What is trust protection for overseas forex trading? We'll also explain how it compares to segregated accounts

What are the differences between overseas and domestic forex trading? We'll explain who each is suitable for, as well as tax implications and profit/loss offsetting

Many people who want to start trading in overseas forex may not understand the differences between overseas and domestic forex. There are rumors about overseas forex such as "overseas forex is tax-free," "overseas forex is dangerous and should be avoided," and "overseas forex accounts offer 1000x leverage," and it's natural to wonder what the truth is. This time, we will answer the questions about the differences between overseas and domestic forex, from safety to risk. We will also touch on taxes and service details, so please use this as a reference to decide which is right for you. If you are new to overseas forex, we recommend that you read the Complete Guide to Overseas Forex for Beginners. We will tell you the differences between overseas and domestic forex. Overseas and domestic forex differ in many aspects, including safety and service details. With so much information out there, many people may feel anxious. This site provides highly reliable information through thorough fact-checking. You will be able to understand the reality of overseas forex in more detail than anywhere else. First, let's look at the characteristics of overseas forex in comparison to domestic forex. Item Overseas FX Domestic FX Base Overseas Domestic No authorization from the Financial Services Agency Unregistered brokers exist Registered brokers Leverage Maximum 400-5000, also unlimited Maximum 25x (flat rate) Spread Wider setting Narrow setting Margin call/Stop-loss No margin call/Zero-cut guarantee Stop-loss guarantee: 0%-20% Margin call available/No zero-cut guarantee Stop-loss threshold: 50%-100% Taxes/Loss offsetting Comprehensive taxation (tax rate 5%-55%) Limits on offsetting profits and losses, loss carry-forward is not possible Separate taxation (flat rate 20.315%) Limits on offsetting profits and losses, loss carry-forward for 3 years Currency pairs 50-100 types 25-35 types Bonuses/Campaigns Low hurdle New account opening bonus, trading bonus, cashback, etc. High hurdle New account opening cashback Trading cashback, etc. Trading tools MT4/MT5 are mainstream Mainly proprietary tools Deposit/Withdrawal methods Credit card, some payment services, domestic remittance available Domestic remittance, bank transfer Feature of overseas FX 1: No base in Japan First, it's important to understand the difference in "location" between overseas FX and domestic FX. Overseas FX vs. Domestic FX: Difference in Location - Overseas FX: No headquarters or offices in Japan - Domestic FX: Headquarters, branches, or other offices in Japan What is Overseas FX? Literally, overseas FX is a general term for FX services and FX companies that have their bases overseas. All overseas FX headquarters and branches are located overseas. The biggest characteristic of overseas FX is that they do not have a base in Japan. What is Domestic FX? Domestic FX, or domestic FX brokers, is a general term for FX companies that have their headquarters or offices in Japan. Overseas FX brokers and securities companies that have branches in Japan are also included in domestic FX. What are foreign-owned FX companies? So-called foreign-owned companies are overseas companies whose headquarters are overseas but have branches in Japan. FX companies with a base in Japan, including foreign-owned companies, all provide FX services in accordance with Japanese regulations. Therefore, foreign-owned companies are distinguished from overseas FX companies, even though they are overseas companies. Characteristics of Overseas Forex Trading 2: No Approval from the Financial Services Agency Another crucial difference between overseas and domestic forex trading is whether or not they are licensed by the Financial Services Agency (FSA). Differences in FSA Approval between Overseas Forex and Domestic Forex Trading ・Overseas Forex: Not licensed by the Japanese Financial Services Agency ・Domestic Forex: Licensed by the Japanese Financial Services Agency Overseas forex brokers that do not have a base in Japan are unregistered brokers that are not licensed by the Japanese Financial Services Agency. This is a major difference from domestic forex trading. All Domestic Forex Brokers are Registered with the Financial Services Agency In order to provide financial services in Japan, approval from the Financial Services Agency is required. Under the "Financial Instruments and Exchange Act," all financial institutions, including forex brokers, are licensed and registered with the FSA. You can check the registration status here. List of Registered Brokers - Japan Financial Futures Association Domestic Forex Services are Regulated by the Financial Services Agency Domestic forex brokers provide forex services under the regulations of the "Financial Instruments and Exchange Act." Leverage Regulation: A uniform maximum of 25 times Forced