Demo Account Guide
Demo Account Guide

Lowest Spread Forex Brokers For USD/JPY


On any trading platform, there are two prices for each financial instrument – the Bid and the Ask. When buying or going long, traders use the Ask Price, while the Bid Price is used for selling or going short. The difference between the Bid and Ask Price represents the spread. It is an income for the broker (fee), which is also a cost for the trader. Therefore, a lower spread would be much better for traders.

Most brokers offer the lowest spread on several popular pairs, which one of those kinds is USD/JPY. This pair is quite familiar, especially for those who love Carry Trade, due to its low-interest rate. The daily price movement for USD/JPY is not as much as on GBP/USD or EUR/USD, because it is only about 100 pips. If you wish to trade on the lowest spread forex brokers for USD/JPY, a list below could be a great help in finding the best broker for you.

Feb 21 2024

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Score Broker USD/JPY Spread Min Deposit Max Leverage Regulation
Additional FAQ

It actually depends on how traders apply their trading strategy to both instruments. Say you use Moving Averages and divergence strategy, here's what it would look like:

Gold and Yen Correlation Trading Strategy

We can see how a hidden bullish divergence first appeared on Gold, which was later reflected in USD/JPY's hidden bearish divergence. This signifies that Gold's rally is complemented by Yen's rally, thus concluding to USD/JPY heading lower.

We can also compare the candlestick patterns on both charts. Although quite subjective, patterns such as engulfing or inside bars are considered reliable across different assets analyses.

Continue Reading at The Curious Case of Gold and Yen's Correlation

A scalper can open and close 30 positions in a day. Say the broker charges a spread of 3 pips for every position, the profit average is 5 pips, the loss average is 3 pips, and the scalper makes 20 winning trades and 10 losing trades. The total profit and loss without the spread are:

(20 x 5) - (10 x 3) = 70 pips

If the spread is charged:

((20 x 5) - (10 x 3)) - (30 x 3) = -20 pips

The result is disappointing, right? Although they have made twenty profitable trades, the total profit/loss turns to minus once the spread is applied.

Continue Reading at The Secrets of Successful Scalping Strategy

Given the importance of spreads in day trading, it is essential to find a broker that offers low spreads. Lower spreads can help day traders reduce their trading costs, which in turn can lead to increased profits.

It is noteworthy that IC Markets stands out in this regard because it offers lower spreads compared to its counterparts. For instance, the average spread on the EUR/USD for IC Markets' standard account is around 0.62 pips while FP Markets' is around 1.2 pips.

Continue Reading at Broker for Day Trading: FP Markets or IC Markets?

Gold has a positive correlation with Yen. Let's look at the chart below, which compares Yen Futures to Gold Futures from June to December 2020. The peaks and troughs of gold correlate to the peaks and troughs of Yen.

Gold and Yen Correlation

The graph also demonstrates that the connection is not perfect. In other words, the percentage-to-percentage change or point-to-pip basis between gold and Yen is not precise. Nonetheless, there is a level of linkage that cannot be disregarded even though the strength of the association can also be shown to alter over time.

Continue Reading at The Curious Case of Gold and Yen's Correlation