Many people hear that overseas forex trading can yield huge profits, but with so many brokers available, it can be difficult to know which one is best suited for beginners .

Furthermore, some people may be worried about how to start and conduct overseas forex trading

This article explains how to start and use overseas forex trading, specifically for beginners

This article also introduces recommended brokers and safe trading points for beginners in overseas forex trading, so please use it as a reference

What is overseas forex trading? Basic information for beginners

First, let's explain what overseas forex trading actually is

This article also introduces recommended brokers and safe trading points for beginners in overseas forex trading, so please use it as a reference

1. Is it illegal to use an overseas forex broker?
2. There are significant differences between overseas and domestic forex trading
3. Who should consider overseas forex trading?

Is it illegal to use an overseas forex broker?

In conclusion, using overseas forex brokers is not illegal.

If you search for information about overseas forex trading on the internet, you may come across articles claiming that "overseas forex trading is illegal."

When people hear that overseas forex trading is illegal, many probably think that it means they shouldn't use it

However, rest assured, everyone. Overseas forex trading is not illegal. So why are there articles claiming that overseas forex trading is illegal?

The main reason why overseas forex trading is considered illegal is that it "does not have permission from Japan's Financial Services Agency .

Many overseas forex brokers are not licensed by Japan's Financial Services Agency (FSA). This is because, in order to obtain a license from the FSA, they must comply with the standards for domestic forex trading

There are many criteria for domestic FX trading, but the main ones are "maximum leverage of 25 times" and "inability to use the zero-cut system."

This would completely eliminate the appeal of overseas forex trading, as it would prevent the use of features such as high leverage and the forced liquidation system that prevents additional margin calls

Therefore, most overseas forex brokers do not have a license from Japan's Financial Services Agency

Even if they don't have a license from Japan's Financial Services Agency, most of these companies hold overseas financial licenses, so you can use their services with confidence

There are significant differences between overseas and domestic forex trading

various differences between overseas and domestic forex trading . We have summarized the main differences in a table.

Comparison items	Overseas FX	Domestic FX
Leverage	Hundreds to thousands of times	Up to 25x
spread	Variable	Fixed in principle
Narrow spread	Wide	narrow
Margin call	No general rule	need
Margin maintenance ratio at which a stop-loss order is triggered	Approximately 20-30%	50％～100％
bonus	can be	none
Swap points you can receive	few	many
Trading Tools	MT4 MT5 cTrader	Many vendors use their own proprietary tools
Financial License	European countries, Australia, offshore regions*	Financial Services Agency (Japan)
Fund management methods	Separate management/trust preservation	Trust protection
tax rate	Progressive taxation (tax rates increase with income)	Separate taxation upon declaration (flat rate of 20%)
Deposit and withdrawal methods	Domestic bank transfers, international bank transfers, bitwallet, STICPAY, credit/debit cards, cryptocurrencies	Bank transfer
Ordering method	NDD method	DD method

As you can see, there are various differences between overseas and domestic forex trading, but we will explain in detail the following points, which are particularly significant differences

1. Is there a difference in leverage?
2. Is there a difference in margin calls?
3. Are there differences in bonuses?

Let's look at the differences between overseas and domestic forex trading

Is there a difference in leverage?

The leverage used in overseas forex trading and domestic forex trading differs significantly

While the maximum leverage for domestic FX is standardized at 25 times, the leverage for overseas FX varies depending on the broker. The maximum leverage for major overseas FX brokers is as follows:

Exdefine	Unlimited
FXGT	5,000 times
FBS	3,000 times
BigBoss	2,222 times
Vantage Trading	2,000 times
HFM	2,000 times
AXIORY	2,000 times
businessMarkets	2,000 times
XM Trading	1,000 times
IS6FX	1,000 times
ThreeTrader	1,000 times
IronX	1,000 times
Swift Trader	500 times
TitanFX	500 times
Tradeview	500 times
iFOREX	400 times

Thus, overseas forex trading allows you to use significantly higher leverage compared to domestic forex trading

For example, let's compare how much profit differs between leverage of 25x and leverage of 1,000x

Let's say you invested 100,000 yen, entered a trade when the exchange rate was 1 dollar = 100 yen, and took profits at 101 yen

With 25x leverage, the profit you can earn is 25,000 yen, while with 1,000x leverage, the profit you can earn is a staggering 1 million yen

Thus, the ability to use high leverage is a major characteristic of overseas forex trading

Is there a difference in margin calls?

