A complete guide to all the fees required for overseas forex trading! We'll explain how to reduce various fees

Overseas Forex Spread and Commission Comparison List | Introducing Zero Spread Accounts and Brokers with Narrow Spreads

When choosing an overseas forex broker, narrow spreads are a crucial factor that directly impacts not only trading costs but also whether you can enter and exit trades at favorable prices. Spread widths vary significantly depending on the broker and account type, and trading conditions can differ greatly even for the same currency pair. In this article, we measure the spreads of major currency pairs and thoroughly compare multiple overseas forex brokers. Furthermore, we explain recommended brokers with low spreads and how to reduce trading costs by utilizing cashback programs. By reading this article, you will find overseas forex brokers that offer low actual costs and enable efficient trading. Based on the results of a survey of over 20,000 users, the MoneyChager editorial team has analyzed the safety and trading environment of overseas forex brokers and can introduce truly recommended overseas forex brokers with narrow spreads, so please look forward to it. We have also considered safety by referring to the Financial Services Agency and the Financial Futures Trading Act. It goes without saying that the difference in savings becomes more significant as the number of trades increases when comparing accounts that offer cashback for each trade with accounts that do not. If you want to trade profitably with overseas forex, it is recommended that you make full use of cashback. If you prioritize bonuses over spreads when choosing an overseas FX broker, please refer to the "Overseas FX Account Opening Bonus/Deposit Bonus Comparison Ranking." What are Overseas FX Spreads? What exactly are "spreads" in overseas FX? In fact, a correct understanding of spreads is essential for trading at favorable prices. Here, we will explain specifically what spreads are, important points in actual trading, and trends among brokers. What are Spreads? A spread refers to the difference between the buying price (Ask) and the selling price (Bid). Spread Buy price: The price when entering a buy order (long position) Sell price: The price when entering a sell order (short position) This spread is almost always fluctuating, and how wide it is depends on the trading conditions of the FX broker you are using and the market conditions. FX brokers secure their own profits by adding a markup to the spreads of their partner financial institutions, or by securing their own revenue from trading fees. The narrower the spread, the easier it is to trade at a favorable price When choosing an overseas FX broker, traders prioritize the narrowness of the spread. This is because the narrower the spread, the more favorable the price you can trade at. The market always moves with the buying price higher than the selling price. Advantages of low spreads Direction of trade Price when entering a trade Price when closing a trade Impact of the spread New buy (long position) Buy price (Ask) Sell price (Bid) The narrower the spread, the lower the buy price and the higher the selling price New sell (short position) Sell price (Bid) Buy price (Ask) The narrower the spread, the higher the selling price and the lower the buy price Advantages of low spreads For example, when you take a position (when you take a dollar if you buy USD/JPY), the spread is an unrealized loss. However, the narrower the spread, the smaller that unrealized loss becomes. Naturally, a narrower spread means you will make a profit faster, so "narrow spreads = favorable rates" are available for trading. Differences between brokers with wide and narrow spreads There is a significant difference between brokers with wide and narrow spreads among overseas FX brokers. The spread is a key factor in choosing a broker. However, brokers with wide spreads have other advantages. Item Wide brokers Narrow brokers Maximum leverage High Low Bonus campaigns Many Few Spread and Broker Trends Brokers with wide spreads tend to be more proactive in offering bonus campaigns and higher maximum leverage because they can secure larger profits from spreads. On the other hand, brokers with narrow spreads are less proactive in offering bonuses because they earn less from spreads. Differences in Spreads Between Overseas FX and Domestic FX There are differences between overseas FX and domestic FX, including the mechanisms for presenting spreads. Spread Mechanism Account Type and Execution Method Spread Units You often hear comments like "Overseas FX has wider spreads than domestic FX," but you can't actually compare the spreads of the two without knowing the differences between overseas FX and domestic FX. Spread Mechanism First of all, there is a major difference between the mechanisms of overseas FX and domestic FX: "variable spreads" and "principally fixed spreads." Item Variable Spreads Fixed Spreads Characteristics Spreads are always fluctuating The basic principle is that a predetermined spread is offered High volatility markets Spreads widen Spreads widen Low volatility markets Spreads narrow Fixed low spreads are common among overseas FX brokers Common among domestic FX brokers Differences in spread mechanisms Domestic FX often offers very narrow spreads with fixed spreads in principle. One reason why domestic FX brokers can offer fixed spreads in a market where prices are constantly fluctuating is that over-the-counter (OTC) trading is the mainstream in domestic FX. Mechanism of over-the-counter (OTC) trading In OTC trading, the FX broker settles customer orders themselves, making it easier for the FX broker to set spreads. The adoption of this OTC trading is one of the factors that allows domestic FX to offer low spreads with fixed spreads in principle. Account types and execution methods Overseas FX is characterized by different trading conditions depending on the account type, even for the same account. Depending on the account type, there are no spread markups by the broker, and you can trade with very narrow spreads. On the other hand, domestic FX brokers do not have account type settings, and only one account can be used per account. Information The mechanism and characteristics of account types with narrow spreads in overseas FX are explained in "Differences between STP accounts and ECN accounts". Spread units The spread units for "cross yen currency pairs" that include the Japanese yen differ between overseas FX and domestic FX. In domestic FX, it is common to express the spread of cross yen in sen (Japanese yen). Price difference Overseas FX pips Domestic FX sen 1 yen 100 pips 100 sen 0.1 yen 10 pips 10 sen 0.01 yen 1 pip 1 sen Cross yen spread notation Pips is a unit that indicates the price difference. In domestic FX as well, currency pairs other than cross yen are expressed in pips. Warning However, it is important to note that the definition of 1 pip varies depending on the price notation of each broker. If the minimum price is small and displayed down to "0.001 yen", then 0.001 yen is 1 pip. Key Points When Comparing Spreads in Overseas Forex Trading There are two key points to consider when comparing spreads in overseas forex trading: Differences between STP and ECN accounts Trading fees Unlike domestic forex trading, overseas forex spreads vary depending on the account type. Differences between STP and ECN Accounts Overseas forex trading generally offers two main account types: STP and ECN accounts. These use different execution methods. Comparison Item STP Account ECN Account Execution Method NDD STP Method NDD…

Overseas Forex Spread and Commission Comparison List | Introducing Zero Spread Accounts and Brokers with Narrow Spreads

When choosing an overseas forex broker, narrow spreads are a crucial factor that directly impacts not only trading costs but also whether you can enter and exit trades at favorable prices. Spread widths vary significantly depending on the broker and account type, and trading conditions can differ greatly even for the same currency pair. In this article, we measure the spreads of major currency pairs and thoroughly compare multiple overseas forex brokers. Furthermore, we explain recommended brokers with low spreads and how to reduce trading costs by utilizing cashback programs. By reading this article, you will find overseas forex brokers that offer low actual costs and enable efficient trading. Based on the results of a survey of over 20,000 users, the MoneyChager editorial team has analyzed the safety and trading environment of overseas forex brokers and can introduce truly recommended overseas forex brokers with narrow spreads, so please look forward to it. We have also considered safety by referring to the Financial Services Agency and the Financial Futures Trading Act. It goes without saying that the difference in savings becomes more significant as the number of trades increases when comparing accounts that offer cashback for each trade with accounts that do not. If you want to trade profitably with overseas forex, it is recommended that you make full use of cashback. If you prioritize bonuses over spreads when choosing an overseas FX broker, please refer to the "Overseas FX Account Opening Bonus/Deposit Bonus Comparison Ranking." What are Overseas FX Spreads? What exactly are "spreads" in overseas FX? In fact, a correct understanding of spreads is essential for trading at favorable prices. Here, we will explain specifically what spreads are, important points in actual trading, and trends among brokers. What are Spreads? A spread refers to the difference between the buying price (Ask) and the selling price (Bid). Spread Buy price: The price when entering a buy order (long position) Sell price: The price when entering a sell order (short position) This spread is almost always fluctuating, and how wide it is depends on the trading conditions of the FX broker you are using and the market conditions. FX brokers secure their own profits by adding a markup to the spreads of their partner financial institutions, or by securing their own revenue from trading fees. The narrower the spread, the easier it is to trade at a favorable price When choosing an overseas FX broker, traders prioritize the narrowness of the spread. This is because the narrower the spread, the more favorable the price you can trade at. The market always moves with the buying price higher than the selling price. Advantages of low spreads Direction of trade Price when entering a trade Price when closing a trade Impact of the spread New buy (long position) Buy price (Ask) Sell price (Bid) The narrower the spread, the lower the buy price and the higher the selling price New sell (short position) Sell price (Bid) Buy price (Ask) The narrower the spread, the higher the selling price and the lower the buy price Advantages of low spreads For example, when you take a position (when you take a dollar if you buy USD/JPY), the spread is an unrealized loss. However, the narrower the spread, the smaller that unrealized loss becomes. Naturally, a narrower spread means you will make a profit faster, so "narrow spreads = favorable rates" are available for trading. Differences between brokers with wide and narrow spreads There is a significant difference between brokers with wide and narrow spreads among overseas FX brokers. The spread is a key factor in choosing a broker. However, brokers with wide spreads have other advantages. Item Wide brokers Narrow brokers Maximum leverage High Low Bonus campaigns Many Few Spread and Broker Trends Brokers with wide spreads tend to be more proactive in offering bonus campaigns and higher maximum leverage because they can secure larger profits from spreads. On the other hand, brokers with narrow spreads are less proactive in offering bonuses because they earn less from spreads. Differences in Spreads Between Overseas FX and Domestic FX There are differences between overseas FX and domestic FX, including the mechanisms for presenting spreads. Spread Mechanism Account Type and Execution Method Spread Units You often hear comments like "Overseas FX has wider spreads than domestic FX," but you can't actually compare the spreads of the two without knowing the differences between overseas FX and domestic FX. Spread Mechanism First of all, there is a major difference between the mechanisms of overseas FX and domestic FX: "variable spreads" and "principally fixed spreads." Item Variable Spreads Fixed Spreads Characteristics Spreads are always fluctuating The basic principle is that a predetermined spread is offered High volatility markets Spreads widen Spreads widen Low volatility markets Spreads narrow Fixed low spreads are common among overseas FX brokers Common among domestic FX brokers Differences in spread mechanisms Domestic FX often offers very narrow spreads with fixed spreads in principle. One reason why domestic FX brokers can offer fixed spreads in a market where prices are constantly fluctuating is that over-the-counter (OTC) trading is the mainstream in domestic FX. Mechanism of over-the-counter (OTC) trading In OTC trading, the FX broker settles customer orders themselves, making it easier for the FX broker to set spreads. The adoption of this OTC trading is one of the factors that allows domestic FX to offer low spreads with fixed spreads in principle. Account types and execution methods Overseas FX is characterized by different trading conditions depending on the account type, even for the same account. Depending on the account type, there are no spread markups by the broker, and you can trade with very narrow spreads. On the other hand, domestic FX brokers do not have account type settings, and only one account can be used per account. Information The mechanism and characteristics of account types with narrow spreads in overseas FX are explained in "Differences between STP accounts and ECN accounts". Spread units The spread units for "cross yen currency pairs" that include the Japanese yen differ between overseas FX and domestic FX. In domestic FX, it is common to express the spread of cross yen in sen (Japanese yen). Price difference Overseas FX pips Domestic FX sen 1 yen 100 pips 100 sen 0.1 yen 10 pips 10 sen 0.01 yen 1 pip 1 sen Cross yen spread notation Pips is a unit that indicates the price difference. In domestic FX as well, currency pairs other than cross yen are expressed in pips. Warning However, it is important to note that the definition of 1 pip varies depending on the price notation of each broker. If the minimum price is small and displayed down to "0.001 yen", then 0.001 yen is 1 pip. Key Points When Comparing Spreads in Overseas Forex Trading There are two key points to consider when comparing spreads in overseas forex trading: Differences between STP and ECN accounts Trading fees Unlike domestic forex trading, overseas forex spreads vary depending on the account type. Differences between STP and ECN Accounts Overseas forex trading generally offers two main account types: STP and ECN accounts. These use different execution methods. Comparison Item STP Account ECN Account Execution Method NDD STP Method NDD…

