{"version":"1.0","provider_name":"For overseas forex cashback services, try Money Charger","provider_url":"https://money-charger.com/en/","author_name":"admin","author_url":"https://money-charger.com/en/author/admin/","title":"What are the differences between overseas and domestic forex trading? We explain who each is suited for, as well as taxes and profit/loss offsetting - Money Charger (Overseas Forex Cashback Service)","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"75C0eT1hJ5\"><a href=\"https://money-charger.com/en/information/fx-foreign-exchange-domestic-and-overseas/\">What are the differences between overseas and domestic forex trading? We&apos;ll explain who each is suitable for, as well as tax implications and profit/loss offsetting</a></blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https://money-charger.com/en/information/fx-foreign-exchange-domestic-and-overseas/embed/#?secret=75C0eT1hJ5\" width=\"600\" height=\"338\" title=\"&amp;quot;What are the differences between overseas and domestic forex trading? We explain who each is suited for, as well as taxes and profit/loss offsetting.&amp;quot; &#x2014; Money Charger, your overseas forex cashback service\" data-secret=\"75C0eT1hJ5\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"></iframe><script type=\"text/javascript\">\n/* <![CDATA[ */\n/*! 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There are rumors about overseas forex such as \"overseas forex is tax-free,\" \"overseas forex is dangerous and should be avoided,\" and \"overseas forex accounts offer 1000x leverage,\" and it's natural to wonder what the truth is. This time, we will answer the questions about the differences between overseas and domestic forex, from safety to risk. We will also touch on taxes and service details, so please use this as a reference to decide which is right for you. If you are new to overseas forex, we recommend that you read the Complete Guide to Overseas Forex for Beginners. We will tell you the differences between overseas and domestic forex. Overseas and domestic forex differ in many aspects, including safety and service details. With so much information out there, many people may feel anxious. This site provides highly reliable information through thorough fact-checking. You will be able to understand the reality of overseas forex in more detail than anywhere else. First, let's look at the characteristics of overseas forex in comparison to domestic forex. Item Overseas FX Domestic FX Base Overseas Domestic No authorization from the Financial Services Agency Unregistered brokers exist Registered brokers Leverage Maximum 400-5000, also unlimited Maximum 25x (flat rate) Spread Wider setting Narrow setting Margin call/Stop-loss No margin call/Zero-cut guarantee Stop-loss guarantee: 0%-20% Margin call available/No zero-cut guarantee Stop-loss threshold: 50%-100% Taxes/Loss offsetting Comprehensive taxation (tax rate 5%-55%) Limits on offsetting profits and losses, loss carry-forward is not possible Separate taxation (flat rate 20.315%) Limits on offsetting profits and losses, loss carry-forward for 3 years Currency pairs 50-100 types 25-35 types Bonuses/Campaigns Low hurdle New account opening bonus, trading bonus, cashback, etc. High hurdle New account opening cashback Trading cashback, etc. Trading tools MT4/MT5 are mainstream Mainly proprietary tools Deposit/Withdrawal methods Credit card, some payment services, domestic remittance available Domestic remittance, bank transfer Feature of overseas FX 1: No base in Japan First, it's important to understand the \"difference in location\" between overseas FX and domestic FX. What is overseas FX? Literally, overseas FX is a general term for FX services and FX companies that have their base of operations overseas. The headquarters and branches of overseas FX companies are all located overseas. The biggest characteristic of overseas FX is that they do not have a base in Japan. What is domestic FX? Domestic FX, or domestic FX brokers, is a general term for FX companies that have their headquarters or base of operations in Japan. Overseas FX brokers and securities companies that have branches in Japan are also included in domestic FX. What are foreign-owned FX companies? So-called foreign-owned companies are overseas companies whose headquarters are overseas but have branches in Japan. FX companies with a base in Japan, including foreign-owned companies, all provide FX services in accordance with Japanese regulations. Therefore, foreign-owned companies are distinguished from overseas FX companies, even though they are overseas companies. Characteristic 2 of overseas FX: Not licensed by the Financial Services Agency Another crucial difference between overseas FX and domestic FX is whether or not they have obtained license from the Financial Services Agency. Overseas FX brokers that do not have a base in Japan are unregistered brokers that have not obtained license from the Japanese Financial Services Agency. This is a major characteristic that distinguishes them from domestic FX. All domestic FX brokers are registered with the Financial Services Agency (FSA). To provide financial services in Japan, authorization from the FSA is required. Under the \"Financial Instruments and Exchange Act,\" all financial institutions, including FX brokers, are authorized and registered with the FSA. You can check the registration status here: List of Registered Brokers – Japan Financial Futures Association Domestic FX services comply with FSA regulations Domestic FX brokers provide FX services under the regulations of the \"Financial Instruments and Exchange Act.\" Specifically, this includes reducing risk through leverage regulations and preventing customer losses from escalating through stop-loss orders. Domestic FX brokers are obligated to protect customer funds through trust protection. Overseas FX is outside the jurisdiction of FSA regulations On the other hand, overseas FX brokers do not have a base in Japan and are therefore unregistered brokers that are not authorized by the FSA. Naturally, Japanese FX regulations do not apply to them. Many offer high leverage, and trust protection is rarely applied. Thus, in terms of safety and reliability, domestic FX can be said to be superior. For details on the Financial Instruments and Exchange Act and the approval of the Financial Services Agency, please see the related article on this site, \"Why is overseas FX not recommended?\". \"Unregistered = Dangerous\" is not necessarily true. It is important to note here that \"unregistered = dangerous\" is not always the case. This is because companies that do not have a base in Japan do not need approval from the Japanese Financial Services Agency in the first place. Overseas FX brokers are approved by the Financial Services Agency of the country in which they are based. Therefore, it is not illegal for Japanese citizens to use unregistered overseas FX of their own free will. What is illegal is when an unregistered overseas FX broker solicits customers within Japan. However, it is important to be careful as there are also malicious fraudulent companies among overseas brokers. Many cases of overseas fraud have been reported to the Financial Services Agency and consumer centers. For example, the sale of expensive automated trading software and the luring of people to fictitious overseas FX accounts. Image of fraudulent overseas brokers In other words, there are reliable and reputable overseas FX brokers, as well as dangerous fraudulent companies. For details on whether overseas FX is illegal, please see here. Feature 3 of Overseas Forex: Incredible High Leverage Next, there are several major differences between overseas and domestic Forex services. One of them is \"leverage.\" As you know, the maximum leverage in Japan is uniformly 25 times. Prepare to be surprised by the leverage offered by overseas Forex brokers; although it varies depending on the broker, it can range from 500 times to unlimited. Some overseas Forex brokers even offer unlimited leverage, enough to silence a crying baby. Why is the maximum leverage in domestic Forex 25 times? Incidentally, the reason why the leverage in domestic Forex is relatively low is because of leverage regulations. In fact, from the late 1990s to 2009, there was a time when domestic Forex leverage was 200 to 400 times. This was an era when many masters known as Forex millionaires emerged. On the other hand, there were also many traders who suffered huge losses, so around 2010, the Financial Services Agency began to take action to regulate it. [...]"}