There are differences in margin calls between overseas and domestic forex trading

A margin call refers to an additional margin payment, which is like a debt to the FX company. Normally, when the stop-loss level is reached, the position is forcibly closed, so a margin call does not occur

However, if the exchange rate moves rapidly due to market fluctuations, even if the stop-loss level is reached, forced liquidation may occur at a level far beyond that point, perhaps the following day

In such cases, domestic FX trading carries the risk of incurring enormous margin calls, but overseas FX trading does not have margin calls

With overseas forex trading, the maximum loss is limited to the amount deposited into your account, so you can trade with peace of mind

On the other hand, with domestic FX trading, you should be aware that in some cases you may need to deposit a huge amount of money with the FX company

Since it's best to avoid margin calls, it's generally advisable to use overseas forex brokers

Bonus differences

There are significant differences in bonuses between overseas and domestic forex trading

Many overseas forex brokers offer generous bonuses. For example, some offer a bonus of 10,000 yen just for opening an account, or a bonus that allows you to trade with double the amount you deposit

Generous bonuses are a characteristic of overseas forex trading, but domestic forex trading generally does not offer such generous bonuses

Things you should know before starting overseas forex trading

Overseas forex trading differs significantly from traditional forex trading, so there are several things you should know before starting overseas forex trading

1. Overseas forex trading can result in withdrawal refusals or account freezes
2. Overseas forex trading can sometimes result in higher taxes
3. Utilize cashback websites

Overseas forex trading can result in withdrawal refusals or account freezes

If you violate the terms and conditions of overseas forex brokers, they may refuse to allow withdrawals or freeze your account

It may seem scary at first glance, but as long as you follow the terms and conditions, you won't experience withdrawal refusals or account freezes

Always check the terms and conditions of the overseas forex broker you plan to use before trading

For detailed information on withdrawal refusals and account freezes in overseas forex trading, please refer to the following article

https://money-charger.com/information/refusal-to-withdraw/

Overseas forex trading can sometimes result in higher taxes

Overseas forex trading is subject to comprehensive taxation as miscellaneous income

The maximum tax rate under comprehensive taxation is 55%, so if your profits are large, the tax may be higher than that on domestic FX trading

This is because the tax rate on domestic FX trading is a flat 20.315%

For detailed information on taxes related to overseas forex trading, please refer to the following article

https://money-charger.com/information/overseas-fx-tax-return-method/

Utilize cashback websites

When using overseas forex trading services, be sure to utilize cashback websites

The advantage of using a cashback site is that you can receive more generous bonuses than when opening an account through the official website of an overseas forex broker

For detailed information on how to use cashback websites, please refer to the following article

https://money-charger.com/information/cash-back/

Advantages of overseas forex trading

Overseas forex trading offers various advantages that domestic forex trading does not, and I recommend it to all forex traders

There are five main advantages to trading forex overseas

1. With high maximum leverage, you can earn big with a small amount of money
2. Many brokers offer zero-cut protection, so there's no need to worry about margin calls
3. The bonus is generous and can be used for trading
4. Supports high-performance trading tools (MT4 and MT5)
5. The NDD (No Dealing Desk) method is adopted, ensuring high transaction transparency

With high maximum leverage, you can earn big with a small amount of money

Overseas forex trading offers significantly higher leverage compared to domestic forex trading

Because high leverage is available, it is possible to generate large profits even with a small amount of investment capital

While the maximum leverage for domestic FX is 25 times, many overseas FX brokers offer leverage exceeding 1,000 times

For example, let's look at the profits you can earn with 25x leverage and 1,000x leverage

Let's say you invested 100,000 yen when the exchange rate was 1 dollar = 100 yen, and then the rate changed to 1 dollar = 101 yen

With 25x leverage, the profit you can earn is 25,000 yen, but with 1,000x leverage, the profit you can earn is a whopping 1 million yen

Thus, the higher the leverage, the greater the potential for profit, which is a major advantage of overseas forex trading

If you definitely want to use high leverage, please use overseas forex trading

Many brokers offer zero-cut protection, so there's no need to worry about margin calls

In overseas forex trading, margin calls (additional margin requirements) are generally not incurred

This is because most overseas forex brokers employ a zero-cut system as part of their forced liquidation system

A zero-cut system is a mechanism that limits your maximum loss to the amount deposited in your account

On the other hand, with domestic FX trading, margin calls can occur, meaning that in the worst-case scenario, you could end up with a massive amount of additional debt

Generally, you cannot declare bankruptcy to cover losses incurred through investments, so you will have to repay a huge amount of margin calls

In that respect, overseas forex trading has the significant advantage of not incurring margin calls

The bonus is generous and can be used for trading

Overseas forex brokers offer very generous bonuses

For example, they offer bonuses such as a 10,000 yen bonus just for opening an account, or a bonus that allows you to trade with double the amount of your deposit

While domestic FX brokers also offer bonuses and promotions, their offers are generally not as good as those offered by overseas FX brokers

The generous bonuses that can be used for trading are also a major advantage of overseas forex trading

If you're interested in trading with overseas forex brokers, you can use them to trade with a large bonus even with a small amount of capital

Supports high-performance trading tools (MT4 and MT5)

Many overseas forex brokers offer MT4 and MT5, the most widely used forex trading platforms in the world

The reason why MT4 and MT5 are used by so many people is their high level of functionality

For example, you can freely draw charts, and there are many technical indicators available

The ability to use MT4 and MT5, which can be customized to your liking, is also a major advantage of overseas forex brokers

Since few domestic FX brokers offer MT4 and MT5, if you want to use the most widely used platform in the world, overseas FX brokers are a better option