Stop-Loss Setting: To prevent the expansion of losses Protection of Customer Funds: Segregated management at a trust bank (trust protection) What is trust protection? Trust protection means that customer funds are managed by a trust bank, completely separated from the company's operating funds. Customer funds are deposited with the trust bank, and there is a system in place to return them to customers even in the event of business failure. Reference: Unification of segregated management methods through trust - Japan Financial Futures Association Specifically, this includes reducing risk through leverage regulations and preventing further losses for customers through stop-loss orders. Protecting customer funds through trust protection is mandatory for domestic FX. Overseas FX is outside the jurisdiction of the Financial Services Agency On the other hand, overseas FX does not have a base in Japan and is therefore an unregistered company that is not licensed by the Financial Services Agency. Naturally, Japanese FX regulations do not apply to them. Many overseas FX companies offer high leverage, and trust protection is rarely applied. Thus, in terms of safety and reliability, domestic FX can be said to be superior. For more information on the Financial Instruments and Exchange Act and the licensing of the Financial Services Agency, please see the related article on this site, "Why is overseas FX not recommended?". "Unregistered does not equal danger." It's important to note that "unregistered does not necessarily equal danger." This is because companies without a base in Japan do not need to be licensed by the Japanese Financial Services Agency (FSA). Overseas FX brokers are licensed by the FSA of the country where they are based. Therefore, it is not illegal for Japanese citizens to use unregistered overseas FX of their own free will. What is illegal is when an unregistered overseas FX broker solicits customers within Japan. However, it is important to be careful as there are malicious scammers among overseas brokers. The FSA and consumer centers have received many reports of overseas scams. For example, the sale of expensive automated trading software and the luring of people to fictitious overseas FX accounts. Image of overseas broker scams Source: Can't withdraw money even though I'm making a profit? - National Consumer Affairs Center In short, there are reliable and reputable overseas FX brokers, as well as dangerous scammers. For more details on whether overseas FX is illegal, please see here. https://money-charger.com/information/overseasfx-illegality/ Feature 3 of Overseas FX: Incredible High Leverage Next, there are several major differences between overseas FX and domestic FX services. One of them is "leverage". Differences in Leverage between Overseas FX and Domestic FX - Overseas FX: Leverage 500x to unlimited - Domestic FX: Maximum 25x (uniform)..

What are the reasons for withdrawal refusals in overseas forex trading and how to deal with them? Tax and tax filing information is also explained

This article will tell you: What causes withdrawal refusals when using overseas forex brokers; What are the prohibited actions that may result in withdrawal refusals?; What are the measures to avoid withdrawal refusals with overseas forex brokers?; What to do if a withdrawal is refused; Which overseas forex brokers reduce the risk of withdrawal refusals; Are there taxes to be paid if a withdrawal is refused?; Frequently asked questions about withdrawal refusals. While overseas forex brokers allow for efficient investment due to high leverage, they are also considered risky because they are not registered with the Japanese Financial Services Agency. Therefore, you might be worried about having your withdrawals refused if you use an overseas forex broker. This article will explain the reasons for withdrawal refusals when using overseas forex brokers and how to avoid them. If you are considering using an overseas forex broker, please refer to this article. If you are looking for a reputable and safe broker, please also check out our ranking of popular and highly-rated overseas forex brokers. Does withdrawal refusal occur when using overseas forex? In conclusion, there is a possibility of withdrawal refusals when using overseas forex. If your withdrawal is refused, you will not be able to withdraw the profits you made from trading, resulting in a significant loss. There are two main reasons why you might be refused a withdrawal when using an overseas FX broker: Investor-side reasons and FX broker-side reasons. In most cases, the reason for withdrawal refusal is due to fault on the investor's side. Therefore, if you trade according to the rules of the FX broker you are using, you can significantly reduce the chances of being refused a withdrawal. However, there are also cases where unscrupulous FX brokers intentionally refuse withdrawals. In the following sections, we will introduce the causes and countermeasures for being refused a withdrawal when using an overseas FX broker. Six reasons why withdrawal refusal occurs in