A complete guide to all the fees required for overseas forex trading! We'll explain how to reduce various fees

What kind of fees are there in overseas forex trading? I want to know how much it will cost before trading. Many people are probably curious about the trading fees involved in overseas forex trading. In forex trading, minimizing trading fees from trading to withdrawal is key to increasing profits. This article will introduce: Trading fees in overseas forex trading Points to reduce unnecessary trading fees in overseas forex trading Recommended overseas forex brokers with narrow spreads By reading this article, even beginners with no experience in overseas forex trading will be able to fully understand overseas forex trading fees. Also, we recommend that overseas forex beginners read this complete guide for overseas forex trading beginners. Recommended overseas forex brokers with narrow spreads are explained in this article ↓ There are mainly 6 types of trading fees in overseas forex Here, we will explain the trading fees incurred in overseas forex trading. The trading fees required in overseas forex trading are: Spread (actual cost) Deposit and withdrawal fees Account maintenance fees Trading fees Fund transfer fees Account opening fees These are the 6 types. First, let's look at the "spread," which is especially important among the trading fees. ① Spread (Actual Cost) The first thing to check when it comes to overseas FX trading fees is the "spread." The spread refers to the difference between the buying price and the selling price. In overseas FX, this spread is incurred as a trading fee every time you make a trade. When using overseas FX, the key is to choose a broker with a narrow spread. The size of the spread varies depending on the FX broker and currency pair. Therefore, when using an overseas FX broker, the key to efficient trading is to choose a broker with the narrowest possible spread. The spread changes every second, widening and narrowing. For example, in the early morning in Japan time, the spread tends to widen. One reason why the spread fluctuates is the liquidity of trading volume. Currencies with low trading volume and low liquidity tend to have unstable prices, so the spread is said to widen easily. Although there are times when the spread tends to widen depending on the time of day and season, you should still choose a broker with a narrow spread. Comparison of Spreads of 5 Major Companies Here, we have compared the spreads of general accounts of 5 major overseas FX brokers. Spread USD/JPY AXIORY 1.41 pips Tradeview 2.15 pips XM Trading 1.6 pips GEMFOREX 1.7 pips BigBoss 1.6 pips *Spreads fluctuate, so please consider these as reference values. As you can see from this table, spreads differ depending on the broker. Also, even with the same broker, spreads may differ depending on the account type, so be sure to check before opening an account. ② Deposit and Withdrawal Fees The second fee required for overseas FX is "deposit and withdrawal fees". Overseas FX has many deposit and withdrawal methods, so the fees can vary greatly depending on the method. Also, overseas FX has a rule that "the deposit method and withdrawal method must be the same", so choose your deposit method carefully. ③ Account Maintenance Fee An account maintenance fee is a fee that is incurred when an account is not used for a long period of time. For example, with "GEMFOREX", if you leave your account inactive for more than 90 days, an account maintenance fee of 1,500 yen will be charged every month. In the case of "XM Trading," if there are no deposits, withdrawals, or trades for 90 days, $5 will be deducted from the account balance each month, and if the account balance becomes 0 yen and 90 days pass, the account will be frozen. As you can see, the rules for account maintenance fees differ depending on the FX broker, so be sure to check before opening an account. ④ Trading fees Overseas FX generally uses the NDD method, which is a method of trading directly with the market without going through an FX broker. In the NDD method, traders pay two things when trading: a spread and a trading fee. In overseas FX, generally, trading fees are free in the basic account, and in ECN accounts which offer low spreads, a trading fee is almost always required for each lot. The difference between spread and fee... The spread is the actual cost incurred each time a trade is made, so traders can basically think of "spread = fee." However, since the spread is reflected in the profit or loss of the trade, it is a little different from the general image of a "fee." For example, if the USD/JPY spread is 0.1 sen and you place a buy order for 1,000 units, you will start the trade with a loss of -1 yen (0.001 yen x 1,000 units). If the rate rises to 1 sen, you will gain 10 yen (0.01 x 1,000 units), resulting in a profit of 9 yen (-1 yen + 10 yen). ..

Overseas forex brokers that accept credit cards! We'll also introduce actual deposit methods and points to note

"I want to minimize deposit fees to overseas forex brokers." "Do they accept credit card deposits?" "I want to start trading as soon as I open an account." When starting overseas forex trading, you may have questions about deposit and withdrawal methods, fees, and points to note. Many overseas forex brokers accept credit card deposits. The advantage is that you can start trading immediately after a simple deposit procedure, as the deposited amount will be reflected in your account. In this article, we will introduce overseas forex brokers that accept credit cards and explain in detail the actual deposit methods and points to note. We also answer frequently asked questions about overseas forex and credit cards, so please read to the end. Do overseas forex brokers accept credit card deposits? Basic knowledge you should know Many overseas forex brokers accept credit card deposits. Let's take a look at overseas forex brokers that accept credit card deposits and the basic knowledge you should know. Many advantages! Overseas forex brokers accept credit card deposits While domestic forex brokers generally accept deposits via bank transfer, many overseas forex brokers accept deposits via credit card. The deposit procedure is simple, requiring only registration of credit card information on the overseas forex broker's website and processing the deposit, and the deposit amount is reflected quickly. Other deposit methods besides credit cards and their characteristics mainly consist of the following three: International money transfer...transfer fees are incurred, and it takes time for the deposit to be reflected. Electronic wallet...processing takes time, and transfer fees are required. Cryptocurrency...transfer fees are required. Compared to credit cards, the processing and deposit process takes longer, and transfer and remittance fees are incurred. List of supported brokers and brands The following table summarizes the major overseas FX brokers that accept credit card deposits and the card brands they support. Credit Cards Accepted by Overseas Forex Brokers iFOREX VISA, Mastercard, Diners XM Trading VISA, JCB GEMFOREX VISA, Mastercard, JCB Axiory VISA, Mastercard, JCB, UnionPay TitanFX VISA, Mastercard, AMEX (USD only), JCB Tradeview VISA, Mastercard, JCB Exness VISA, VISA Electron, Mastercard, Maestro Master, JCB HF Markets VISA, JCB ThreeTrader VISA, Mastercard, American Express, JCB FxPro VISA, Mastercard, Maestro Master If you have a VISA card, you can use it with all overseas forex brokers. Deposit Method is Easy! Payment is as simple as shopping Deposits by credit card are as simple as everyday shopping, making the process easy. There are three steps to depositing by credit card: Register your credit card information Register the information such as the credit card number you will use for deposits. Register the amount to deposit and make the payment Just like regular shopping, there is no special deposit procedure. Deposits are made to your overseas forex broker account. After settlement, the deposited amount will be reflected in your overseas forex broker account. If you deposit using a credit card, withdrawals from the overseas forex broker will also generally be made via credit card. The overseas forex broker will cancel the deposit transaction, and the deposited money will be refunded. Deposit fees are generally free. Generally, there are no fees for deposits to overseas forex brokers. However, for transfer methods other than credit cards, a transfer fee may be incurred by the source of the transfer. List of deposit fees for major overseas forex brokers: Credit card Bank transfer E-wallet Cryptocurrency iFOREX Free Free Free - XM Trading Free Free *For deposits under 10,000 yen, a deposit fee of 980 yen will be charged..

