Best FOREX Broker in Japan for 2024

As a new trader or even as an experienced one, it can be easy to become overwhelmed by the sheer amount of broker choices. Every broker's Website is well-laid out and is popping with color. Each broker claims it is the best FOREX broker and that it has the best online trading app. Who do you believe? Is there a way to cut through all the competing claims to arrive at a decision that works for you?
The answer is yes. With some research, you can decide which is the best online broker in Japan. At Arincen, we are committed to guiding traders like you along their trading journey. As someone interested in engaging with a top FOREX broker in Japan, you've come to the right place. In this article, we will be listing the best FOREX brokers in Japan today. This FOREX broker ranking is the result of our detailed review process. We will share our review methodology so traders can understand why our experts are so convinced about the calls they've made. 

Best FOREX Brokers in Japan in 2024

Top Tips for Selecting the Best FOREX Brokers in Japan

Best FOREX Brokers in Japan for 2024

Take a look at our experts' top FOREX brokers in Japan for 2024:

1. ICM - Capital 91.10: Best Deposit and Withdrawal Broker

2. Tradeview - 90.00: Trusted broker that offers very low trading costs as well as comprehensive financial literacy materials for its clients.

3. XTB - 85.55: Best Customer Service Broker

4. IG - 85.45: Best Regulations Broker plus Convenient Platform

5. Saxo Bank - 80.09: Excellent Private Trading Platform

6. CMC Markets - 80.07: More than 9,000 Assets

7. ThinkMarkets - 80.05: Aimed at the Audience of Traders

What is FOREX and Why Do We Need a Broker to Trade?

The foreign exchange market is a decentralized marketplace where global currencies are bought and sold. Currency trading is conducted electronically over the counter (OTC). This means that all transactions occur via computer networks between traders all over the world rather than on one centralized exchange. The FOREX market operates 24 hours a day and five days a week (Monday to Friday), except for 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?

FOREX Regulation and Licensing in Japan

Due to its time zone, Japan is one of the first global financial markets 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 daily, it is one of the most important parts of the global FOREX ecosystem.  

Regulated FOREX brokers in Japan must obtain this licensing from 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 to 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.

Ensure that your chosen broker is regulated by the FSA. FOREX brokers must be regulated by the same regulators that regulate other financial assets, such as crypto, commodities, and indices. If you want to learn more about some of the best-regarded regulators around the world, not just Japan, read our article on regulation here. Remember that you do not have to use a broker with international regulation if your local broker is regulated by a solid local regulator. In the case of Japan, you will be happy to know that the FSA enjoys a fine reputation and is regarded as a tier-one regulator.

Always Be Careful of Non-Regulated Brokers

It is important to learn more about regulatory bodies and their role in the FOREX market. Their role is two-fold:

1. Observing and regulating the work environment in the FOREX market; and

2. Protecting investors and their funds.

Therefore, working with a regulated broker isn't merely a matter of preference—it's a protective measure. When a broker is regulated, it undergoes stringent assessments to ensure transparency, fair trading practices, and due care of your financial security. Opting for an unregulated broker brings with it significant risks.

To ensure that your broker is legit, you can follow these steps:

• Ask if the broker is licensed to sell you FOREX

• Check if the broker is registered with a top-tier regulator or at least the applicable regulator in your area

• Ask if your broker is part of a compensation scheme

• Check your statements regularly to ensure that everything is in order

Remember that it's important to comply with all applicable requirements, including any self-regulatory organizations to which brokers belong, and not just those mentioned here.

Leverage

There are many important regulators around the world. Depending on the regulatory framework within which your broker operates, you'll encounter varying leverage rules. Several key regulators have introduced specific guidelines to safeguard retail traders.

Let's take a look at some of these leverage rules set by major regulators:

FSA in Japan:

25:1 for major currency pairs

10:1 for non-major currency pairs 

10:1 for gold

10:1 for major stock market indices 

10:1 for commodities (excluding gold) 

5:1 for equities (stocks)

2:1 for cryptocurrencies

Australian Securities and Investments Commission (ASIC) in Australia:

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major stock market indices

10:1 for commodities other than gold and minor stock market indices

5:1 for equities (stocks) and other underlying assets

2:1 for cryptocurrencies

Swiss Financial Market Supervisory Authority (FINMA) in Switzerland:

FINMA doesn't specify leverage limits like ASIC. However, Swiss brokers must strictly adhere to robust capital and risk management requirements, ensuring that they do not offer excessively high leverage that could endanger their financial stability or their clients' funds.

Financial Conduct Authority (FCA) in the UK:

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major indices

10:1 for commodities (excluding gold) and non-major equity indices

5:1 for individual equities and other reference values

2:1 for cryptocurrencies

It's important to note that these regulations primarily apply to retail clients. Professional or institutional clients may have access to different leverage levels based on the regulatory environment and the broker's policies. As you can see, responsible regulators closely monitor leverage levels.

Stop out

You never want to go into a negative balance as a trader. Therefore, it’s vital to know about the most important terms you will encounter as a FOREX trader. The term "stop out" refers to a situation where the most responsible and best FOREX brokers will automatically close some or all of your open positions to prevent your account from going into a negative balance. 

This is most relevant for traders using leverage. The stop-out level is typically expressed as a percentage, representing the margin level at which the broker starts to close out open trades.

0% Stop Out Level:

At this level, when the margin level of the account drops to 0%, the broker will automatically close all open positions. This is the most aggressive stop out level. Essentially, as soon as the equity in the account equals the required margin, the positions get liquidated. This gives no room for your positions to recover even if the market turns in your favor immediately after reaching this level.

50% Stop Out Level:

Here, if the margin level drops to 50%, the broker will start closing out positions.

