BrokerNotes.co is committed to the highest ethical standards and reviews services independently. Advertiser Disclosure

Best Japan Forex Brokers

May 09, 2022
Last modified May 11, 2022

The key stock market in Japan is The Tokyo Stock Exchange (TSE) or Tōshō. The TSE has a long history, dating back to 1878, with the exchange as we know it today originating from the merger of 10 other regional markets in 1943. Subsequently, throughout World War II it was suspended only to be reopened in 1949 following the issuance of the Securities Exchange Act. In 2013, the TSE completed a merger with the second largest stock exchange in Japan known as the Osaka Securities Exchange (OSE) to form the Japan Exchange Group (JPX).

The JPX now ranks as the 3rd largest stock exchange group globally by its total market capitalisation of approximately $5.61 trillion based on information compiled by the World Federation of Exchanges. The exchange’s listed corporate shares are organised into the First Section (for large companies), Second Section (mid-sized firms), JASDAQ (emerging companies) and Mothers (the market for emerging and high growth stocks).

In addition to corporate stocks and their derivatives, the TSE also provides a listing service for bonds, indices (including Japanese and overseas indices like the DJIA and the FTSE China 50 Index), options and futures. The TSE also lists exchange traded funds (ETFs) and notes (ETNs), as well as real estate investment trusts (REITs).

The primary stock index for the TSE is the Nikkei 225 Index that acts as the TSE’s benchmark index. There is also the Nikkei 400 Index that is broader in scope and covers stocks with broad investor appeal. The TOPIX is a narrower adjusted capitalisation weighted market average that is widely followed since it covers all the large Japanese stocks in the TSE’s First Section.

The Japanese yen (JPY), the national currency that is issued and managed by the Bank of Japan (BOJ) is traded in the Forex market. The Bank for International Settlements (BIS), an international organization that aims to promote financial cooperation by fostering collaboration between central banks ranked the yen as the 3rd most actively traded currency in 2016. The yen also composed about 21.6% of forex market turnover that year. The yen was also ranked 4th among the most popular currencies held by central banks as reserves, making up about 4.9% of their total reserves for the third quarter of 2018, according to research from the International Monetary Fund (IMF).

Moreover, the TSE is regulated by Japan’s principal financial sector regulator, the Securities and Exchange Surveillance Commission (SESC) which operates under the Financial Services Agency’s (FSA) authority. The SESC reports misconduct to the FSA for disciplinary procedures and is responsible for keeping transactions fair and protecting investors in the Japanese securities and financial futures markets. Furthermore, the FSA oversees all of the financial services providers, including online forex brokers operating in Japan.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Best Online Brokers for Japan

  • IG - 9.7/10 Overall
  • Saxo Bank - 9.5/10 Overall
  • Interactive Brokers - 9.2/10 Overall
  • FOREX.com - 8.7/10 Overall
  • AvaTrade - 8.2/10 Overall
  • Admiral Markets - 8.1/10 Overall
  • XM Group - 8/10 Overall
  • easyMarkets - 0/10 Overall
  • AxiTrader - 7/10 Overall
Overall Rating
9.7 / 10
Minimum Deposit
£250.00
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.828 (September 2021)
All-in Cost EUR/USD - Active0.365 (May 2020)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1974
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses7
Tier-2 Licenses2
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)19537
Forex Pairs (Total)100
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)32
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.5 / 10
Minimum Deposit
$2,000
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.8 (August 2020)
All-in Cost EUR/USD - Active0.6 (August 2020)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1992
Publicly Traded (Listed)No
BankYes
Tier-1 Licenses6
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)40000
Forex Pairs (Total)182
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)62
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.2 / 10
Minimum Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.6 (From 09/25/21 - 10/02/21)
All-in Cost EUR/USD - Active0.6 (From 09/25/21 - 10/02/21)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)No
Regulationexpand_moreexpand_less
Year Founded1977
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses8
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)7400
Forex Pairs (Total)91
BitcoinNo
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)127
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.7 / 10
Minimum Deposit
$100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.1 (US August 2021)
All-in Cost EUR/USD - Active1.1 (US August 2021)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1999
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses4
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)5500
Forex Pairs (Total)91
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)139
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.2 / 10
Minimum Deposit
$100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.91 (Aug 2020)
All-in Cost EUR/USD - Active0.61 (Aug 2020)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2006
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses4
Tier-2 Licenses3
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)1260
Forex Pairs (Total)55
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)90
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.1 / 10
Minimum Deposit
$100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.8 (July 2021)
All-in Cost EUR/USD - Active0.7 (July 2021)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2001
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses2
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)8425
Forex Pairs (Total)50
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)30
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8 / 10
Minimum Deposit
$5
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.6 (Aug 2020)
All-in Cost EUR/USD - Active0.8 (Aug 2021)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2009
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses2
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)1372
Forex Pairs (Total)57
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformNo
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)30
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
0 / 10
Minimum Deposit
$100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.9 (as of Mar 2020)
All-in Cost EUR/USD - Active0.9 (as of Mar 2020)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2001
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses1
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)199
Forex Pairs (Total)62
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)(default MT4)
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
7 / 10
Minimum Deposit
0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - StandardN/A
All-in Cost EUR/USD - ActiveN/A
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2007
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses2
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)175
Forex Pairs (Total)65
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformNo
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)30
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryNo
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


How to Trade in Japan

Many reputable online forex brokers have offices in Japan, mainly located in either Tokyo or Osaka. Traders living in Japan are able to make initial margin deposits to trade online. Primarily this is by using accounts opened with any foreign forex broker or in derivative trading brokers who trade in contracts for a difference (CFDs) that agree to enter business with them.