Why are accounts frozen in overseas forex trading? We'll explain in detail how to unfreeze them and what to do to prevent it

If you're interested in overseas forex trading but have seen reviews saying things like "My account was frozen!", you might be hesitant to use it. However, account freezing is a penalty for users who violate the terms of service, so it's a problem that can also occur with domestic forex trading. Also, depending on the reason for the account freezing, it can be lifted, so don't worry. In this article, we will explain the basics of overseas forex account freezing along with how to lift it. Beginners to overseas forex trading are advised to read the Complete Guide for Overseas Forex Beginners. What is overseas forex account freezing? What exactly does overseas forex account freezing mean? First, we will explain the basic information about overseas forex account freezing from the following points. A trading account is frozen and becomes an "invalid account" Failure to comply with the terms of service or neglecting the account can cause account freezing Unfair account freezing can occur with unscrupulous brokers Even though it's called account freezing, it's not a particularly difficult problem if you understand the key points, so don't worry. A trading account is frozen and becomes an "invalid account" Account freezing simply means that your account is frozen and becomes an "invalid account". If you try to log in to your overseas forex broker using MT4 or MT5 and it displays as an invalid account, preventing you from trading, then your account is frozen. Even if one account is frozen, if other accounts are not frozen, you may still be able to trade or log in to the member page. Reasons for account freezing: Terms of Service and Account Inactivity When an account is frozen with an overseas forex broker, there are basically two main reasons: Violation of the terms of service set by the overseas forex broker Freezing due to prolonged inactivity Let's take a quick look at how each of these leads to account freezing. Violation of the terms of service set by the overseas forex broker The most common reason for overseas forex account freezing is "violation of the terms of service set by the overseas forex broker." Overseas forex brokers have several terms of service to prevent fraudulent trading and criminal activity. The following are some of the prohibited actions that are common to many overseas forex brokers. Restrictions on scalping, third-party use of accounts, fraudulent acquisition or misuse of bonuses, hedging across multiple accounts, and arbitrage trading. If any of these prohibited transactions or actions occur, overseas forex brokers may freeze your account as a penalty. In addition to checking the prohibited actions of overseas forex brokers, as described later in "Checking the Prohibited Actions of Overseas Forex Brokers," be sure to carefully check the prohibited actions of overseas forex brokers. Account freezing due to prolonged inactivity Overseas forex brokers freeze accounts that have not been used for a long period of time. Generally, the process by which overseas forex accounts that have not been used for a long period of time are frozen is as follows: The account becomes dormant due to a prolonged period of no trading, deposits, withdrawals, or open positions. When an account becomes dormant, a fixed amount of account maintenance fee is paid from the trading account every month. After a certain period of time, the account is frozen when the account balance is 0 yen. Note that if you make any trades or deposits/withdrawals while the account is dormant, you can avoid account freezing. Account maintenance fees are also not incurred if the account balance is 0 yen. If you do not plan to use the account for a long period of time, be sure to withdraw all funds. Unfair account freezing by unscrupulous brokers Even if you use overseas FX without violating the terms of service, there are unscrupulous brokers that freeze your account for unfair reasons. In particular, overseas FX brokers refer to all FX brokers located outside of Japan, so there are many of them, and many suspicious FX brokers that are not regulated by the authorities of any country. Therefore, to avoid unfair account freezing, it is essential to use "overseas FX brokers that have obtained a financial license". https://money-charger.com/information/overseas-fx-license/ Can an overseas FX account be unfrozen? Some people may be worried about whether an overseas FX account that has been frozen can be unfrozen. It can be unfrozen by re-registration Forced withdrawal cannot have the account frozen There are two patterns for when an overseas FX account freeze can be unfrozen and when it cannot, so we will explain each. It can be unfrozen by re-registration If your account has been frozen due to being a dormant account that has not been used for a long period of time, you can unfreeze the account by re-registering. Register for an account again or open an additional account and resume trading. If you need to go through the procedure from re-registering your account, you must register using the email address you previously registered. Registering with a different email address or under a third party's name violates the terms of service and carries the risk of forced account termination, so you should not do this. Forced termination means account freezing cannot be reversed. If your trading account is frozen due to forced termination, it cannot be reversed. Forced termination is one of the most severe penalties in overseas forex trading. Malicious fraudulent trading and repeated violations of the terms of service are reasons for forced termination. If your account is forcibly terminated, you will not be able to use the same overseas forex broker. How to avoid account freezing in overseas forex trading? To avoid account freezing in overseas forex trading, keep the following four points in mind: Check the prohibited activities of the overseas forex broker. Choose a highly reliable overseas forex broker. Avoid brokers rumored to refuse withdrawals due to excessive earnings. Trade regularly with the minimum lot size. If you practice these, you will almost certainly not have your account frozen in overseas forex trading. All of these are easy to implement, so be sure to understand the key points. Check the prohibited activities of the overseas forex broker. To avoid account freezing in overseas forex trading, it is essential to check the prohibited activities. Specifically, the following prohibited activities are common rules set by most overseas forex brokers. Restrictions on scalping. Actions by third parties using the account…

List of NDD (No Dealing Desk) overseas forex brokers! Who are they recommended for? Which brokers are scams?

Are you wondering, "Which overseas forex brokers use the NDD method?" or "Is the NDD method right for me?" The NDD method is adopted by many overseas forex brokers and offers significant trading advantages. However, with so many brokers using it, choosing the right one can be difficult. Therefore, this article will introduce a list of overseas forex brokers that use the NDD method. We will also discuss who the NDD method is recommended for, identify fraudulent brokers, and recommend some excellent brokers. For overseas forex beginners, we recommend reading this complete guide to overseas forex for beginners. What is the NDD method in overseas forex? The NDD method in overseas forex is a trading method that directly routes traders' orders to the interbank market. Interbank market: A market in which institutional investors such as forex brokers and banks participate. Many overseas forex brokers use the NDD method. Here, we will explain the following in detail: What is the NDD method in overseas forex? Differences between domestic and overseas forex. Those considering using overseas forex with the NDD method should definitely refer to this information. What is the NDD method in overseas forex? NDD stands for "No Dealing Desk," and it is a trading method in which FX brokers do not intervene between traders and the foreign exchange market when placing trade orders. In the NDD method, traders place orders with LPs (Liquidity Providers). LPs (Liquidity Providers) are companies or institutions that play a role in facilitating trading in the FX market (interbank market), and are the source of exchange rates. Based on the rates provided by LPs, FX brokers present trading rates to traders. The main institutions are as follows. A characteristic of the NDD method is that traders' transactions flow directly into the market, resulting in highly transparent trading. Many overseas FX brokers use the NDD method. Therefore, for those who want to trade using the NDD method, it is recommended to use an overseas FX broker. https://money-charger.com/information/overseas-fx-ndd/ Differences between domestic and overseas FX Overseas FX brokers tend to use the NDD method, while domestic FX brokers tend to use the DD method. DD method: Abbreviation for "Dealing Desk," a method in which traders and FX brokers conduct transactions. In the DD (Dealing Desk) system, traders place orders with FX brokers, and the FX brokers then route the orders to the interbank market. However, the DD system can restrict scalping, making it unsuitable for highly flexible trading. For those who want more flexibility in their trading, we recommend using overseas FX brokers that employ the NDD (No Dealing Desk) system. https://money-charger.com/information/fx-domestic-and-overseas/ Is it possible that overseas FX brokers are lying about using the NDD system? Some overseas FX brokers may be lying about using the NDD system when they are actually using the DD system. There are two patterns in which overseas FX brokers lie about using the NDD system: They lie about using the NDD system They use the NDD system and the DD system depending on the conditions If they use the NDD system depending on the conditions, it is important to understand the conditions, as it is possible to use the NDD system by clarifying those conditions. We will explain each in detail below. Lying about using the NDD system Some overseas FX brokers lie about using the NDD system. The leverage offered by overseas forex brokers connected to LPs (Limited Partnerships) is typically 100 to 200 times, and at most 500 times. Since there are very few LPs that offer leverage exceeding 1000 times, brokers offering leverage of 1000 times or more are likely using the DD (Dealing Desk) system. Whether an overseas forex broker uses the NDD (Non-Dealing Desk) system is impossible to determine without looking inside the broker's system, so there is no way for users to definitively identify it. To avoid using a deceptive broker, it is recommended to use a reliable overseas forex broker that holds a financial license. Some overseas forex brokers use NDD and DD systems depending on the conditions. Overseas forex brokers that offer a maximum leverage of 1000 times or more may use NDD or DD systems depending on the account. Examples of different trading methods depending on the account are as follows. Furthermore, even with high-leverage DD accounts, some brokers change the leverage ratio and system depending on the account balance, as shown below. <Examples of how the method changes depending on the account balance> Account Balance Leverage Ratio Order Method $1000 - 1000x DD Method $200 - $999 200x NDD Method Even if an overseas FX broker uses the NDD method, be aware that the actual method often depends on the conditions. List of overseas FX brokers using the NDD method The following are overseas FX brokers using the NDD method: XMTrading HFM Land Prime Exness FxPro Monaxa IS6FX JadeFOREX Axi VT Markets…

Why open multiple accounts with overseas forex brokers? We'll also discuss the advantages and disadvantages

