When researching overseas forex trading, the following rumors are circulating:
- "My account was frozen even though I hadn't committed any violations."
- "The funds have been stolen, and I can't withdraw them."
- "While other accounts were fine, the exchange rate for account XX fluctuated in an unnatural way."
These kinds of problems occur with unscrupulous overseas forex brokers
While overseas forex brokers offer attractive features such as high leverage and zero-cut protection (no margin calls), the ability to assess the safety and reliability of these brokers is essential
This article provides a clear and concise overview of highly secure overseas forex brokers and how to identify them
The MoneyChager editorial team, based on the results of surveys of over 20,000 users, can introduce you to truly safe overseas forex brokers, so please look forward to it. We
also take safety into consideration, referencing the Financial Services Agency and the Financial Futures Trading Act
If you're new to overseas forex trading, we recommend reading the complete guide for overseas forex trading beginners
Japan Securities Dealers Association Class 1 Securities Sales Representative
Ryota Ito
While a student, CFP and DC Advisor qualifications. I currently a Class 1 Securities Sales Representative license. Subsequently, I worked in the sales and management planning departments of a securities company, and as a president's secretary (during which time I was involved in the sale of investment trusts and stocks, seminar planning, launching an FX business, and establishing an investment advisory company). I also worked in investment banking. In November 2007, I established Skiller Japan Co., Ltd. and became a director. I am currently working as a part-time lecturer at Toyo University's Faculty of Business Administration, Otemae University's Correspondence Education Department, Chiba Institute of Science's Faculty of Crisis Management, and as a financial planner.
Contents
- 1 Ranking of overseas forex brokers based on safety
- 2 Key points for identifying highly secure overseas forex brokers
- 2.1 It holds a highly reliable financial license
- 2.2 There is a system in place for segregated management and compensation of customer funds
- 2.3 We have over 10 years of operational experience
- 2.4 It employs the NDD (No Human Dealing) method, which involves no human intervention
- 2.5 Zero-cut protection is available against negative balances
- 2.6 Native Japanese language support is available
- 2.7 There are no rumors of unfair withdrawal refusals or exchange rate manipulation
- 3 Points to note when using overseas forex brokers
- 4 Frequently Asked Questions about the Safety of Overseas Forex Trading
- 5 Ranking of highly secure overseas forex brokers | Summary
Ranking of overseas forex brokers based on safety
Here, we introduce overseas forex brokers selected with safety as the top priority, in the ranking below
We will discuss how to identify highly secure overseas forex brokers later, but for those who simply want to know which brokers are safe, we have summarized the features of each company
Safety Ranking #1 | XMTrading
| item | Content |
|---|---|
| Founding | 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 | Separate management |
| Compensation system | – |
| Sponsorship activities | Visa Cash App Racing Bulls F1 Official FX Partner |
The number one ranked overseas forex broker chosen for its safety is XMTrading
XMTrading has over 15 years of operating experienceThe parent company, XM Group, has accumulated over 10 million accountsIt boasts of this
Furthermore, it enjoys the highest brand recognition in the Japanese market and is a popular choice for those looking to try overseas forex brokers for the first time
They are also offering a new account opening bonus worth 13,000 yen, so it's recommended for those who want to try out the overseas forex trading environment
For details on XMTrading, the number one ranked overseas forex broker in terms of safety, please see XMTrading Reviews and User Feedback Summary
Safety Ranking #2 | Exness
| item | Content |
|---|---|
| Founding | 2008 |
| Operating company | Exness (MU) Ltd |
| license | Mauritius Financial Services Commission (Registration Number: GB20025294) |
| Fund management system | Separate management |
| Compensation system | Membership in the Financial Commission provides compensation of up to €20,000. |
| Sponsorship activities | – |
In our ranking of overseas forex brokers chosen for their safety, Exness comes in second place
Exness is a major overseas forex broker with a monthly trading volume reaching $3 trillion
Despite 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, the Japanese version of the site is not availableAccount opening is possible via a link issued by our partner companiesis
For details on Exness, the overseas forex broker ranked second in safety, please see Exness Reviews and User Feedback Summary
Safety Ranking #3 | AXIORY
| item | Content |
|---|---|
| Founding | 2011 |
| Operating company | Axiory Global Limited |
| license | Belize Financial Services Commission (Registration Number: 000122/8) |
| Fund management system | Trust protection |
| Compensation system | Membership in the Financial Commission provides compensation of up to €20,000. |
| Sponsorship activities | – |
AXIORY ranks third in our ranking of overseas forex brokers chosen for their safety
AXIORY is an overseas forex broker with over 14 years of operating experience
Also,Despite being an overseas forex broker, it employs trust protection similar to domestic forex brokers, meaning customer funds are protected by a trust bankis
As a member of the Financial Services Commission, AXIORY offers compensation of up to 20,000 euros in the event of any disputes between the customer and the company
For more details on AXIORY, the third-ranked overseas forex broker in terms of safety, please see AXIORY Reviews and Testimonials Summary
Ranked 4th in safety | TitanFX
| item | Content |
|---|---|
| Founding | 2014 |
| Operating company | Titan FX Limited |
| license | Financial Services Commission of the Republic of Vanuatu (Registration Number: 40313) |
| Fund management system | Separate management |