When considering a broker, one of the key issues is to decide between a foreign or local broker. Choosing a broker with a Japanese office may be preferable as they will need to maintain a local reputation with the FSA. Moreover, should a dispute arise with the broker, it may be easier to litigate locally in Japan as opposed to cross-border. However, if a foreign broker is better suited for your needs, it is important to ensure that are governed by a well-regulated jurisdiction.

In considering online brokers, there are some factors that may be helpful to bear in mind such as demo accounts or minimum deposits. Many online brokers offer a demo account, complete with virtual money for traders to use for practicing, testing a strategy or even trying out the broker’s services. For further information on demo accounts please click here.

Alternatively, some brokers also offer live trading accounts where a minimum initial deposit is normally required to begin trading with real money. There are also those catering to Sharia law compliant or Islamic accounts, which do not have swaps on rollovers.

Regarding stock trading as part of the JSX, the TSE and OSX both provide fair and transparent markets in Japanese stocks, stock derivatives, indices, futures, funds and several other asset classes. TSE trades are generally done in Japanese yen.

In addition, the selection of available asset classes that can be traded in an online account varies widely between brokers. Almost all online brokers provide a type of forex trading service, while many traders prefer contract for difference (CFD) brokers since they often offer trading in a wider set of assets.

The consolidated JPX stock and derivatives exchanges currently use the Arrowhead system for real time equities trading and order handling, with an upgrade planned for November 2019. In addition, the group’s Tokyo Stock Exchange Trading Network (ToSTNeT) System is used for off-auction trading.

Biggest Opportunities of Trading in Japan

Japan has a rich tradition of economic growth and a vibrant financial services sector. After the end of World War II, Japan recovered from extensive devastation to become the world’s third largest economy after the United States and China.

The country’s population of 126.8 million has a high level of education and is predominantly monoethnic and monoracial with very little foreign influx. Japan therefore represents one of the world’s most homogeneous societies. Furthermore, many Japanese companies have a global presence with strong supply chains and a large market share making them a significant influence in world markets.

According to the Japan External Trade Organisation (JETRO), the advantages of doing business in Japan include:

  • Japan is ranked 10th out of 163 countries for most liveable country and came in first place for Asia.
  • Japan spends the highest percentage of GDP on research of all G7 countries at 3.56%. The UK spends less than half that amount at 1.70%.
  • Japan offers incentives to local, as well as foreign businesses through tax incentives and local and national government agencies including JETRO.
  • Japan is a key hub for business in Asia and would make an excellent base for a business expanding in the Far East.
  • When it comes to solving insolvencies, Japan achieved the top ranking among countries surveyed by the World Bank. Japan also ranked rather favourably at 22nd when it comes to getting electricity and 39th overall for ease of doing business.

Biggest Challenges of Trading in Japan

Japan’s trade surplus fluctuates considerably. The country last reported a surplus of JPY 60 billion in April of 2019, which was considerably narrower than the JPY 621 billion surplus observed in April of last year. The narrowing of the Trade Balance has continued for the fifth straight month due in part to the U.S.-China trade dispute and weaker global demand.

With respect to rankings by the World Bank, paying taxes, starting a business, and getting credit in Japan ranked 97th, 95th and 85th respectively. The business environment was also unfavourable for protecting minority investors, trading across borders and enforcing contracts, in which Japan ranked 64th, 56th and 52nd respectively.

Summary

Overall, traders and businesses should have a relatively safe and easy time operating in Japan since it has a well-developed and regulated financial system, although they should prepare to do business in Japanese and familiarise themselves with the local culture.

Furthermore, Japanese financial institutions receive strict oversight by the FSA and the SESC that together help assure compliance with Japanese financial regulations.

Traders looking for online brokers to deal with from Japan should find one that is FSA/SESC regulated and that offers a decent variety of asset classes and enjoys a good reputation. Their trading platform should all have the features required, and they should offer a safe place for a margin deposit by keeping their own funds separate from their clients’ money.

More Forex Guides

Forex Risk Disclaimer

There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more.

About the Author

Marcus Taylor

BrokerNotes was founded in 2014 by Marcus Taylor, founder and CEO of Venture Harbor, a venture studio in Oxford that develops innovative online tools & technology across a range of sectors.


close