With overseas forex trading, you can open multiple accounts. However, some people may wonder, "Why open multiple accounts with overseas forex trading?" or "What are the advantages of opening multiple accounts with overseas forex trading?" This article will explain the reasons, advantages, and disadvantages of opening multiple accounts with overseas forex trading. Furthermore, we will introduce points to note when opening multiple accounts and the procedure for opening multiple accounts with the same overseas forex broker, so please refer to it. You can open multiple accounts with overseas forex trading! Explanation of the reasons for opening multiple accounts With overseas forex trading, you can open multiple accounts not only with different brokers, but also with the same overseas forex broker. Here, we will explain in detail the following points regarding opening multiple accounts. You can open multiple accounts with the same overseas forex broker Reasons for opening multiple accounts If you are considering opening multiple accounts, please refer to this article. We recommend that overseas forex beginners read the complete guide for overseas forex trading beginners. You can open multiple accounts with the same overseas forex broker Many overseas forex brokers offer multiple account types, so you can open multiple accounts. The following table shows representative overseas forex brokers that offer multiple accounts. If you want to have multiple accounts, you can also choose the same overseas FX broker, so consider opening accounts with the same overseas FX broker as an option. Reasons for opening multiple accounts There are many advantages to opening multiple accounts. In particular, separating accounts according to trading objectives or diversifying funds across multiple accounts helps in risk management. Also, by using multiple overseas FX brokers, you can find a broker that is easy to use, making it possible to identify a better broker. There are many other advantages as well, which will be explained in detail next. Advantages of opening multiple accounts with overseas FX brokers There are two ways to open multiple accounts with overseas FX brokers. The advantages of opening multiple accounts with different overseas FX brokers are as follows: Avoiding system failures Preparing for the risk of the overseas FX broker going bankrupt Finding an overseas FX broker with a good trading environment Also, the advantages common to both patterns are as follows: Fund diversification is possible Accounts can be separated according to trading style We will explain each advantage in detail. Avoiding system failures By opening multiple accounts, you can avoid system failures. If you only trade with one broker, you may miss trading opportunities if that broker's server goes down because you can't log in. If you have multiple accounts, there's a chance that other brokers' servers are still down and you can trade. Opening multiple accounts is effective in avoiding the risk of missing trading opportunities. You can prepare for the risk of an overseas FX broker going bankrupt. Opening multiple accounts prepares you for the risk of an overseas FX broker going bankrupt. If the overseas FX broker you have an account with goes bankrupt, there is a possibility that your margin will not be refunded. Even if it is protected by trust and 100% will be returned, it will take time for the return to be processed, during which time you will not be able to trade. To prepare for the worst-case scenario, it is effective to diversify your funds across multiple brokers. Highly secure overseas FX brokers and points to consider when choosing one are explained in detail in the article below. https://money-charger.com/information/fx-safety/ It is easier to find an overseas FX broker with a good trading environment. Opening accounts with multiple overseas FX brokers makes it easier to find an overseas FX broker with a good trading environment. There are many overseas FX brokers, and each has different characteristics. The following are some of the typical characteristics of overseas forex brokers. Opening accounts with multiple brokers allows you to compare different companies with your own eyes. By actually trading and identifying a broker that is easy to use, you can prioritize using that broker. It is recommended to trade with multiple brokers in order to find an overseas forex broker that suits you. You should also check out this ranking of popular and highly-rated overseas forex brokers. Fund diversification is possible. By opening multiple accounts, you can diversify your funds. If you are operating with only one account, there is a possibility that your funds will be depleted all at once due to a large loss. Therefore, if you diversify your funds into two accounts, even if you run out of funds in one account due to a large loss, you can continue trading in the other account. If you have a lot of funds in one account, it is recommended to separate your accounts to diversify your risk. You can separate accounts according to your trading style. By opening multiple accounts, you can separate accounts according to your trading style. Typical trading styles are as follows. Each trading style has its own characteristics, so it is a good idea to choose an account that suits those characteristics. For example, if you mainly do scalping, you will make more trades, so you will need to use an account with a narrow spread. By separating accounts according to your trading style, you can trade more efficiently and with lower risk. https://money-charger.com/information/overseas-fx-scalping/ Disadvantages of opening multiple accounts with overseas FX brokers Here, we will explain in detail the disadvantages of opening multiple accounts with overseas FX brokers. The disadvantages are as follows: Fund management becomes more complicated Account opening bonuses are only given once Account maintenance fees may be charged for dormant accounts Open multiple accounts after understanding each of these disadvantages. Fund management becomes more complicated Opening multiple accounts makes fund management more complicated. Because you are trading with multiple accounts, it takes time to check your total profits. ..

Overseas Forex Account Opening Bonus & Deposit Bonus Comparison Ranking! [Latest March 2026] Broker List

In March 2026, a notable trend in overseas forex bonus campaigns is the increase in no-deposit account opening bonuses. Many overseas forex brokers are also offering attractive deposit bonuses of 120%, 100%, and 50%. Overseas forex bonuses are margin credits received when opening a new account or making a deposit. Because the margin available for trading increases, it is possible to aim for profits while keeping your own capital low. Many people are probably wondering which overseas forex brokers are currently offering bonuses. Therefore, this site has thoroughly compared the latest information on overseas forex bonuses and published it in a ranking format. The overseas forex bonus ranking you can find in this article is as follows.・Recommended Overseas FX Bonus (Account Opening Bonus/Deposit Bonus) Ranking Comparison Table ・Recommended Overseas FX Account Opening Bonus (No Deposit Required) Ranking Comparison Table ・Recommended Overseas FX 120%/100% Deposit Bonus Recommended Brokers Comparison Table ・Recommended Cryptocurrency Overseas FX Bonus Ranking Comparison Table [Bitcoin FX] ・Recommended Overseas FX Bonus Ranking Comparison Table Among the popular bonuses are Vantage, FXGT, XMTrading, and BigBoss, but this month, StarTrader, Axiory, iForex, and LandPrime have newly appeared with account opening bonuses, 100% bonuses, and 120% bonuses, so it's worth paying attention to. Let's find the most advantageous and recommended overseas FX broker and aim for profits! The MoneyChager editorial team has analyzed the safety and trading environment of overseas FX brokers based on the results of a survey of more than 20,000 users, so please look forward to it. Safety is also taken into consideration by referring to the Financial Services Agency and the Financial Futures Trading Act. Overseas Forex Account Opening Bonus & Deposit Bonus Comprehensive Ranking List [Latest March] Account Opening Bonus Deposit Bonus (Maximum Amount) Cushion Function Details Notes Vantage Trading 15,000 yen [First time within 7 days] 120% (Maximum 75,000 yen) [After 7 days of first deposit] 100% (Maximum 75,000 yen) [2nd time onwards] 50% (Maximum equivalent to 1,000 dollars) [Normal] 20% (Maximum equivalent to 18,000 dollars) ○ Details Total cashback equivalent to 2,000 dollars Refer a friend $50 per person Crude oil cashback Axiory 15,000 yen (Super rare!) [First time] 100% (Maximum 100,000 yen) ○ Details Real trading starter pack special SNS challenge StarTrader - [First deposit within 7 days] 100% (up to 150,000 yen) [After 7 days] 70% (up to 150,000 yen) [Second deposit] 50% (up to 150,000 yen) ○ Details Multi-tier deposit bonus 1% Switch allowance 13% Growth boost Bigboss 15,000 yen [First deposit within 7 days] 120% (up to equivalent to $700) [From $701] 30% (up to equivalent to $5,700) [From $5.71] 20% (up to equivalent to $63,200) ○ Details 120% bonus Up to $840 for deposits within 7 days FXGT equivalent to $70 (approx. 10,000 yen) [First deposit] 120% (up to equivalent to $400) [Limited time offer] 80% (up to equivalent to $1,600) [Cashback] 30% (Optimus) ○ Details Total amount 30,000 dollars Le-Tier Bonus 90-Day SP Elite Program - $1,000 Equivalent Credit XMTrading 13,000 Yen [First Time] 100% (Up to $500 Equivalent) [50,000 Yen or More] 20% (Up to $10,000 Equivalent) ○ Details Unlimited Cashback March 3rd - March 31st Errante 7,000 Yen [First Time]: 100% (Up to 70,000 Yen) [Second Time]: 80% (Up to 100,000 Yen) [Third Time and Beyond]: 30% (Up to 300,000 Yen) ○ Details Deposit Bonus: New & Repeat Deposit Bonus Popularity on the Rise IS6FX 3,000 Yen - 13,000 Yen [First Time] 100% (Up to 60,000 Yen) [Second Time] 50% (Up to 100,000 Yen) [Third Time] 30% (Up to 840,000 Yen) *Total Bonus of 1,000,000 Yen ○ Details Friend Referral Bonus Increase 5,000 Yen per Person IS6 Point Exchange Campaign iFOREX 20,000 Yen Special Site Limited [First deposit 50% bonus] 25% deposit bonus (100% bonus on special site) ○ Details Celebrating our 30th anniversary, listed on the London Stock Exchange! HFM - [100% Deposit Bonus] Always 20%, Limited Time 100% (Maximum 45,000 yen) ○ Details Ended: March 20th 23:59 10,000 USD Cashback MyFXMarket 15,000 yen Official Media Exclusive [First Deposit 50% Bonus] 100% deposit bonus (Maximum 500 USD equivalent) for official media only ○ Details Always available Monaxa 50 USD (Requires a deposit of 25 USD) [First time onwards] 50% (Maximum 400 USD equivalent) [From 401 USD] 30% (Maximum 20,000 USD) ○ Details Long-awaited account opening bonus XS.com 5,000 yen [First Deposit Bonus] 10,000 yen bonus for deposits of 20,000 yen or more ○ Details Many cashback campaigns Land Prime 15,000 yen Official Media Exclusive 100,000 USD Shared Cashback ○ Details Raffle ticket with every trade Three Trader 3,000 yen cashback for opening an account and making a deposit ○ Details Early Spring Campaign JTB, Amazon Gift Card Axi - Cashback worth $100 ○ Details Ongoing EBC Tradingview Member Benefits for opening an account and making a deposit - Details Many are for a limited time only *Bonus details may differ from the above depending on the timing. When applying, be sure to check the official website. 1st: Vantage Trading 2nd: AXIORY 3rd: STARTRADER 4th: BigBoss 5th: FXGT 6th: XMTrading 7th: Errante 8th: IS6FX 9th: iFOREX 10th: HFMarkets 11th: MYFX Markets 12th: Monaxa 13th: XS.com 14th: LandPrime 15th: ThreeTrader 16th: Axi 17th: EBC Overseas Forex Brokers: Top Recommended Ranking [March 2026 Latest Edition] Let's take a look at the bonus details of the top 10 ranked brokers, from 1st to 10th place. Top Recommended Overseas Forex Broker: Vantage Trading Source: Vantage Trading Official Website Account Opening Bonus: 15,000 yen (Identity verification within 7 days) Deposit Bonus: First deposit within 7 days: 120% Bonus after 7 days: 100% Bonus second deposit: 50% Bonus third deposit and beyond: 20% Bonus Eligible Accounts: Standard account, ECN account This month's top-ranked broker in the overall bonus ranking is "Vantage Trading". As of March 2026, Vantage Trading is offering an account opening bonus for new customers and a 120% bonus for first deposits. Vantage Trading is an overseas Forex broker that has recently attracted attention for its excellent trading environment and abundant bonus campaigns. In addition to account opening bonuses and deposit bonuses, they also offer a variety of other campaigns. It is a broker that you should consider first. Vantage Account Opening Campaign (No Deposit Required) Eligible Accounts: Standard Account, ECN Account Bonus Amount: 15,000 yen (Identity verification within 7 days) New account holders will receive a 15,000 yen bonus, provided they complete identity verification within 7 days of applying for an account. This is a no-deposit margin bonus, allowing you to start trading even without your own funds. It is very popular with those who are hesitant about making a deposit for their first overseas FX trade or traders who want to try bonus trading. While the bonus itself cannot be withdrawn, profits can be withdrawn after meeting certain conditions. Withdrawable profits are 10,000 yen for trades of 3 lots or more. If you make a deposit and trade, you will be able to withdraw unlimited amounts. Vantage 120% Deposit Bonus Campaign Eligible Accounts: Standard Account, ECN Account Maximum 120%/100% Deposit Bonus Amount: 75,000 yen For your first deposit with Vantage, a 120% deposit bonus will be applied if made within 7 days of opening your account. From the 7th onwards, you'll receive a 100% bonus, with a maximum bonus of 75,000 yen for your first deposit. The second deposit will receive 50%, and subsequent deposits will receive 20%. Furthermore, trading specific currency pairs will qualify you for a cashback of up to $2,000; this month's featured currency pair is crude oil. Vantage's advantages and points to note: By opening either a Standard or ECN account and completing identity verification within 7 days, you can maximize your capital efficiency with two bonuses. In addition, the high-spec trading environment is another advantage of Vantage. ..

