market Maker | Market Maker | ECN/STP | ECN/STP, No Dealing Desk | Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.3 pips | 0.9 pips | 1.2 pips | 1.3 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.7 pips | 1.3 pips | 1.4 pips | 2.0 pips | 0.2 pips |
Average Trading Cost Gold | - | $0.30 | $0.16 | $0.90 | $0.19 |
Trading Platform(s) | Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, cTrader, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
Get Started Visit Website82% of retail CFD accounts lose money | Visit Website | Visit Website | Visit Website | Visit Website |
Plus500
In Summary multi-asset and CFD brokerI rank Plus500 among the best Forex brokers in Japan on my listing due to the low commission-free Forex spreads, starting from 0.6 pips or $6.00 per 1.0 standard round lot, on par with competitive commission-based ECN/STP/NDD brokers. Traders get the web-based proprietary platform and mobile app with a sentiment-based indicator and a fee-based guaranteed stop-loss order. The asset selection features forex and knockout options.
Traders receive real-time email, SMS, and push notifications based on price alerts and percentage-based hourly and daily price changes, while the high-quality data-driven analytical tool +Insights delivers competent research.
Pros & Cons
- Broad asset selection in equities and options
- Free and unlimited demo account
- Advanced free-of-charge analytical trading tools
- Global and regulated fintech platform
- Sub-standard trading platform without support for automated or social trading
Octa
In Summary A commission-free broker with a proprietary copy trading serviceOcta ranks among the best Forex brokers in Japan for copy trading brokers. Octa’s clients can benefit from an active community of 40M+ trading accounts and an in-house copy trading service with a dedicated mobile app that complements embedded MT4/MT5 services. Octa pays a 50% deposit bonus and has an average withdrawal processing time of 19 minutes on most withdrawals.
Besides MT4/MT5, Octa presents its proprietary OctaTrader. Active traders can lower fees via the Status program, and many liquid assets are swap-free. Octa supports micro lot trading and maintains a smaller asset selection consisting of liquid trading instruments.
Pros & Cons
- Quick withdrawals and deposits
- 0% commission and no overnight charges
- Space with personalised trading ideas
- Customer Support 24/7
- Mobile copy trading services available only for Android
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
XM
In Summary Exception range of assets + negative balance protectionI rank XM among the best Forex brokers for beginners as it provides exceptional education, with the live education room available Monday through Friday between 06:00 and 15:00 GMT at its core. Beginners also receive actionable trading recommendations, and the $5 minimum deposit ensures accessibility to all traders, boosted by deposit bonuses.
XM rewards active traders with a four-tier loyalty program and supports algorithmic traders with VPS hosting. The well-balanced asset selection exceeds 1,000 assets, and the proprietary copy trading service pays signal providers up to 50% profit share. Swap-free trading and low trading fees ensure a competitive edge.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
Forex Trading in Japan
Japan only accounts for roughly 6.0% of daily global Forex trading volumes but remains a core global Forex trading centre. The Bank of Japan is one of the most active central banks and frequently intervenes in the Japanese Yen, affecting its exchange rates. The Japanese Yen is the third-most traded currency, and due to the historically low-interest rate environment, the Japanese Yen is heavily used for carry trading. My Forex Brokers in Japan listing concludes that the Japanese Yen is a safe-haven asset.
What to Look for in a Forex Broker from Japan
My Forex brokers in Japan listing focused on the criteria below.
Traders should look for the following:
- Regulation - A clean regulatory track record exceeding ten years.
- Low trading fees - Low trading fees and swap rates.
- Trading platforms - Algorithmic, copy, and mobile trading support.
- Asset diversity - A balanced asset selection.
- Deposits/Withdrawals - No deposit fees and low minimum requirements.
Forex Trading Regulations in Japan
The Japanese Financial Services Agency (JFSA) regulates domestic brokers via the Financial Instruments and Exchange Act (FIEA). It includes a mandatory membership with the Japan Investor Protection Fund (JIPF), covering traders up to ¥10 million.
How Much Is Forex Leverage in Japan?
The JFSA restricts Forex leverage to 1:25 for Japanese Forex brokers, which ranks among the most restrictive compared with other developed markets. Japanese traders can open offshore accounts with brokers like the ones listed here who accept Japan-resident traders.
How to Start Forex Trading in Japan?
Traders can consider the tips below before opening an account with brokers from my Forex Brokers Japan listing. They will shorten the learning curve and highlight areas of study they must focus on.
My Forex Trading Tips
1. Begin with quality, in-depth education.
2. Respect Forex trading as the high-skilled profession it represents.
3. Master trading psychology, as it separates up to 90% of unprofitable traders from profitable ones.
4. Study the relationship between leverage and risk management.
5. Realize that leverage will equally magnify profits and losses.
6. Risk management is as important as having the right trading strategy.
7. Choose a trading strategy that reflects your personality.
8. Low trading fees determine a competitive trading environment.
9. Learn how to place the take profit and stop loss levels properly.
What Is the Best Trading Platform in Japan
With 80%+ of daily Forex trading volume algorithmic, MT4 is the best trading platform in Japan. As the leading algorithmic trading platform, it supports API trading, VPS hosting, and MAM/PAMM modules for traditional account management. It also has an embedded copy trading service. Traders can upgrade MT4 via 25,000+ upgrades.
Forex Trading Taxation in Japan
During the research, I found little helpful and verifiable data on how Japan taxes Forex traders. The only fact I can confidently state is that Forex traders pay taxes on their income and that Japan changed its Forex tax structure in January 2012. Forex income below ¥200,000 annually appears tax-free before a progressive tax rate between 5% and 45% applies. Japan also differentiates between OTC Forex trading and exchange-based Forex trading.
Therefore, Forex traders in Japan must consult a legal professional to seek tax advice in Japan to ensure compliance with local rules and regulations.
Pros and Cons of Forex Trading in Japan
Forex traders should consider the pros and cons of Forex trading in Japan before opening and funding a trading account with one of the best brokers in the Country.
Pros of Forex Trading in Japan
- 24/5 decentralized market
- Lower capital requirements
- Low-latency algorithmic trading
- API trading
- MAM/PAMM accounts
- Passive income opportunities
- Copy and social trading via mobile apps.
Cons of Forex Trading in Japan
- Manual trading in an algorithm-dominated market.
- Forex is perceived as something other than trading as a high-skilled profession.
Bottom Line
Japan is the fifth-largest Forex market, trailing London, New York, Hong Kong, and Singapore, but the Japanese Yen is the third-most traded currency. Forex trading in Japan is widespread, and domestic Forex brokers and banks maintain a dominant role among Japanese-resident Forex traders. Traditional account management via MAM/PAMM accounts and algorithmic trading rank among the most popular strategies.
My Forex Brokers in Japan listing provides Japanese-resident traders with a competitive trading environment. Japan also ranks among the wealthier Forex markets, but foreign brokers struggle to penetrate the market significantly.
