New FOREX brokers come on the scene all the time. With competition so rife, brokerage firms are trying harder to keep their clients satisfied as a way to protect their market share. FOREX traders, for their part, are concerned about the dangers of trading FOREX with the wrong broker. Because of this, they need the guidance of a qualified voice to stay away from dodgy brokerage firms. For this reason, we will be listing the best FOREX brokers in Japan today. This FOREX broker ranking is the result of a detailed review process carried out by Arincen. We will share our review methodology so traders can understand why we chose the companies we did.
Top Tips for Selecting the Best FOREX Brokers in Japan
In Japan, the FOREX market is marked by a plethora of premium brokers offering unparalleled services. To safeguard and grow your investments in this complex financial landscape, it's crucial to collaborate with a broker who has a verifiable record of success. Comprehensive research is the cornerstone of making an informed decision. When considering a FOREX broker in Japan, it's imperative to weigh the following key attributes:
• The broker should fall under the scrutiny of a reputable regulatory authority, such as Japan's Financial Services Agency (FSA), or another globally esteemed regulatory body. • Evaluate the broker's fee architecture to ensure it is both competitive and transparent, thereby maximizing your investment's potential returns. • Opt for a broker that furnishes a wide variety of tradable financial assets, facilitating a well-rounded and diversified investment approach. • Customer service excellence is non-negotiable; select a broker whose support team is both quick to respond and proficient in addressing any queries or issues you may encounter. • Access to a robust set of research tools and educational materials is essential for enhancing your market intelligence and trading proficiency.
Best 11 FOREX Brokers and Platform In Japan
Take a look at our expert’s top 11 FOREX brokers in Singapore for 2023
FXDD 92.15 - Best Overall Broker
ICM Capital 91.10 - Best Deposit and Withdrawal Broker
XTB 85.55 - Best Customer Service Broker
IG 85.45 - Best Regulations Broker plus Convenient Platform
Think Markets 80.05 - Aimed at the Audience of Traders
FXDD received the highest score in our survey (92.15). One of the first FOREX companies to offer a credit card in order to allow traders to withdraw their profits, this New York-based company has the UK's FCA license under its belt. It also has a rich portfolio of assets, offers a relatively low spread, in addition to the MetaTrader4 (MT4) platform. Further, it has excellent and fast customer service, and also offers traders a variety of ways to deposit money.
ICM Capital is considered the industry leader in deposits and withdrawals, whereby each withdrawal does not take more than five business days. Moreover, the company offers its customers a handy credit card to withdraw their profits, in addition to enabling customers to use various deposit methods. The company, which is licensed by the UK's FCA, has several branches around the world. Among other things, it has a rich portfolio of assets, especially stocks, offers a low spread, as well as the ability to use MT4.
What distinguishes XTB is the fact that it offers the best customer experience among all the companies we have surveyed. Indeed, it boasts the fastest response rate from all the companies under investigation. This is especially relevant, since the market is always on-the-go, and so you need to act fast. XTB offers lots of asset classes, as well as the ability to use the MT4 trading platform. Finally, it maintains a relatively low spread, which is suitable for quick deals.
IG is arguably the best broker when it comes to security and trust, boasting, as it does, licenses from 10 regulatory bodies, including the all-important FCA from the UK. The company is also a bank and is a publicly traded company in London. It is known for offering more than 10,000 asset classes of currencies, commodities, future contracts, ETFs, indices, cryptocurrencies etc. Further, it has its own state-of-the-art trading platform and offers a relatively low spread.
Saxobank is considered one of the best investment banks in the area of financial markets and currencies, as it offers the very best trading platform and tools from all the companies we have reviewed. Meanwhile, its spread is very low and, as such, suitable for short-term deals; and it offers a large number of asset classes, including currencies, commodities, indices etc. Finally, its customer service is excellent and very responsive to traders' needs.