What are the trading hours for overseas forex? What are the most profitable times and points to be aware of?

If you're trying to trade FX in your limited free time after work, have you ever wondered, "What time can I trade with overseas FX?" or "Can I make money even at night?" The truth is, if you understand the trading hours correctly, you can trade efficiently even with limited time. This article will explain in detail the trading hours of overseas FX, as well as the times when the market is most active and times to be cautious, how to choose currency pairs, and tips for trading that suit your lifestyle. ■What you will learn from reading this article Basic trading hours and times to be cautious of in overseas FX Profitable and times to avoid Recommended currency pairs for each time slot How to choose the best trading hours for office workers Make time your ally and significantly improve your trading efficiency. Beginners are advised to first read the Complete Guide to Overseas FX for Beginners. What are overseas FX trading hours? Overseas FX is a system where you can trade almost 24 hours a day throughout weekdays because foreign exchange markets around the world are open due to time differences. This is similar to domestic FX, but it is popular with busy office workers and housewives because it offers a wider range of currency pairs and trading opportunities. However, it is not always possible to trade actively at all times. Markets may be closed on weekends and certain public holidays, and trading hours may differ depending on the product, such as CFDs. It is important to be aware of these exceptions, as failing to do so could result in being unable to trade at an unexpected time. This chapter will first explain the basic trading hours mechanism in overseas forex and its exceptions. Overseas forex trading hours are 24 hours on weekdays. Source: OANDA Securities Overseas forex trading is possible almost 24 hours a day on weekdays because markets around the world open in a relay format due to time differences. The starting point for trading is the Wellington market in New Zealand, which opens early Monday morning Japan time. This is roughly around 4:00 AM during daylight saving time and around 5:00 AM during standard time. From there, it continues through Sydney, Tokyo, London, and New York, with trading continuing uninterrupted until the New York market closes on Friday. Unlike the stock market, forex trading is possible at any time of day, including early mornings and late nights, as long as it is during the weekday. For part-time traders and those who want to trade at night, the flexibility to participate at any time is a major attraction. Trading is suspended on weekends and some public holidays. Although trading is possible 24 hours a day on weekdays, trading is generally not possible on Saturdays and Sundays. In Japan time, trading is suspended from around 6 a.m. on Saturday to around 6 a.m. on Monday. (There may be slight differences depending on the broker.) Also, it is important to note that markets may be closed on international holidays such as Christmas and New Year's Day, meaning that trading may not be possible or liquidity may be significantly reduced. For example, most markets are closed on December 25th and January 1st, so position adjustments and sudden fluctuations are more likely before and after these dates. During these times when liquidity is low, the risk of spreads widening also increases, so caution is advised. However, it is possible to place orders outside of trading hours. Although actual execution is not possible outside of trading hours, many overseas FX brokers allow you to set up orders such as "reserved orders" and "limit orders/stop orders." This makes it easier to respond to gaps at the start of the week and sudden price movements. For example, if important economic news is released over the weekend, you can place orders in advance to prepare for it. In particular, placing automatic orders during the highly volatile early Monday morning hours increases the likelihood of entering a trade at your target price. To avoid missing trading opportunities, it is effective to utilize the order reservation function. CFDs often have irregular trading hours. CFDs (Contracts for Difference) are products that aim to profit from the difference between buying and selling prices, similar to FX, but it is important to note that trading hours vary greatly depending on the instrument. While FX can be traded almost 24 hours a day on weekdays, CFDs follow the trading hours of the exchanges of the underlying stock index or commodity futures, so the schedule varies from instrument to instrument. In fact, the trading hours for major CFD instruments published by GMO Click Securities are as follows (as of May 2025): Instrument Trading Hours (Japan Time) Note: Japan 225 (Nikkei 225 Futures) 8:30 to 7:00 the next day (may be adjusted to 7:10 to 6:00 the next day during US Daylight Saving Time) US S500 (S&P 500 Futures) 8:00 to 6:15 the next day (7:00 to 5:15 the next day during Daylight Saving Time) UK 100 (FTSE 100 Futures) 10:00 to 6:00 the next day (9:00 to 5:00 the next day during European Daylight Saving Time) Gold Spot (XAU/USD) 8:00 to 7:00 the next day (7:00 to 6:00 the next day during US Daylight Saving Time) Reference: GMO Click Securities As you can see, the start and end times of trading vary greatly from country to country and from instrument to instrument. Also, gold (XAU/USD), which is familiar to FX traders, is a type of CFD. Gold typically has a short break (a trading suspension of about 1 hour) once a day, around 6-7 AM Japan time. Since CFDs do not have uniform trading hours, be sure to check the schedule for each instrument before actually trading. It is especially important for part-time traders to know whether trading is possible at night or in the early morning. https://money-charger.com/information/overseas-fx-cfd/?search=CFD Differences between summer time and winter time in overseas FX In overseas FX, market opening hours are not always the same throughout the year. Western countries such as the United States and the United Kingdom have adopted "summer time (daylight saving time)," which affects the opening and closing times of the FX market. In particular, the London and New York markets start moving one hour earlier Japan time during summer time, so if you trade as usual, you may miss entry timings. In this chapter, we will organize the rules for switching between summer time and winter time and what effects they have on each market, and look at points to be aware of to avoid disruptions to trading. Daylight Saving Time Opens 1 Hour Earlier Than Winter Time In overseas forex trading, "daylight saving time" is mainly observed in markets in Europe and the United States, during which market opening and closing times are one hour earlier than usual. For example, the New York market opens around 11 PM Japan time during winter time, but opens around 10 PM during daylight saving time. This is due to a system implemented in countries such as the United States and the United Kingdom to "make effective use of daylight hours," and the forex market adjusts its time accordingly. Therefore, even if you intend to trade on the same day and at the same time, you should be aware that the market starts moving earlier during daylight saving time. Daylight Saving Time is Every Year from Mid-March to Early November Daylight saving time is mainly observed in the United States and the United Kingdom, and it directly affects the opening and closing times of the forex market. In the United States, daylight saving time is observed every year from the second Sunday in March to the first Sunday in November, and in the United Kingdom, it is observed from the last Sunday in March to the last Sunday in October. During this period, market opening times are one hour earlier than usual, which causes shifts in entry timing and the release times of economic indicators. In particular, the London and New York markets, which have high trading volumes, are significantly affected and cannot be ignored by traders. Below is a table summarizing the opening times (Japan time) of major markets during daylight saving time. Market Name Opening Times (Japan Time) during Daylight Saving Time Remarks London Market 16:00 - 0:00 the next day Starts one hour earlier than usual New York Market 22:00 - 5:00 the next day Major night market, opens at 22:00 Sydney Market Opens around 6:00 Affected by Australian Daylight Saving Time Wellington Market Opens around 4:00 Affected by New Zealand Daylight Saving Time The Tokyo market does not use daylight saving time, so its opening time is fixed at 8:00 throughout the year. ..

Comparison list of overseas forex brokers with high execution speed | Which brokers are less prone to slippage?