The NDD (No Dealing Desk) method is adopted, ensuring high transaction transparency

Many overseas forex brokers employ a fair NDD (No Dealing Desk) system for their rate quotations

The NDD (No Dealing Desk) method is a system where the market exchange rate is presented directly to the trader

Because there is no possibility of FX companies manipulating rates, this is considered a fair rate presentation method

On the other hand, domestic FX brokers generally use a rate quotient method called the DD (Dealing Desk) system

In the DD (Dealing Desk) system, the FX broker does not directly present market rates to traders; instead, they first collect the rates

While there are advantages such as FX companies being able to narrow spreads to attract customers, it is also said that the intentions of the FX company can easily come into play

The adoption of a fair NDD (No Dealing Desk) system is another major advantage of overseas forex brokers

Since most people want fair trading using the NDD (No Dealing Desk) system, using an overseas forex broker would be a good option

Disadvantages of overseas forex trading

While overseas forex trading offers various advantages, it also has disadvantages. There are four main disadvantages

1. Some unscrupulous companies refuse withdrawals or freeze accounts
2. Spreads and transaction fees are higher than those of domestic FX brokers
3. There may be rules and restrictions on deposits and withdrawals
4. There are cases where the taxes on profits are high

Some unscrupulous companies refuse withdrawals or freeze accounts

Unfortunately, some overseas forex brokers are unscrupulous and may refuse withdrawals or freeze accounts

Hearing this, you might feel apprehensive about using overseas forex brokers

Certainly, if you can't withdraw your profits after making a profit, or if your account gets frozen, no one would want to use an overseas forex broker

While there are some unscrupulous brokers, the vast majority of overseas forex brokers operate honestly

You can identify suspicious businesses by looking at reviews and other online information

In the latter half of this article, we introduce overseas forex brokers that we recommend and can use with confidence, so please refer to it

Spreads and transaction fees are higher than those of domestic FX brokers

Many overseas forex brokers have higher spreads and transaction fees than domestic forex brokers

This is because they use the NDD (No Dealing Desk) method, which prevents them from manipulating rates, and they present exchange rates to traders in this manner

On the other hand, domestic FX brokers employ a system called the DD (Dealing Desk) method, which makes it easier to manipulate exchange rates

While it's possible to manipulate rates and narrow spreads, there have been reports of rates fluctuating unnaturally, so it's by no means a fair system

In that respect, while the spreads offered by overseas forex brokers may be wider than those of domestic forex brokers, the ability to trade fairly means that it's not necessarily a major disadvantage

There may be rules and restrictions on deposits and withdrawals

While the deposit and withdrawal rules for domestic FX are very simple, those for overseas FX are complex

This is because it offers a much wider variety of deposit and withdrawal methods compared to domestic FX brokers

The main deposit and withdrawal methods for overseas forex brokers are as follows:

• Bank transfer
• Credit card / Debit card
• wallets such as bitwallet
• Cryptocurrency

While domestic FX brokers generally do not accept deposits via credit card, overseas FX brokers do

Furthermore, many brokers allow deposits via cryptocurrency or wallet

Having many deposit and withdrawal methods inevitably leads to more complex rules, so in a sense, it's unavoidable

There are cases where the taxes on profits are high

Taxes on overseas forex trading are subject to comprehensive taxation

The reason why taxes on overseas forex trading are said to be high is because the maximum tax rate under comprehensive taxation is 55%

However, if the profit is small, the tax rate may be lower than that applied to domestic FX trading

While high profits can lead to higher taxes, there are surprisingly many tax-saving methods, such as using a corporate account, so be sure to take advantage of them

Beginner-friendly guide! How to start and do overseas forex trading

Those using overseas forex brokers for the first time may be wondering, "How do I even begin overseas forex trading?"

This section explains how to get started with overseas forex trading, specifically for beginners

• STEP 1: Open an account with the overseas forex broker you wish to use
• STEP 2: Deposit into account
• STEP 3: Download the trading tool (MT4/MT5)
• STEP 4: Choose the currency pair to trade
• STEP 5: Decide on the entry direction (buy order or sell order)
• STEP 6: Press the order button to enter
• STEP 7: Determine the right timing to make a payment

STEP 1: Open an account with the overseas forex broker you wish to use

First, open an account with the overseas forex broker you wish to use

I will explain my recommended overseas forex brokers in more detail later, so I hope you will find it helpful

When opening an account with an overseas forex broker, you will generally need to provide proof of identity and proof of address

I've compiled a list of acceptable forms of identification and proof of address

Identity verification document (one of the following)

• Passport (the entire page with your photo)
• Driver's license (both sides)
• My Number Card (both sides)
• Residence Card / Special Permanent Resident Certificate (both sides)

Proof of address (one of the following)

• Bank statement, utility bills (issued within the last 3 months)
• Internet/cable TV/home phone line bill
• Tax return (final tax return, etc.)
• Credit card statements, government-issued documents (such as residence certificates), etc

Please prepare these documents in advance to ensure a smooth account opening process

STEP 2: Deposit into account

Once your account is opened, the next step is to make a deposit.

