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Why do Japanese people like overseas FX companies?

Why do Japanese people like overseas FX companies?

Limitations of Forex (FX) in Japan and easy solutions retail investors should know first

What is Forex?

Foreign Exchange (Forex) is a market where we can exchange currencies for other currencies 24 hours a day on weekdays. Thanks to the advantages such as fewerexpenses needed than stock investment, easy access at your favored timing, leverage and so on, many retail investors invest in Forex during a break from work.
When it comes to Japan, Forex is mainly called FX. It is said that over 50 % of the Forex traders worldwide are Japanese. As proven by thecreation of thephrase “Mrs. Watanabe” (a slang which describes Japanese housewives that actively participates in international investing), anyone can invest in Forex any time with their minimum savings. As commonly known, although cryptocurrencies are attracting people’s attention, Forex is still a way where many people can invest. Therefore, more beneficial regulations are required for retail investors to invest in Forex easily, especially in Japan.
However, despite all the benefits of Forex, due to the limitations that the Japanese government has put, it has been becoming more difficult for Japanese people to invest in Forex. Also, the government is continuing to discuss the implementations of more strict limitations. On top of that, due to the fact that the system of Forex in Japan is different to the other countries, they must be concerned about additional issues. The following points are regarded as problems that Japanese investors may face:
  • The strict monitoring from the Japanese government of money transaction
  • The leverage for Forex is limited (The increase of limitations has been discussed aswell)
  • The possibility of having to pay more than the amount of Negative Balance
  • The high tax rate
  • The limitation to the amount of exchange foreign currencies for the Japanese currency
  • The hesitation from some Forex companies accepting Japanese traders because of the limitation by the Japanese government
Despite the fact that most Japanese are willing to work with other FX companies outside Japan,there are many obstacles preventing them to do so. The Japanese government sometimes go as far as to find possible FX-cooperative companiesand put them on a blacklist. As a result, many banks reject to send/receive money to/from such companies. In addition, famous and big FX companies do not register Japanese who are living in Japan.


Currently, to avoid the above-mentioned problems, many Japanese investors are using offshore companies or trying to get a residency in other countries. Perhaps, these solutions can be useful if they are capable of structuring and organizing it very well (our experienced advisors can help you to re-structure your company in a way that can comply to Japanese regulations). Some investors use alternative to overcome these problems. One of the most common and simple ways is to use an offshore company with a non-Japanese resident nominee. However, the complications of opening a bank account for offshore companies who want to trade in Forex Companies still remains as a big problem,and people will have to riska profound amount of their money to work with unknown banks or institutes to solve this issue.Rather than going through all this red tape, discussing this matter with an expert and get their advice will help you to minimize your cost and time. In fact, at our company, we have prepareda few more solutions that can minimize your risk.

Please visit our website at https://www.oobac.com/ and contact us.

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