Have you ever experienced problems like: "I missed a great trading opportunity because my order wasn't being executed properly," or "Due to slippage, the execution rate was 5 pips higher than the order rate"? In conclusion, if you're trading with an overseas forex broker, it's best to choose one with high execution speed. This is because high execution speed reduces the chances of missing trading opportunities and slippage. This article compares overseas forex brokers with high execution speed and introduces brokers that are less prone to slippage. We will also explain in detail the points to consider when evaluating execution speed, so please use this as a reference. What is execution speed? Execution speed is the ability to execute trades at the price you intended. If execution speed is low, there is a high possibility that you will not be able to execute trades as you intended. Here, we will explain the following in detail about execution speed: Is execution speed important in overseas forex? What is the execution rate? What is slippage? If you want to know how execution speed affects trading, please refer to this article. Is execution speed important in overseas forex? Execution speed is an extremely important factor in overseas forex. This is because in FX trading, there is a risk of incurring unexpected losses because trades may not be executed at the price you ordered. Also, in overseas FX, high leverage trading is common, and even a small movement of pips can cause a large price movement. Therefore, being off by a few pips from your target price can lead to a significant risk. Thus, execution power is extremely important for trading at your target price. What is the execution rate? The execution rate is the degree to which trades are executed at the price you ordered. On the other hand, execution power refers to the accuracy of execution, so be careful as the meanings are different. The execution rate can be calculated using the following formula: Execution rate = "Number of trades executed at the price you ordered" ÷ "Number of trades you ordered (number of market orders)" The execution rate will be higher if the FX broker's server specifications and system processing power are superior. What is slippage? Slippage is the difference between the price you ordered and the price at which the trade was actually executed. Slippage is more likely to occur in volatile markets and with streaming orders where the time from order to execution is short. Furthermore, low execution speed makes slippage more likely. Therefore, to prevent slippage, it is recommended to trade with a broker that has high execution speed. Comparing the difference in execution speed between overseas and domestic FX brokers There is a difference in execution speed between overseas and domestic FX brokers. Generally, overseas FX brokers tend to have higher execution speeds. Here, we will compare the differences between overseas and domestic FX brokers in the following ways: Comparing the differences in trading methods Comparing the differences in execution rates Comparing the differences in ease of large-volume trading We will explain why overseas FX brokers have superior execution speeds, so please refer to this information. Comparing the differences in trading methods Overseas and domestic FX brokers use different trading methods. The differences in trading methods are summarized in the table below. Overseas FX broker Domestic FX broker Main trading method NDD method DD method Execution speed Fast Slow No intervention by FX broker in trading Yes Transparency of trading High Low Spread Wide Narrow Source of income for FX company Spread, trading commission Customer loss Overseas FX brokers mainly use the NDD method, while domestic FX brokers mainly use the DD method. The NDD (No Dealing Desk) method offers high transparency and fast execution speeds because the FX broker does not intervene in the trade, making order rejections and slippage less likely. In the DD (Dealing Desk) method, the FX broker intervenes in the trade, resulting in lower transparency and a higher likelihood of order rejections and slippage. Comparing the difference in execution rates: There is a difference in execution rates between overseas and domestic FX brokers, with overseas brokers generally having higher execution rates. Overseas FX brokers use the NDD method, while domestic FX brokers use the DD method, and this difference in trading methods results in a difference in execution rates. In the DD method, since the FX broker is involved in the trade, there is a possibility of order rejection if the trade is unfavorable to the FX broker. If orders are rejected, the execution rate will inevitably decrease, so the DD method, where order rejections are possible, has a lower execution rate than the NDD method. Comparing the difference in ease of large-volume trading: There is a difference in the ease of large-volume trading between overseas and domestic FX brokers. Generally, domestic FX trades in lots of 10,000 currency units, while overseas FX trades in lots of 100,000 currency units, meaning that overseas FX allows for larger order sizes at once. When trading large volumes with many lots at once, even a few pips of error can significantly affect the price. Therefore, overseas FX, with its strong execution capabilities, is generally easier to use for large-volume trading. https://money-charger.com/information/fx-domestic-and-overseas/ Advantages of overseas FX brokers with high execution capabilities Here are the advantages of trading with overseas FX brokers with high execution capabilities. The advantages are as follows: Easier to trade large volumes Easier to trade according to plan Easier to use scalping techniques We will explain each of these in detail, so please refer to them. Easier to trade large volumes One advantage of trading with overseas FX brokers with high execution capabilities is that it makes large-volume trading easier. Because large-volume trading involves trading many lots at once, there is a risk of significant losses if order rejection or slippage occurs. With overseas forex brokers, the NDD (No Dealing Desk) system is used, which avoids the risks mentioned above, allowing for safe trading. The advantage of trading with overseas forex brokers that have high execution capabilities is that you can trade according to your plan. With overseas forex brokers that use the NDD system, there are no order rejections, so trades can be executed as planned. ..

Is hedging a surefire way to win in overseas forex trading? A thorough explanation of the mechanism, prohibited practices, and more!

"Is hedging really profitable?" "Is it okay to do it with overseas forex?" "Is it true that my account will be frozen if I get caught?" For those of you with such anxieties and questions, this article will explain the mechanism, risks, and uses of hedging in overseas forex in an easy-to-understand way for beginners. ■What you will learn from reading this article You will find out if hedging is really profitable and if it is a method that even beginners can use You will understand cases in which hedging is prohibited in overseas forex and how to avoid the risk of getting caught You will be able to compare overseas forex brokers that actually allow hedging and their respective rules You will learn the advantages and disadvantages and the correct strategy, and develop the judgment to use it safely By reading this article, you will not only learn how to hedge, but you will also naturally develop the judgment criteria to aim for profits without making mistakes. Please read to the end and incorporate hedging into your overseas forex strategy. If you are a beginner in overseas forex, we recommend that you read the Complete Guide to Overseas Forex for Beginners. What is hedging in overseas forex? Is it really a surefire way to win? Hedging is one of the methods in forex trading that is met with mixed reactions. It is sometimes called a "surefire way to win," but is that really the case? Hedging has its own unique mechanisms, and if used incorrectly, it can actually increase the risk of losses. On the other hand, if used skillfully, it can be used for risk hedging and to broaden the range of strategies. In this section, we will explain in detail the basic mechanism of hedging, why it is permitted in overseas forex trading, and why it is called a surefire winning method. What is the basic mechanism of hedging? Hedging is a method of simultaneously holding both "buy" and "sell" positions in the same currency pair. For example, by "buying" 1 lot of USD/JPY and simultaneously holding 1 lot "sell," profits and losses will almost cancel each other out regardless of which direction the market moves. In this state, neither profits nor losses move, and "unrealized profits" and "unrealized losses" exist in parallel, so to speak, in a fixed state. It is mainly used as a temporary hold on a position or as a countermeasure when you are unsure of the direction of trading. However, since costs such as spreads and swaps continue to be incurred daily, it is also the case that holding it for a long period of time tends to be disadvantageous. The key to hedging is knowing when to use it. It is assumed that you will operate with a clear understanding of the market and your objectives. Why is hedging possible in overseas forex trading? In Japan, forex brokers often have restrictions on hedging due to regulations from the Financial Services Agency, whereas many overseas forex brokers allow hedging. This difference mainly stems from leverage regulations and the concept of trading flexibility. Japanese forex brokers strictly restrict margin maintenance ratios and position management from the perspective of protecting customers, following the guidance of the Financial Services Agency. In contrast, overseas forex brokers offer a more flexible trading environment and are characterized by allowing users to employ a wide range of strategies. Furthermore, the fact that hedging is permitted allows for flexible trading designs, such as swing trading and hedging strategies during economic indicator announcements. Many overseas forex brokers also have a zero-cut system, and combining this with other systems makes risk management easier. In short, the permission for hedging is one policy to create a "highly flexible trading environment," and whether or not it can be utilized depends on the trader's strategy. Why is hedging called a "surefire winning strategy"? The reason why hedging is called a "surefire winning strategy" is that it has a structure in which losses are not immediately realized regardless of which way the market moves. Holding both buy and sell positions simultaneously allows you to offset positions against sudden price movements and cover unrealized losses. In particular, it functions as a "defense measure to avoid losses" when economic indicators are released or when the market direction is difficult to predict, and is recognized as a "safe method" even by beginners. Furthermore, if used well, it is possible to strategically trade by closing only the profitable positions when the market moves in one direction and waiting for a rebound by observing the rest. In fact, many traders use it in combination with averaging down or swing trading. However, it is important to understand that it does have aspects such as increased costs and complex decision-making, and is not necessarily a "guaranteed winning method." Hedging is just one strategy, and whether or not you can use it effectively depends on the trader's skill. Advantages of hedging in overseas FX When used correctly, hedging can be very useful for risk avoidance and strategic money management. Overseas FX, in particular, has a trading environment that differs from domestic FX, such as high leverage and zero-cut systems, making it well-suited for hedging. This section will introduce four specific advantages of hedging in overseas forex trading, explaining when it can be effective. It can be used to mitigate risk during rapid fluctuations and range-bound markets. In forex trading, sudden market changes are frequent. Especially when economic indicators are released or key figures make unexpected large movements, the risk of loss increases rapidly if only one position is held. This is where hedging comes in handy. By holding both buy and sell positions simultaneously, unrealized gains and losses offset each other regardless of the market movement, thus mitigating overall asset fluctuations. Hedging, especially at times when predictions are difficult, functions as "insurance" to maintain calm judgment. Furthermore, in range-bound markets where a clear trend is not evident, hedging can be applied by closing one position while holding the other. The ability to easily react to range breakouts is also a major advantage. However, it should be used as a "temporary defensive measure" rather than complete risk avoidance. It pairs well with swing trading and averaging down strategies. Hedging is a technique that pairs very well with swing trading and averaging down strategies. Swing trading aims to capture price movements spanning several days to several weeks, but the market often moves against you immediately after entry. Using hedging can temporarily mitigate the risk of loss. Furthermore, when combined with averaging down, instead of simply increasing positions in one direction, you can intentionally add opposing positions to prepare for market reversals. This makes it easier to implement strategic responses such as fixing unrealized losses and stabilizing the margin maintenance ratio. For example, by placing a sell order at a certain level against a buy position during a decline, you can limit losses even if the market falls further, while aiming to profit when it rebounds. However, because the strategy becomes complex, mismanaging positions or timing can be counterproductive. It must be operated with careful planning. Increased flexibility in settlement By utilizing hedging, traders can have more flexibility in the timing of closing positions. With a normal single position (buy or sell only), stop-loss and profit-taking decisions tend to be strict, but with hedging, it is possible to close one position and continue holding the other. For example, after closing a buy position that has made a profit due to a sharp rise in the market, you can simultaneously hold a sell position to aim for a market reversal. This ability to adjust one side at a time to gradually take profits or avoid losses is a major advantage of hedging. It is also important to note that it allows you to respond calmly even when the market is volatile. It is effective in reducing the risk of closing all positions at once due to emotions and in allowing for planned money management. However, it requires judgment and management skills, so it is important to note that the high degree of freedom can sometimes lead to confusion. Hedging makes it easy to adjust profits and losses and deal with unrealized losses Hedging has the characteristic of making it easy to control the balance of profits and losses, and is especially useful for dealing with unrealized losses. Even if the market moves in the opposite direction to what you expected, you can temporarily fix the unrealized loss by adding an opposing position and avoid a forced stop-loss. For example, if you put in a sell when your buy position is showing an unrealized loss, you can equalize the overall unrealized profit and loss. This makes it easier to maintain a margin maintenance ratio above a certain level and prevents a rapid decrease in funds. Furthermore, strategic profit and loss adjustments are possible, such as minimizing losses by closing one position when the market recovers, while securing profits from the other position

Recommended Overseas Forex Scalping Account Comparison! A thorough explanation of why you might not be winning and what to avoid!

