JFSA Regulated Forex Brokers
Japan Financial Services Agency (JFSA) is an independent governmental supervisory body founded in 2000. The main priority of JFSA is regulating the systems of financial service in Japan, for example, all the banks, securities and exchange markets, financial institutions, insurance companies, forex brokerage firms, etc.
As Financial Services Agency, JFSA has the right to investigates private sector financial institutions, oversees the certified public accountants, audits the companies, and monitors the consistency of the rules in the financial markets.
All institutions who want to promote their service in Japan must obtain a JFSA license and provide the required steps and documents for verification. The main purpose of this organization is to make sure the investors are well protected, and the financial service providers are following the existing rules. Here is the list of forex brokers regulated by JFSA.
| Broker | Regulation | Max Leverage | Min Deposit | |
|---|---|---|---|---|
| Dukascopy Hong Kong 1998 | DFSA (Dubai) F004307 FCMC (Latvia), May, 2011 FINMA, June 15, 2010 FSA (Japan), 2408 ESMA | 1:200 | $100 | Review |
| AvaTrade Australia 2006 |
ASIC, 406668 Central Bank of Ireland C53877 Financial Futures Association (Japan), 1574 Financial Services Regulatory Authority (Abu Dhabi), 190018 FSA (Japan), 1662 FSC (BVI), 2013-07-30 FSCA (South Africa), 45984 IS | 1:400 | $100 | Review |
| ThinkMarkets Australia 2010 | ASIC 424700 FCA (UK), 629628 FSA (Japan), 01.03.2022 FSCA (South Africa), FSP No 49835 | 1:500 | $1 | Review |
| Forex.com Australia 1999 | CFTC/NFA 0339826 FCA (UK), 190864 FSA (Japan), 1539 IIROC, May 10, 2012 | 1:200 | $250 | Review |
| OANDA British Virgin Islands 1995 |
CFTC/NFA, 0325821 FCA (UK) 54257 FSA (Japan), 1571 FSC (BVI), SIBA/L/20/1130 Kanto Local Finance Bureau (Japan), 2137 MFSA, 18.12.2020 | 1:200 | $1 | Review |
| Binary.com Japan 1999 | FSA (Japan) 2949 MFSA, IS/70156 The Financial Commission, 08.06.2020 | 1:1000 | $1 | Review |
FAQ
What does JFSA regulated mean?
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.
What are JFSA rules?
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.
What is the main purpose of JFSA?
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.
What are the powers of JFSA?
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.
If you are interested to open an account in one of the brokers in the list above, make sure to try the forex demo account before proceeding to register in the live account.
