| Updated: September 3, 2024To say that forex trading is popular in Japan would be an understatement, seeing as the country is home to a multitude of retail traders, and the Japanese Yen is among the most traded currencies in the entire international global market. In terms of regulation, the entity that is tasked with licensing and monitoring forex brokers that aim to cater to a Japanese audience is the Japanese Financial Services Agency (JFSA). Its website is available in both Japanese and English, and it can be found at https://www.fsa.go.jp/en/.
Forex.com77.7% of retail investor accounts lose money
IC Markets70.64% of retail investor accounts lose money
AvaTrade76% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Capital.com75% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
Libertex74.91% of retail investor accounts lose money
FxPro74% of retail investor accounts lose money
XM Group72.82% of retail investor accounts lose money
Iron FX67.62% of retail investor accounts lose moneyJapanese Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. IC Markets | 37,770 | 4.6 ⭐ |
| 2. Forex.com | 1510 | 4.6 ⭐ |
| 3. AvaTrade | 8,718 | 4.5 ⭐ |
| 4. Global Prime | 142 | 4.4 ⭐ |
| 5. Capital.com | 10,796 | 4.3 ⭐ |
| 6. Eightcap | 2,460 | 4.2 ⭐ |
| 7. Libertex | 9,406 | 4.0 ⭐ |
| 8. FxPro | 235 | 3.7 ⭐ |
| 9. XM Group | 723 | 2.2 ⭐ |
| 10. Iron FX | 0 | N/A ⭐ |
Japanese Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Libertex | 0.1 | 0.3 | 0.3 | 0.4 |
| 2. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 3. FxPro | 0.25 | 0.38 |
| 0.37 |
| 4. Capital.com | 0.6 | 10 | 2 | 1.3 |
| 5. Iron FX | 0.7 | 0.4 | 0.9 | 0.8 |
| 6. IC Markets | 0.8 | 0.8 |
| 0.8 |
| 7. XM Group | 0.8 | 0.9 | 1.5 | 0.9 |
| 8. AvaTrade | 0.9 | 1.3 | 1.2 | 1.3 |
| 9. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
| 10. Forex.com | 1 | 1.2 | 1.3 | 1.3 |
Japanese Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. Forex.com | $0 for Standard accounts; $5 per standard lot per side for Raw accounts |
| 2. Iron FX | $0 |
| 3. Capital.com | $0 |
| 4. Eightcap | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| 5. AvaTrade | $0 |
| 6. Libertex | $0 |
| 7. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 8. XM Group | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account |
| 9. IC Markets | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
| 10. FxPro | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
Important Note: While obtaining a JFSA license is by no means an easy task, an impressive number of brokers have managed to achieve just that. Japanese traders can, therefore, pick between quite a lot of forex brokers and go with the ones that fit their individual preferences best. Of course, this can be quite difficult for indecisive traders or those who are new to the forex market. If you are one such individual, we encourage you to continue reading, seeing as our team has thoroughly examined a range of forex brokers to determine which best cater to traders in Japan.
Top 10 FX Brokers in Japan
Global Prime Broker Details Supports Japanese No Japanese Currency (JPY) Yes Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.4 out of 142 reviews Number of Forex Pairs to Trade 56 Leverage Forex & Metals: 1:500
Index CFDs: 1:100
Cryptocurrencies: Up to 1:2 (Retail); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 1.11Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
XM Group Broker Details Supports Japanese No Japanese Currency (JPY) Yes (XM Zero Accounts) Regulators FCA (ref. no. 705428), (ASIC) (ref. No. 443670), FSC (license no. 000261/397), DFSA (ref. no. F003484), CySEC (license no. 120/10), MiFID, CFTC Min Deposit $5 Trading Platforms MetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT$ Multiterminal Trustpilot Rating 2.2 out of 723 reviews Number of Forex Pairs to Trade 50+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.8
USDJPY: 0.9
EURGBP: 1.5
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account Deposit Methods Visa, Mastercard. Skrill, Bank Transfer, Neteller, Apple Pay, Google Pay, UnionPay, Maestro Withdrawal Methods Visa, Mastercard, China Union Pay, Skrill, Neteller, Bank Transfer Key Pros
- Traders can choose from over 10 platforms
- Covers a great number of currency pairs
- Regulated by major authorities
- Offers smooth trading on the go
- Supports different account types with tight spreads and low fees
Key Cons
- Trading platform’s design seems outdated
- Not listed on stock exchange
- Charges an inactivity fee
Forex.com Broker Details Supports Japanese Yes Japanese Currency (JPY) Yes Regulators ASIC, MAS, FCA, CIRO, JFSA, CFTC , MiFID, CySEC Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, TradingView, WebTrader Trustpilot Rating 4.6 out of 1510 reviews Number of Forex Pairs to Trade 80+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 1
USDJPY: 1.2
EURGBP: 1.3
GBPUSD: 1.3Forex Commission per Lot per Trade $0 for Standard accounts; $5 per standard lot per side for Raw accounts Deposit Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Key Pros