overseas FX The reasons for being refused a withdrawal in overseas FX can be divided into "reasons on the FX broker's side" and "reasons on the investor's side". There is a non-zero possibility that the FX broker may go bankrupt or be an unscrupulous broker. In such cases, you may be refused a withdrawal. Also, there are cases where the investor has engaged in prohibited activities or has not followed the withdrawal rules. Here, we will explain six reasons why you might be refused a withdrawal when using an overseas FX broker. **Overseas FX brokers go bankrupt** **Overseas FX brokers you are using are fraudulent** **Prohibited trading by traders is discovered** **Withdrawal rules are not being followed** **Incorrect withdrawal account information** **Bonus that cannot be withdrawn** **Overseas FX brokers go bankrupt** If an overseas FX broker goes bankrupt, you may face withdrawal refusal. In the case of domestic Japanese FX brokers, trust protection applies, so even if they go bankrupt, investors' funds are protected. However, overseas FX brokers are not obligated to provide trust protection, so if they go bankrupt, you may face withdrawal refusal. Therefore, it is advisable to avoid using FX brokers with poor financial condition or bad reputations, such as: FX brokers with bad reputations Minor FX brokers FX brokers with good reputations but small scale It is recommended to use overseas FX brokers with many users or those that employ secure asset management methods. **Overseas FX brokers you are using are fraudulent** Using a fraudulent overseas FX broker increases the likelihood of withdrawal refusal. If a broker refuses withdrawals, they lose credibility and cannot continue their business. Therefore, generally speaking, no broker intentionally refuses withdrawals. For unscrupulous brokers, all they need to do is collect money from investors, so they have the following characteristics: Characteristics of unscrupulous brokers There are no reviews or ratings for their services They make claims like "You're guaranteed to make money" They encourage account opening and deposits with large bonuses They are unresponsive when you contact their support If you come across an overseas FX broker that fits these characteristics, you should absolutely not open an account or deposit money. Prohibited actions by investors are discovered Now, we will introduce cases where withdrawal refusal occurs due to the investor's actions. Basically, withdrawal refusal is often due to the investor's actions. If you violate the terms of service set by the overseas FX broker, there are cases where withdrawal refusal is not possible. In the worst case, your account may be frozen, so you should not engage in prohibited activities. If you engage in the following activities, the possibility of withdrawal refusal and account freezing will increase as it will be considered a violation. Prohibited activities of overseas FX companies Hedging with multiple accounts or multiple people Hedging using bonuses High-speed trading using computers High-leverage trading during economic indicator announcements These types of trading are prohibited because many overseas FX brokers employ a zero-cut system. The zero-cut system is a mechanism that prevents investors from incurring losses exceeding their deposit amount, even if the market fluctuates sharply and losses exceed their account balance. Since the FX broker compensates for losses exceeding the deposit amount, the investor's risk is reduced. However, abusing the zero-cut system by engaging in the prohibited activities mentioned above will likely result in the investor profiting while the FX broker incurs significant losses. Transactions where only the FX broker bears the risk violate the terms of service and may result in withdrawal refusal. Failure to follow withdrawal rules: If a withdrawal request is made using a method different from the deposit method, withdrawals may be denied. When using overseas FX brokers, there is a rule that the deposit and withdrawal methods must match up to the deposit amount. For example, if you deposit 200,000 yen from bank account A and make a profit of 100,000 yen, the withdrawal method would be as follows: 200,000 yen is withdrawn from bank account A (the same method as the deposit). The 100,000 yen profit is refunded to a credit card…

Overseas Forex Broker Safety Ranking | Points to Check and How to Choose a Reliable Broker Explained

