5 Best Forex Brokers in Japan for 2024

List of Top Forex Brokers and Trading Platforms in Japan

Forex and CFD Trading in Japan

While traders in Japan can trade with any international broker, the Japanese Financial Services Agency (JFSA) regulates and licenses forex and CFD brokers based in Japan through the Financial Instruments and Exchange Act (FIEA), ensuring a higher level of investor protection.

This requires brokers in Japan to be part of the Japan Investor Protection Fund (JIPF) which covers clients up to ¥10 million if the broker goes bankrupt. Each of these brokers must also meet stringent capital and operational criteria.

Moreover, the FIEA ensures that forex and CFD brokers limit retail trading leverage to 1:25. Brokers are also required to provide a negative balance protection policy to prevent accounts from dipping below zero, clearly outline the trading risks involved, and comply with strict advertising and marketing standards.

How Did FX Empire Select the Best Brokers in Japan?

• We ensured each broker scored a rating of 4+ based on our 250-data point checklist.
• We confirmed each broker is authorized, regulated, and licensed by the Japanese Financial Services Agency (JFSA).
• We checked that you can deposit and withdraw funds in Japanese Yen (JPY).
• We assessed the range of tradable instruments, specifically focusing on JPY forex pairs and CFDs on Japanese stocks.
• We opened a live trading account to evaluate the live spreads across different instruments and test their transparency and competitiveness.
• We explored the different trading platforms to confirm they are secure, user-friendly, and feature-rich.
• We looked for educational content specifically tailored to Japanese traders.
• We investigated whether the broker has localized resources like a website, offices, and customer support in Japan.

Our team of experts has identified brokers’ strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s explore the selected brokers.

How to Choose the Best Forex Broker in Japan?

Pay attention to the following points to choose the best forex broker in Japan:

1. Choose a broker regulated by the JFSA

The Japanese Financial Services Agency (JFSA) regulates and licenses forex and CFD brokers based in Japan through the Financial Instruments and Exchange Act (FIEA). This provides a higher level of investor protection that is available to traders who use international brokers.

This is because the FIEA requires brokers in Japan to be members of the Japan Investor Protection Fund (JIPF), which covers clients up to ¥10 million if the broker becomes insolvent. It also makes it a legal requirement for brokers to segregate client funds from their own.

In addition, the FIEA limits retail trading leverage to 1:25. This means you can trade a position size that is 25 times larger than the capital you put up. This is in line with Tier-1 regulators: the UK FCA, CySEC, and ASIC restrict retail leverage to 1:30. Brokers are also required to provide negative balance protection, which means that an account cannot go below zero.

Finally, the FIEA requires brokers to provide clear information about the risks of trading and to adhere to strict advertising and marketing standards. While forex traders in Japan can trade with international brokers, a broker regulated by the JFSA will offer the highest level of safety and protection.

Read more about best regulated forex brokers in our comprehensive guide.

2. Check the fees are transparent and competitive

Some of the trading fees you should be aware of include:

• Spread. This is the difference between the buy price and sell price of a financial instrument, and should be as low as possible. Of the brokers in this review, the spread for USD/JPY has ranged from 1.00 pips to 0.005 pips. See our guides on the best zero spread and best lowest spread forex brokers.
• Commission. This is a fee to open and close a trade, which should also be as low as possible (many brokers in this review do not charge any commission).
• Swaps. This is the cost of holding a leveraged or margined position overnight. The swap fee is based on the two different interest rates of the currency pair you are trading on, plus a broker markup.
• Deposit/withdrawal fees. Some brokers may charge for depositing and withdrawing funds. These fees can differ based on the payment method.
• Inactivity fees. Some brokers will charge an inactivity fee if no trading activity has taken place over a set number of months.

You should research the fees on the broker’s website and terms and conditions document and speak to customer support to verify your findings. You can also use a demo trading account to test the broker’s fees in a risk-free environment.

3. Choose the right account type for you

Brokers typically offer access to various types of trading accounts, generally categorized as either commission-free with higher spreads or commission-based with lower spreads.

Beginner traders may opt for the commission-free trading account, to begin with, as most of the costs are included in the spread, making risk management calculations far easier. If you are a very short-term trader, then commission-based trading accounts may be more suitable as you need very low spreads to trade very small moves in the market.

The minimum deposit for each account type can also differ. You may find that the accounts requiring a higher minimum deposit come with additional features, services, and more favorable trading fees.

Understanding your trading requirements is crucial for selecting the appropriate account type. Consider using a demo account to test which account is best for you. Read more about the best forex demo accounts.

4. Be careful of leverage

Leverage is a powerful tool that can magnify both your profits and losses. It allows you to control a larger position size with a smaller deposit. For example, the JFSA impost a maximum retail trading leverage of 1:25. This means you could control a position size of ¥2500 with just ¥100 in your account.

