When I hear the term "overseas forex trading," I tend to get a somewhat suspicious impression of it
For example, you may have seen topics related to overseas forex trading like the following:
- "I don't recommend overseas forex brokers because they are not registered with the Financial Services Agency."
- "I heard a story about someone being unable to withdraw money from an overseas forex broker."
- "Domestic forex trading is definitely safer than overseas forex trading."
There are opinions that advise against trading in overseas forex markets
Indeed, even I, with 7 years of experience in FX trading, believe that "for those with ample funds and who cannot distinguish between reputable overseas FX brokers, domestic FX is the safer option."
However,I disagree with opinions such as "Overseas forex trading is dangerous and therefore not recommended" or "Overseas forex trading is not recommended because you can't make money with it."
Therefore, in this article, delve into the reasons why we do not recommend overseas forex trading, without any bias, and explain the actual situation .
If you're new to overseas forex trading, we recommend reading the complete guide for overseas forex trading beginners
Contents
- 1 Why is overseas forex trading often discouraged? A thorough explanation of the risks
- 1.1 The reason I don't recommend overseas forex trading is because it's "not registered with the Financial Services Agency."
- 1.2 Because trust protection is not mandatory
- 1.3 Because there is a risk of unfair withdrawal refusal
- 1.4 Overseas forex brokers have wider spreads than domestic forex brokers
- 1.5 Because the taxes are higher than for domestic FX
- 1.6 Because high leverage carries the risk of large losses
- 1.7 Because there is a risk of becoming a victim of fraud or illegal activities
- 1.8 Many companies do not offer Japanese language support
- 2 Advantages of using overseas forex trading | Why are there so many Japanese traders?
- 3 Disadvantages of using overseas forex trading
- 4 How to identify brokers to avoid when trading overseas forex
- 4.1 They do not have a financial license
- 4.2 Office does not exist / Location unknown
- 4.3 Companies that have been established for a short period of time
- 4.4 There are no reviews from companies that have made withdrawals of over 1 million yen
- 4.5 Companies that do not offer Japanese language support
- 4.6 Businesses with poor ratings on social media and review sites
- 5 Recommended overseas forex brokers that are safe and reliable
- 6 Frequently Asked Questions about Overseas Forex
- 6.1 Why is it often said that "overseas forex trading is not recommended"?
- 6.2 Is it true that withdrawals are sometimes refused by overseas forex brokers?
- 6.3 What are the disadvantages of overseas forex trading?
- 6.4 Why is overseas forex trading considered risky?
- 6.5 What is a zero-cut in overseas forex trading?
- 7 Summary of reasons why overseas forex trading is not recommended
Why is overseas forex trading often discouraged? A thorough explanation of the risks
There are eight reasons why overseas forex trading is often discouraged
- The reason I don't recommend overseas forex trading is because it's "not registered with the Financial Services Agency."
- Because trust protection is not mandatory
- Because there is a risk of unfair withdrawal refusal
- Overseas forex brokers have wider spreads than domestic forex brokers
- Because the taxes are higher than for domestic FX
- Because high leverage carries the risk of large losses
- Because there is a risk of becoming a victim of fraud
- Many companies do not offer Japanese language support
Here, we will explain why overseas forex trading is often not recommended, based on financial regulations and realities
The reason I don't recommend overseas forex trading is because it's "not registered with the Financial Services Agency."
The primary reason I don't recommend overseas forex trading is that it's "not registered with the Financial Services Agency."
A common misconception among beginners is that overseas forex brokers themselves are "not registered with the Japanese Financial Services Agency."
In other words, this does not mean that all overseas forex brokers are unlicensed by any country's financial authorities , so please do not misunderstand.
Overseas forex brokers alsoWith the exception of a few unscrupulous operators, most are properly licensed and operated by the financial authorities of the country in which they are basedis
Is it illegal to use overseas forex trading?