When researching overseas forex trading, you'll find rumors like the following: "My account was frozen even though I didn't do anything wrong." "My funds were stolen and I can't withdraw them." "While other accounts are fine, the rates on my account moved in an unnatural way." These kinds of problems occur with unscrupulous overseas forex brokers. Overseas forex brokers offer attractive features such as high leverage and zero-cut protection, but the ability to assess the safety of such brokers is essential. This article provides a clear summary of safe overseas forex brokers and how to identify them. The MoneyChager editorial team has researched over 20,000 users and can introduce you to truly safe overseas forex brokers, so please look forward to it. We also consider safety based on the Financial Services Agency and the Financial Futures Trading Act. If you are new to overseas forex trading, we recommend that you read the Complete Guide to Overseas Forex Trading for Beginners. Ranking of Overseas Forex Brokers Selected by Safety Here, we introduce overseas forex brokers selected with safety as the top priority in the ranking below. Safety Ranking 1st Place | XMTrading Safety Ranking 2nd Place | Exness Safety Ranking 3rd Place | AXIORY Safety Ranking 4th Place | TitanFX Safety Ranking 5th Place | HFM We will discuss how to identify highly safe overseas FX brokers later, but for those who just want to know which brokers are highly safe, we have summarized the features of each company. Safety Ranking 1st Place | XMTrading Item Details Founded 2009 Operating Company Tradexfin Limited Fintrade Limited License Seychelles Financial Services Authority (Registration Number: SD010) Mauritius Financial Services Commission (Registration Number: GB20025835) Fund Management System Segregated Accounts Compensation System - Sponsorship Activities Visa Cash App Racing Bulls F1 Official FX Partner XMTrading's Operating Information The number one ranked overseas FX broker in terms of safety is XMTrading. XMTrading has been operating for over 15 years, and the parent XM Group boasts a cumulative total of over 10 million accounts. Furthermore, it has the highest name recognition in the Japanese market and is popular as a first overseas FX broker. They also offer a new account opening bonus worth 13,000 yen, making it ideal for those who want to try out the overseas FX trading environment. For details on XMTrading, the number one ranked overseas FX broker in safety, please see "XMTrading Reputation and Reviews Summary". Safety Ranking #2 | Exness Item Details Founded 2008 Operating Company Exness (MU) Ltd License Mauritius Financial Services Commission (Registration Number: GB20025294) Fund Management System Segregated Accounts Compensation System Member of The Financial Commission Compensation up to 20,000 euros Sponsorship Activities - Exness's Operating Information The second-ranked overseas FX broker in safety is Exness. Exness is a major overseas FX broker with a monthly trading volume reaching 3 trillion dollars. While offering unlimited leverage, it has no rumors of malicious withdrawal refusals and is characterized by its highly transparent operations, including the publication of external audit reports. Currently, due to regulatory reasons, a Japanese version of the website is not available, but you can open an account through a link issued by our partner. For details on Exness, the overseas FX broker ranked 2nd in safety, please see "Summary of Exness's Reputation and Reviews". Safety Ranking 3rd | AXIORY Item Details Founded 2011 Operating Company Axiory Global Limited License Belize Financial Services Commission (Registration Number: 000122/8) Fund Management System Trust Protection Compensation System Member of The Financial Commission Compensation up to 20,000 euros Sponsorship Activities - AXIORY's Operating Information The 3rd ranked overseas FX broker chosen for its safety is AXIORY. AXIORY is an overseas FX broker with over 14 years of operating experience. In addition, although it is an overseas FX broker, it employs trust protection similar to domestic FX, and customer funds are protected by a trust bank. As a member of the Financial Commission, in the event of trouble between AXIORY and a customer, compensation of up to 20,000 euros is available. For details on AXIORY, the third-ranked overseas FX broker in safety rankings, please see "AXIORY Reputation and Reviews Summary". Fourth-ranked in safety rankings | TitanFX Item Details Founded 2014 Operating Company Titan FX Limited License Republic of Vanuatu Financial Services Commission (Registration Number: 40313) Fund Management System Segregated Accounts Compensation System Member of The Financial Commission Compensation up to 20,000 euros Sponsorship Activities - TitanFX's operational information The fourth-ranked overseas FX broker in safety rankings is TitanFX. TitanFX is an overseas FX broker with over 10 years of operating experience. Based in the Republic of Vanuatu, the head of the local financial center serves as a director of TitanFX. It also has a good reputation for a stable trading environment, allowing you to concentrate on trading while minimizing risks such as order rejection and slippage. For details on TitanFX, the fourth-ranked overseas FX broker in safety rankings, please see "TitanFX Reputation and Reviews Summary". Safety Ranking #5 | HFM Item Details Founded: 2010 Operating Company: HF Markets (SV) Ltd License: Saint Vincent and the Grenadines International Business Company (Registration Number: 22747 IBC…)

What are the advantages of high-leverage trading in overseas forex? We'll introduce methods for increasing your capital starting with a small amount and recommend some brokers!