It offers a bit more flexibility compared to the 0% level. The broker will typically close the most unprofitable positions first, and if that's not enough to bring the margin level back above 50%, more positions will be closed until it's achieved.

100% Stop Out Level:

A 100% stop out level means that when a trader's equity equals the margin required for the open positions, the broker will start closing those positions. It’s important to know that this is similar to the 0% level but might be worded differently based on broker terminology.

In any case, the specific percentage and the order in which positions are closed can vary among brokers, so it's essential for traders to be aware of their broker's policy on stop-out levels.

It's worth noting that while stop-out procedures are meant to protect traders from negative balances, they can lead to significant losses in volatile markets if positions are closed automatically, especially if the market quickly reverses after the stop out. As such, using protective measures like stop-loss orders and not over-leveraging is always a good ploy.

Commissions and Fees

Trading fees can sometimes be hard to understand. Be sure to check how these fees compare with industry standards:

Spreads: There are two main kinds of spread, one is fixed and the other is variable. Generally, the spread refers to the gap between two prices, such as the bid/ask rate in a currency exchange rate. If you are getting a spread of 1.4 pips for the EUR/USD, you can rest easy that you are getting a good deal at present market rates. The narrower the better, this means that a spread of 1.4 pips is better than a spread of 2 pips. This article explains more about this important concept.

Commission: This is nothing more than the service charge that top FOREX brokers require for carrying out transactions on behalf of their clients.

Rollover Fees: When you leave a trade open overnight, the broker normally charges a rollover fee for the facility of holding your trade open for that period. This is because they assume the risk of the market changing adversely.

Withdrawal and Deposit Fees: Some platforms might charge fees for depositing or withdrawing funds. Pay attention to this. It's important to be aware of these and any associated limits or conditions.

Subscription or Inactivity Fees: Certain platforms have monthly charges or fees for inactive accounts. Ensure you're aware of these potential costs.

To keep track of trading fees, you can follow these steps:

• Research different brokers and trading platforms.

• Compare the fees and charges of each platform.

• Choose a platform that offers competitive fees and suits your trading needs.

Remember that trading fees can have a significant impact on your trading profits, so it's important to choose a platform that offers competitive fees and suits your trading needs.

Payments, Deposits, and Withdrawals in Japan

FOREX Trading Customer Service

Technical Aspects of the Broker’s Website

Ask Other Traders on Our Network

Which FOREX broker has the best platform?

Which FOREX broker charges the lowest fees?

We can attest that ICM’s ECN is unmatched in terms of 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?

Which FOREX broker offers the most assets?

Which FOREX broker is best for professionals?

FOREX Trading Scams and How to Avoid Them

Will Your Money be Protected If Your Broker Becomes Insolvent?

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:

1. The FOREX brokerage firm cannot recommend a buy or sell;

2. The FOREX brokerage firm must not provide price or market expectations (rise/fall);  

3. The FOREX firm cannot control your financial dealings (deposit/withdrawal);

4. The FOREX brokerage firm should not “manage” your portfolio under any circumstance;

5. The FOREX brokerage firm cannot grant a client a bonus unless there are clear terms guiding it from beforehand;

6. The brokerage firm must not use bank accounts not under its name; and

7. FOREX brokerage firms cannot have or offer the service of account managers.

In short, the role of brokerage firms is strictly conffined 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.  

What Trading Platforms, Tools, and Features Should a Broker Offer?

• Decide on your trading style and needs
• Research different platforms such as MT4 and MT5, and compare their features
• Test the platforms with a demo account to see which one suits you best
• Choose a platform that offers the features you need and is user-friendly
• Ensure that the platform is reliable and has a good reputation in the industry

What Tradable Assets and Instruments Should My Broker Offer?

• FOREX: By reading this article, you are already curious about FOREX. This type of trading involves buying and selling currencies from different countries on the foreign exchange market with the goal of making a profit. This is done through a broker with an online platform, like MT4 or MT5. FOREX brokers provide tools to traders for executing buy and sell orders in the currency markets. Retail FOREX traders typically look for some popular features when identifying and using a currency trading platform. Traders look for ease of installation and use, which can lead to comparisons of web-based platforms versus downloadable platforms. Fees can be an important consideration as well because the costs can range broadly depending on individual systems.
• CFDs: CFDs allow you to speculate on the future market movements of an underlying asset without actually owning or taking delivery of the asset. CFDs are traded on margin, meaning the broker allows you to borrow money to increase leverage or the size of your position to amplify gains.
• Equities or stocks: These represent ownership in a company and trading them involves buying and selling shares of publicly traded companies.
• Commodities: Items of value such as gold, oil, wheat, and coffee can be traded through a broker or online trading platform.
• Indices: These are a measure of the performance of a group of stocks or other assets. Trading indices involve buying and selling a basket of stocks or other assets that make up the index.
• Bonds: These are debt securities issued by companies or governments to raise capital. When you buy a bond, you are lending money to the issuer, who promises to pay you back with interest later.
• Options: Options are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time.
• Futures: These types of contracts obligate the buyer to purchase an underlying asset at a predetermined price and time in the future. This is done through a broker or online trading platform.

• Determine which financial instruments you want to trade.
• Research different brokers and trading platforms.
• Open a trading account with a reputable broker.
• Fund your account and start trading.

Who is Arincen and What Do We Do?

Conclusion

Arincen’s Review Methodology

The team at Arincen collected more than 120 pieces of data covering more than 100 licensed FOREX companies. Data collection was done in three ways:

1.  Companies’ Websites.

2.  Other Websites that have ranked FOREX companies.

3. A survey questionnaire (referred to here as Survey “1”) was 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.     

Afterwards, we validated the data by:

1.  Registering with FOREX companies as a secret shopper and/or as Arincen.

2.  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 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 to evaluate our 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 about how we came up with the evaluation, please click here.