Japan Regulated FSA Forex Brokers
Japan is one of the largest forex markets, with over $1 trillion worth of transactions per day. The main regulatory body in the country is the Financial Services Agency. The latter is a governmental authority, controlling and supervising the financial firms present in the country.
JFSA Forex Trading Platform
Forex trading is legal in Japan. In fact, Japan is one of the largest Forex markets in the world, with a high volume of daily transactions. FSA has a reputation for imposing stringent rules and regulations to ensure that financial institutions operating in Japan are transparent, trustworthy, and operate with integrity.
There are many good Brokers in Japan offering quality Trading Platforms including popular MT4 or MT5, yet is important to note some rules:
- Japan FSA regulations oblige Forex brokers to be registered and licensed with the FSA before they can offer services to Japanese clients.
- Japanese Financial Services Agency (FSA) is known to be a strict regulatory body when it comes to financial activities also do not allow Japanese clients to trade with international brokers or open account with offshore Brokers
- For more information visit FSA Wikipedia also read our article about Japan Forex Brokers.
|🏦Regulator||The Financial Services Agency|
|🛡️Is it Safe to Trade with FSA Broker?||Yes|
|🔒Negative Balance Protection||Yes|
FSA Forex Regulation in Japan
The regulatory FSA programs are probably one of the strictest worldwide and ensure the integrity of markets, participants’ protection, and the following of operational standards. This ensures transparency in business offerings to the clients and suppresses fraud, yet there are some notes to be considered see our collection below.
Some of our findings and essential points about trading with Japan FSA Brokers:
- The Government has introduced a set of rules that all FSA-regulated brokers have to follow, including constant strict control and reporting of the brokers to provide a safe environment
- Besides, FSA, constantly modifies the Forex trading conditions. Because of this, freedom in the market has drastically reduced.
- As part of this effort, FSA explicitly prohibits Japanese investors from trading with brokers that are not registered and regulated by the FSA in Japan, effectively limiting their options to access reputable brokers that adhere to strict standards of transparency and accountability but regulated elsewhere.
- In Japan, all offshore brokers are strongly prohibited.
- FSA has also set limitations for the available leverage to protect its investors. The highest possible leverage in Japan is 1:25.
- Forex traders in Japan are protected by the Japanese Investor Protection Fund. The JIPF is an efficient compensation program directed at protecting and compensating Japanese investors.
- FSA has also established a compensation scheme to protect investors in the event of a Forex broker’s insolvency. Under this scheme, investors can claim up to 10 million yen in compensation.
- Furthermore, FSA constantly cooperates with other well-known regulatory bodies to ensure that brokers regulated in other regions will not be able to operate in Japan without a proper FSA license. Thus far, the agency has successfully collaborated with the ASIC, the NFA, the CySEC, and the FCA.
Top 5 Best Japanese FSA Forex Brokers
This is our Rated Top list of Brokers with a good reputation and scores operating under FSA licenses. Important to note, not so many International Brokers can accept Japan Traders, most of them can not accept traders from Japan or may suspend accounts later. So it is best to choose from FSA-regulated brokers, alike those top seleccted by us:
- OANDA — Best Overall JFSA Broker 2023
- Dukascopy — Best for Lowest Spread Broker with FSA license 2023
- AvaTrade — Best MT4 Broker in Japan 2023
- Forex.com — Best FSA Broker for Beginners 2023
- Saxo Bank — Best Japan FSA Broker for Investment 2023
What is the JFSA Eligible Broker?
It means the Broker that is registered by FSA in Japan so eligible to accept traders and clients from Japan. However, not so many international brokers are FSA eligible, since satisfying the conditions set by the FSA is quite a difficult task including high operational capital, proper customer service, and other sets of rules.
Is Every Broker in Japan FSA Regulated?
Mostly yet, since Japan is very strict in its regulations in the financial market. The FSA imposes a range of strict laws, according to which a broker cannot operate in the market without properly being licensed by the local regulatory body. Besides, none of the offshore Brokers are allowed to open accounts for Japanese Traders.
What are the FSA Brokers Commissions and Fees?
The commissions and fees charged by Forex brokers regulated by the Financial Services Agency (FSA) in Japan vary depending on the broker and the type of account that you open. Alike based on our finds the average spread for EURUSD trading pair is around 1.2pips, or with comission accounts around 6$ per round.
List of Forex Brokers Regulated by FSA in Japan
This is the list of authorized by FSA in Japan Brokers operating legally and secured in Japan therefore can accept trader from Japan:
Min. Deposit: $100
Max. Leverage: 1:30 | 1:400
Trading Platforms: MT4, MT5, WebTrader, AvatradeGO, AvaOptions, DupliTrade, ZuluTrade, AvaSocial, Capitalise.ai
Regulation: Bank of Ireland, ASIC, JFSA, FSCA, CySEC, BVI FSC, FRSA, ISA
Min. Deposit: 100 US$
Max. Leverage: 1:40
Trading Platforms: TWS, IB WebTrader
Regulation: US SEC & CFTC, ASIC, FCA, IIROC, SFC, NSE, BSE, FSA
Min. Deposit: $0
Max. Leverage: 1:30
Trading Platforms: MT4, IG Proprietary
Regulation: FCA, ASIC, BaFin, FINMA, NFA, MAS, DFSA, FSCA, JFSA, FMA, BMA
Min. Deposit: no minimum deposit
Max. Leverage: 50:1
Trading Platforms: Oanda trade, MT4, MT5
Regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC, FFAJ
Min. Deposit: US$0
Max. Leverage: 1:30
Trading Platforms: Advantage Web, AT Pro, MT4
Regulation: FCA, NFA, CFTC, IIROC, ASIC, JFSA, MAS, CIMA