The safety of overseas forex brokers is not determined by their "name recognition," but rather by "which company operates under which country's regulations" and "how many layers of mechanisms are in place to protect funds in the event of bankruptcy or trouble."Our editorial team scored 23 companies available to Japanese users based on five criteria (out of 16 points): regulation, fund protection, years in operation, Japanese language support, and information disclosure. We then created a ranking, disclosing all scoring and sources.
The results were:1st placeExness(12 points), 2nd placeAXIORY, 3rd placeIC Markets, 4th placeINFINOX, 5th placeVantage, and 6th place XS (11 points each). XMTrading, which many sites rank as number one, came in 7th place (10 points) because it lacks a third-party compensation system and is not a member of the Financial Commission.
This article will explain the scoring system used as the basis for the rankings, the operating companies and compensation systems of each company, and their inclusion on the Financial Services Agency's warning list. It will also cover how to identify safe service providers and important points to keep in mind for safe use
Conclusion | Overseas Forex Safety Ranking (August 2026, scored by our editorial team)
- 1st place Exness (12 points): Group is a member of CySEC, FCA, and the Financial Commission (July 2021), has 18 years of operation, and publicly discloses externally audited financial information.
- ranked second with AXIORY 11 points: Fund protection received the most points with 3 (segregated accounts + trust protection + membership in the Financial Commission as of November 2016), and it has been in operation for 15 years.
- 3rd place: IC Markets, 4th place: INFINOX, 5th place: Vantage, 6th place: XS (11 points each): All of these companies have one of the following: FCA, ASIC, or CySEC within their group, and are members of the Financial Commission or have officially disclosed compensation insurance. The ranking is based on points for financial protection, followed by the year of establishment.
- XMTrading ranked 7th (10 points): While it received perfect scores for regulations, years in operation, and Japanese language support, its fund protection is limited to segregated accounts and it is listed as "Not Registered" by the Financial Commission. Furthermore, it does not disclose any customer compensation insurance.
- All 23 companiesare unregistered with Japan's Financial Services Agency (FSA), and almost all of them are on the FSA's warning list. "Safety" here refers not to protection under Japanese regulations, but to the robustness of the companies' own systems and procedures.
*This article was created by the MoneyCharger editorial team in accordance with our content creation policy . Information on each company's operating company, license, year of establishment, and support system was obtained from each company's official website and information provided by the broker. Membership status with the Financial Commission was obtained from the Financial Commission 's individual broker pages, and the status of listing on the warning list was obtained from the Financial Services Agency's " Names of Persons Conducting Financial Instruments Business Without Registration " (updated August 27, 2026), all of which were confirmed on August 31, 2026. Overseas FX brokers are not registered with the Japanese Financial Services Agency, and the Financial Services Agency and the Consumer Affairs Agency warn against trading with unregistered brokers. The scores in this article are evaluations based on the criteria of our editorial team and do not guarantee the safety of your funds.
If you are new to overseas forex trading,our complete guide for overseas forex trading beginners.
Supervisor of this article
Japan Securities Dealers Association Class 1 Securities Sales Representative
Ryota Ito
While a student,CFPand DC Advisor qualifications. I currentlya Class 1 Securities Sales Representativelicense. 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.
Top 10 Ranking of Safety for Overseas Forex Brokers | Scored on 5 Criteria with a Maximum Score of 16 Points
The following brokers made it into our editorial team's top 10.The selection criteria (scoring breakdown) for this overseas FX safety ranking are "Regulation (4 points), Fund Protection (4 points), Years in Operation (3 points), Japanese Language Support (2 points), and Information Disclosure (2 points)." In case of a tie, the score for fund protection was used first, followed by the length of the company's operation. Details of the scoring and the scores of all 23 companies are published in the next chapter.
| Ranking/Company | total | Regulations | fund protection | Years of operation | Japanese | Information Disclosure | Manecha CB |
|---|---|---|---|---|---|---|---|
 1st Exness | 12 points | 4 | 2 | 3 | 2 | 1 | correspondence |
 2nd place AXIORY | 11 points | 2 | 3 | 3 | 2 | 1 | correspondence |
 3rd place: IC Markets | 11 points | 4 | 2 | 3 | 2 | 0 | correspondence |
 4th place INFINOX | 11 points | 4 | 2 | 3 | 2 | 0 | correspondence |
 5th place Vantage | 11 points | 4 | 2 | 3 | 2 | 0 | correspondence |
 6th place XS | 11 points | 4 | 2 | 3 | 2 | 0 | correspondence |
 7th place XMTrading | 10 points | 4 | 1 | 3 | 2 | 0 | Not applicable |
 8th HFM | 9 points | 2 | 2 | 3 | 2 | 0 | correspondence |
 9th place TitanFX | 9 points | 2 | 2 | 2 | 2 | 1 | correspondence |
 10th FXGT | 9 points | 4 | 2 | 1 | 2 | 0 | correspondence |
1st place: Exness(12 points) | Group with CySEC and FCA membership, member of the Financial Commission, and publicly available external audits
| Establishment | 2008 (18 years of operation) |
| Operating company for residents of Japan | Exness (SC) Ltd (Seychelles FSA SD025) |
| Group's higher license | CySEC 178/12・FCA 730729 |
| fund protection | Separate management/Membership of The Financial Commission (July 2021) |
| Information Disclosure | Externally audited financial information is made public (published by the vendor) |
| Financial Services Agency warning list | Published (April 2023) |
| Manecha CB | correspondence |
Exnessranked first because it received perfect scores for regulation, years of operation, and Japanese language support, and was the only firm to receive bonus points for both fund protection and information disclosure.Its group companies are regulated by CySEC and FCA, and you can verify its membership status as "Active" and "Compensation Fund: €20,000 per client" on the Financial Commission's member page.
