List of Brokers with FSA (Japan) Regulation

Being regulated by JFSA (Japan Financial Services Agency) means operating under the standards of a Japanese financial regulator. Founded in 2000, JFSA is an independent governmental supervisory body with a main priority of JFSA to regulate the systems of financial service in Japan that include banks, securities and exchange markets, financial institutions, insurance companies, forex brokerage firms, etc.

JFSA bans any overseas broker to operate in Japan. To ensure this policy, the FSA has partnered with ASIC of Australia to prevent Australian Forex brokers from offering their services to Japanese traders. The FSA is also considered to be collaborate with CFTC, NFA, CySEC, and FCA to prevent forex brokers regulated in the US, European Area, and the UK to enter the Japanese financial market.

The agency has also modified the terms and conditions of forex trading which radically put a limit on the maximum leverage offered to clients. However, it is important to note that JFSA protect clients against broker insolvency and other broker issues through the Japanese Investor Protection Fund. All JFSA-regulated forex brokers are pushed to fulfill requirements that enable them to withstand all market eventualities like segregated accounts and other clients' protection schemes.

The FSA of Japan is responsible for maintaining the integrity of the Japanese economy by actively monitoring day to day performance of financial companies. The regulatory policies of financial companies in Japan are determined directly by the government. JFSA is widely known to be proactive in changing the terms and conditions of regulations to ensure that the country can tackle the volatility of the global financial markets.

Aside of being capable of banning any foreign brokers to enter Japan, JFSA requires a highly complicated and tedious process when a forex broker proposes to acquire its valid license. It practically guarantees that only high-quality brokers can operate under the JFSA.

The strict regulatory procedures and constant supervision ensure all brokers to adhere to the existing rules and put them at the risk of facing serious consequences should they indulge in any financial frauds. In the events of certain cases that put a broker against its clients, JFSA provides an opportunity for both sides to challenge a verdict in court and has the right to contact higher authorities to inform them of any wrongdoings from either side.