High-leverage trading in overseas forex refers to a trading method where positions are held with leverage of several hundred or even several thousand times. In domestic forex, leverage is regulated, so the maximum leverage is standardized at 25 times. However, overseas, there are many forex brokers that offer maximum leverage of 500 times, 1000 times, and even 2000 times, making it a mecca for high-leverage trading. Many Japanese traders are probably curious about this. We will answer various questions related to high-leverage trading in overseas forex, such as "What is the maximum leverage in overseas forex?", "What are the advantages of high-leverage trading?", and "Which brokers are recommended for high-leverage trading?". We will also introduce methods for trading with small amounts using high leverage and recommend brokers, so please refer to this information. What is the high-leverage trading method in overseas forex? High-leverage trading in overseas forex refers to a method of conducting large trades with several hundred to several thousand times the amount of capital by applying a high multiplier to the margin. A major advantage is that even with a small amount, you can aim for substantial profits. High leverage in overseas forex trading is "highly capital-efficient trading" The ratio of required margin becomes significantly smaller Maximum leverage and effective leverage Here, we will explain the basic knowledge about high leverage in overseas forex trading. High leverage in overseas forex trading is "highly capital-efficient trading" The average maximum leverage in overseas forex trading is 500 to 2000 times. By using high leverage, even if you have 10,000 yen in your account balance, you can trade 1000 to 2000 times that amount. Leverage comes from the English word "lever". Because you can increase your capital using the "principle of the lever", the multiplier applied to the margin came to be called "leverage". The characteristic of high-leverage trading is that it makes the most of the "principle of the lever" to a high level. Leverage differs depending on the exchange rate: 25 times in Japan compared to 500 to 2000 times overseas, using the deposited margin as collateral. The maximum trading amount that can be increased from a margin of 10,000 yen is 250,000 yen in domestic FX, but can be doubled to 5 million yen or 10 million yen in overseas FX. [What leverage is considered high leverage?] Incidentally, there is no clear line for what leverage is considered high leverage. Compared to the maximum of 25 times in domestic FX, 100 times leverage could also be classified as high leverage. Basically, FX is margin trading where leverage is the weapon, so it is used to trade with several times the amount of capital. There is no reason not to take advantage of the leverage of overseas FX, which has a greatly different multiplier. MoneyChat Editorial Department However, high leverage in overseas FX also increases the risk of loss, so caution is necessary. The margin required for trading becomes smaller The higher the leverage, the smaller the margin required for trading (required margin). For example, if you want to trade 1 million yen worth of USD/JPY, the required margin with 10x leverage is 100,000 yen. However, with 100x leverage, it's 10,000 yen, and with 1000x leverage, it's possible to trade with a required margin of just 1,000 yen. [Required margin for a 1 million yen trade] 10x leverage → 100,000 yen 100x leverage → 10,000 yen 1000x leverage → 1,000 yen As you can see, even trades in the millions of yen can be done with a very small amount of required margin, which is the immense power of high leverage. How to calculate required margin Required margin is the minimum amount of margin required to hold one position. It is calculated using leverage with the following formula. For example, if you trade USD/JPY (US dollar/Japanese yen) in 1 lot = 100,000 units, with a maximum leverage of 100x, the required margin is calculated as follows. Required margin = 147 yen × 10,000 units ÷ 100 = 14,700 yen With high leverage, you can trade in units of 1 lot even with just a few tens of thousands of yen. MoneyChat Editorial Department When the trading volume increases, not only profits but also losses are doubled. With 100x leverage, losses are also multiplied by 100, and with 1000x leverage, losses are multiplied by 1000, so risk management is important. Maximum leverage and effective leverage Normally, even when trading with a maximum leverage of 1000x, the effective margin is constantly fluctuating, so the effective leverage that is actually applied also fluctuates. If you use 1000x leverage for a 1 million yen trade, the required margin at the time of taking the position is 1,000 yen. If the effective margin was 10,000 yen, the calculation method for effective leverage is as follows. As you can see, the leverage relative to the total capital (total valuation) is not actually 1000 times. Effective leverage is an important figure for risk management, as it shows how much leverage you are trading at relative to your actual capital. When unrealized profits increase, effective leverage decreases (safety improves) When unrealized losses increase, effective leverage doubles (risk increases) This is how it works. In other words, strictly speaking, the interpretation that "high effective leverage = high leverage and dangerous" is correct, and not all high-leverage trading is necessarily high-risk. In short, even with high-leverage trading, if you have sufficient capital, the effective leverage will also decrease, and you will actually be trading with low risk. MoneyChat Editorial Department By understanding the capital required for trading and the leverage ratio you are actually using (effective leverage), you can trade with high leverage while keeping the risk down. Advantages of high-leverage trading in overseas FX There are five major advantages to high-leverage trading in overseas FX, such as the ease of making money with small amounts of capital. 