Scalping with overseas forex brokers is an ideal trading style for traders who want to efficiently accumulate profits with small amounts of capital. This article thoroughly explains why overseas forex is suitable for scalping, and introduces recommended methods that can actually be used, as well as brokers that are strong in scalping. If you want to steadily aim for profits in a short period of time by making the most of narrow spreads, high execution speed, and high leverage environment, please refer to this article. The MoneyChager editorial team has taken into account the results of a survey of more than 20,000 users and can introduce you to overseas forex accounts that are truly recommended for scalping, so please look forward to it. We have also taken safety into consideration, referring to the Financial Services Agency and the Financial Futures Trading Act. Comparison Table of Overseas Forex Brokers Suitable for Scalping We have compiled a comparison table for those who want to know only about overseas forex brokers that are suitable for scalping. When scalping with overseas forex brokers, it is important to choose an account based on trading conditions that make scalping advantageous, such as narrow spreads and high maximum leverage. Detailed information on each company listed in the comparison table above can be found in "Overseas FX Strong for Scalping! Recommended Account Ranking". What is scalping? Scalping is a trading method that is performed over a short period of time, from a few seconds to a few minutes. Due to the characteristic that each trade is completed in a short time, scalping involves repeating multiple trades in a day to accumulate small profits. In order to capture small price movements, it is important to choose an overseas FX broker that has narrow spreads and high execution speed. MoneyChat Editorial Department Overseas FX tends to have higher execution speed compared to domestic FX. Execution speed is the ability to execute orders from traders accurately and quickly, and is especially important in short-term trading such as scalping. Why Overseas FX is Ideal for Scalping In fact, many overseas FX brokers offer a trading environment that is ideal for scalping. Higher execution speed compared to domestic FX Many overseas FX brokers also have narrow spreads Scalping and high leverage are a good match Here, we will explain the three points above that make overseas FX ideal for scalping. Knowing the advantages of scalping with overseas forex brokers allows you to trade in an environment where it's easier to accumulate profits in a short period of time. Higher execution power compared to domestic forex Many overseas forex brokers employ the NDD (Non-Dealing Desk) system, which has excellent execution power. With the NDD system, orders are processed directly by the system without going through a dealer, so slippage and order rejection are less likely to occur. In scalping, split-second decisions can determine success or failure, so high execution power is essential. As a general trend, overseas forex brokers have high execution power, and most of them officially allow scalping. https://money-charger.com/information/overseas-fx-power-of-execution/ Many overseas forex brokers also have narrow spreads Some people may have seen reviews saying that scalping with overseas forex is difficult to win because of wide spreads. We have compiled a table of the average spreads measured for various overseas forex companies. Broker Name Account Type USDJPYEURUSDGBPUSDAUDUSDXAUUSD Exness Zero Account 0.45 pips (0.1 + 0.35) 0.45 pips (0.1 + 0.35) 0.65 pips (0.2 + 0.45) 0.6 pips (0.1 + 0.5) 0.8 pips (0 + 0.8) Axi Elite Account 0.675 pips (0.5 + 0.175) 0.575 pips (0.4 + 0.175) 0.875 pips (0.7 + 0.175) 0.475 pips (0.3 + 0.175) 1.35 pips (1.0 + 0.125) ThreeTraderRaw Zero Account: 0.7 pips (0.5 + 0.2), 0.6 pips (0.4 + 0.2), 1.0 pips (0.8 + 0.2), 0.5 pips (0.3 + 0.2), 1.0 pips (1.0 + 0) HFM Zero Spread Account: 1.1 pips (0.8 + 0.3), 0.7 pips (0.4 + 0.3), 0.9 pips (0.6 + 0.3), 0.6 pips (0.3 + 0.3), 2.4 pips (1.7 + 0.7) XS.com Elite Account: 1.3 pips (1.0 + 0.3), 0.6 pips (0.3 + 0.3), 0.8 pips (0.5 + 0.3), 0.6 pips (0.3 + 0.3), 0.9 pips (0.6 + 0.3) Overseas Forex Spread Comparison Table Information Transaction fees are added as the effective spread, converted at 1 dollar = 0.1 pip. (The figures in parentheses indicate the average spread + transaction fees.) Even with overseas forex, spreads can vary greatly depending on the broker and account type you choose. If you don't choose an overseas forex account that specializes in low spreads, scalping tends to be disadvantageous. Even with overseas forex, by choosing an account that specializes in low spreads, it is entirely possible to trade major currency pairs with spreads of less than 0.5 pips. If you are looking for an overseas forex broker that specializes in low spreads, which are essential for scalping, please refer to the "Overseas Forex Spread and Fee Comparison List". https://money-charger.com/information/overseas-fx-spread/ Scalping and high leverage are a good match Scalping and high leverage are a very good match. When trading with high leverage, it is necessary to reduce the stop-loss range in order to reduce risk. Since scalping targets small price movements, the stop-loss range tends to be narrow as well. Therefore, it is well compatible with high leverage of 1,000 times or more, like in overseas forex, and is ideal for traders who want to earn money with a small amount of capital. Be sure to check the tips and precautions for high leverage trading in advance. Selection Criteria for Overseas Forex Brokers for Scalping When choosing an overseas forex broker that is easy to use and advantageous for scalping, it is recommended to check the following points: Whether or not scalping is restricted Whether the maximum leverage is sufficiently high Whether or not zero cut is used so there is no need to worry about margin calls Whether or not the forced stop cut level is 50% or less Whether or not effective spreads are narrow Whether or not an ECN account is provided Whether or not MT5 or cTrader is used Whether or not the stop level is narrow Whether or not slippage is high Whether or not order rejection (requote) is unlikely By choosing an overseas forex broker that meets these selection criteria, you can concentrate on trading under advantageous conditions for scalping. Whether or not scalping is restricted First of all, it is important to check whether or not scalping is permitted by the overseas forex broker. If you engage in scalping with an overseas FX broker that prohibits it, you may be subject to penalties such as profit cancellation (refusal of withdrawal) or account freezing. MoneyChat Editorial Department Even if scalping itself is permitted, some overseas FX brokers have indirect restrictions such as "no closing positions within X seconds." To avoid trouble, it is important to check the terms of service to see if there are any restrictions on the holding period of positions or the number of lots, and to contact support if you have any concerns. Sufficiently high maximum leverage High maximum leverage is the biggest weapon when scalping with overseas FX. With high maximum leverage, you can take on large positions with a small amount of capital, increasing the possibility of increasing your capital in a short period of time. For example, overseas FX brokers offer a maximum leverage of at least 500 times or more, making it possible to trade up to nearly 5 million yen with a capital of 10,000 yen. Find a broker with high leverage from the leverage comparison recommended overseas FX broker ranking. Zero cut policy eliminates worries about margin calls When scalping with overseas FX, it is important to check whether the broker employs a zero cut policy that prevents margin calls. If you choose a broker that doesn't offer a zero-cut system, you risk incurring losses exceeding your account balance when scalping with high leverage

Summary of Tax-Saving Strategies for Overseas Forex Trading | Explanation of How to Avoid High Taxes and Whether Loopholes Will Be Discovered