Is there any problem with Japanese residents using overseas forex brokers? To put it simply, it is legal to use overseas forex brokers at your own risk
The Financial Services Agency has issued the following statement regarding the use of overseas forex brokers at one's own risk:
On the other hand, even unregistered foreign securities firms that do not have a base in Japan are permitted to conduct securities-related business activities from abroad on behalf of domestic parties, either without soliciting such activities or through an agent or intermediary by a financial instruments business operator (limited to Type I financial instruments business)
The Financial Services Agency's official website contains a section on supervisory evaluation criteria and procedures that states , "Even unregistered foreign securities firms that do not have a base in Japan are permitted to accept orders from Japanese residents and provide services."
In other words, legal to use overseas forex trading based on your own judgment .
For more details, please see the article
A Lawyer's Complete Explanation of the Illegality of Overseas Forex Trading
Overseas forex trading has received a warning from the Financial Services Agency
Many overseas forex brokers have been warned by Japan's Financial Services Agency (FSA) for "conducting financial instrument transactions without registration."
This warning is based on Japan's Financial Instruments and Exchange Act and regulations imposed by the Financial Services Agency.
Even if a company is located overseas, if it conducts financial instrument transactions as a business for the benefit of or with Japanese residents, it is required to register as a financial instrument business operator (registration under Japan's "Financial Instruments and Exchange Act"). Conducting financial instrument business in Japan without registration is prohibited. (Violators are subject to penalties.)
Source: Financial Services Agency - Beware of solicitations by unregistered overseas companies.
This warning is issued uniformly to overseas forex brokers that may be soliciting or conducting business targeting residents of Japan .
Overseas forex brokers that offer a Japanese version of their website are generally subject to warnings
This notice is issued uniformly to "overseas forex brokers that may be soliciting or marketing to residents of Japan," and does not necessarily mean that the overseas forex broker is a fraudulent company
Because trust protection is not mandatory
The second reason why overseas forex trading is not recommended is that "trust protection is not mandatory."
Trust protection refers to the system for managing the funds that we traders deposit with FX brokers.
Broadly speaking, there are two types of fund management systems used by FX brokers:
| item | Trust protection | Separate management |
|---|---|---|
| Fund management methods | We separate customer funds from our own funds and deposit them with a trust bank | Separate customer funds from company funds and deposit them in a bank |
| At the time of bankruptcy | There is a high probability that the full amount will be refunded through a trust bank | There is a high probability that you will not receive a refund |
| Main management | What a trust bank does | FX brokers |
Domestic FX brokers are required by the Japanese Financial Services Agency to provide trust protection
On the other hand, overseas forex brokers are often not required to provide trust protection, and segregated are the mainstream method for managing customer funds.
Unlike trust protection, segregated accounts do not guarantee refunds by a trust bank in the event of an FX broker's bankruptcy
Some people advise against overseas forex trading because of the high risk of not receiving refunds if the forex broker goes bankrupt
Because there is a risk of unfair withdrawal refusal
The risk of unfair withdrawal refusals is another reason why I don't recommend overseas forex trading
Indeed, overseas forex brokers are not registered with Japan's Financial Services Agency, which has strict regulations worldwide, so there are unscrupulous brokers that try to extort money from customers by unfairly refusing withdrawals.
I received an email from MIDORIfx rejecting my withdrawal.
— Buhihibuhi (@buhihibuhiman) June 3, 2025
I haven't violated any rules whatsoever.
I was being extra careful and cautious in all my trading because I knew other people were having their withdrawals rejected.
What's going on? pic.twitter.com/dhjYLXdOzL
for example,There are many cases on social media where benefits have been unilaterally revoked despite not violating the terms of service
To avoid withdrawal refusals from overseas forex brokers, it's important to trade in accordance with their terms and conditions
Of course, , you should choose an overseas forex broker that is licensed by the financial authorities of the country where it is based, minimizing the risk of unfair withdrawal refusals
Regarding withdrawal refusals, which is one of the reasons why we don't recommend overseas forex trading, we explain them in detail in Causes and Solutions for Withdrawal Refusals in Overseas Forex Trading
Overseas forex brokers have wider spreads than domestic forex brokers
Some people who prioritize narrow spreads say that "overseas forex trading has wider spreads than domestic forex trading, so I don't recommend it."