Many overseas forex brokers offer generous bonuses, so be sure to take advantage of them when trading

STEP 3: Download the trading tool (MT4/MT5)

Many overseas forex brokers offer MT4 and MT5, the most widely used platforms for forex trading

This is available for free download, so let's download it

For your reference, I've summarized the specifications of MT4 and MT5

	MT4	MT5
Usage fee	free	free
Japanese language support	〇	〇
chart	Multiple charts can be displayed simultaneously on a single screen	Multiple charts can be displayed simultaneously on a single screen
Double-sided construction	〇	〇
One-click ordering	〇	〇
Strategy Tester	〇	〇
Indicator	73 types	96 types
Hourly timeframe	9 types	21 types
Drawing Tools	31 types	44 types
Operating speed	usually	fast
Number of EAs	Very many	usually
Supported overseas forex brokers	Almost all overseas forex brokers	few

Furthermore, some overseas forex brokers offer their own proprietary platforms in addition to MT4 and MT5

For example, the broker AXIORY offers a platform called cTrader, which is an overseas forex trading platform developed by Spotware Systems. It is designed specifically for the ECN method and is well-regarded for its execution speed and narrow spreads.

Use demo accounts and other resources to choose an overseas forex broker that offers a platform that suits you

STEP 4: Choose the currency pair to trade

The currency pair you trade is a crucial factor in making a profit in forex trading .

While many overseas forex brokers offer a far greater number of currency pairs than domestic brokers, for those new to forex trading, it's a good idea to start with the USD/JPY pair .

This is because there is a large amount of information available about the USD/JPY pair, making it relatively easy to predict its price movements

Once you become more familiar with trading, you might want to try trading currency pairs that interest you

STEP 5: Decide on the entry direction (buy order or sell order)

Once you've decided on the currency pair you want to trade, the next step is to predict the exchange rate and decide whether to place a buy or sell order.

Unlike foreign currency deposits, FX allows you to make a profit even when the market is falling because there are sell orders

STEP 6: Press the order button to enter

Once you've decided on your entry direction, press the order button to place your order .

In that case, sure to check the transaction fees and spreads .

STEP 7: Determine the right timing to make a payment

Once you've entered a trade, simply wait for the right timing to close it. It's recommended to decide in advance at what level you'll take profits or cut your losses

How to Choose an Overseas Forex Broker (For Beginners Only!)

There are so many overseas forex brokers that many people don't know which one is right for them

I've put together a guide on how to choose an overseas forex broker

1. Safety: Check the status of financial licensing
2. Company credibility: Is it a real company, and is its address clearly stated?
3. Japanese language support
4. The quality of the bonus campaign
5. Is the minimum deposit amount low?
6. Maximum leverage level
7. Reviews and testimonials from actual traders
8. Are the funds protected by trust or managed separately?
9. Narrow spread and variability
10. Swap point setting
11. Maximum lot size setting

Safety: Check the status of financial licensing

When using overseas forex brokers, safety is an extremely important point.

There are many ways to verify safety, but a good starting point is to check whether they have obtained a financial license

Even though we refer to them collectively as "financial licenses," the level of trust they provide varies greatly

We have created a table showing the reliability of financial licenses

Reliability	Financial License
Most reliable	FCA (Financial Conduct Authority, UK), NFA (National Futures Association), JFSA (Japan Financial Services Agency), FINMA (Financial Markets Research Authority, Switzerland), ASIC (Australian Securities and Investments Commission)
Highly reliable	CySEC (Cyprus Securities and Exchange Commission), MFSA (Malta Financial Services Authority), FMA (New Zealand Financial Markets Authority), FSCA (South Africa Financial Industry Conduct Authority)
Medium reliability	SCB (Bahamas Securities Commission), CIMA (Cayman Islands Monetary Authority), BVIFSC (British Virgin Islands Financial Services Commission)
Low reliability	IFSC (Belize International Financial Services Commission), FSA Seychelles (Seychelles Financial Services Authority), FSC (Mauritius Financial Services Commission), VFSC (Vanuatu Financial Services Commission), SVGIBC (Saint Vincent and the Grenadines Financial Services Authority)

Please choose an overseas forex broker that holds a highly secure financial license

Company credibility: Is it a real company, and is its address clearly stated?

be sure to check their website to see if their company information is clearly and thoroughly listed

Domestic FX brokers meet the strict standards of Japan's Financial Services Agency, so there are generally no issues regarding the reliability of the companies

Unfortunately, some overseas forex brokers are dubious. Many of these brokers do not disclose information about their company

When choosing an overseas forex broker to use, be sure to check the company information on their official website

Japanese language support

If you can use English, there's no problem, but most Japanese people probably can't

When using an overseas forex broker, be sure to check whether they offer Japanese language support.

