Some tips to choose a great US forex broker in Japan
Get the best US forex broker for your situation
It is tough to choose a great US forex broker in Japan, especially when trading with dollars.
The reason is that many good brokers deal with other kinds of currency pairs besides the USDJPY, though it is not so easy to find them if you are trading with dollars.
Read More; best forex strategy
So how should you get the best US forex broker in Japan?
- If you have already found one, stick to them!
- On the other hand, if you haven’t found anyone but think that “I would like to trade yen,” then try this tip
- It seems that 30% of Forex brokers provide services for trading yen online.
- If you want to trade USDJPY, search for a US forex broker who provides services of high quality and ask them if they provide yen trading.
- Just in case, contact the US forex broker of your choice and ask them “if they can handle my account.” Also, remember that it is hard for non-Japanese brokers to get registered as Japanese FX jobbers, so it may take time for them to open your account.
- To find an honest trader, you need information and judgment skills.
- When you sign up with an online US forex broker, please check their website carefully, especially their “Account Funding” or “Forex Trading” sections. If you don’t see any information on funding your account, that should be a big red flag for you.
Check where the US forex broker is located
Some online US forex brokers claim they can help customers trade yen, but in fact, they have no intention of doing so and only want customers’ money.
Their real purpose is:
- steal customers’ money
- let customers deposit and do trading via their proprietary (internal) accounts
- open a bank account without customer’s consent
- withdraw their hard-earned money from that bank account with high commissions.
We suggest you check where the US forex broker is located before signing up with them because it will be the only way for you to find out whether they handle your yen trading account.
Check if the US forex broker provides “Japanese Yen.”
Things are different in Japan than in other countries because there are fewer US forex brokers who provide services of high quality.
Besides, since FX jobbers in Japan do not open accounts efficiently, they likely depend on Japanese FX jobbers to trade even for great online US forex brokers.
If this is true, you can safely choose a US forex broker from among those reputed ones who work with Japanese FX jobbers.
So how should you check?
Ask them point-blank or try this tip.
We cannot emphasize enough that you should check!
Ask, “Can I trade JPY?” and test them.
If there is any possibility that your US forex broker can make a yen trade, then ask them the following questions:
- Can you handle my trading account?
- Do you open an account for me at Japanese FX jobbers?
- Can I trade JPY (Japanese Yen)?
- If they cannot answer point-blank like “No,” then repeat this question several times.
- If they say something unclear or give unconfident answers, go to “It’s not worth risking your money.”
Check if the US online brokers’ websites are available in Japanese
Most US online brokers provide services of high quality and not only those big ones but also some small ones.
Though you can find the Japanese pages of these broker websites, they are usually poorly written, and until you get used to them, it is hard for non-Japanese people to understand what it means.
So if their websites are available in Japanese, stay away from them!
Here are only some tips for you to help you choose your broker. The most vital thing to remember is for you to do your research thoroughly and to not fall into a trap and get scammed.
For more information, link to buy US stocks in Japan.