The fact that they disclose financial information with an external audit (Deloitte) is a rare transparency among overseas forex brokers (the audit is based on the broker's public announcement). It should be noted thatas of August 2026,Exness's public website from Japan requires login, and without logging in, public content such as trading conditions cannot be viewed.
For information on reputation and withdrawal practices, please see Exness's reputation and reviews , and for account opening, please see Exness's account opening (via MoneyChat)
2nd Place: AXIORY(11 points) | Triple structure of segregated accounts + trust protection + Financial Commission
| Establishment | 2011 (15 years of operation) |
| Operating company for residents of Japan | Axiory Global Ltd (Belize FSC 4496214) |
| Group's higher license | none |
| fund protection | Separate management/trust preservation (company declaration)/membership of The Financial Commission (November 2016) |
| Information Disclosure | Third-party audit of deposits and withdrawals to be announced |
| Financial Services Agency warning list | Published (June 2015) |
| Manecha CB | correspondence |
AXIORYis the only company out of 23 to receive a score of 3 in the fund protection category.The company has declared that it has implemented trust protection in addition to segregated accounts, and it has also been a member of the Financial Commission since 2016. Its membership period is the earliest among the major companies, and the fact that it has been continuously in the Commission for nearly 10 years is also commendable.
The reason there are only two regulatory items is that the group does not have CySEC, ASIC, or FCA-class licenses (officially it lists two institutions: Belize FSC and Mauritius FSC).it is the type of organization that "does not have higher-level licenses, but compensates for this with a fund protection mechanism." Details of the trust protection (such as the name of the financial institution entrusted to the trust) could not be confirmed on the official website, so it is listed as a declaration by the company.
For reviews and testimonials AXIORY's reviews and testimonials , please see AXIORY page. For account opening information, please see AXIORY's account opening page (via MoneyChat)
3rd place: IC Markets(11 points) | ASIC/CySEC Group and customer fund insurance, 19 years of operation
| Establishment | 2007 (19 years of operation) |
| Operating company for residents of Japan | Raw Trading Ltd (Seychelles FSA SD018) |
| Group's higher license | ASIC 335692・CySEC 362/18 |
| fund protection | Segregated accounts/customer fund insurance up to $1 million (official, available to all customers of Raw Trading Ltd) |
| Financial Summer | Not a member |
| Financial Services Agency warning list | Listed (June 2014 (Raw Trading Ltd. May 2025)) |
| Manecha CB | correspondence |
IC MarketsearnedAxi; its status as a group company under the regulations of ASIC and CySEC; and its publicly available customer fund insurance (covering all customers of Raw Trading Ltd up to $1 million).As it is not a member of the Financial Commission, there is no option for third-party arbitration in disputes.
The Financial Services Agency's warning list includes International Capital Markets Pty Ltd in June 2014, and Raw Trading Ltd itself, a corporation targeting Japanese residents, in May 2025
For details about the vendor and how to open an account, please see the vendor details on IC Markets(via MoneyChat)
4th place: INFINOX(11 points) | FCA Group and compensation insurance, 17 years of operation
| Establishment | 2009 (17 years of operation) |
| Operating company for residents of Japan | INFINOX Limited (Mauritius FSC GB20025832) |
| Group's higher license | FCA 501057 (Infinox Capital Ltd) |
| fund protection | Segregated Accounts/Compensation Insurance: Up to $500,000 per claim (official, until May 2027) |
| Financial Summer | Not Registered |
| Financial Services Agency warning list | Not listed (as of August 27, 2026) |
| Manecha CB | correspondence |
INFINOXis highly rated for its group companies regulated by the UK's FCA and for its segregated accounts plus additional coverage insurance.The legal entity for Japanese residentsINFINOX Limited (Mauritius FSC GB20025832), which was established in 2009 and has a perfect record of years of operation. The coverage insurance is stated as "up to $500,000 per claim (insurance period June 2026 to May 2027)" on the official English version, but "up to $1,000,000" on the Japanese version, so this article conservatively uses $500,000.
Because it is not a member of the Financial Commission ("Not Registered"), there is no third-party resolution mechanism in case of disputes with the company. As of August 27, 2026, it is not listed on the Financial Services Agency's warning list, but like other companies, it is not a registered company in Japan
For INFINOXreviews and testimonials about , and for information on opening an account with INFINOX , please see INFINOXaccount opening page (via MoneyChat)
5th place: Vantage(11 points) | ASIC/FCA Group member and Financial Commission member, 17 years of operation
| Establishment | 2009 (17 years of operation) |
| Operating company for residents of Japan | Vantage Trading Ltd. (Mauritius) /Vantage Global Limited (Vanuatu VFSC 700271) |
| Group's higher license | ASIC 428901・FCA 590299 |
| fund protection | Separate management/Membership of The Financial Commission (October 2022) |
| Financial Services Agency warning list | Published (March 2023) |
| Manecha CB | correspondence |
Vantagescored 11 points in four categories: regulation, financial protection, years in operation, and Japanese language support, placing it at the same level as the top performers. Among those with the same score, it ranked 5th, following its founding year (2009).It has been a member of the Financial Commission since October 2022.