Choosing a company that offers strong Japanese language support ensures that any problems or questions you may have will be addressed promptly, allowing you to use their services with peace of mind

The quality of the bonus campaign

Overseas forex brokers often offer far more generous bonuses and promotions compared to domestic forex brokers

Be sure check the bonus details and start trading advantageously.

Is the minimum deposit amount low?

Whether or not the minimum deposit amount is low is a particularly important point for beginner traders .

First, you need to test the specifications of overseas forex brokers with a small investment amount, so choose a broker with a low minimum fee

Maximum leverage level

The maximum leverage level is also an important factor when choosing an overseas forex broker.

Many overseas forex brokers offer leverage ranging from several hundred to several thousand times

It's a good idea to start by trying out high leverage with a small amount of money

Reviews and testimonials from actual traders

be sure to also refer to reviews and reputations from actual traders who are using the service

Real-world feedback from actual users is extremely valuable

There are many review sites available, so be sure to carefully check reviews and reputations of any company you are considering using

Are the funds protected by trust or managed separately?

When using overseas forex brokers, be sure to check whether they have proper trust protection and segregated accounts in place

Trust protection and segregated accounts refer to the complete separation and management of traders' funds from the operating funds of overseas forex brokers .

Furthermore, regarding trust protection, even if an overseas forex broker goes bankrupt, traders' funds are 100% protected

While segregated accounts don't offer 100% protection of traders' funds like trust protection, they separate traders' funds from the operating funds of overseas operators, so you should be able to trade with peace of mind

Narrow spread and variability

When using overseas forex brokers, be sure to check the narrowness and volatility of the spreads

Many overseas forex brokers use the NDD (No Dealing Desk) system, and their spreads tend to be wider compared to domestic forex brokers

However, the advantage is that they provide fair exchange rates, allowing you to trade with peace of mind

Spreads vary greatly depending on the broker, so be sure to check them

Also, be sure to check the range of fluctuations

Price fluctuations tend to be larger when important economic indicators such as employment statistics are released, or during late-night hours when trading volume is low. These fluctuations vary significantly between brokers, so be sure to check their pricing

Swap point setting

When using an overseas forex broker, be sure to check the swap points as well

Overseas forex brokers, in particular, tend to have large negative swap points, so caution is advised

Swap points vary significantly depending on the broker, so be sure to check the swap points as well

Swap points are especially important for traders who specialize in short positions

Maximum lot size setting

sure to check the maximum lot size setting , as the maximum trading amount varies depending on the broker.

Traders who want to make large trades should be sure to check the maximum lot size

Recommended and Popular Overseas Forex Brokers Comparison Ranking

We've created a ranking of popular overseas F-brokers recommended for beginners. We've summarized the basic specifications of each broker, so please use this as a reference when choosing a broker

• 1st place: XM Trading
• 2nd place: Vantage Trading
• 3rd place: iFOREX
• 4th place: BigBoss
• 5th place: FXGT
• 6th place: Exness
• 7th Place: Swift Trader
• 8th place: IS6FX
• 9th place: HFM
• 10th place: AXIORY

1st place: XM Trading

XM (XM Trading) is the most popular overseas forex broker in Japan . This article summarizes XM's basic specifications.

Overseas FX company name	XMTrading
Establishment	2009
Financial License	The Seychelles Financial Services Authority (FSA) and the Mauritius Financial Services Commission (FSC) group together hold eight different financial licenses
Maximum leverage	1,000 times
Account opening bonus	13,000 yen
Deposit Bonus	Up to $10,500 (approximately 1.6 million yen)
spread	0.6 pips ~ (KIWAMI account, USD/JPY)
Number of currency pairs handled	Over 55 types
Japanese support	○
Official website	XMTrading Official Website

XM offers leverage of up to 1,000 times and very generous bonuses .

XM's bonuses are as follows:

bonus	Content
New account opening bonus	Open a new account and complete identity verification to receive a ¥13,000 account opening bonus
Deposit Bonus	- Receive a 100% deposit bonus up to a maximum of $500 (approximately 75,000 yen) on your deposit amount. - After that, you can receive a 20% deposit bonus up to a maximum of $10,000 (approximately 1,500,000 yen)
Loyalty Program	You can exchange "XM Points" earned through trading on a real account for bonuses or cash
Friend referral bonus	You can receive a bonus based on the number of referrals

Furthermore, they offer excellent Japanese language support and hold multiple financial licenses, so you can trade with peace of mind

2nd place: Vantage Trading

Vantage is a very popular overseas forex broker these days .