CMC Markets is thought of as one the best companies, offering some 9,000 asset classes that encompass currencies, commodities, indices, cryptocurrencies, bonds and stocks. The company offers a relatively low spread, the MT4 platform, and fast customer service. It is most suited for traders looking for diversity in asset classes.
Originally founded in New Zealand in 2010, and moving to Australia within the space of their first two years, Think Markets is a global online brokerage focusing on FOREX and CFD trading. In addition to a range of major and minor currency pairs. Think Markets has an array of CFDs on offer. This includes indices, as well as hard and soft commodities.
What is FOREX and Why Do We Need a Broker to Trade?
The FOREX market operates 24 hours a day and five days a week (Monday to Friday), except international holidays. The FOREX market is the largest financial market in the world with some six trillion dollars changing hands daily. FOREX brokers in Japan play a key role in this marketplace by enabling clients to buy and sell through a trading platform. Most trading platforms are accessible in Web and mobile format.
How Do I Choose the Best FOREX Broker in Japan?
Japan is a highly developed free market economy. It is the third-largest economy in the world by GDP. The country has a population of 125 million people, many of whom are well-educated and upwardly mobile. It is, therefore, no surprise to learn that Japan is a hotbed for FOREX trading and has an illustrious history of brokerage firms giving traders the opportunity to make money from this activity.
It is often ranked among the world's most innovative countries, leading several measures of global patent filings. Japan is a well-resourced and orderly society. Along these lines, Japanese authorities retain a controlling hand on the financial markets in the country to maintain its prosperity and stability.
Owing to this strong oversight and legislation, there are many brokerage firms operating in Japan who have been attracted to work in the country’s world-class financial ecosystem. As the flagbearer of the country’s financial market infrastructure, the Tokyo Stock Exchange is well known and highly respected. Indeed, it is now the third-largest stock exchange in the world, behind the New York Stock Exchange and the Nasdaq.
In 1998, Japan’s Foreign Exchange and Foreign Trade Control Law was amended to make FOREX trading more accessible to everyday citizens. Since then, the Japanese yen has grown to make up almost 17% of the total global FOREX market.
FOREX Regulations in Japan
Due to its time zone, Japan is the first global financial market to open during a trading day. Thus, it sets the tone for the Asian trading session. With some $1 trillion in FOREX transactions taking place on Japanese markets per day, it is one of the most important parts of the global FOREX ecosystem.
Regulated FOREX brokers in Japan must obtain this licensing by the Financial Services Agency (FSA), a government-controlled authority that regulates and supervises all types of financial firms operating in the Japanese financial markets.
One of the FSA’s main objectives is to maintain the integrity of the Japanese economy by keeping close watch on the daily management of financial firms within the banking, insurance, securities and investments sectors.
The FSA is a 22-year-old organization that operates under the control of the Ministry of Finance, with direct reporting lines into the highest levels of government in Japan. Many observers say that this apparatus makes it one of the most mature and developed financial centers in the world. This renders the FSA a tier-1 regulator for FOREX brokers in Japan.
Commissions and Fees in Japan
A first step in FOREX trading is identifying the spread differential, defined as the difference between the bid (sell) price and the ask (buy) price of a currency pair. While most FOREX currency pairs are traded without commission, the spread is one “cost” that applies to any trade that you place. This is, indeed, the biggest source of profit for the FOREX broker. Good companies typically offer a EUR-USD spread of three basis points. As for commissions, FOREX trading brokers can be placed in three categories. The first offer fixed spreads, while the second tender variable spreads, with a third category of companies offering low-cost spreads but that come with a (relatively high) fixed commission.
Tradable Assets and Instruments
One way of comparing brokers is by analyzing the extent of their market coverage. In today’s choice-rich world, many brokers rightly choose not to specialize on a small number of tradable assets, or they could be easily surpassed in the market.