1. It's easy to aim for big profits with a small amount of capital. The forced stop-loss level is low. Risk is reduced with zero cut and no margin calls. The range of stocks to choose from increases investment motivation. Even if you lose, you can receive cashback. So, let's look at the advantages of high-leverage trading in order. Advantage 1. It's easy to aim for big profits with a small amount of capital. Even if you can't prepare a large amount of capital, the appeal of high leverage in overseas FX is that it's easy to make money with a small amount of capital. In countries with leverage regulations, including domestic FX, leverage of around 20 to 30 times is common. In that case, with capital of tens of thousands to 100,000 yen, it is difficult to make a substantial profit unless you increase the number of trades and improve your win rate. That's insane! That's insane! Starting with 2500, the return rate is 16,000%! lol pic.twitter.com/3iA5cJS4Fi— Zaki@High Leverage Warrior (@ZaKiNiNaFX)…

Are there no margin calls in overseas forex trading? An explanation of the disadvantages and mechanisms of the zero-cut system

Some overseas forex brokers employ a zero-cut system, meaning no margin calls are incurred. This is a service unique to overseas forex brokers, as it is not available with domestic forex brokers. By utilizing the zero-cut system, it is possible to trade with reduced risk. Therefore, when using an overseas forex broker, it is necessary to know the features of this system. This article will explain in detail the advantages, disadvantages, and points to note regarding the zero-cut system in overseas forex. For popular brokers that employ the zero-cut system, please check the ranking of recommended overseas forex brokers with good reputations. If you are new to overseas forex, we recommend that you read this complete guide for overseas forex beginners. What is the zero-cut system that eliminates margin calls in overseas forex? By utilizing the overseas forex zero-cut system, no margin calls are incurred, making it possible to trade with reduced risk. Here, we will explain the zero-cut system in detail. The contents to be explained are as follows: What is a margin call in forex? The mechanism of the zero-cut system that eliminates margin calls in overseas forex The difference between zero-cut and stop-loss The process until the execution of the zero-cut system that eliminates margin calls in overseas forex What is a margin call in forex? A margin call is an abbreviation for additional margin, which is an additional margin that is incurred when the margin falls below a certain maintenance ratio. In FX trading, losses can occur, causing the margin to fall below the initial deposit and resulting in a negative balance. When the margin becomes negative, additional deposits are required to replenish it. This situation is called a "margin call." How the Zero Cut System of Overseas FX Traders Works The zero cut system is a system that prevents traders from incurring debt when their trading losses fall below their initial deposit. Because no debt is incurred, positions are forcibly closed when the margin reaches zero. Therefore, the margin will never go negative. Without a zero cut system, if a trader incurs a large loss that falls below the initial deposit, the margin will go negative and a margin call will occur. With a zero cut system, the margin will never go negative, so no margin calls occur. Difference between Zero Cut and Stop-Loss The zero cut system is a type of stop-loss system. Stop-loss is a system in which positions are forcibly closed when the margin maintenance ratio falls below a certain level. Zero cut is a system in which positions are forcibly closed when the margin maintenance ratio reaches 0%. Stop-loss is a system to prevent the account balance from going negative. However, if the exchange rate fluctuates rapidly due to economic indicators, etc., there may be times when stop-loss orders cannot be executed in time. In such cases, the zero-cut system will offset the losses even if the account balance goes negative, and return the account balance to zero. For information on how to calculate and avoid stop-loss orders, please check this article: https://money-charger.com/information/fx-loss-cut/ Flow of execution of the zero-cut system with no margin calls in overseas FX The flow of execution of the zero-cut system in overseas FX is as follows: With the zero-cut system, the losses incurred by the trader will be limited to the amount deposited in the trading account. Why are there no margin calls in overseas FX? Differences from domestic FX brokers Many overseas FX brokers have introduced a zero-cut system with no margin calls. On the other hand, it is not possible to introduce a zero-cut system with no margin calls in Japan. Here, we will explain the following in detail. Reasons why overseas FX brokers implement zero-cut systems that eliminate margin calls Reasons why domestic FX brokers cannot implement zero-cut systems that eliminate margin calls Reasons why overseas FX brokers implement zero-cut systems that eliminate margin calls The reason why overseas FX brokers