For overseas forex brokersThe reason why spreads tend to be wider overall is due to "differences in order placement methods used by overseas FX and domestic FX."is
| item | Domestic FX brokers | Overseas Forex Brokers |
|---|---|---|
| Main ordering methods | DD method | NDD method |
| Customer's business partners | OTC (over-the-counter) transactions where the company is the trading partner | It varies depending on the broker and account |
| spread | It tends to become narrow | It tends to spread |
| Execution power | It tends to go down | Tendency to be expensive |
In Japan, over-the-counter (OTC) trading, where the broker acts as the counterparty to the customer, is the mainstream method, and brokers have adopted a system that makes it easy for them to set narrow spreads .
On the other hand, employs the NDD (No Dealing Desk) method, where dealers do not manage customer orders, but instead process them through a trading system
In recent years, overseas forex brokers have been releasing a steady stream of accounts specializing in low spreads
Some brokers offer accounts that allow trading from as low as 0 pips, so please check the actual spreads in Overseas Forex Spread and Fee Comparison List
Because the taxes are higher than for domestic FX
Some people advise against overseas forex trading because it involves higher taxes compared to domestic forex trading
surely,Under the Japanese tax system, domestic FX trading tends to be more favorable, so those with higher incomes are more likely to face higher taxes on overseas FX tradingis
| item | Domestic FX | Overseas FX |
|---|---|---|
| income tax | Separate taxation upon declaration (flat rate of 15%) | Comprehensive taxation (maximum 45%) |
| Loss carryforward | 3 years possible | Not possible |
| Offsetting profits and losses | Possible with futures trading, etc | Only possible within the category of miscellaneous income |
| tax rate | Uniformly | Varies according to income (progressive taxation) |
The table above summarizes the differences in tax systems between overseas and domestic forex trading
The biggest difference is the "progressive tax" applied to income tax on overseas forex trading. The fact that the income tax rate increases with higher income is a reason why overseas forex trading is not recommended .
Certainly, for individual traders, choosing domestic FX is generally more advantageous if their annual profits are large, as it tends to result in lower income tax
Regarding taxes on overseas forex trading, including specific tax-saving methods, please refer to the article
[Tax Accountant Supervised] Complete Guide to Taxes on Overseas Forex Trading In fact, ways to save on taxes while utilizing favorable trading conditions even with overseas forex brokers, so please take a look.
Because high leverage carries the risk of large losses
Many people may associate overseas forex trading with high leverage and therefore danger
High-leverage trading is inherently risky, so it's best to avoid it unless you can incorporate it wisely into your trading strategy
HoweverSaying "I don't recommend overseas forex trading because the leverage is too high" shows a lack of understanding of the fundamental strengths of forex trading
Because the ability to leverage and earn money starting with a small amount is one of the strengths of FX.
| item | Maximum leverage | Effective leverage |
|---|---|---|
| meaning | Maximum usable leverage ratio | The leverage ratio actually used in trading |
| Features | The higher the value, the more advantageous the trade becomes, and the less capital (margin) is required for the minimum trade | The higher the risk, the larger the profit or loss will be, in proportion to the scale of the high-risk trade |
Leverage is involvedHigh risk arises when engaging in trades with high effective leverageis
In other words, the idea that trading is high-risk is when you are making trades that are too large relative to your own capital
On the other hand, maximum leverage is the maximum multiplier that can be used in an account, and by keeping the trading size low, you can leave some funds as reserves and thus reduce risk .