| Compensation system | Membership in the Financial Commission provides compensation of up to €20,000. |
| Sponsorship activities | – |
In our ranking of overseas forex brokers chosen for their safety, TitanFX comes in at number 4
TitanFX is an overseas forex broker with over 10 years of operating experience
TitanFX is based in the Republic of Vanuatu, and the head of the local financial center serves as a director of TitanFX
Furthermore, it has a good reputation for a stable trading environment, allowing you to focus on trading while minimizing risks such as order rejection and slippage
For details on TitanFX, the 4th ranked overseas forex broker in terms of safety, please see Summary of TitanFX Reviews and User Feedback
Safety Ranking #5 | HFM
| item | Content |
|---|---|
| Founding | 2010 |
| Operating company | HF Markets (SV) Ltd |
| license | Saint Vincent and the Grenadines International Business Company (Registration Number: 22747 IBC 2015) |
| Fund management system | Separate management |
| Compensation system | Lloyd's of London civil liability insurance provides coverage up to US$5 million. |
| Sponsorship activities | Sponsors of Paris Saint-Germain FC |
In our ranking of overseas forex brokers chosen for their safety, HFM (HF Markets) comes in at number 5
HFM is one of the major overseas forex brokers, operating since 2010
The company is well-known as a sponsor of F1 teams and professional soccer teams, and has already obtained financial licenses in various countries to support its global expansion
Also,We are insured by Lloyd's of London, a major insurance company, with liability insurance that provides coverage of up to $5 million in the event of an incidentYou can receive it
For details on HFM, the overseas forex broker ranked 5th in safety rankings, please see Summary of HFM's reputation and reviews
Key points for identifying highly secure overseas forex brokers
To identify a highly secure overseas forex broker, check the following points
- It holds a highly reliable financial license
- There is a system in place for segregated management and compensation of customer funds
- We have over 10 years of operational experience
- It employs the NDD (No Human Dealing) method, which involves no human intervention
- Zero-cut protection is available against negative balances
- Native Japanese language support is available
- There are no rumors of unfair withdrawal refusals or exchange rate manipulation
Let's take a closer look at the key points for finding a safe and reliable overseas forex broker with an excellent trading environment, while avoiding fraudulent brokers operating maliciously among the many available options
It holds a highly reliable financial license
When evaluating the safety of overseas forex brokers, the most reliable indicator is their "financial license."
First, check if they have obtained a direct financial license that allows Japanese residents to open accounts
Next, although Japanese residents cannot open an account, it is ideal if the group company holds one of the following financial licenses .
- UK Financial Conduct Authority (FCA)
- Australian Securities and Investments Commission (ASIC)
- National Futures Association (NFA)
- Cyprus Securities and Exchange Commission (CySEC)
These financial licenses are difficult to obtain globally, and even after obtaining them, regular audits and other measures are taken to ensure that the company is operating in a sound and secure manner
The financial licenses held by overseas forex brokers are explained in detail in List of Overseas Forex Financial Licenses | Characteristics and Reliability of Each License
There is a system in place for segregated management and compensation of customer funds
The system for managing deposited funds and the availability of compensation in case of emergencies are important points to consider when evaluating the safety of overseas forex brokers
Specifically, we will check whether they are using one of the following methods
| item | Content |
|---|---|
| Separate management | A system that manages customer funds and the FX broker's operating funds in separate accounts |
| Trust protection | A system in which customer funds are deposited with a third-party institution such as a trust bank |
| Liability insurance | This system provides compensation up to a certain amount by the insurance company in cases where damage occurs due to the negligence or fraudulent actions of the business operator |
| Financial Commission (Finacom) | An independent private dispute resolution body. It compensates customers of member FX brokers up to €20,000 |
Many overseas forex brokers, based on their financial licenses, often employ segregated accounts for managing customer funds
In addition to this segregated management, if you are covered by compensation from the Financial Services Commission or if you are using an overseas forex broker that is also enrolled in separate liability insurance, your safety is ensured even in the event of an emergency.
The Financial Services Commission can take an objection if an FX broker unfairly refuses to process a withdrawal, ensuring that it remains neutral and can make a decision
We have over 10 years of operational experience
The longer a company has been in business, the more traders it has acquired, which is proof that it has been successful in operating an overseas forex brokerage
As a general guideline, overseas forex brokers with more than 10 years of operating history can be considered highly reliable
Over a 10-year period, market shocks can occur, so the fact that they have managed to protect their customers and survive as an FX broker even in these irregular situations is a testament to their success
It employs the NDD (No Human Dealing) method, which involves no human intervention
If a broker uses the NDD (No Dealing Desk) method for order placement, it is highly likely that they are an overseas forex broker that provides a transparent trading environment
NDD stands for "No Dealing Desk," and it refers to a system where orders are executed mechanically without intervention from the FX broker's dealers
Non-Dealing Desk ) system is a highly transparent mechanism .