Instead, most brokers elect to offer their clients a range of choices. A broker that has developed a comprehensive spread of instruments at competitive rates deserves a lot of credit. Although this is a FOREX review, we advise you to check if the broker you are considering offers other instruments like indices, commodities, equities, exchanged-traded-funds (ETF), and cryptocurrencies. All these financial instruments can be traded in Japan and there is no embargo on any type of asset, although there are controls on newer assets like crypto.
As for your broker’s FOREX offering, make sure they have a good number of currency pairs on hand. It takes a great deal of planning and execution to offer you significant choices, and brokers who have taken the time to develop many tradable FOREX pairs must be viewed in a positive light.
Payments, Deposits and Withdrawals in Japan
Transacting from your FOREX account in Japan is very easy. As we have mentioned, the banking industry in this country is highly developed and secure. All payment providers in the value chain are mature enough to offer comprehensive services. As such, all major payment methods are accepted by local brokers. These include credit and debit cards, wire transfers, as well as all major eWallets.
FOREX Trading Customer Service
As timing is key to FOREX trading, you must pick a brokerage firm that is able to provide good customer support around the clock. This most notably includes the company representatives being easy to reach, fast and polite, which will, in turn, spare you of having to worry about problems down the road.
Technical Aspects of the Broker’s Website
When it comes to sharing sensitive personal information online, such as a credit card, cyber security is paramount. You should, therefore, always be on the lookout for SSL certification and two-factor authentication (especially when registering with a new site).
To provide our users with peace of mind, we at Arincen have introduced the “Company Checker,” which is an online tool directly linked to an international Website called Scamadviser. The latter is an independent site that checks the countries in which these FOREX Websites are managed, where the server is located, in addition to other security and informational aspects. It ranks FOREX firms by granting them a score ranging from 0% to 100%, with the best FOREX firms usually receiving a score of 90% and above. Any company that has achieved a score lower than 85% should thus be avoided. Simultaneously, when looking for a new FOREX broker, users must ensure its Website is fast, modern and user-friendly.
Trading Platforms, Tools and Features
Japanese brokers commonly provide all the necessary tools and features for traders to be active and competitive in an evolving FOREX marketplace. Certain brokers have their own proprietary platforms, while others are well served by known industry names such as MT4, MT5 and cTrader. Elite traders will find no obstacles to trading on high-speed networks underpinned by safe and secure technology.
Ask Other Traders on Our Network
Arincen has created a user-friendly Website that boasts an engaging social network where traders can learn from each other in an informed and supportive community. Every trader’s journey starts out with small steps, and it helps to be able to watch and study the trades of more experienced investors with good track records. This important feature has allowed many traders to make their learning journey more smooth.
Which FOREX broker has the best platform?
MetaTrader’s pioneering MT4 platform has been providing excellent features and functionality in the FOREX trading world for many years. It is trusted by scores of brokers, whose clients, in turn, come to love the interface. Some of MT4’s best known features include powerful charting tools and insightful analytical packages. However, if you are open to trying a new approach, you can try a proprietary platform. If you go this way, Saxo Bank offers advanced trading features and high-performing tools with unrivaled market analysis.
Which FOREX broker charges the lowest fees?
We can attest that FXDD’s ECN is unmatched for low fees. No matter the experience level of the trader, they can find pricing that suits their pocket, while still getting all the best the broker has to offer.
Which FOREX broker offers the most CFDs?
After conducting thorough research, we can say with confidence that CMC Markets and IG offer the widest range of CFD selections.
Which FOREX broker offers the most assets?
CMC Markets and IG are the two best FOREX brokers in Japan we would recommend for the broadest and most comprehensive range of financial assets.
Which FOREX broker is best for professionals?
Professional traders have worked hard to be successful in their field. As such, they are always on the lookout for online brokerages that have worked just as hard to offer the best features they can.
These features normally include fast execution speeds, deep liquidity and responsive customer support. Research and educational resources are two key areas that experienced traders try to make the most of as they can make better and faster decisions with reliable and expertly curated information. In this case, you should look to brokers that use MT4, an industry icon that offers all of the above.