It's correct to say that leverage is high-risk when used incorrectly and used for reckless trading
If high leverage equals high risk, then the fact that even in domestic FX trading, the leverage for corporate accounts, which should be risk-reducing, is higher than that for individual accounts, seems contradictory
Because there is a risk of becoming a victim of fraud or illegal activities
Among the reasons why I don't recommend overseas forex trading, one that you should definitely keep in mind is the risk of becoming a victim of fraud or illegal activities
Some overseas forex brokers are not regulated by any financial authorities and are frequently in the news for illegal activities such as manipulating exchange rates or colluding with fraudulent companies to solicit investment funds
#GemForex
— Yamachan @Prop Trader (@yama_yama1985) May 6, 2020
This broker has attractive bonuses, but looking at this chart, I'm scared to use it as my main broker ... pic.twitter.com/37N6PjQN4j
This isn't limited to overseas forex trading, butBecause overseas forex trading is not subject to the strict licensing regulations of Japan's Financial Services Agency, it is true that the probability of encountering fraud and illegal activities is higher
When using overseas forex brokers, it's important to understand the points for determining their safety, as outlined in our Overseas Forex Broker Safety Ranking
I myself have been using overseas forex brokers for many years, but because I understand the key points for choosing a broker, I have never experienced unfair withdrawal refusals or been a victim of fraud in the past.
Many companies do not offer Japanese language support
One reason why I don't recommend overseas forex trading is that many brokers don't offer Japanese language support
moreover,In many cases, it is not possible for Japanese residents to open an account with an overseas forex broker, depending on the country where the broker is basedis
On the other hand, some overseas forex brokers offer multilingual support, and some even have Japanese-speaking staff or Japanese-speaking support. Therefore, beginners should choose an overseas forex broker that offers Japanese language support.
Advantages of using overseas forex trading | Why are there so many Japanese traders?
While some advise against overseas forex trading, many traders, including myself, find it advantageous and choose to invest in it
- Adopts a highly transparent NDD (Non-Dealing Desk) method
- You can make a lot of money with a small amount of capital
- Zero-cut: No losses exceeding the account balance
- You can use your bonus to raise funds
- Trading is available on MT4 and MT5
- Earn money with cashback
Here, we will explain why many Japanese traders use overseas forex brokers, based on the six advantages listed above that are common to many overseas forex brokers
Adopts a highly transparent NDD (Non-Dealing Desk) method
Some argue that overseas forex brokers are more reliable than domestic forex brokers because of the order placement methods they use
This is because overseas forex brokers employ the NDD (No Dealing Desk) system, which processes orders mechanically without human manipulation
NDD stands for "Non-Dealing Desk," and it is an order placement method used by FX brokers where the system processes customer transactions.
In domestic FX trading, the DD (Dealing Desk) system is the mainstream, where customer trades are processed at the discretion of the dealer (a human).
Therefore, compared to the DD method, which involves human intervention, the NDD method is more transparent because the system processes everything automatically.
While some advise against using the NDD (No Dealing Desk) method with overseas forex brokers due to wider spreads, others argue that overseas forex brokers are better because of their superior execution speed and transparency
This article, " List of Overseas Forex Brokers Using the NDD Method ," compiles a list of overseas forex brokers that employ the NDD method.
You can make a lot of money with a small amount of capital
When it comes to investing and speculation, having more capital makes it easier to earn money
If you're looking to make money with a small amount of capital, overseas forex trading is a more realistic option than domestic forex trading
The reason why overseas forex trading is easy to make money with is that you can double or triple your capital by making just a few trades with high leverage
To put it mildly, I made a fortune (・ω・｀) My
— Toto@ZeroCutGod (Chairman of the Overseas FX High Leverage Association and Toto Familia (@toto_GjOblh2TE6) April 15, 2021
100,000 yen from this morning has turned into 1,700,000 yen https://t.co/zFj4jEpriQ pic.twitter.com/NNGbaVuMDP
For example, if you want to increase your initial capital of 100,000 yen to 1,000,000 yen, trading with low lot sizes to minimize risk will require a large volume of trades while maintaining a high win rate, even if you want to increase your capital gradually
On the other hand, by taking some risks and utilizing leverage, it is possible to turn 10,000 yen into 1,000,000 yen in just a few trades
With low-leverage, small-capital trading, the profit per trade is inherently small, making it unrealistic to expect a high win rate and high trading volume just to avoid losing capital.