However, it is important to use leverage carefully. Higher leverage means higher risk. If the market moves against your position, you could lose more money than you deposit. Tier-1 regulators such as the JFSA, UK FCA, CySEC, and ASIC require brokers to provide a negative balance protection or stop loss cut system to protect your account from going below zero.

Offshore and international brokers might tempt you with higher leverage, but beware: many aren’t overseen by a reputable regulatory body. However, if you’re set on pursuing higher leverage, FX Empire offers a list of the best forex brokers with high leverage, carefully selected to suit specialized trading needs.

5. Test the trading platform

Some of the most common trading platforms include:

• MetaTrader 4: The ‘go-to’ forex trading platform known for excellent charting capabilities and customizations.
• MetaTrader 5: An updated version of MT4 with more features, such as extra timeframes and indicators.

Read more about the platforms in our dedicated guides on the best MT4 and best MT5 forex brokers.

• cTrader: Designed for high-frequency day traders and scalpers. Read more about the best cTrader brokers.
• TradingView: Browser-based with advanced research and charting tools for global markets. Check out our list of the best forex brokers offering TradingView.
• Broker’s Proprietary Platform: Some brokers may invest in having their own proprietary trading software.

You can also check out our dedicated guide on best forex trading platforms. We also recommend you to test each trading platform using a demo account to identify the one that is most suitable for you.

What to avoid when choosing a forex broker in Japan?

Here are some things to avoid when choosing a forex broker in Japan:

• Unregulated brokers. These brokers are not subject to any government oversight, which means that there is no one to protect you in case they go bankrupt or steal your money.
• Brokers that lack transparency. If it is difficult to find information about the broker’s fees, trading conditions, or regulatory status, this is a red flag.
• Brokers with no live customer support. If you have a problem with your account, you need to be able to get in touch with someone who can help you. A broker that does not offer live customer support is not a good choice.
• Brokers that make unrealistic profit promises. No broker can guarantee you will make money. If a broker promises you big profits, they are probably not being honest with you.

If you stick with brokers regulated in Japan by the JFSA, you’re less likely to encounter these issues.

How to avoid forex and CFD scams?

Here are some tips to avoid forex scams:

• Choose a regulated broker and check its license on the regulator’s online register.
• Ensure that the broker has a physical address in a reputable country.
• Speak to customer support to make sure there are people in the business.
• Read the legal terms and conditions carefully.
• Start with a demo account.
• Only use payment methods you have heard of.

And if you are still uncertain, you can always check out our database of reviews to find the most reliable brokers.

Our Methodology

For more than a decade, FX Empire has been the prominent source of broker evaluations. Our review procedures have undergone continuous enhancements throughout the years, encompassing over 250 research data points, covering nine core categories:

• Trustworthiness: We examine the broker’s regulatory status, reputation, and license to operate within different jurisdictions.
• Fees: We open live trading accounts and test the broker’s trading fees to identify how transparent and competitive they are.
• Trading platform and tools: We test the broker’s trading platforms and tools on offer for how user-friendly they are and the number of features they provide.
• Tradable instruments: We research the number of tradable instruments available across the broker’s trading accounts to check how diverse their offering is.
• Customer support: We test how easy it is to access customer support and the level of the representatives’ knowledge.
• Payment methods: We explored all of the different deposit and withdrawal methods, including the processing times and fees associated with each one.
• Account types: We evaluate the broker’s account types to check their features, such as the type of execution method, minimum deposits, and general account features.
• Research and education: We assess the depth and quality of market research and education materials offered by the broker.

By opening live trading accounts and testing the broker’s products and services, our team of analysts have been able to identify the best forex brokers in Japan for you to consider. Special attention was also given to the following factors:

• 4+ rating score from our 250 data point checklist.
• Authorized, regulated, and licensed by the Japanese Financial Services Agency (JFSA).
• Availability of deposits and withdrawals in Japanese Yen (JPY).
• Good range of JPY forex trading pairs and CFDs on Japanese stocks.
• Transparent and competitive trading fees.
• Easy-to-use and secure trading platform.
• Educational content tailored towards Japanese traders.
• A localized website, offices, and customer support in Japan, if available.

We abide by our strict guidelines for editorial integrity based on the objective standards we have set for our reviews. You can read more about our review process here.

Meet Our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

Related Broker Guides

• Best Forex Brokers
• Best CFD Brokers and Platforms
• Best Lowest Spread Brokers
• Best Regulated Forex Brokers
• Best Crypto Trading Brokers
• Best Forex Brokers for Beginners
• Best Forex Brokers for Scalping
• Best Copy Trading Platform

FAQ