Most Trusted FOREX Brokers and How to Verify Regulations
At the get-go, it is important to learn more about regulatory bodies and their role in the FOREX market. These are government entities charged with regulating the sector. Their role is two-fold:
1.Observing andregulating the work environment in the FOREX market; and 2. Protecting investors and their funds.
FOREX firms must at least obtain one license from a relevant regulatory authority. Otherwise, they should be avoided at all times. In this context, we present the five most important FOREX market regulatory bodies from around the world.
While FOREX market regulatory bodies exist in almost every country, these are the most important five and also the strictest. To learn more about other regulatory bodies, please visit en.arincen.com, where you will find a comprehensive global database.
How to Verify that Your Broker has Authorization
To check if a FOREX broker is regulated by the FSA, you simply need to find the FSA registration number on the broker's homepage. From there, you can look up the licensing number on the financial register available on the FSA’s Website to confirm if the broker is currently licensed in Japan.
In this introduction, we looked at the best FOREX brokers in Japan. We began by identifying the best five FOREX brokers in the country, listing, and ranking them by their Arincen trustscore. We then briefly described the regulatory environment governing these companies (more on this later on in the article). Finally, we advised readers how they should go about ensuring that the broker they are looking into is licensed by a tier-1 regulator, such as the ASIC, and, therefore, deemed trustworthy.
The Dos and Don’ts of FOREX Brokers
One of the first things a new FOREX trader ought to do is to check the extent to which the FOREX company abides by the rules and regulations governing its operation. Emphasis must be placed on what it can and cannot do.
There are seven things brokerage firms cannot do:
The FOREX brokerage firm cannot recommend a buy or sell;
The FOREX brokerage firm must not provide price or market expectations (rise/fall);
The FOREX firm cannot control your financial dealings (deposit/withdrawal);
The FOREX brokerage firm should not “manage” your portfolio under any circumstance;
The FOREX brokerage firm cannot grant a client a bonus unless there are clear terms guiding it from beforehand;
The brokerage firm must not use bank accounts not under its name; and
FOREX brokerage firms cannot have or offer the service of account managers.
In short, the role of brokerage firms is strictly confined to facilitating buyers and sellers to come together toward an agreed-upon commission. FOREX brokerage firms that violate any of the seven rules aforementioned should be avoided. However, should the trader wish to receive any of the above-mentioned services, our advice is to seek an expert Website like Arincen, something we will delve into toward the end of this article.
FOREX Trading Scams and How to Avoid Them
The role of the FSA is to ensure the stability of Japan's financial system; the protection of depositors, insurance policyholders and securities investors. Like many alert regulators, the FSA runs an information-sharing service where it reveals detailed information on the latest scams. By pursuing its Website, you will find this information labeled under “Investor alert.” The FSA also shares contact numbers for traders to use if they need to make a report or lodge a dispute.
The FSA encourages informed participation by investors and consumers. With such oversight, FOREX scams are difficult to launch in a country with so many safeguards. The FSA can also withdraw the licenses of brokers it deems a threat to the smooth functioning of the marketplace.
Will Your Money be Protected If Your Broker Becomes Insolvent?
Noting that, “Compensation practices at large financial institutions are one factor among many that contributed to the financial crisis that began in 2007,” the FSA seeks to lay out clear best practices for compensating affected consumers.
The FSA mandates that all financial firms working under its purview institute compensation practices according to its guidelines. The FSA does not state an explicit amount for which traders must be compensated, but instead lays out detailed guidelines by which firms must abide. What is clear is that firms must offer traders some form of compensation, but the exact amount is linked to the riskiness of the assets under trade, and the volumes at which they are traded, among other considerations.
What Tools and Platforms Should FOREX Brokers Offer?