, be sure to check out these tips and recommended methods for high-leverage trading
Zero-cut: No losses exceeding the account balance
If you choose your broker carefully, some believe that overseas forex trading is safer than domestic forex trading
This is because overseas forex brokers employ a zero-cut system, which prevents losses exceeding the account balance
Zero-cut is a system where, if losses exceed the account balance, resulting in a negative balance, the FX broker will cover the shortfall in losses.
In domestic FX trading, the provision of zero-cut protection is prohibited by the following Financial Instruments and Exchange Act
Article 39 of the Financial Instruments and Exchange Act:
Financial instruments business operators, etc. shall not engage in any of the following acts:
(ii) Offering or promising to a customer or a person designated by the customer, or causing a third party to offer or promise to offer to compensate the customer for all or part of the customer's losses incurred with respect to the securities, etc., or to provide the customer or a third party with financial benefits in addition to the customer's profits incurred with respect to such securities, etc., with respect to securities trading transactions, etc.Source: e-Gov Law Search "Financial Instruments and Exchange Act, Article 39"
Regarding losses exceeding the account balance, domestic FX is regulated to protect the FX broker, while overseas FX is regulated to protect the customer.
Due to these regulations, many traders believe that overseas forex trading is safer
For a detailed explanation of how overseas forex cashback works, please see What is overseas forex cashback?
You can use your bonus to raise funds
One of the biggest attractions of overseas forex trading is that you can start trading with a small amount of your own capital by utilizing bonuses
Depending on whether you open an account or make a deposit, you may be able to raise trading funds ranging from 10,000 yen to 1,000,000 yen. Bonuses from overseas forex brokers are provided as credits that can be used as trading funds, so you can trade with advantageous funds and withdraw your profits in cash.
Domestic FX bonuses are generally in the form of cashback or rewards for high trading volumes, making them difficult for beginners to access
For the latest overseas forex bonus information, please check our latest overseas forex bonus campaign ranking
Trading is available on MT4 and MT5
One of the advantages of overseas forex trading is that you can use trading tools that are used all over the world, such as MT4 and MT5
MT4 and MT5 are popular among traders because they are intuitive and easy to use, thanks to their rich chart analysis features
Furthermore, custom indicators and the settings of indicators you are using can often be used directly with other brokers' MT4 or MT5 platforms, which is an advantage as it reduces the hassle when switching platforms
Earn money with cashback
One of the major attractions of overseas forex trading is the ability to earn rewards for each trade using cashback websites
If you open an account through a cashback site such as MoneyCharger, a portion of the spread will be returned to you in cash with each trade
This system works by giving back to users from referral rewards generated through partnership agreements with brokers, meaning the more you trade, the greater the cashback amount
The ability to steadily earn money while effectively keeping costs down is an advantage that domestic FX trading doesn't offer
For a detailed explanation of how overseas forex cashback works, please see What is overseas forex cashback?
Disadvantages of using overseas forex trading
This section explains the disadvantages of using overseas forex trading
- In case of trouble, it is basically your own responsibility
- There are also unscrupulous overseas forex brokers
While overseas forex trading offers advantages such as high leverage, bonuses, and excellent trading tools that make it easier to earn money with small amounts, there are also disadvantages to using overseas forex brokers
In case of trouble, it is basically your own responsibility
Japanese residents are permitted to use overseas forex trading at their own discretion
While overseas forex trading offers the advantage of access to a trading environment with excellent trading conditions that meet global standards, it also has the disadvantage of leaving you solely responsible for any problems that may arise .