- Supports a great selection of trading platforms
- Enables easy mobile trading
- Offers over 80 currency pairs
- Provides a vast variety of products
- Forex spreads can be very competitive
Key Cons
- Navigating platforms can be difficult for beginners
- Instruments on MT4 platforms are significantly fewer than other platforms
- Charges monthly fee after 12 months of inactivity
Iron FX Broker Details Supports Japanese Yes Japanese Currency (JPY) Yes Regulators FCA (licensing no. 585561), FSCA (licensing no. 45276) Min Deposit $100 Trading Platforms MetaTrader 4, WebTrader, VPS, PMAM, TradeCopier, Mobile App Trustpilot Rating N/A out of N/A reviews Number of Forex Pairs to Trade 80+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.7
USDJPY: 0.4
EURGBP: 0.9
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Visa, MAstercard, Bank Wire, Skrill, Neteller, China Union Pay, Fasapay, Perfect Money, Bitwallet, Paysafecard Withdrawal Methods Bank Wire Key Pros
- Offers a wide selection of trading instruments
- Supports several popular trading platforms
- Enables easy trading on the go via dedicated app
- Supports various deposit methods
- Traders can choose from 7 different account types
Key Cons
- Bahamas entity operates with no license
- Trustpilot score not available due to many fake review detected
- Withdrawals are possible only via bank wire
IC Markets Broker Details Supports Japanese No Japanese Currency (JPY) Yes Regulators FSA (Seychelles), CySEC, ASIC Min Deposit $200 Trading Platforms MetaTrader4, MetaTrader5, cTrader, ZuluTrade Trustpilot Rating 4.6 out of 37,770 reviews Number of Forex Pairs to Trade 61 Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 0.8
USDJPY: 0.8
EURGBP:- 0.00 (Raw)
- 1.00 (Standard)
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT Deposit Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, CardPay, Bpay, FasaPay, Poli, RapidPay, Klarna Withdrawal Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, FasaPay, Poli, RapidPay, Klarna Key Pros
- Offers a large number of forex pairs to trade
- Great for forex traders due to low spreads
- Supports all industry-standard trading platforms
- Supports a wide range of payment solutions
- Low forex trading commission
Key Cons
- Non-EU customers have no investor protection
- Not listed on stock exchange
- List of products can be further expanded
Capital.com Broker Details Supports Japanese No Japanese Currency (JPY) No Regulators ASIC, FCA, CySEC, SCB, MiFID Min Deposit $20 Trading Platforms MetaTrader 4, TradingView Trustpilot Rating 4.3 out of 10,796 reviews Number of Forex Pairs to Trade 125+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.6
USDJPY: 10
EURGBP: 2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Bank transfers, VISA, MasterCard, Maestro, Apple Pay, PayPal, Neteller, Skrill, Sofort, Przelewy, TrueLayer, iDEAL, Trustly, SPEI Withdrawal Methods Bank transfers, bank cards, Apple Pay, PayPal, Neteller, Skrill, Sofort, Trustly Key Pros
- Trusted by 580K+ traders across the globe
- Trading guides for beginner, intermediate, and advanced traders
- Mobile apps for Android and iOS devices
- Low FX fees built into the spread
- Negative balance protection
Key Cons
- There is an inactivity fee after 1 year
- No two-step login
- No price alerts on the web platform
Eightcap Broker Details Supports Japanese No Japanese Currency (JPY) No Regulators SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, TradingView Trustpilot Rating 4.2 out of 2,460 reviews Number of Forex Pairs to Trade 50+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.1
EURGBP: 1
GBPUSD: 1Forex Commission per Lot per Trade $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix Withdrawal Methods Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac Key Pros
- Commission-free FX trading via standard accounts
- Spreads from 0 pips on major currency pairs
- Accepts cryptocurrency deposits
- Fantastic variety of deposit and withdrawal methods
- Insights section with webinars, trade ideas, and weekly forecasts
Key Cons
- Below-average range of tradable instruments
- Crypto withdrawals incur transaction fees
FxPro Broker Details Supports Japanese Yes Japanese Currency (JPY) Yes Regulators FCA (No. 45052), CySEC (No. 078/07), SCB (No. SIA-F184), FSCA (No.45052) Min Deposit $100 Trading Platforms MT4, MT5, cTrader, FxPro Edge (proprietary) Trustpilot Rating 3.7 out of 235 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.25
USDJPY: 0.38
EURGBP:- 0.1 (MT4)
- 1.3 (MT5)
GBPUSD: 0.37Forex Commission per Lot per Trade $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts Deposit Methods Visa, Mastercard, Maestro, Bank Transfer, Neteller, PayPal, Skrill, Union Pay Withdrawal Methods Bank Transfer, Mastercard, Visa, Union Pay, Maestro, PayPal, Skrill, Neteller Key Pros
- Over 2,100 CFDs across six asset classes
- Zero fees on deposits and withdrawals
