About Forex Trading in Japan

There are many reasons you should know a thing or two about Forex trading in Japan. The Japanese economy is the third largest in the world and thus a great place to invest. Many years ago, rogue traders rubbished Forex trading in Japan. Those days are long gone. Today, there are truckloads of success stories and more in the making. Even as we speak, legions of amateur traders are making money.


Forex trading in Japan was exclusive to registered professionals only. That was the position of things until the amendment of Japan's Foreign Exchange and Foreign Trade Control Law in 1998, which opened up the floodgate of opportunities for amateur traders. Today, the Japanese Forex market is worth more than 80 million yen in market trading volume a day.
In Japan, as elsewhere, the Internet makes online Forex trading possible. The Internet does not only provide real-time charts, sentiments, and fundamentals but also serves as a hub for Forex trade tutorials and other resources.

There are two types of Forex brokers in Japan. Those that charge high fees on one hand and others that charge low fees on the other. Usually, clients whose brokers charge higher fees get the most returns on their investments. (Contrary to what one would expect.)

While Economics 101 would suggest that investors stick to Forex brokers charging lower fees; that is a wrong advice in Forex trading. Why is that so? The answer is simple: When fees are set to zero, it encourages an increase in the number of trades a client makes. The more the number of trades, the more the client (an amateur Forex trader) is likely to lose money. The only winner is the Forex broker.

A Forex broker earns more money by lowering charges because it helps increase the number of clients he gets. A low-margin translates into higher turnover.

In choosing a Japanese Forex broker there are many things you should look out for and one of them is reliable trust security system. To put short, it is important you check to know the dependability of the trust security system. A reliable trust security system ensures that there is a separation between a client's money and the Forex broker's. This is very important because many Forex brokers don't separate client's funds from their own both in assets and in accounts at trust banks. Some Forex Brokers claim to have a dependable trust security system in place while in actuality that is not the case. Therefore, it now boils down to trust.

This is where reputation comes in. In choosing a Japanese Forex broker, reputation matters but it makes all the sense in the world to have several reliable brokers. One reason why that is important is that a Forex broker's chart might stop moving for a couple of seconds or more. However, if you are viewing two charts, you can easily spot the temporary problem by looking at the second chart.