Of course, if you become a victim of fraud, you can consult a consumer center or a lawyer, but keep in mind that you will generally need to take action yourself to resolve the problem rather than relying on the government
There are also unscrupulous overseas forex brokers
Unfortunately, it is a fact that unscrupulous overseas forex brokers exist. They may unfairly refuse withdrawals, and in the worst-case scenario, you may not even be able to withdraw your principal
Not long ago, Zaix collapsed and
— Yamato (@IV_Y__) July 3, 2023
Gemforex's withdrawal refusal was a hot topic,
and now it
seems AssassinFX's copy trading has collapsed
. You should realize that in FX, the battle begins
with choosing the right brokerage
, it seems like XM is the only choice because of its reliable and strong withdrawal system
Since "overseas forex" essentially refers to "all forex brokers located outside of Japan," it's important to find a broker that offers high security and superior services among the many available options
Therefore, this article will also discuss how to identify safe overseas forex brokers later on
How to identify brokers to avoid when trading overseas forex
You can identify suspicious overseas forex brokers by keeping the following points in mind
- They do not have a financial license
- Office does not exist / Location unknown
- Companies that have been established for a short period of time
- There are no reviews from companies that have made withdrawals of over 1 million yen
- Companies that do not offer Japanese language support
- Businesses with poor ratings on social media and review sites
Brokers that we do not recommend for overseas forex trading are those that fall into these categories
Here, we will explain in detail how to identify suspicious overseas forex brokers
They do not have a financial license
Even if an overseas forex broker is not registered with Japan's Financial Services Agency, it is regulated by the local financial authorities where the broker is based
You can determine whether an overseas forex broker is properly licensed in the local area by checking their "financial license" status
The following financial licenses are available to Japanese residents for opening accounts:
- Seychelles Financial Services Authority (FSA Seychelles)
- Mauritius Financial Services Commission (FSC Mauritius)
- British Virgin Islands Financial Services Commission (FSC)
- Belize International Financial Services Commission (IFSC Belize)
- Vanuatu Financial Services Commission (VFSC Vanuatu)
In addition to the financial licenses held directly by the company, you should also check the financial licenses held by its group companies .
For example, even if they cannot accept Japanese residents, financial institutions that have obtained financial licenses with strict auditing standards, such as those from the Cyprus Securities and Exchange Commission or the UK Financial Conduct Authority, can be highly regarded for their safety
Office does not exist / Location unknown
You should absolutely avoid using overseas forex brokers that do not have an office or whose location is unknown
The Financial Services Agency announced a list of unregistered cryptocurrency exchange operators.
— Z千 (@c79jTrAxRBal7iA) January 20, 2025
When I went to check them out, I found that many had unknown representatives and addresses.
The same goes for overseas forex trading; there are
. Be careful, as they could suddenly disappear in a few years or you might be unable to withdraw your funds. pic.twitter.com/W28e9ULK1V
If you have obtained a financial license, you can check your registered address on the official website of the authorities
Therefore, overseas forex brokers that do not disclose their location are highly likely to be suspicious companies that do not have a financial license
Companies that have been established for a short period of time
It is generally best to avoid using overseas forex brokers that have been established for a short period of time
Overseas forex brokers with a long track record of operation have corporate stability and, most importantly, have protected customers during numerous market shocks
For example, even a seemingly well-managed emerging broker could potentially incur massive losses during a historical market crash, and even zero-cut protection might not cover those losses .
There are no reviews from companies that have made withdrawals of over 1 million yen
Customer reviews regarding large withdrawals are an important factor in identifying overseas forex brokers that are operating soundly
If there are no issues whatsoever, then overseas forex brokers that cannot handle large withdrawals likely have the following problems:
- We don't have enough funds to operate properly
- The infrastructure for withdrawals is not yet in place
- This is a fraudulent company, and no actual transactions are taking place
In the case of fraudulent companies, they may be operating with the sole purpose of collecting funds from customers for their own profit, and therefore, no actual profits may have been generated from the transactions, making withdrawals impossible
Therefore, when using an overseas forex broker, choose one that has positive reviews on social media and other platforms regarding high-value withdrawals.