The company name on the official Japanese website isVantage Trading Ltd. (Mauritius), and the group includes ASIC and FCA regulated entities. The Financial Services Agency's warning list includes multiple company names: March 2023 (Vantage Global Limited), June 2024 (Vantage Prime Trading Limited), and August 2026 (Vantage Trading Ltd.). As long as they continue to operate targeting Japanese residents, they are repeatedly receiving warnings. Please check the account screen to confirm the legal entity under which the contract is made
For reviews and testimonials Vantage's reviews and testimonials page , please see Vantage . For account opening information, please see Vantage's account opening page (via MoneyChat)
6th place: XS (11 points) | ASIC/CySEC Group and Lloyd's Insurance, 16 years of operation
| Establishment | 2010 (16 years of operation) |
| Operating company for residents of Japan | XS Ltd (Seychelles FSA SD089) |
| Group's higher license | ASIC 374409 / CySEC 412/22 |
| fund protection | Segregated accounts / Lloyd's Insurance: Up to $5 million (officially confirmed) |
| Financial Summer | Not a member |
| Financial Services Agency warning list | Published (September 2024) |
| Manecha CB | correspondence |
XS is a group with licenses in eight countries and regions, including entities regulated by ASIC and CySEC.Accounts for Japanese residents are handled by a Seychelles entity, and a positive point regarding fund protection is that they publicly disclose their liability insurance with Lloyd's of London (up to $5 million) on their official website.
Because it is not a member of the Financial Commission, the insurance covers "damages due to the negligence of the company, etc.," and is not a mechanism for a third party to arbitrate individual withdrawal disputes. Please understand that insurance and dispute resolution bodies have different roles. It was listed on the Financial Services Agency's warning list in September 2024 under the name of XS Ltd
For reviews and testimonials about XS , please see XS Account Opening (via MoneyChat)
7th place: XMTrading (10 points) | Regulations, years of operation, and Japanese language support are perfect, but there is no compensation system and fund protection is only 1 point
| Establishment | 2009 (17 years of operation) |
| Operating company for residents of Japan | Tradexfin Limited (Seychelles FSA SD010) / Fintrade Limited (Mauritius FSC GB20025835) |
| Group's higher license | CySEC/ASIC (Group) |
| fund protection | Separate management |
| Financial Summer | Not Registered |
| Financial Services Agency warning list | Published (August 2020) |
| Manecha CB | Not applicable |
XMTrading ranked 7th because it only received one point in the fund protection category, stating "segregated accounts only."Its regulatory compliance (CySEC and ASIC within its group), years of operation (17 years), and Japanese language support all received perfect scores, indicating its fundamental strength as a broker is on par with the top-ranked companies. The difference lies in the fact that it is not a member of a third-party dispute resolution and compensation body like the Financial Commission, and does not disclose any customer compensation insurance.
This article's scoring does not include performance-based factors such as "the largest number of Japanese users" or "no reports of major withdrawal problems." A morethat if you choose based on name recognition and performance, you should choose XM; if you choose based on the strength of the system's protections, you should choose the top six companies. More details will be explained later in the section "Is XMTrading Safe?".
For reviews andthe reviews and testimonials section for XMTrading. Please note that XMTrading is not eligible for MoneyChat's cashback program.
8th place: HFM(9 points) | FCA-CySEC Group, €5 million liability insurance, 16 years of operation
| Establishment | 2010 (16 years of operation) |
| Operating company for residents of Japan | HF Markets (SV) Ltd (Saint Vincent, Business Registration No. 22747 IBC 2015) |
| Group's higher license | FCA 801701, CySEC, DFSA, FSCA (Group) |
| fund protection | Segregated storage/Liability insurance up to 5 million euros (confirmed officially) |
| Financial Summer | Not a member |
| Financial Services Agency warning list | Published (August 2017) |
| Manecha CB | correspondence |
HFMreceived 2 points for regulations because its legal entity serving Japanese residents is registered in Saint Vincent (not a financial license), but it also received 2 points for financial protection because its group includes legal entities regulated by FCA, CySEC, DFSA, and FSCA, and it publicly announces liability insurance of up to 5 million euros on its official website. Overall, it came in 8th place with 9 points
A point to note is the handling of the Japanese website. As of August 2026, the Japanese website (/jp/ja/) redirects to the English version, displaying a message stating that "this site is not intended for residents of Japan." While Japanese support is still available, it is difficult to find official information in Japanese
For HFMreviews and testimonials about , please see HFMAccount Opening (via MoneyChat)
9th place: TitanFX (9 points) | In addition to joining the Financial Commission, the company has released the results of its executive audit
| Establishment | 2014 (12 years of operation) |
| Operating company for residents of Japan | Titan FX Limited (Vanuatu VFSC 40313) |
| Group's higher license | none |
| fund protection | Separate management/Membership of The Financial Commission (November 2020) |
| Information Disclosure | The Financial Commission has released the results of its executive audit |
| Financial Services Agency warning list | Published (August 2015) |
| Manecha CB | correspondence |
In addition to being a member of the Financial Commission, TitanFX publishes the results of audits conducted by the commission on the quality of its order execution.Exness,AXIORYIt is one of onlyAlthough it only received two points in the regulatory category because it does not have a higher-level license, not many brokers demonstrate the transparency of their order execution with third-party data.