Here's a summary of the basic specifications of the Vantage

Overseas FX company name	VPhotoage
Establishment	2009
Financial License	The UK's Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and others
Maximum leverage	2,000 times
Account opening bonus	15,000 yen
Deposit Bonus	Up to 1.5 million yen
spread	0.0 pips (RAW ECN account, USD/JPY)
Number of currency pairs handled	Over 60 types
Japanese support	○
Official website	V-Learning Official Website

Vantage offers leverage of up to 2,000 times, a 15,000 yen account opening bonus, and a deposit bonus of up to 1.5 million yen

With over 60 currency pairs available, this platform offers a wide selection that will satisfy even those who prefer to trade less common currency pairs

Because they offer excellent Japanese language support, I can recommend them to many overseas forex brokers

3rd place: iFOREX

iFOREX is a well-established overseas forex broker founded in 1996. Here's a summary of iFOREX's basic specifications

Overseas FX company name	iFOREX
Establishment	1996
Financial License	British Virgin Islands Financial Services Board
Maximum leverage	400 times
Account opening bonus	Up to $2,000 on your first deposit
Deposit Bonus	125% Deposit Bonus
spread	Elite account: 1.0 pips
Number of currency pairs handled	88 types
Japanese support	〇
Official website	IFOREX official website

While iFOREX's maximum leverage of 400x is lower than other overseas forex brokers, it's a perfectly acceptable level for those new to overseas forex trading

The bonuses are generous and the trading system is easy to use, so I recommend it

4th place: BigBoss

BigBoss is known for its narrow spreads. Here's a summary of BigBoss's basic specifications.

Overseas FX company name	BigBoss
Establishment	2013
Financial License	Saint Vincent and the Grenadines (SVGFSA)
Maximum leverage	2,222 times
Account opening bonus	15,000 yen
Deposit Bonus	Up to $13,700 (approximately 2 million yen)
spread	0.3 pips (Pro Spread Account, USD/JPY)
Number of currency pairs handled	Over 40 types
Japanese support	○
Official website	BigBoss Official Website

With leverage up to 2,222 times and a variety of unique account types available, it is used by many overseas forex traders

The bonus is generous, so please make good use of it

5th place: FXGT

FXGT allows you to use leverage up to 5,000 times. Here's a summary of FXGT's basic specifications.

Overseas FX company name	FXGT
Establishment	2019
Financial License	There are four types across the entire Cyprus Securities and Exchange Commission (CySEC) group
Maximum leverage	5,000 times
Account opening bonus	15,000 yen
Deposit Bonus	Up to 1.43 million yen
spread	0.0 pips (ECN account, USD/JPY)
Number of currency pairs handled	Over 50 types
Japanese support	○
Official website	FXGT Official Website

Its most notable feature is the extremely high leverage it offers . It also boasts generous bonuses, making it popular among many overseas forex traders.

6th place: Exness

Exness offers unlimited leverage

This is a summary of the basic specifications of Exness

Overseas FX company name	Exdefine
Establishment	2008
Financial License	The Cyprus Securities and Exchange Commission (CySEC) holds seven types of financial licenses from the UK's Financial Conduct Authority (FCA)
Maximum leverage	Unlimited
Account opening bonus	none
Deposit Bonus	none
spread	0.0 pips and up (Zero Spread Account, USD/JPY)
Number of currency pairs handled	Over 95 types
Japanese support	○
Official website	Exonym Official Website

While leverage is limited by trading lot size, the ability to use up to unlimited leverage is a major advantage.

With a very large number of currency pairs available, it is loved by many overseas forex traders

7th Place: Swift Trader

Swift Trader is a relatively new overseas forex broker, established in 2023, but it become extremely popular recently .

Here's a summary of Swift Trader's basic specifications

Overseas FX company name	Swift Trader
Establishment	September 2023
Financial License	Comoros Union Mwali International Services Authority (MISA), Labuan Financial Services Authority (LFSA)
Maximum leverage	1,000 times
Account opening bonus	15,000 yen
Deposit Bonus	Up to 1.1 million yen
spread	1.86 pips (Standard account, USD/JPY)
Number of currency pairs handled	Over 80 types
Japanese support	○
Official website	Swift Trader Official Website

Swift Trader allows you to trade over 80 currency pairs and offers very generous bonuses .

The trading system is also highly regarded for its ease of use, so please consider using it

8th place: IS6FX

IS6FX is an overseas forex broker established in 2017. This document summarizes the basic specifications of IS6FX.

Overseas FX company name	IS6FX
Establishment	2017
Financial License	Saint Vincent and the Grenadines Financial Services Authority (SVGFSA)
Maximum leverage	1,000 times
Account opening bonus	3,000 yen
Deposit Bonus	Up to 360,000 yen
spread	2 pips (ProZero account, USD/JPY)
Number of currency pairs handled	Over 30 types
Japanese support	○
Official website	IS6FX Official Website

It offers leverage of up to 1,000 times and generous bonuses . Japanese language support is also available, making it a highly recommended option.

9th place: HFM

A key feature of HFM is that it allows the use of leverage up to 2,000 times .

This summarizes the basic specifications of the HFM

Overseas FX company name	HFM (HotForex)
Establishment	2010
Financial License	Saint Vincent and the Grenadines (SVGFSA)
Maximum leverage	2,000 times
Account opening bonus	none
Deposit Bonus	Up to 750,000 yen
spread	0.0 pips (Zero account, USD/JPY)
Number of currency pairs handled	Over 50 types
Japanese support	○
Official website	HFM Official Website

HFM is characterized by its narrow spreads. It also offers generous bonus campaigns and excellent Japanese language support.