Companies that do not offer Japanese language support
Avoid overseas forex brokers that do not offer Japanese language support
that do not offer support in Japanese, you may encounter problems such as "I can't proceed with the withdrawal process because the necessary documents are in English" or "I want to check the trading rules, but they are in specialized English and I can't understand them .
Therefore, we especially recommend that beginners in overseas forex trading choose an overseas forex broker that offers Japanese language support
Businesses with poor ratings on social media and review sites
Avoid using overseas forex brokers that have extremely poor ratings on social media and review sites
Specifically, we do not recommend overseas forex brokers that have a bad reputation for unfair withdrawal refusals, abnormal exchange rates, and frequent order rejections (requotes) that disrupt trading
Of course, with large, well-known overseas forex brokers, you may come across a fair number of negative rumors and reviews that are not based on fact
Therefore, it would be helpful to check whether the reason for the withdrawal refusal is mentioned in customer reviews, or whether there were any problems with the broker's response, such as how they handled anomaly rates
You can check reviews of each FX broker in this ranking of popular and highly-rated overseas FX brokers
Recommended overseas forex brokers that are safe and reliable
Here, we introduce three carefully selected overseas forex brokers that are highly safe and reliable
who's not confident in distinguishing between fraudulent and reputable brokers and are considering using overseas forex trading, start by choosing from these three companies that you can use with peace of mind.
Exness | Over 1 million active users
| item | Content |
|---|---|
| Operating company | Exness (SC) Ltd |
| license | Seychelles Financial Services Authority (Registration Number: SD025) |
| Establishment | 2008 |
| Ordering method | NDD method (market execution/immediate execution) |
| Fund management system | Separate management |
| Compensation system | The Financial Commission (up to 20,000 euros) |
| Zero Cut System | can be |
| Maximum leverage | Unlimited |
Exness is a well-established broker with over 10 years of operating experience
With over 1 million active users, it's clear that it's a favorite among many traders
The operating company available to residents of Japan is licensed as a securities broker by the Seychelles Financial Services Authority
Furthermore, Exness is a member of the Financial Commission, which resolves disputes between customers and brokers. Even if Exness unfairly refuses to withdraw funds, you are guaranteed a fair judgment and compensation of up to 20,000 euros.
Exness, which offers unlimited leverage, combines the high leverage typical of overseas forex brokers with the reliability that allows you to focus on trading with peace of mind
Exness, which holds multiple financial licenses and offers industry-leading unlimited leverage, is explained in detail in A Thorough Explanation of Exness's Reputation and Customer Reviews
HFM | A leading broker with numerous awards
| item | Content |
|---|---|
| Operating company | HF Markets (SV) Ltd |
| Financial License | Saint Vincent and the Grenadines International Business Company (Registration Number: 22747 IBC 2015) |
| Establishment | 2010 |
| Ordering method | NDD method (STP/ECN) |
| Fund management system | Separate management |
| Guarantee system | Liability insurance (up to 5 million euros) |
| Zero Cut System | can be |
| Maximum leverage | 2,000 times |
HFM (HFM Markets) is a leading overseas forex broker with numerous awards as an excellent broker
HFM's awards include "Most Trusted Broker in Asia" and "Best Trading Account in the World," demonstrating that it is a reliable and reputable overseas forex broker.