For reviews and testimonials about TitanFX , and for account opening, please see TitanFX Account Opening (via MoneyChat)
10th place: FXGT(9 points) | 1 million dollar liability insurance with CySEC Group, 7 years of operation
| Establishment | 2019 (7 years of operation) |
| Operating company for residents of Japan | GT Global Ltd (Seychelles FSA), and others |
| Group's higher license | CySEC 382/20 (GT Investment Services Ltd) |
| fund protection | Segregated storage/Liability insurance up to $1 million (officially confirmed) |
| Financial Summer | Not a member |
| Financial Services Agency warning list | Listed (June 2020 (under the name 360 Degrees Markets Ltd.; GT Global Ltd will be listed in November 2025)) |
| Manecha CB | correspondence |
FXGThas a CySEC-regulated company (GT Investment Services Ltd) within its group and publicly states on its official website that it has liability insurance up to $1 million, so its regulatory system scores of 4 points and capital protection scores of 2 points are on par with the top companies.Established in 2019, its operating years are limited to 1 point, resulting in a score of 9 points and placing it in 10th place.
The primary company listed in the footer of the official Japanese website is GT Global Ltd (Seychelles), and it was included in the Financial Services Agency's warning list in June 2020 (under the name 360 Degrees Markets Ltd) and November 2025 (under the name GT Global Ltd)
For details about the broker and account opening, please see FXGT's Broker Details (via MoneyChat) , and for cashback information, please see FXGT's Cashback page
Nine out of the top ten companies are providers that offer cashback through MoneyChat
Full disclosure of scoring criteria | 5 criteria, 16-point maximum score, and sources
The ranking was scored based on the following five criteria, with a maximum score of 16 points.Points were added mechanically based on the "presence or absence of publicly available facts," and impressions from word-of-mouth or name recognition were not included in the score. The system is designed so that anyone scoring using the same criteria will get the same result.
| Criteria (scoring) | Criteria for bonus points and sources confirmed |
|---|---|
| ① Regulations (0-4 points) | Operating company serving Japanese residents holds a financial license = 2 points (business registration only = 0 points). Group includes one of the following regulated entities: FCA, ASIC, or CySEC = +2 points. Source: Footer/regulatory pages on each company's official website, materials provided by the companies. |
| ② Fund protection (0-4 points) | Segregated accounts = 1 point / Trust protection = +1 point / Membership in the Financial Commission (Active) = +1 point / Public disclosure of private insurance that compensates customer losses on the official website = +1 point (excluding insurance that does not cover customer compensation, such as directors and officers liability insurance) Source: Financial Commission's individual pages (membership date, compensation limits), each company's official website |
| ③ Years in operation (0-3 points) | 15 years or more = 3 points / 10-14 years = 2 points / 5-9 years = 1 point / Less than 5 years = 0 points (as of 2026) Source: Official founding year of each company |
| ④ Japanese language support (0-2 points) | Yes = 2 points / Restrictions on response time and system = 1 point / No = 0 points Source: Official company and vendor-provided materials |
| ⑤ Information Disclosure (0-2 points) | Official specifications sheet clearly states order type (NDD/STP/ECN) = 1 point / External audit and execution audit results are made public = 1 point Source: Official account type pages of each company, Financial Commission, IR pages of each company |
This standard also has its limitations."Whether or not actual withdrawal problems have occurred" and "the quality of transactions" are not scored(because they are not publicly available in a way that can be verified by a third party). Furthermore, "whether or not a company is listed on the Japanese Financial Services Agency's warning list" is not scored. 19 out of 23 companies are listed, and this is because listing is merely a record of "the company soliciting Japanese residents," and does not directly indicate the safety of the funds.
List of safety scores for all 23 companies
This is the scoring result for 23 companies, including XMTrading, in addition to the 22 companies handled by MoneyChat (the table can be scrolled horizontally; the first column is fixed).We have made it possible to see which items caused companies to lose points, including those ranked 11th and below. Some companies, like EBC, Errante, andThreeTrader, have the same level of organizational structure as the top companies but lose points due to their years in operation,DecodeFX, have been in operation for a long time but only have segregated accounts for fund protection.