- Floating spreads with no commissions on MT4 FX trades
- Winner of over 100 industry awards
- Fills orders within less than 13 milliseconds
Key Cons
- FX spreads are slightly higher than industry averages
- Charges maintenance fees after six months of inactivity
AvaTrade Broker Details Supports Japanese Yes Japanese Currency (JPY) Yes Regulators FFAJ (License No.1574),CySEC (No. 347/17) ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC(No.406684) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial Trustpilot Rating 4.5 out of 8,718 reviews Number of Forex Pairs to Trade 53 Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2 for EU residents 1:25 for non-EU residentsSpread EURUSD: 0.9
USDJPY: 1.3
EURGBP: 1.2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Withdrawal Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Key Pros
- Regulated by 9 jurisdictions in 6 continents
- Offers various trading platforms suitable for beginners and expert traders
- Enables smooth mobile forex trading via dedicated app
- Offers 55 forex options and numerous CFDs
- Easy copy trading via the AvaSocial platform
Key Cons
- Retail account pricing trails behind top brokers’ offerings
- Desktop platform may seem a tad outdated
- Many payment solutions are country-specific
Libertex Broker Details Supports Japanese No Japanese Currency (JPY) No Regulators CySEC (CIF Licence number 164/12), BaFin (BaFin ID: 10161686 / Bak No.: 161686) Min Deposit $10 Trading Platforms Libretex Trading Platform, MT4, MT5 Trustpilot Rating 4.0 out of 9,406 reviews Number of Forex Pairs to Trade 50+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.1
USDJPY: 0.3
EURGBP: 0.3
GBPUSD: 0.4Forex Commission per Lot per Trade $0 Deposit Methods PayPal, Visa, Mastercard, Sofort, iDeal, Trustly, Skrill, Giropay, Sepa International Bank Wire, Multibanco, P24, BLIK, eService, Neteller Withdrawal Methods SEPA International Bank Wire, PayPal, Visa Mastercard, Skrill, Neteller Key Pros
- Great variety in terms of markets
- Users have a range of deposit and cashout solutions to pick from
- Available in English, Spanish, French, Portuguese, and other languages
- Negative balance protection
- Traders can contact the customer support staff via live chat
Key Cons
- No longer available for UK traders
- Does not accept traders from the US
- Somewhat lacking in terms of educational resources
Is Forex Trading Legal in Japan?
Aspiring traders who live in Japan will be pleased to learn that forex trading is both legal and thoroughly regulated. As established, it is the JFSA that governs this corner of Japanese finance, and this is the entity that can issue licenses to both local and offshore forex brokers. Companies not authorized by the JFSA cannot target Japanese clients legally, and obtaining a license is a lengthy process during which a broker is thoroughly vetted to ensure that it meets the requirements of the regulator. This has created a secure and well-regulated environment for Japanese traders.
We can also assure Japanese traders that quite a few brokers have been successful in meeting all of the requirements of the JFSA and obtaining a license. Thus, traders will not be stuck with having just a few legitimate options to pick from.
Japanese Financial Services Agency (JFSA) Regulation Info
The Financial Services Agency (JFSA) of Japan is somewhat young, having been established in 2000 when the Financial Supervisory Agency and the Financial System Planning Bureau merged. The JFSA comprises a number of organizations, and this includes the Securities and Exchange Surveillance Commission. As for the JFSA’s duties, it regularly monitors licensees for their continued compliance with Japanese laws, and it has the authority to take action against companies that do not adhere to the rules.
Due to the tight control the JFSA has over Japan’s financial sphere and its overall level of strictness, Japan has been given the designation of a Tier 1 jurisdiction alongside the UK, Germany, and other regions with excellent regulatory oversight.
How can I verify JFSA authorization?
Once you have come across a broker that you believe is just right for you, it is crucial to make sure that it is licensed by the Japanese Financial Services Agency (JFSA). Brokers tend to provide their licensing information on the homepage, specifically in the footer section. On the off-chance a broker has not included its licensing credentials there, you can try looking in the frequently asked questions page or even ask the customer service team. As most JFSA-licensed brokers give their clients the option to contact support via live chat, going this route will not take long.
If you are distrustful of the broker’s information, or you would simply like to have the peace of mind of being absolutely sure that the JFSA has indeed given a given company its seal of approval, you can consult the regulator’s register of licensed entities.
Are my funds safe with forex brokers in Japan?