10th place: AXIORY

AXIORY is characterized by its use of trust protection . Trust protection is a system that ensures 100% of traders' funds are protected even if the FX company goes bankrupt.

Here's a summary of AXIORY's basic specifications

Overseas FX company name	AXIORY
Establishment	2011
Financial License	Belize Legal Authority (FSC)
Maximum leverage	2,000 times
Account opening bonus	none
Deposit Bonus	none
spread	0.3 pips (Nano/Tera account, USD/JPY)
Number of currency pairs handled	Over 60 types
Japanese support	○
Official website	AXIORY Official Website

Previously, the maximum leverage was 400x, but now you can use leverage up to 2,000x. It's a very good broker because it's small and offers a large number of currency pairs.

Tips for beginners to avoid mistakes in overseas forex trading

Here are five key tips for beginners in overseas forex trading to trade safely

1. Practice with a demo account
2. Use the account opening bonus to trade in a real environment
3. Start with low leverage
4. Strictly adhere to your stop-loss line
5. Invest with surplus funds
6. Using automated trading
7. Identify the times of day when you can earn the most money

Practice with a demo account

Overseas forex trading differs significantly from domestic forex trading in terms of leverage and forced liquidation systems

Even if you have experience with forex trading, if you're using overseas forex brokers for the first time, you might feel confused. It's a good idea to start by getting used to the specifications of overseas forex brokers with a demo account

Use the account opening bonus to trade in a real environment

Overseas forex brokers offer generous account opening bonuses. It's not uncommon to find brokers that give you a bonus of tens of thousands of yen just for opening an account.

First, start with a small amount of your own capital, take advantage of account opening bonuses, and familiarize yourself with the specifications of overseas forex brokers

Start with low leverage

While overseas forex brokers offer very high maximum leverage, it's recommended to start with lower leverage

This is because using high leverage right away can quickly deplete your funds

Start with low leverage to get used to the specifications of overseas forex trading before using higher leverage

Strictly adhere to your stop-loss line

Overseas forex trading allows for the use of high leverage, which means there's a possibility of making large profits in a short period, but it also carries the risk of significant losses

Especially if you're using overseas forex trading for the first time, be sure to strictly adhere to your stop-loss limits

Being able to cut losses effectively increases the likelihood of making long-term, stable profits in overseas forex trading

Invest with surplus funds

This isn't limited to overseas forex trading, but when trading forex, always make sure to use only surplus funds.

Overseas forex trading allows for the use of high leverage, offering the potential to generate significant profits in a short period. It's a very promising investment

However, you can't always make a profit. There will be times when you need to hold a position for a long period of time

To ensure you can continue trading even in such situations, always use only surplus funds for trading

Using automated trading

If you're not comfortable with FX trading, consider using automated trading. Automated trading is a system where an EA (Expert Advisor/automated trading software) executes trades on your behalf .

If the EA (Expert Advisor) is excellent, it has the potential to generate significant profits even if the trader has no knowledge of Forex trading

Identify the times of day when you can earn the most money

When trading, it's important to know the most profitable times of day . There are three main trading times.

• Japan time... From 8:00 AM Japan time
• European time...starting at 4 PM Japan time
• US time... from 9 PM Japan time

Japan time marks the start of trading in Asian markets, including Japan, and markets in Oceania

The Australian dollar tends to fluctuate significantly due to the frequent release of economic indicators related to China and Australia .

European trading hours mark the start of European markets, coinciding with the release of many important European economic indicators

Keep in mind that the euro and pound tend to experience large price fluctuations

Regarding US time, it's the time when the US market opens. Many important economic indicators, such as employment statistics and FOMC meetings, are released during this period

Please keep in mind that the US dollar tends to be highly volatile

However, during US trading hours, many important economic indicators are released, and trading volume is highest, so price movements tend to be larger for all currency pairs

Points that beginners should be aware of when trading forex overseas

There are three main points that beginners in overseas forex trading should be aware of

1. Check the bonus expiration date and cushioning function
2. Unified deposit and withdrawal information
3. Check the terms of service and prohibited actions

Make sure you thoroughly understand each of these points so you can effectively use overseas forex trading

Check the bonus expiration date and cushioning function

Overseas forex brokers offer generous bonuses. However, many of these bonuses have expiration dates, so be sure to check the bonus expiration date.

Also, be sure to check whether or not it has a cushioning function

The cushioning function of a bonus is that it acts as a margin deposit.

Bonuses with a cushioning function become effective margin

On the other hand, bonuses that do not have a cushioning function will not be counted as effective margin

Be aware that bonuses without a cushioning function can trigger a stop-loss if the balance falls below the deposit amount .

Let's make the most of the bonus we've received

Unified deposit and withdrawal information

Overseas forex brokers offer a variety of deposit and withdrawal methods. However, in many cases, you are required to use the same method for both deposits and withdrawals.