| Ranking/Company | total | Regulations | fund protection | Years | Japanese | Disclosure | Establishment | Regulations for corporations targeting Japanese residents | Financial Summer | Listed on the warning list |
|---|---|---|---|---|---|---|---|---|---|---|
| 1st Exness | 12 points | 4 | 2 | 3 | 2 | 1 | 2008 | Exness (SC) Ltd (Seychelles FSA SD025) | Membership (July 2021) | April 2023 |
| 2nd place AXIORY | 11 points | 2 | 3 | 3 | 2 | 1 | 2011 | Axiory Global Ltd (Belize FSC 4496214) | Membership (November 2016) | June 2015 |
| 3rd place: IC Markets | 11 points | 4 | 2 | 3 | 2 | 0 | 2007 | Raw Trading Ltd (Seychelles FSA SD018) | Not a member | June 2014 (Raw Trading Ltd: May 2025) |
| 4th place INFINOX | 11 points | 4 | 2 | 3 | 2 | 0 | 2009 | INFINOX Limited (Mauritius FSC GB20025832) | Not a member | Not published |
| 5th place Vantage | 11 points | 4 | 2 | 3 | 2 | 0 | 2009 | Vantage Trading Ltd. (Mauritius) /Vantage Global Limited (Vanuatu VFSC 700271) | Membership (October 2022) | March 2023 |
| 6th place XS | 11 points | 4 | 2 | 3 | 2 | 0 | 2010 | XS Ltd (Seychelles FSA SD089) | Not a member | September 2024 |
| 7th place XMTrading | 10 points | 4 | 1 | 3 | 2 | 0 | 2009 | Tradexfin Limited (Seychelles FSA SD010) / Fintrade Limited (Mauritius FSC GB20025835) | Not a member | August 2020 |
| 8th HFM | 9 points | 2 | 2 | 3 | 2 | 0 | 2010 | HF Markets (SV) Ltd (Saint Vincent, Business Registration No. 22747 IBC 2015) | Not a member | August 2017 |
| 9th place TitanFX | 9 points | 2 | 2 | 2 | 2 | 1 | 2014 | Titan FX Limited (Vanuatu VFSC 40313) | Membership (November 2020) | August 2015 |
| 10th FXGT | 9 points | 4 | 2 | 1 | 2 | 0 | 2019 | GT Global Ltd (Seychelles FSA), and others | Not a member | June 2020 (in the name of 360 Degrees Markets Ltd. GT Global Ltd in November 2025) |
| 11th place: Errante | 9 points | 4 | 2 | 1 | 2 | 0 | 2019 | Errante Securities (Seychelles) Ltd (FSA SD038) | Not a member | August 2025 |
| 12th place EBC | 9 points | 4 | 2 | 1 | 2 | 0 | 2020 | EBC Financial Group (Cayman) Ltd (CIMA 2038223) | Membership (August 2023) | Not published |
| 13th DecodeFX | 9 points | 4 | 1 | 3 | 1 | 0 | 2004 | Decode Global Limited (Vanuatu, Company Registration Number 700415) | Not a member | September 2025 |
| 14th ThreeTrader | 8 points | 2 | 2 | 1 | 2 | 1 | 2021 | ThreeTrader Global Limited (Vanuatu VFSC 40430) | Membership (December 2022) | August 2023 |
| 15th Axi | 8 points | 2 | 1 | 3 | 2 | 0 | 2007 | AxiTrader LLC (Saint Vincent, registered company 25417 BC 2019) | Not a member | January 2024 |
| 16th BigBoss | 8 points | 2 | 1 | 2 | 2 | 1 | 2013 | Big Boss Ltd (Comoro Mwali MISA BFX2024045) | Not a member | February 2017 |
| 17th place MYFX Markets | 7 points | 2 | 1 | 2 | 2 | 0 | 2013 | MYFX Group Limited (Seychelles FSA SD202) | Not a member | January 2020 |
| 18th IS6FX | 7 points | 2 | 1 | 2 | 2 | 0 | 2016 | IS6 Technologies Ltd (Mauritius FSC GB21026947, etc.) | Not a member | December 2021 (formerly known as is6com, established in February 2019) |
| 19th OQtima | 7 points | 4 | 1 | 0 | 2 | 0 | 2023 | CDE Global Markets Ltd (Seychelles FSA SD109) | Not a member | May 2025 |
| 20th Dupoin | 6 points | 2 | 1 | 1 | 2 | 0 | 2020 | Dupoin Markets Ltd (Comoros Anjuan AOFA L15624/DM) | Not a member | Not published |
| 21st JadeFOREX | 5 points | 0 | 1 | 1 | 2 | 1 | 2021 | Jade Belfort Limited (Seychelles IBC 227736 - Business registration only) | Not a member | Not published |
| 22nd place: Monaxa | 5 points | 2 | 1 | 0 | 2 | 0 | 2023 | Monaxa Ltd (Mauritius FSC GB23201577) | Not a member | December 2024 |
| 23rd place: Axon Markets | 5 points | 2 | 1 | 0 | 2 | 0 | 2023 | Axon Markets Ltd (Seychelles FSA SD115) | Not a member | October 2024 (under the name of Little Black Diamond Ltd) |
Lower-ranked brokers aren't necessarily "dangerous," but ratherthey have fewer publicly available protection mechanisms or are relatively new. For example,JadeFOREXonly has a business registration and no financial license, andDupoinis licensed by the autonomous island of Anjouan in the Comoros (a type that the country's central bank has declared invalid). If you use such brokers, be sure to keep the amount of money in your account especially small.
Is XMTrading safe? | Reasons for its 7th place ranking and the meaning of "safety"
XMTrading has a perfect foundation as a broker (higher-level group license, 17 years of operation, and Japanese language support), and is not a "risky broker." It ranked 7th because its only system for protecting funds is segregated accounts, and it is not a member of the Financial Commission
| perspective | XMTrading | Top 3 companies (Exness,AXIORY,IC Markets) |
|---|---|---|
| For corporations resident in Japan | Seychelles and Mauritius | Seychelles/Belize/Seychelles (same level) |
| Group's higher license | CySEC ASIC | CySEC・FCA/None/ASIC・CySEC |
| Third-party compensation and dispute resolution | none | Financial Commission (Exness/AXIORY) / Customer fund insurance up to $1 million (IC Markets) |
| Trust protection | None (separate management) | AXIORYonly (business declaration) |
| Financial Services Agency warning list | Published (August 2020) | All three companies are listed |
When people search for "XMTrading safety," what they really want to know is, "Is it safe to deposit my funds here?" The answer is,safe to use if you understand that there are fewer third-party support systems to rely on in case the broker goes bankrupt or a dispute arises compared to top brokers. It's true that there are many Japanese users and plenty of information available, but that's a separate issue from institutional protection.
