{"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":"Why is overseas forex trading not recommended? We explain the reasons why it's advised against and the risks involved - Money Charger (Overseas Forex Cashback Service)","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"DU0v0Wkv18\"><a href=\"https://money-charger.com/en/information/overseas-fx-is-not-recommended/\">Why is overseas forex trading not recommended? We explain the reasons why it&apos;s advised against and the risks involved</a></blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https://money-charger.com/en/information/overseas-fx-is-not-recommended/embed/#?secret=DU0v0Wkv18\" width=\"600\" height=\"338\" title=\"&amp;quot;Why I Don&amp;#39;t Recommend Overseas Forex Trading: Explaining the Reasons and Risks Why You Should Avoid It&amp;quot; &#x2014; Money Charger (Overseas Forex Cashback Service)\" data-secret=\"DU0v0Wkv18\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"></iframe><script type=\"text/javascript\">\n/* <![CDATA[ */\n/*! This file is auto-generated */\n!function(d,l){\"use strict\";l.querySelector&&d.addEventListener&&\"undefined\"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),o=l.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),c=new RegExp(\"^https?:$\",\"i\"),i=0;i<o.length;i++)o[i].style.display=\"none\";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute(\"style\"),\"height\"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):\"link\"===t.message&&(r=new URL(s.getAttribute(\"src\")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener(\"message\",d.wp.receiveEmbedMessage,!1),l.addEventListener(\"DOMContentLoaded\",function(){for(var e,t,s=l.querySelectorAll(\"iframe.wp-embedded-content\"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute(\"data-secret\"))||(t=Math.random().toString(36).substring(2,12),e.src+=\"#?secret=\"+t,e.setAttribute(\"data-secret\",t)),e.contentWindow.postMessage({message:\"ready\",secret:t},\"*\")},!1)))}(window,document);\n//# sourceURL=https://money-charger.com/wp-includes/js/wp-embed.min.js\n/* ]]> */\n</script>\n","description":"When you hear the term \"overseas forex,\" you might get a somewhat suspicious image. For example, you may have seen topics related to overseas forex like the following. As you can see, there are opinions that do not recommend overseas forex. Certainly, even I, with 7 years of experience in forex, believe that \"for those who have ample funds and cannot distinguish between reputable overseas forex brokers, domestic forex is the safer option.\" That being said, I cannot agree with opinions that overseas forex is not recommended because it is dangerous, or because it is impossible to profit from it. Therefore, in this article, we will delve into the reasons why overseas forex is not recommended, without any bias, to find out what the reality is. Beginners in overseas forex are advised to read the Complete Guide to Overseas Forex for Beginners. Why is Overseas Forex Not Recommended? A Thorough Explanation of the Dangers There are eight reasons why overseas forex is not recommended. Here, we will explain the reasons why overseas forex is not recommended based on financial regulations and the actual situation. The main reason why overseas forex is not recommended is that it is \"not registered with the Financial Services Agency.\" A common misconception among beginners is that overseas forex brokers themselves are \"unregistered with the Japanese Financial Services Agency (FSA).\" This doesn't mean that all overseas forex brokers are unlicensed by any country's financial authorities, so please don't misunderstand. Except for a few unscrupulous brokers, most overseas forex brokers are properly licensed and operated by the financial authorities of the country where they are based. Overseas Forex Brokers Have Received Warnings from the FSA Many overseas forex brokers have received warnings from the Japanese FSA for \"conducting financial instrument transactions without registration.\" This warning stems from Japan's Financial Instruments and Exchange Act and FSA regulations. Even if a company is located overseas, if it conducts financial instrument transactions for or with Japanese residents as its business, it is required to register as a financial instrument business (registration based on Japan's \"Financial Instruments and Exchange Act\"). Conducting financial instrument business without registration in Japan is prohibited. (Violators are subject to penalties.) Quote: Financial Services Agency Beware of Solicitations by Unregistered Overseas Brokers This warning is issued uniformly to overseas forex brokers that may be soliciting and conducting business targeting Japanese residents. Overseas FX brokers that can display a Japanese version of their website have generally received warnings. The second reason why overseas FX is not recommended is that \"trust protection is not mandatory.\" Trust protection refers to the management system for the funds that we traders deposit with FX brokers. Broadly speaking, there are two types of fund management systems for FX brokers: Item Trust protection Segregated management Fund management method Separate customer funds and company funds and deposit them with a trust bank Separate customer funds and company funds and deposit them with a bank In the event of bankruptcy There is a high possibility of full refund through the trust bank There is a high possibility of no refund Main management Conducted by trust banks Conducted by FX brokers Comparison of trust protection and segregated management For domestic FX brokers, trust protection is mandatory due to regulations by the Japanese Financial Services Agency. On the other hand, overseas FX brokers are often not required to provide trust protection, and segregated management is the mainstream system for managing customer funds. Unlike trust protection, with segregated management, refunds are not guaranteed by a trust bank in the event of the FX broker's bankruptcy. Risk of unfair withdrawal refusal The risk of unfair withdrawal refusal is another reason why overseas FX is not recommended. Indeed, overseas forex brokers are not registered with Japan's Financial Services Agency, which has strict regulations worldwide, so there are unscrupulous brokers that try to extort money from customers by unfairly refusing withdrawals. \"I received an email from MIDORIfx refusing my withdrawal. I haven't violated anything. I was being extra careful and trading cautiously in all aspects because I knew that other people were having their withdrawals refused. What's going on?\" pic.twitter.com/dhjYLXdOzL— ぶひひぶひ (@buhihibuhiman) June 3, 2025 For example, there are many cases on social media where profits have been unilaterally canceled despite not violating the terms of service. To avoid having your withdrawal refused by an overseas forex broker, it is important to trade in accordance with the terms of service. Of course, as a prerequisite, choose an overseas forex broker that is licensed by the financial authorities of the country where it is based, as this minimizes the risk of unfair withdrawal refusals. Withdrawal refusals, which are one of the reasons why we do not recommend overseas forex, are explained in detail in \"Causes and Solutions for Withdrawal Refusals in Overseas Forex.\" Overseas FX has wider spreads than domestic FX Some people who prioritize narrow spreads say, \"Overseas FX has wider spreads than domestic FX, so I don't recommend it.\" The reason why overseas FX brokers tend to have wider spreads overall is due to the difference in order placement methods used by overseas FX and domestic FX. Item Domestic FX Broker Overseas FX Broker Main Order Placement Method DD Method NDD Method Customer's trading counterparty The broker itself is the trading counterparty OTC (over-the-counter) trading is common Varies depending on the broker and account Spreads Tend to be narrow Tend to be wide Execution Power Tend to be low Tend to be high Order Placement Methods of Overseas FX and Domestic FX In domestic FX brokers, over-the-counter (OTC) trading, where the broker is the trading counterparty, is the mainstream, and they have adopted a system that makes it easy for them to set narrow spreads. On the other hand, overseas FX employs the NDD method, where dealers do not manage customer orders and orders are processed by the trading system. Higher taxes than domestic FX Some people say that overseas FX is not recommended because it has higher taxes than domestic FX. Certainly, under the Japanese tax system, domestic FX tends to be favored, so those with high incomes tend to have higher taxes on overseas FX. Item: Domestic FX vs. Overseas FX. Income Tax Filing: Separate taxation (flat rate of 15%) vs. Comprehensive taxation (up to 45%). Loss Carryforward: Possible for 3 years; Possible not possible. Loss Offset: Possible with futures trading, etc.; Possible only within miscellaneous income. Tax Rate: Flat rate; Varies depending on income (progressive taxation). Differences in tax systems between overseas FX and domestic FX […]"}