Are there ways to reduce taxes on profits from overseas forex trading? First of all, how are taxes calculated? Effective tax-saving strategies for overseas forex trading include utilizing expenses and various income deductions to reduce taxable income. Generally, overseas forex profits are subject to a progressive tax system, meaning the higher the profit, the higher the tax rate. Furthermore, since it's treated as miscellaneous income and subject to comprehensive taxation, it must be combined with other miscellaneous income such as salary income when calculating taxes. Therefore, this article explains methods for reducing taxes on overseas forex trading and provides basic tax knowledge. For information on overseas forex taxes, please read the complete guide to overseas forex taxes. Before implementing tax-saving strategies for overseas forex trading! Essential tax knowledge you should know Let's begin by explaining the essential tax knowledge you should know before implementing tax-saving strategies for overseas forex trading. Taxes are levied on profits Overseas forex taxes are calculated based on profits from January 1st to December 31st of that year. Those with profits are generally required to file a tax return between February 16th and March 15th of the following year to calculate their income tax. Profits from overseas forex trading are treated as miscellaneous income and are subject to comprehensive taxation. Comprehensive taxation is a method of calculating taxes by combining profits from overseas forex trading with other miscellaneous income such as salary income. Profits from domestic forex trading are subject to separate taxation. Since taxes are calculated on domestic forex profits alone and not combined with other taxable income, the tax system differs from that of overseas forex trading. Those who need to file a tax return due to profits earned from overseas forex trading are as follows: Salaried employees: Those who receive a salary from an employer, such as company employees or part-time workers, or those with income such as public pensions. Condition: Annual profits exceed 200,000 yen. Non-salaried employees: Those who do not receive a salary, such as unemployed individuals, self-employed individuals, housewives, or students. Condition: Total annual income, including profits earned from overseas forex trading, exceeds 480,000 yen. The annual profit for the tax return conditions includes taxable income other than overseas forex trading. If you have other income, check whether you need to file a tax return by combining it with your overseas forex profits. Overseas forex trading is subject to a progressive tax system where the tax rate increases the more you earn. The calculation of income tax on overseas forex trading is subject to a progressive tax system where the tax rate increases as your taxable income increases. The progressive tax system is designed so that the more you earn, the higher your taxes will be, and it uses a tax rate system set up in seven stages according to your taxable income. Income Tax Rate Table Taxable Income Tax Rate Deduction 1,000 yen to 1,949,000 yen 5% 0 yen 1,950,000 yen to 3,299,000 yen 10% 97,500 yen 3,300,000 yen to 6,949,000 yen 20% 427,500 yen 6,950,000 yen to 8,999,000 yen 23% 636,000 yen 9,000,000 yen to 17,999,000 yen 33% 1,536,000 yen 18,000,000 yen to 39,999,000 yen 40% 2,796,000 yen 40,000,000 yen and above 45% 4,796,000 yen Source: Income Tax Rates | National Tax Agency On the other hand, the tax rate for domestic FX is a flat 20% (15% income tax, 5% local tax), so the tax rate does not change no matter how much you earn. However, until 2037, a reconstruction income tax rate of 2.1% will be added to the income tax rate, so the tax rate will be 20.315%. Break-even point for taxes on overseas FX and domestic FX The break-even point for taxes on overseas FX and domestic FX is "approximately 3.3 million yen". The table below summarizes the annual tax amount for overseas FX and domestic FX by income level. Note that only the basic deduction is applied, and necessary expenses are not included. Annual Income Overseas FX (Income Tax + Resident Tax 10%) Domestic FX (Income Tax + Resident Tax 5%) 1,500,000 yen 225,000 yen 379,725 yen 1,950,000 yen 370,500 yen 468,960 yen 3,300,000 yen 861,750 yen 727,173 yen 6,950,000 yen 2,083,620 yen 1,598,389 yen 9,000,000 yen 3,209,520 yen 1,889,512 yen 18,000,000 yen 7,602,000 yen 3,848,893 yen Source: National Tax Agency | Income Tax Rates As shown in the table above, for incomes of 3,300,000 yen or more, domestic FX results in lower taxes. However, this is not the case if other income deductions are used. For details on how to calculate income tax and resident tax, and other tax-related matters, please refer to the "Complete Guide to Overseas FX Taxes". Unrealized gains and losses are not subject to taxation Only realized gains and losses are subject to taxation, so unrealized gains and losses are not subject to taxation. Realized gains and losses refer to the gains and losses that are confirmed when a position is closed. Swap points, which are received when adjusting the interest rate difference between currencies being bought and sold, are subject to taxation when they are received and reflected in the account. https://money-charger.com/information/overseas-fx-loss-tax-return/ However, cashback is subject to taxation Cashback received from FX brokers as part of campaigns such as opening an account or making a deposit is subject to taxation on FX. Generally, cashback is considered temporary income and is eligible for a special deduction of 500,000 yen. Therefore, if the remaining amount including other temporary income is 500,000 yen or less, it will not be subject to taxation. Formula for calculating temporary income Total temporary income - Total expenses - Special deduction (500,000 yen) = Amount of temporary income However, only half of the amount of temporary income is actually subject to taxation. Furthermore, since temporary income is subject to comprehensive taxation, half of the temporary income is added to other income such as salary income to calculate the tax. Based on the profit including half of the temporary income, if the profit exceeds 200,000 yen for salaried employees, or 480,000 yen for non-salaried employees, a tax return is required. https://money-charger.com/information/cashback-tax-return/ Be careful as losses cannot be carried forward. Losses incurred in overseas FX cannot be carried forward and offset against profits in subsequent years. If you used two overseas FX brokers in the same year, for example: Broker A: 300,000 yen loss Broker B: 1,000,000 yen profit The loss of 300,000 yen from Broker A and the profit of 1,000,000 yen from Broker B are offset, and the tax for that year is calculated on 700,000 yen. On the other hand, losses incurred in domestic FX can be carried forward for up to three years, so the loss from the previous year can be deducted from the income of the following year. If you incur losses in overseas forex trading: Year 1: Loss of 300,000 yen Year 2: Profit of 1,000,000 yen Since overseas forex trading does not allow loss carryforward, taxes are calculated on the 1,000,000 yen in the second year. If you incur losses in domestic forex trading: Year 1: Loss of 300,000 yen Year 2: Profit of 1,000,000 yen Since domestic forex losses can be carried forward, taxes are calculated on the remaining 700,000 yen after deducting 300,000 yen from the 1,000,000 yen profit in the second year. Note that overseas forex and domestic forex have different tax systems, so losses cannot be carried forward to subsequent years. Will my company find out about my overseas forex trading? Or not? In conclusion, if you don't take precautions, there is a high possibility that your company will find out. For salaried employees, the company handles year-end tax adjustments, so they know how much tax you owe. If your resident tax amount increases while your salary remains the same, your company may suspect you have a side job (overseas forex trading). This increase in resident tax is the number one reason your company will find out. Furthermore, if you make significant profits from overseas forex trading and your sense of money changes, your colleagues might find out about your side hustle. Here are some ways to prevent your overseas forex trading from being discovered by your company: Change your resident tax collection method to "ordinary collection"; Don't raise your standard of living too much; Keep your income under 200,000 yen; Record all expenses accurately…

[Overseas Forex] What is a stop-loss? Explanation of its meaning, calculation method, and levels for beginners

When starting overseas forex trading, it's crucial to understand "stop-loss." Especially for beginners, not knowing how stop-loss works can lead to significant losses. Therefore, this article provides a thorough explanation of stop-loss in overseas forex, including its mechanism, meaning, calculation methods, terminology such as stop-loss levels, and important precautions. Those starting overseas forex trading should refer to this article. For overseas forex beginners, we recommend reading this complete guide for beginners. What is the mechanism and meaning of stop-loss in overseas forex? Detailed explanation of terminology and calculation methods. Let's begin by explaining the mechanism and meaning of stop-loss in overseas forex in a way that even beginners can understand. A stop-loss is a mechanism that automatically closes positions. A stop-loss is a mechanism in forex trading where, if losses exceed a certain level, the forex company forcibly closes the position to prevent losses exceeding the investor's deposited funds (margin). Some may worry, "Won't I suffer a large loss if my position is suddenly closed?" However, the forex company will issue a margin call before the stop-loss. About Margin Calls Before Stop-Loss A margin call is a warning that alerts you to a drop in your margin maintenance ratio before a stop-loss is triggered. Some FX companies call it an "alarm" or "alert," and it's a warning that will inform you of a stop-loss in advance. While a stop-loss forcibly closes all positions, a margin call is a prior notification. It varies depending on the FX company, but many companies seem to issue a margin call when the margin maintenance ratio falls to 50-70%. Imagine a margin call as a yellow card in soccer, and a stop-loss as a red card. What is the stop-loss level? The stop-loss level is the standard by which a stop-loss is executed in FX trading. A stop-loss is forcibly triggered when the margin maintenance ratio falls below a certain level. This margin maintenance ratio is the stop-loss level. The stop-loss level varies depending on the FX broker, so be sure to check it in advance. When is a stop-loss executed? The timing of a stop-loss execution depends on the stop-loss level set by the FX company. A stop-loss is executed when the margin decreases and the funds remaining in the account fall to the predetermined margin maintenance ratio. For those just starting out in FX trading, it's a good idea to deposit a sufficient amount of money in advance to avoid being stopped out. It's also recommended to trade with a low leverage setting. Those who trade with high leverage should also check out recommended high-leverage trading methods and tips. Calculation of Margin Maintenance Ratio: The margin maintenance ratio is the ratio of net assets to the margin required to hold a position in FX trading. The margin maintenance ratio is calculated using the formula: "Net Assets ÷ Required Margin × 100". An example calculation is shown below. Calculation until Stop-Loss Execution: Here, we calculate how long a position can be held before a stop-loss is triggered if losses occur in FX trading. The Benefit of Stop-Loss: Preventing Further Losses: The biggest benefit of stop-loss is that it protects investors. Without stop-loss, there is a risk of losing all deposited collateral (synonymous with margin) or having to pay additional funds. However, losses may exceed the deposited margin: In the event of extremely sudden market fluctuations such as crashes or surges, stop-loss may not be executed in time. In that case, there is a possibility of losses exceeding the deposited margin. To reiterate, a stop-loss order does not guarantee execution at a price that brings the margin maintenance ratio to 100% or the amount of loss. It is important to be aware that losses may exceed the margin deposited by the investor. So, how can you avoid a stop-loss order? To avoid a stop-loss order, "add margin" To avoid a stop-loss order, you need to manage your positions with some leeway. To do this, "add margin". By adding new margin, your effective margin increases, so you can avoid a stop-loss order. However, caution is needed when "adding margin". This is because if a trend (a phenomenon in which the market moves in one direction) occurs, depositing additional margin will increase the risk of a stop-loss order again. If a stop-loss order is executed, there is a risk of losing even the additional margin you deposited. In that case, you will incur even greater losses. Alternatively, you can close part of your position Another way to avoid a stop-loss order is to close part of your position. By closing part of your position, your effective margin increases, and you can avoid the risk of a stop-loss order. However, just like adding margin, this should be done while monitoring market conditions. Since this is only a temporary avoidance measure, the risk of a stop-loss will continue if a trend develops in the market. Furthermore, continuing to hold a position with unrealized losses carries more than just the risk of a stop-loss. Because your funds are tied up, you may run out of funds when a trading opportunity arises, preventing you from making new trades. In other words, it leads to the risk of missed opportunities. Therefore, managing your positions to avoid a stop-loss is crucial. The importance of position management to avoid a stop-loss in the first place: Adding margin and closing a portion of your position are merely temporary avoidance measures. Therefore, rather than trying to hold on by adding funds, it's important to manage your positions from the start to avoid easily falling into a stop-loss. Avoid trading with positions that use the maximum amount of funds in your account. You must avoid the risk of a stop-loss through methods that are not temporary, such as using a moderate amount of capital to lower your effective leverage and implementing stop-loss orders. Incidentally, stop-loss criteria vary depending on the broker. Next, let's look at a comparison of the list for each broker. What are the stop-loss levels for each overseas FX broker? Comparing Stop-Loss Levels of Overseas and Domestic Forex Brokers Stop-loss levels vary from broker to broker. This article introduces the differences between overseas and domestic forex brokers and compares their stop-loss levels. What are the differences between overseas and domestic forex? Comparison of Stop-Loss Levels of Overseas Forex Brokers Comparison of Stop-Loss Levels of Domestic Forex Brokers What are the differences in stop-loss levels between overseas and domestic forex? Stop-loss levels differ between overseas and domestic forex brokers. Overseas forex brokers tend to set lower stop-loss levels. A lower stop-loss level makes it less likely to be stopped out even in the event of unexpected price movements. Therefore, it is possible to aim for profits while holding positions up to your self-set stop-loss line. Traders with well-defined investment plans will find it easier to trade with lower stop-loss levels because they offer greater investment freedom. Comparison of Stop-Loss Levels of Overseas Forex Brokers…