XM's withdrawal practices and customer reviews are thoroughly examined in the XMTrading reputation and reviews section
7 points to look for when choosing a highly secure overseas forex broker
The five scoring criteria can be broken down into the following seven points in a checklist for when you research a company yourself.You can find most of this information in the footer of their official website and on the "Safety" and "Regulations" pages.
① Identify the legal entity that holds your account and its regulatory authority
Even if a company states that it holds FCA, ASIC, and CySEC licenses, accounts for Japanese residents are typically held by offshore entities.All of the top brokers mentioned in this article also have entities located in Seychelles, Belize, the Bahamas, or the Cayman Islands that serve Japanese residents. What you should check is not "what the group holds," but "which entity and regulations your account is under," which is usually written on the account opening screen or in the terms and conditions of the transaction under the names of the parties involved.
| classification | Main Regulatory Authority | Features |
|---|---|---|
| Superior License | FCA (UK), ASIC (Australia), CySEC (Cyprus) | Strict capital requirements, protection of customer funds, and periodic reporting are enforced. However, Japanese residents are often unable to open accounts with these corporations |
| Offshore financial licenses | Seychelles FSA, Mauritius FSC, Vanuatu VFSC, Belize FSC, Cayman Islands CIMA, Bahamas SCB | Many corporations serving Japanese residents are located here. You can verify the company name and registration number in the registry |
| Business registration only | Saint Vincent (SVG) IBC, Seychelles IBC, etc | This is a company registration, not a supervisory role in the financial industry. This article scores zero points for regulation |
The requirements and differences in reliability of each license are explained in the list of overseas forex financial licenses
② Fund protection should be viewed through four layers: segregated accounts, trust protection, dispute resolution mechanisms, and insurance
Simply stating "we manage funds separately" does not guarantee that your money will be returned if the company goes bankrupt.Since the four mechanisms protect different things, please check which ones are in place for each case.
| structure | A scene where they protect you | limit | Examples of companies that prepare for such situations (based on the scoring in this article) |
|---|---|---|---|
| Separate management | The company manages its own working capital and customer funds in separate accounts | There is no legal guarantee that the full amount will be returned in the event of bankruptcy | All 23 companies |
| Trust protection | A third party, such as a trust bank, protects customer funds. This is mandatory for domestic FX trading | This is rare among overseas firms. Disclosure of trustees and scope is sometimes insufficient | AXIORY(Business Declaration) |
| Dispute Resolution Body (Financial Commission) | A third party will arbitrate disputes such as withdrawal refusals. If a member company fails to pay, the compensation fund will provide up to €20,000 | This is not a system to compensate for the bankruptcy of the business itself | Exness・AXIORY・TitanFX・Vantage・ThreeTrader・EBC |
| Private compensation insurance | Insurance covers damages caused by the contractor's negligence, fraud, bankruptcy, etc. (Conditions vary by contractor) | Payment terms and limits depend on the insurance contract. We do not arbitrate individual disputes | IC Markets, XS,INFINOX,HFM,FXGT, Errante (all publicly announced on their official websites) |
Domestic FX brokers have an investor protection fund in addition to the obligation of trust protection. Overseas FX brokers do not have an equivalent public system, so the "presence" and "content" of these mechanisms, which are provided voluntarily by the brokers, directly determine the difference in safety
What is the difference between segregated accounts and trust protection ? This article explains in detail the difference between segregated accounts and trust protection in overseas forex trading
③ Use 10 years of operation as a guideline and look at the track record of overcoming market shocks
The longer a company has been in operation, the more likely it is to have a track record of successfully navigating sudden market fluctuations (such as the Swiss franc shock of 2015, the COVID-19 shock of 2020, and the sharp decline in August 2024) and consistently returning customer funds.In this article, companies with 10 or more years of experience are given 2 points, and those with 15 or more years of experience are given 3 points.
A short operating history isn't inherently dangerous, but it means there's less material to judge based on performance. For companies like EBC (established in 2020), which have a strong organizational structure but fall short due to their short operating history, check if they can compensate for this in other areas
④ Do they disclose their ordering methods and audit results? (Information disclosure)
While many brokers claim to be "transparent with an NDD (Non-Dealing Desk) system" in their articles,BigBoss, Traders Trust,ThreeTraderandJadeFOREXonlypublish financial information with external audits (Exnessonly a few
Looking at whether the information is published in a verifiable format, rather than just focusing on what is written, reveals the differences in the attitudes of the companies involved
For information on how to check order types and the results of our investigation of 20 companies, please see the list of 20 overseas forex brokers using the NDD method
⑤ Check the terms and conditions for the application of the zero-cut policy
All 23 companies in this article employ a zero-cut system (resetting negative balances) (according to official company/broker-provided materials), so it is not included in the scoring criteria. However, the application conditions differ from broker to broker.Please check the terms and conditions to see if it does not apply in cases of hedging or violation of the terms and conditions, and whether the reset occurs automatically, at the next deposit, or requires an application.
The mechanism and points to note regarding zero-cut are explained in the article "What is zero-cut (no margin call) in overseas forex trading?"
⑥ Is Japanese language support actually working?
Even if a company advertises "Japanese language support," some may have limited support hours or fail to respond at all. It's bestto inquire via chat or email before opening an account to confirm the speed and content of their response. The National Consumer Affairs Center of Japan also warns that "even if a Japanese-language telephone support line is listed, there are cases where it is actually impossible to get through."
As of August 2026,HFMJapanese website redirects to the English version and displays a message stating that it is "not for residents of Japan," and thatExnesspublic website cannot be accessed without logging in. our editorial team has confirmed that The existence of support needs to be confirmed "now."