As a respected player in the financial world, Japan is home to all forms of brokers, even the most technologically advanced among them. Whether it is a FOREX broker providing institutional grade execution speeds or the most secure technology the industry has to offer, they can be accommodated. Traders based in Japan can comfortably work with brokers that offer high-end Electronic Communications Network (ECN) accounts that rely on powerful data links and secure traffic gateways.
The best FOREX brokers in this country can also offer their customers all the major trading platforms, especially MetaTrader family products MT4 and MT5. These platforms can be accommodated in desktop and mobile form. Proprietary broker platforms are also catered for, and these can be accessed through Web browsers or normal download.
Who is Arincen and What Do We Do?
Put simply, Arincen is a social networking platform that brings together traders and experts to exchange expertise and ideas. Together, we evaluate the best FOREX companies in the world while offering a compressive suite of services and tools, all in one place, either via a computer or a mobile app. The platform is so rich, one can create their own private portfolio of traders and experts they like and, at the same time, follow their recommendations and investment sentiments.
Further, thanks to Arincen, users can keep an eye on market-price developments, as well as the latest news. Users can also benefit from the network’s educational courses on offer, to say nothing of exciting Webinars – all done in a modern and fast-paced work environment. Get all what you need in one place, not less, not more. In short. Arincen: We Meet to Simplify the Trading World.
If anything, the key message to take away from this article is that the FOREX brokerage firm one picks must be legally licensed and well-regulated. On a final note, it is never advisable to deal with FOREX companies on your own. It is best this is done with the help of industry experts, who can provide you with all the services FOREX companies cannot. Start trading using Arincen and enjoy all the services, advice and tools it has to offer while making your trading experience profitable!
Arincen’s Review Methodology
The team at Arincen collected more than 120 pieces of data covering in excess of 100 licensed FOREX companies. Data collection was done in three ways:
Other Websites that have ranked FOREX companies.
A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets etc.
Afterward we validated the data by:
Registering with FOREX companies as a secret shopper and/or as Arincen.
Survey number “2,” in which we asked these companies’ customers for important feedback and past experience.
The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful in ensuring the most accurate assessment possible, including taking into account different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung, etc.
To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%. To learn more on how we came up with the evaluation, please click here.
Is FOREX trading legal in Japan?
Yes, trading FOREX trading is legal in Japan. Brokers must comply with national laws by registering with the appropriate regulator, the FSA. Only then can they offer their services to traders living in Japan.
What is FOREX?
The FOREX market is a place where global currencies are bought and sold. It is a large and active marketplace that requires technologically superior tools if you are to participate as a retail trader. The market operates 24 hours a day and five days a week (Monday through Friday), except international holidays.
What is FOREX trading?
FOREX trading involves buying and selling different worldwide currencies for a profit. Retail traders select a currency pair and, in anticipation of market-driven changes in value, wait for the right moment to make a sale for a profit.
What costs and commissions are associated with FOREX trading?
The best FOREX brokers charge any combination of commissions, spreads and financing fees. Brokers can either charge a spread (the difference between the buy and sell price of a currency pair) and include their facility fee in the spread, or they can charge only a market rate spread and levy a commission per trade outside the spread.
Financing fees come into play if you hold your position overnight. You must pay a financing cost for the benefit of keeping your positions open for an extended time.
How important is good customer service in FOREX trading?
Good customer service is important to FOREX traders operating in such a fast-moving marketplace. Having access to expert customer service agents means they will always have someone ready to help them resolve any problems. Customer service staff members should be readily accessible, well-trained, and knowledgeable.
Do FOREX traders pay tax?
FOREX trading is taxable in Japan. Traders are compelled to keep a close eye on their earnings because profits above a certain level attract both regional and state taxes. Speak to a tax expert for more information.
Adrian Ashley is a seasoned business and finance writer. With a corporate career spanning over 20years, he has developed deep experience in such diverse areas as investing, business, finance,technology and macroeconomics. He is passionate about captu...