implement zero-cut systems that eliminate margin calls is to increase the trading volume of traders. Without a zero-cut system, traders would inevitably have to trade while bearing the risk of margin calls. With a zero-cut system, traders can trade with peace of mind because they know that margin calls will not occur. When traders' trading volume increases, overseas FX brokers can increase their profits from spreads and trading fees. However, some overseas FX brokers do not adopt zero-cut systems, so be sure to check when choosing a broker. Reasons why domestic FX brokers cannot implement zero-cut systems that eliminate margin calls Domestic FX brokers cannot implement zero-cut systems that eliminate margin calls. This is because the Financial Instruments and Exchange Act in Japan prohibits "compensation for losses." Therefore, in domestic FX, when the margin becomes negative, a margin call occurs. Overseas FX is not bound by the Financial Instruments and Exchange Act in Japan, so it is possible to implement zero-cut systems. If you want to take advantage of the zero-cut system, you should use an overseas FX broker. For information on the advantages and disadvantages of overseas FX and domestic FX, please see this article: https://money-charger.com/information/fx-domestic-and-overseas/ Advantages of the Zero-Cut System with No Margin Calls in Overseas FX Here, we will explain in detail the advantages of the zero-cut system with no margin calls in overseas FX. No risk of debt Peace of mind trading is possible Good compatibility with high leverage No risk of debt Using the zero-cut system means no margin calls will occur. Therefore, there is no risk of debt. This is arguably the biggest advantage of the zero-cut system. Because there is no risk of debt, even beginners can trade with peace of mind by using an overseas FX broker. Let's also look at cases where debt can occur in FX and how to deal with them. Peace of mind trading is possible Because there is no risk of debt when using the zero-cut system, traders can trade with peace of mind. For traders starting with small capital, they can concentrate on their own trading without feeling much stress even in the face of sudden price fluctuations. …

Top Recommended Overseas FX Brokers Ranking | Thoroughly Introducing the Best Trading Environments by Category

This article introduces recommended overseas forex brokers by category for those who have the following concerns: "There are so many overseas forex brokers, I don't know where to open an account." "I want to choose an overseas forex broker with good bonuses and high security." "Which overseas forex broker offers the highest leverage?" Overseas forex brokers differ greatly in their features, so much so that the ease of making money depends on the broker you choose. I myself have been trading overseas forex for 7 years, and at first I struggled to choose the best account for me. Therefore, in this article, I have compiled a ranking of recommended overseas forex brokers by category, such as security, bonuses, and spreads. Please try to find a recommended overseas forex broker that will properly meet your needs. Recommended Overseas Forex Broker Comparison Ranking The recommended overseas forex comparison ranking, compiled from an overall evaluation, is summarized in the table below. Ranking Safety/Reliability Leverage Trading Costs Deposit/Withdrawal Bonuses Support 1st Place Vantage Trading VFSC Financial License €20,000 compensation from the Financial Services Commission Main Account 1,000x Premium Account 2,000x Minimum 0 pips, average 0.3 pips Supports 6 types of deposits including domestic bank transfers Generally no fees Account opening bonus: up to 15,000 yen Deposit bonus: up to 3 million yen and 6 other types available Email, live chat, full Japanese support 2nd Place Exness FSA Seychelles Financial License 9 financial licenses across the group Unlimited leverage No limit on account balance up to $4,999 Zero account with generally 0 pips Supports 5 types of deposits including domestic bank transfers Free deposit and withdrawal fees Benefits based on trading volume and deposit amount Email, live chat, Japanese support available, but official website is in English 3rd Place FXGT FSA HFMSVG is a financial licensed broker with liability insurance for its brokers. It offers a 1,000x leverage on its main account, a 5,000x leverage on its Optimus account, slightly wider spreads on its Pro and ECN accounts, swap-free options, and four other payment methods including domestic bank transfers. It supports over five types of cryptocurrencies. It offers an account opening bonus of approximately 15,000 yen and a deposit bonus of over 780,000 yen, among six other options. It provides full Japanese support via email, live chat, and is ranked 4th. HFMSVG is registered with the IBC group and holds five financial licenses across the entire group. It offers a 2,000x leverage on its main account, a 500x leverage on its bonus account and copy account, slightly wider spreads, swap-free options on all account types, and six other payment methods including domestic bank transfers. It has no deposit or withdrawal fees and offers four other deposit bonuses of over 750,000 yen. It provides full Japanese support via email, live chat, and is ranked 5th. 6th Place: TitanFXV - Financial license from FSC, €20,000 compensation from the Financial Commission, Main account 500x leverage (no limit), Micro account 1,000x leverage, Blade account minimum 0 pips, ECN method for FX and CFD, Supports 5 types of deposits including domestic bank transfer, Free deposit and withdrawal fees, Irregularly held email, live chat, LINE, and phone support in full Japanese. AXIORY - Financial license from FSC (Belize), Member of the Financial Commission, Trust protection, Main account 1,000x leverage, Max account 2,000x leverage, Nano and Terra accounts minimum 0 pips, High execution speed and low spreads with ECN method, Supports 5 types of deposits including domestic bank transfer, Free withdrawal fees for amounts over ¥20,000, Irregularly held email, live chat, and full Japanese support. 