⑦ When reading reviews, separate the information on "withdrawal history" and "whether or not there were any violations of the terms and conditions."
Customer reviews claiming "withdrawal refusal" often involve a mix of fraudulent activity on the part of the broker and violations of terms and conditions by the user (such as prohibiting hedging or misuse of bonuses).Read reviews carefully, comparing multiple reports of successful withdrawals of large sums with those explaining the reasons for refusal in accordance with the terms and conditions. Keep in mind that unfounded rumors are more likely to spread with larger brokers.
For information on how to troubleshoot withdrawal rejections, please see " Causes and Solutions for Withdrawal Rejections in Overseas Forex Trading ."
What are the risks of overseas forex trading? | Differences in safety compared to domestic forex trading
The fundamental reason why overseas forex trading is considered risky is that it is not registered with the Japanese Financial Services Agency, and therefore does not offer the same public protection as domestic forex trading (trust protection obligations, investor protection fund, financial ADR).The ranking in this article compares the "strength of the broker's security measures" based on this premise, and does not mean that the protections are equivalent to those of domestic forex trading.
| perspective | Domestic FX | Overseas FX |
|---|---|---|
| Registration and Supervision | Registered with and inspected by the Financial Services Agency | No registration required. Only overseas regulatory authorities are responsible |
| fund protection | Trust protection is mandatory + Investor protection fund | The service provider may provide their own arrangements (separate management, Financial Commission, insurance, etc.) |
| Conflict Resolution | Financial ADR (FINMAC, etc.) | Only member companies are subject to the Financial Commission. For others, negotiations must be conducted directly with the company or through a lawyer |
| Margin call | Yes (Zero-cut is not possible because loss compensation is prohibited) | Zero-cut means you won't lose more than your deposit |
| User's legal responsibility | — | There are no regulations to punish users. It is the unregistered businesses that solicit customers that are in violation of the law |
As of August 27, 2026, the Financial Services Agency's warning list contains 1,150 entries, including 19 of the 23 companies mentioned in this article.The listing indicates that the companies "solicited Japanese residents without registration," and while this does not mean that users are in violation of any law, it does mean that they will not be able to seek redress under the Japanese system in the event of trouble.
Is overseas forex trading illegal? This article explains the legality of overseas forex trading, how to read warning lists, why users are not punished, how to interpret warning lists , and provides an overview of the advantages and disadvantages of overseas forex trading, including 8 advantages and 5 disadvantages
Five important points to keep in mind when using overseas forex trading safely
Just as important as choosing a broker is how you use it to ensure safety.Even if you choose a reputable broker, problems will arise if you ignore the following five points. Conversely, the common characteristics of risky FX companies (unknown location/operating corporation, only business registration under regulations, high bonuses immediately after establishment, and starting with solicitation) are the inverse of these five points.
- Do not deposit money into any recommended companies, accounts, or groups.If you are directed to a company via social media, LINE, or phone, even if the company name is real, be suspicious of fake websites or scams involving payment on your behalf. Search for the official website yourself and open your own account.
- Keep only the minimum amount necessary for trading in your account, and withdraw profits frequently.All compensation schemes have limits (the Financial Commission's limit is €20,000).
- Read the terms and conditions regarding prohibited activities (hedging, arbitrage trading, and fraudulent use of bonuses) before trading.Many withdrawal refusals by reputable brokers are due to violations of the terms and conditions.
- Avoid companies that are newly established and attract customers with high bonuses.The source of bonuses is the company's financial strength, and companies with no track record are more likely to be suspicious in their motives for raising funds.
- Regularly check for changes to deposit and withdrawal methods and terms and conditions.Regulations surrounding payments are constantly evolving, including the cross-border payment processing regulations that came into effect on June 1, 2026.
The current status and regulations regarding deposit and withdrawal methods are summarized in our comparison of deposit and withdrawal methods for 21 overseas forex brokers
Frequently Asked Questions about the Safety of Overseas Forex Trading
Q. Which overseas forex broker is the safest?
In our editorial team's scoring (out of 16 points, covering regulations, financial protection, years in operation, Japanese language support, and disclosure),Exnesscame in first with 12 points, followed byAXIORY,IC Markets,INFINOX,Vantage, and XS with 11 points each
However, what constitutes "the safest" varies depending on your criteria. If you prioritize third-party dispute resolution, thenExness,AXIORY, TitanFX,Vantage,ThreeTrader, and EBC, all members of the Financial Commission, are good choices. If you prioritize trust protection, thenAXIORYis a good option. If you prioritize officially published compensation insurance, thenIC Markets, XS,INFINOX,HFM,FXGT, and Errante are good choices. If you prioritize groups with higher licenses, thenExness,IC Markets, XS, andVantageare good options
Q. Are there any 100% safe overseas forex brokers?
No. Since they are not registered with the Japanese Financial Services Agency, none of the brokers have the same trust protection obligations or public protection from the Investor Protection Fund as domestic FX brokers
What you can do is choose a broker that offers a wide range of protections (segregated accounts, trust protection, Financial Commission, insurance) and minimize the amount of money you keep in your account. The scoring in this article compares the "amount" of these protections
Q. Which is safer, segregated accounts or trust protection?
Trust protection offers a stronger level of protection.Segregated accounts simply mean that the company manages its own funds and customer funds in separate accounts, but there is no legal guarantee that the full amount will be returned in the event of bankruptcy. Trust protection means that a third-party trust bank or similar entity protects customer funds, thus separating them from the company's bankruptcy.