For example, if you deposited funds using a credit card, you must withdraw them using the same credit card

Regarding bank transfers, it may be possible to use them even if you didn't use them for deposits, but it's generally best to use the same method for both deposits and withdrawals

Check the terms of service and prohibited actions

Overseas forex brokers have various terms of service and prohibited actions. We have summarized the main prohibited actions below.

• Hedging across multiple accounts
• Arbitrage
• Trading that targets only opening or closing gaps
• High-risk trading that targets only the release of economic indicators
• Trading that takes advantage of server downtime or rate delays
• Fraudulent acquisition of bonuses

Engaging in these activities could result in the confiscation of profits or the freezing of your account, so be sure to check the terms of service and prohibited activities

Recommended trading strategies for beginners in overseas forex trading

This article summarizes recommended trading strategies for beginners in overseas forex trading

1. Scalping
2. Day trading
3. Swing trading
4. Position trading

Scalping

Scalping is a trading method in which trades are completed within a few seconds to a few minutes .

The target profit per trade is small, around a few pips

You make small profits by trading repeatedly

Because the holding time for each position is short, there is less risk of being caught in sudden market changes, making it recommended for beginners

Day trading

Day trading is a trading method where transactions are completed within a single day . Compared to scalping, the profit per trade is larger. Because positions are not carried over to the next day, it is less stressful and recommended for beginners.

Swing trading

Swing trading is a trading method in which positions are held for several weeks to several months .

Because positions are held for extended periods, the goal is typically to achieve large profits

The advantage is that you don't need to close positions frequently, allowing you to leave them unattended. However, holding positions for several weeks to several months can lead to significant fluctuations

Please be extremely careful not to get stopped out. Also, pay attention to swap points

Position trading

Position trading is a trading method in which positions are held for several months to several years .

The advantage is that you can leave it alone, but there is a possibility of being caught up in much larger fluctuations than with swing trading, so it is important to have a considerable amount of capital to spare

Frequently Asked Questions (Q&A)

Finally, we will answer some frequently asked questions for those using an overseas forex broker for the first time

1. Who are overseas forex brokers suitable for?
2. Do I need to file a tax return for profits from overseas forex trading?
3. What documents are required to open an overseas forex account?
4. Is it possible to strike it rich with high-leverage trading in overseas forex markets?
5. Are taxes on overseas forex trading high?
6. What are the key points to consider when determining the reliability of an overseas forex broker?

Who are overseas forex brokers suitable for?

Overseas forex brokers are recommended for everyone because they offer high leverage and a zero-cut system that prevents margin calls

Do I need to file a tax return for profits from overseas forex trading?

Profits from overseas forex trading are subject to comprehensive taxation, so you need to file a tax return. However, if your profit is 200,000 yen or less, you do not need to file a return.

What documents are required to open an overseas forex account?

The following documents are required when opening an overseas forex account:

Identity verification document (one of the following)

• Passport (the entire page with your photo)
• Driver's license (both sides)
• My Number Card (both sides)
• Residence Card / Special Permanent Resident Certificate (both sides)

Proof of address (one of the following)

• Bank statement, utility bills (issued within the last 3 months)
• Internet/cable TV/home phone line bill
• Tax return (final tax return, etc.)
• Credit card statements, government-issued documents (such as residence certificates), etc

Is it possible to strike it rich with high-leverage trading in overseas forex markets?

If you can effectively utilize the high leverage offered by overseas forex brokers, it 's possible to strike it rich. However, few beginners are so successful, so it's best to start with low leverage to get used to the specifications of overseas forex brokers.

Are taxes on overseas forex trading high?

Overseas forex trading is subject to comprehensive taxation. The comprehensive tax rates are as follows:

Taxable income	tax rate	Deduction amount
From 1,000 yen to 1,949,000 yen	5％	0 yen
From 1,950,000 yen to 3,299,000 yen	10％	97,500 yen
From 3,300,000 yen to 6,949,000 yen	20％	427,500 yen
From 6,950,000 yen to 8,999,000 yen	23％	636,000 yen
From 9,000,000 yen to 17,999,000 yen	33％	1,536,000 yen
From 18,000,000 yen to 39,999,000 yen	40％	2,796,000 yen
Over 40,000,000 yen	45％	4,796,000 yen

Profits from domestic FX trading are subject to a flat tax rate of 20.315%, so if your profits are large, the taxes will be higher for overseas FX trading

What are the key points to consider when determining the reliability of an overseas forex broker?

be sure to check whether their financial licenses and company information are clearly disclosed

Furthermore, the overseas forex brokers introduced in this article are highly secure and can be used with peace of mind

Summary | How to Start Trading in Overseas Forex and Recommended Brokers

Overseas forex trading offers various features not found in domestic forex trading, such as the use of high leverage and a zero-cut system that prevents margin calls

With generous bonuses and an easy-to-use platform, it's a platform I can recommend to all FX traders

We hope you'll use this article as a reference and try your hand at making big profits with overseas forex trading!

• Overseas forex trading is easy for beginners to start
• Leverage allows you to start investing with a small amount of capital
• Choosing the right supplier is key to success
• It is important to understand the risks beforehand and strive for safe trading practices

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