7th Place: AxiSVG - Registered with IBC, Parent company is ASIC-certified and a member of the Financial Commission, All account types 1,000x leverage, No limits based on account balance, Elite account minimum 0 pips, Elite account has low trading costs, Supports 3 types of deposits including domestic bank transfer, Free deposit and withdrawal fees, Irregularly held email, live chat, and international phone support in Japanese. 9th Place: XMTrading FSA Seychelles・FSC Mauritius Financial License Most well-known Main account 1,000x leverage Zero account 500x leverage Spreads are generally wide KIWAMI account is swap-free Supports 7 types of deposits including domestic bank transfer Withdrawal fee for amounts under 400,000 yen is 2,500 yen Account opening bonus: equivalent to 13,000 yen Deposit bonus: equivalent to up to 10,500 dollars and 4 other types Full support in Japanese via email and live chat 9th Place: ThreeTrader VFSC Financial License 20,000 euros compensation from the Financial Commission All account types 1,000x leverage No restrictions based on account balance Minimum 0 pips Raw Zero account has a trading fee of 2 dollars Supports 4 types of deposits including domestic bank transfer Free deposit and withdrawal fees Points system only Full support in Japanese via email and live chat 10th Place: IS6FXFSC 11th place Star Trader FSA Seychelles Financial License Group-wide 6 financial licenses All account types 1,000x leverage Minimum $45,000 ECN account Minimum 0 pips Trading fee $3 Supports 6 methods including domestic bank transfers No deposit or withdrawal fees Deposit bonus: Up to $20,000 13% Growth boost: 0.05% daily cashback Email, live chat, and LINE full Japanese support 12th place MYFXMarketsSVG 13th Place: IBC Registered Standard Account 1,000x leverage Pro Account & Micro Account 500x leverage Pro Account minimum 0 pips Trading fee $3.325 Supports 4 methods including domestic bank transfer Withdrawal fee 2,000 yen Deposit bonus: up to 40,000 yen equivalent Email, live chat, LINE, phone Full Japanese support ECMarketsFSC Mauritius Financial License Group as a whole 7 financial licenses Maximum leverage 1,000x leverage No leverage restrictions based on account balance ECN Account minimum 0 pips Trading fee $1.50 Supports 6 methods including domestic bank transfer Deposit and withdrawal fees are free None Email, live chat, live chat Japanese support available 14th Place: JadeFOREXSeychelles Registered No Limit Account Unlimited leverage No Limit Account minimum 0 pips Trading fee is free Supports 5 methods including domestic bank transfer Withdrawal fee from 3,000 yen Irregularly held Email, Japanese support available 15th Place: MONAXAFSC Mauritius Financial License All account types 2,000x leverage Zero account Euro/Dollar minimum 0 pips Trading fee $3 Supports 4 types of deposits including domestic bank transfer Withdrawals under 5,000 yen are 330 yen Deposit bonus: up to $21,000 equivalent Point system Email Japanese support Overseas FX Recommended Comparison Ranking We will also explain the details of the ranking and basic knowledge for overseas FX beginners. Overseas FX Recommended Comparison | 1st Place Vantage Trading Item Details Safety and Reliability Regulated by the Vanuatu Financial Services Commission (VFSC) Member of the Financial Services Commission Maximum 20,000 euros compensation Leverage Offers premium accounts with up to 2,000x leverage Trading costs ECN account minimum 0 pips, average 0.3 pips Deposits and withdrawals Supports deposits and withdrawals via domestic bank transfer, cryptocurrency, etc. Bonus Deposit bonus up to $20,000 equivalent Support Multilingual support with Japanese staff Overall evaluation of Vantage Trading The number one ranked overseas FX recommended comparison is "Vantage Trading". Vantage Trading is an overseas forex broker operated by the Vantage Group, which has over 15 years of operating experience, under the regulation of the Vanuatu Financial Services Commission. Source: Vantage Ferrari official partner Vantage Trading supports a wide range of trading styles, including premium accounts with leverage up to 2,000 times and ECN accounts with a minimum spread of 0 pips. MoneyChat Editorial Department Furthermore, new users can receive an account opening bonus worth 15,000 yen without making a deposit, and can start actual trading with zero risk to their own capital. Advantages and disadvantages of Vantage Trading Vantage Trading offers a total of $20,000 worth of deposit bonuses (approximately 3 million yen). This deposit bonus is a bonus that can be used as trading capital, depending on the amount deposited. Your first deposit will receive up to 120% (equivalent to $500 or ¥75,000). Your second deposit will receive 50% (equivalent to $1,000 or ¥150,000). Subsequent deposits will receive 20% (equivalent to $18,500). You can use these deposit bonuses as trading capital, and all profits earned can be withdrawn to your account. Vantage Trading's deposit bonuses are available for three types of accounts: Standard, ECN, and Copy Trading