However, few overseas forex brokers offer trust protection, and among the 23 companies listed in this article, onlyAXIORY(declared by the broker) does. For brokers without trust protection, please check whether they have compensation insurance or a guarantee from the Financial Commission
Q. Are companies listed on the Financial Services Agency's warning list dangerous?
Being placed on the warning list is a record of "soliciting Japanese residents without registering in Japan," and does not directly indicate the safety of the funds.Of the 23 companies mentioned in this article, 19 are listed,ExnessandAXIORYincluding
On the other hand, since the listed companies are outside the Japanese system, they cannot expect to be redressed by the Financial Services Agency or in domestic courts in the event of trouble. The question is not "is it dangerous?" but "will you use it assuming there is no protection?"
Q. Is XMTrading a safe broker?
The group includes CySEC and ASIC regulated entities, has 17 years of operational experience, and offers Japanese language support, so it is not a "risky company." The reason it ranked 7th in our editorial department's scoring is that its fund protection is limited to segregated accounts and it is not a member of the Financial Commission
The difference lies in choosing between XM if you prioritize brand recognition and the amount of information available, and the top six companies if you prioritize the availability of a third-party compensation system. Note that XMTrading is not eligible for MoneyChat's cashback program
Q. Should I avoid overseas forex brokers that have only recently been established?
It's not that a short operating history is inherently dangerous, but rather that there's less information available to judge based on performance.In this article's scoring, the operating history was given only 3 out of 16 points, reflecting a strong emphasis on regulations and financial protection.
There are also newer brokers, such as EBC (established in 2020), that are part of the FCA/ASIC group and affiliated with the Financial Commission. Conversely, you should avoid brokers that are newly established, attract customers with high bonuses, and are only regulated by business registration
Q. What should I do if my account is frozen or withdrawals are refused when trading with an overseas forex broker?
First, contact the company's support team to confirm the reason in writing, based on their terms and conditions. If the company is a member of the Financial Commission, file a complaint with the agency. If the issue is not resolved, consult the Consumer Hotline (188) or a lawyer
Complaints to the Financial Commission are free for customers of member firms, and if the firm fails to comply with the ruling, up to €20,000 will be paid from the compensation fund. Please understand before opening an account that this option is not available with non-member firms
Q. What are the key points to check regarding the safety and reliability of a broker when choosing an FX company?
For overseas FX companies, the five key points are: "the regulatory authority of the corporation holding your account," "fund protection mechanisms (segregated accounts, trust protection, dispute resolution bodies, insurance)," "years in operation," "existence of Japanese language support," and "publication of order types and audit results."The scoring criteria in this article itself serve as a checklist for comparing the reliability of FX companies.
With domestic FX companies, registration with the Financial Services Agency and trust protection are prerequisites, so the points of comparison shift to spreads and tools. With overseas FX, since these prerequisites do not exist, you need to check the differences in the systems of each broker yourself
Summary | Safety should be chosen based on "corporate entity, regulations, and compensation details," not "brand recognition."
We scored 23 overseas forex brokers on 5 criteria, out of a possible 16 points, and created a ranking with the scoring breakdown and source disclosed. The key points are as follows:
- 1st place:Exness(12 points), 2nd place:AXIORY, 3rd place:IC Markets, 4th placeINFINOX, 5th place:Vantage, 6th place: XS (11 points each). The top companies have both "a higher-level license within the group" and "Financial Commission membership or officially published compensation insurance," or trust protection.
- XMTrading ranked 7th (10 points). While its fundamentals were perfect, its fund protection was limited to segregated accounts, it was not a member of the Financial Commission, and it did not disclose its compensation insurance.
- All 23 companies are unregistered with Japan's Financial Services Agency, and 19 are on a warning list. There is no public protection, and the difference in safety lies in whether or not the companies have mechanisms in place at their discretion.
- What needs to be checked is "the legal entity holding your account and the regulatory authorities" and "which of the four layers of financial protection is in place." "FCA certification" often refers to the group as a whole.
- Safety also depends on how you use it: Do not deposit money into brokers that are recommended to you, keep your account balance to a minimum, read the terms and conditions, and withdraw your profits as soon as possible.
The scoring is based on publicly available information as of August 31, 2026, and the systems and regulations of the service providers may change. Please check the criteria in this article yourself before opening an account
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.
Exness, ranked number 1, is a provider that offers cashback through MoneyChat
For a list of AXIORYcashback providers including , please refer to the list of participating providers . For instructions on registering for Moneycha, please refer to the Moneycha user registration procedure
Our overall recommendations for brokers are explained in our comparison ranking of recommended overseas forex brokers , and the reasons why some people advise against it are explained in our section on the characteristics of people for whom overseas forex trading is not recommended
*The scoring in this article was conducted on August 31, 2026, based on information from each company's official website and materials provided by the company (year of establishment, operating company, license, fund management, support system), the Financial Commission's individual company pages (date of membership, compensation limit), and the Financial Services Agency's "Regarding the Names of Persons Conducting Financial Instruments Business Without Registration" HTML version (updated August 27, 2026). Items marked "Company Declaration" and "Company Publication" are those that our editorial department could not verify outside of the official website. Since the company's structure, regulations, and campaigns are subject to change, please be sure to check the latest information on the official website before opening an account. This article provides general information and does not guarantee the safety of your funds