Japan’s Financial Services Agency is known for its strict rules and a licensing process that can be very difficult for a forex broker to undergo. This, however, is to traders’ benefit, as it ensures that if you decide to trade at a JFSA-licensed broker, you can trust that you will not become the victim of a fraudulent company that does not have its clients’ best interest in mind. As for what requirements partake to the safeguarding of client money, among the most crucial is the one mandating that companies segregate client funds away from the broker’s own money. In addition, should a forex broker become insolvent, the Japanese Investor Protection Fund will ensure that traders are compensated as mandated by JFSA rules.
We should mention that the leverage offered by Japan-facing brokers cannot exceed 25:1, which is a limit that no other jurisdiction imposes. While many traders will not be pleased with this rule, it does mean that clients are prevented from using excessive leverage that can result in notable losses. It might even be a blessing in disguise, given the JFSA’s stance on negative balance protection, which you can read more about in the following section.
Do Japanese brokers provide negative balance protection?
Negative balance protection is often seen as one of the most important safeguards forex brokers can offer to their clients. A number of events in the past have shown just how dangerous negative balance can be for retail traders, the most notable of which happened in 2015, when the Swiss Franc’s peg to the Euro was scrapped. This many traders with absolutely massive losses due to their balances going in the negatives. Had they been able to use negative balance protection, the event would have been far less harmful for retail traders than it ended up being. This is one of the main reasons behind the European Securities and Markets Authority’s decision to make it mandatory for negative balance protection to be offered to retail users.
Given the above context, you will be surprised to find out that in Japan, retail traders do not have access to negative balance protection. This is not a problem stemming from brokers wishing to avoid offering negative balance protection, however. Instead, this issue is a matter of Japan’s financial regulator explicitly forbidding reputable brokers from providing negative balance protection to traders. Japan-based traders have criticized this decision, with some arguing the JFSA should lift the ban. At the time of writing, however, the situation remains unchanged.
Do you pay tax on forex trading in Japan?
If you aspire to become a forex trader in Japan, you will need to become familiar with how profits gained from partaking in the foreign exchange market are taxed. The said profits are categorized under “miscellaneous income,” with forex gains being subject to a capital gains tax rate of 20.315%.
How does the available leverage of JFSA-regulated brokers compare to the leverage at brokers regulated offshore?
At present, Japan is known for having the slimmest forex leverage limits when compared to any other financial jurisdiction. Japanese participants in the forex market can utilize a leverage of 25:1 at most, as forex-facing brokers are not permitted to offer anything above this threshold.
This is a small yet notable difference when compared to the limits of the European Union or the UK, seeing as the rules of both the European Securities and Markets Authority and the British Financial Conduct Authority dictate that retail traders have access to a maximum leverage of 30:1 on major forex pairs. What is more, Japan’s leverage cap is substantially lower than the US and Poland. The former’s financial watchdog allows forex brokers to offer a leverage of up to 50:1, twice the limit of Japan, while retail traders in Poland may take advantage of a 100:1 if they wish.
What trading platforms are available to Japanese traders?
Variety is a major perk of Japan’s forex trading sphere when it comes to the platforms Japanese traders have access to. Having access to the MetaTrader platforms, in particular, is almost a given, with both the fourth and the fifth iterations typically being offered to Japanese users.
Of course, there are also brokers that have moved away from MT, opting to instead offer cTrader or other more recently released platforms that have gained a foothold in the global forex trading scene. You may also run into brokers that, as opposed to relying on third-party platforms, have decided to develop their own exclusive software.
As for the differences between platforms, with MT4 and MT5, for example, it is a matter of additional features (like an economic calendar) and a larger number of technical indicators, among other perks that MT5 offers over its predecessor.
For many traders, a broker not supporting their favorite platform can be a deal-breaker, which is why it is always crucial to check the available pieces of software before one decides to go through the trouble of registering and going through the standard KYC procedures.
We should also stress that making sure that a forex broker’s platforms are compatible with smartphones is also very important. The chances of coming across a broker that is not mobile-friendly are relatively slim, but better safe than sorry, especially if you are absolutely adamant on having access to your forex account while you are on the go.
If you have questions about your trading experience or wish to find more about the regulatory framework in Japan’s forex market, you can resort to the sources we have listed below:
- Japanese Financial Services Agency (JFSA): This is the official regulatory body issuing licenses to entities that wish to offer forex trading services to investors in Japan.
- To confirm whether a forex broker has been authorized to operate by the JFSA, you can check the regulator’s official registry of licensed Financial instruments business operators here.
- If Japanese traders need help with an issue they are experiencing while trading with a JFSA-regulated forex broker, they can contact the Financial Instruments Mediation Assistance Center (FINMAC).
- Any reputable forex broker licensed by the JFSA is also registered with the Financial Futures Association of Japan (FFAJ), which is an organization that provides additional educational materials and help to investors trading forex pairs and other assets provided by Japanese brokers.