Furthermore, the HFM Group as a whole holds six financial licenses, including the UK's Financial Conduct Authority, which is one of the most difficult financial licenses to obtain in the world
HFM's official website also clearly states that it complies with the regulations imposed by these financial licenses
HFM is a highly reliable overseas forex broker that meets world-class safety standards
HFM, a highly acclaimed broker with numerous awards, is featured in A Thorough Explanation of HFM's Reputation and Customer Reviews
FXGT | Covered by €1 million in liability insurance
| item | Content |
|---|---|
| Operating company | GT Global Ltd |
| Financial License | Seychelles Financial Services Authority (Registration Number: SD019) |
| Establishment | 2019 |
| Ordering method | NDD method (DMA) |
| Fund management system | Separate management |
| Guarantee system | Liability insurance (up to 1 million euros) |
| Zero Cut System | can be |
| Maximum leverage | 1,000x leverage * Optimus account: 5,000x leverage |
FXGT is known as an overseas forex broker that offers the most favorable conditions for leveraged cryptocurrency trading
Speaking of cryptocurrencies, in recent years we've been hearing more and more about hacking incidents and fraudulent operators
However , FXGT holds a financial license in the Republic of Seychelles and operates with a high level of security, never having been hacked in the past .
FXGT not only holds a financial license, but also has liability insurance for brokers
In the unlikely event of an emergency, you can rest assured knowing that insurance will provide coverage of up to 1 million euros (approximately 160 million yen)
Details about FXGT, which boasts a high level of security and guarantee systems, are explained in A Thorough Explanation of FXGT's Reputation and Customer Reviews
Frequently Asked Questions about Overseas Forex
Why is it often said that "overseas forex trading is not recommended"?
Most overseas forex brokers are not registered with Japan's Financial Services Agency, which means there's a risk of being held responsible for any problems that may arise, such as withdrawal refusals or poor customer support. However, not all brokers are fraudulent; there are also brokers that hold reliable financial licenses
Is it true that withdrawals are sometimes refused by overseas forex brokers?
There have been reports of problems such as withdrawal refusals and account freezes with some unscrupulous overseas forex brokers. In particular, if you open an account with an overseas forex broker that does not have a financial license, you may not be able to withdraw even legitimate profits, so be sure to choose a broker that has obtained a financial license
What are the disadvantages of overseas forex trading?
The following are some of the disadvantages of overseas forex trading:
- Some companies are not registered with Japan's Financial Services Agency and therefore have low security
- Trust protection is generally not provided
- Some companies unfairly refuse to allow withdrawals
- The overall spread is wide
- Progressive taxation means that the higher your total income from other sources, the higher your tax rate
- High leverage can lead to significant losses if self-management is poor
- Many do not support Japanese
- The risk of being a victim of fraud is higher than with domestic FX
Why is overseas forex trading considered risky?
The main reason why overseas forex trading is considered risky is that it is not registered with Japan's Financial Services Agency and that there are unscrupulous brokers. However, since "overseas forex" refers to all forex brokers outside of Japan, many of them have obtained financial licenses in other countries and operate soundly
What is a zero-cut in overseas forex trading?
In overseas forex trading, zero-cut is a system where, if losses exceed the account balance due to sudden market fluctuations, the forex broker compensates for the negative balance. In the case of domestic forex brokers, compensation for customer losses is regulated, so the customer has to pay any negative balance as a margin call
Summary of reasons why overseas forex trading is not recommended
Are you missing out on opportunities by blindly accepting advice like, "I don't recommend overseas forex trading"? Certainly, there are risks
That being said, it's also true that there are overseas forex brokers that make it possible for "anyone to become a trader." They offer high leverage that allows you to start with a small amount of capital, zero-cut protection to limit losses, and a wealth of bonuses and trading tools.
With the right knowledge and careful selection of service providers, you too can gain the power to compete in the market, even without a large amount of capital
I hope this article will be the first step in that direction
The biggest reason why overseas FX brokers are often discouraged is that they operate without registration with the Japanese Financial Services Agency
some clients
even ask us financial planners, "Is it okay to recommend unregistered brokers?" However, it's also true that overseas financial products, not just FX, often offer more attractive options compared to Japanese financial products
. There is a view that using overseas FX based on one's own judgment is legal, so
if you find a broker that interests you, it's definitely worth trying!
While it's said that overseas FX has risks such as tax issues and the possibility of being scammed, trading FX in Japan
doesn't completely eliminate risks either. Check