Zero-cut protection is available against negative balances
If you choose to trade with an overseas forex broker instead of a domestic one, I strongly recommend choosing a broker that definitely employs a "zero-cut" policy
because,Zero-cut is a customer protection system that cannot be adopted in domestic FX trading, and it provides a safe trading environment where losses do not exceed the account balanceThat's because
For example, with an account that employs a zero-cut system, even if losses exceed the account balance during a market crash, you will not be required to pay additional margin to cover the negative balance
Native Japanese language support is available
If you choose an overseas forex broker that offers native Japanese language support, you can easily resolve any issues, such as questions about the terms of service or problems with deposit and withdrawal procedures
On the other hand, with overseas forex brokers that do not offer Japanese language support,When problems occur, there is a risk that communication with staff will be fundamentally broken, making it impossible to resolve the issuesThere is
Especially for those new to overseas forex trading, we recommend choosing a broker that offers Japanese language support
There are no rumors of unfair withdrawal refusals or exchange rate manipulation
When choosing a highly secure overseas forex broker, customer reviews posted on social media and other platforms are also important
If you have experienced unfair withdrawal refusals or numerous rumors of blatant rate manipulation, it is best to avoid using that overseas forex broker
Unfortunately, be aware that some overseas forex brokers are unscrupulous and engage in practices such as unfair withdrawal refusals and rate manipulation
Because rumors that are not based on fact tend to circulate more easily with large overseas forex brokers, it is important to comprehensively evaluate their safety based on multiple reviews
Points to note when using overseas forex brokers
While using overseas forex brokers offers attractive features such as leverage allowing trading with small amounts of capital and zero-cut protection against margin calls, there are also the following points to be aware of
To use overseas forex trading without any problems and to make substantial profits, let's review some essential points to keep in mind
I don't use suspicious companies whose office location is unknown
Avoid using suspicious overseas forex brokers whose office location is unknown
If an overseas forex broker is operating soundly, there is generally no problem with them disclosing the location of their office
Also,If you have obtained a financial license, your location will, in principle, be publicly available on the official website of the authorities as part of the license registration information
FX brokers that talk about safety without disclosing the location of their office are at a higher risk of being fraudulent companies that deceive customers and make money from the start
Check the list of prohibited transactions and activities
When using overseas forex brokers, it is important to check the terms of service of each company
If you engage in activities or trades prohibited by that overseas forex broker, risk incurring penalties such as the cancellation of the relevant trade (reversal of profits) or the freezing of your account .
Even with highly secure and reputable overseas forex brokers, the risk of account freezing or withdrawal refusal as penalties for violating the terms of service remains the same
Avoid startups that offer exorbitant bonuses
Even if they offer attractive, high-value bonus campaigns, avoid new brokers with no track record
This is because it is very difficult for emerging brokers to offer high bonuses
Overseas forex brokers offer bonuses to their customers, essentially providing them with bonus funds to use as trading capital
In order for these bonuses to be offered, the overseas forex broker must have sufficient financial resources
Therefore,If a new broker is offering high bonuses, there is a high risk that it is a scammer whose sole purpose is to collect money from customersis
Low-spread accounts have trading fees
Some overseas forex brokers offer account types specifically designed for low spreads
These low-spread accounts employ a system where FX brokers secure their profits by paying trading fees, allowing traders to trade without additional spreads
Therefore, transaction costs must be considered as "spread + transaction fee"
Generally, transaction fees can be considered as an effective spread of 0.1 pips per dollar
Frequently Asked Questions about the Safety of Overseas Forex Trading
Ranking of highly secure overseas forex brokers | Summary
This time, we introduced a ranking of highly secure overseas forex brokers
Overseas forex trading offers a more flexible trading environment than domestic forex trading
High-leverage trading is possible, and the bonus campaigns are also generousYou can aim for a fortune even with a small amount of capital。
However, since this falls outside the jurisdiction of Japan's Financial Services Agency, you will need to take sufficient risks yourself
If risk management is inadequate, risk of being scammed or accumulating large amounts of debt , so caution is necessary.
Open an account with one of the highly secure overseas forex brokers introduced in this article and enjoy trading experiences that you can't get with domestic forex brokers
The biggest advantage of using overseas forex brokers is undoubtedly the leverage. In Japan, the maximum leverage is 25 times, but overseas brokers allow for even higher leverage. However, it's important to note that while there is the potential for huge profits, there is also the potential for enormous losses, so it's crucial to carefully control profit-taking and stop-loss strategies.
Also, it's true that some overseas forex brokers raise concerns regarding security. Therefore, please read this article carefully and consider how to choose an overseas forex broker.
