FXOnline Japan Review – Unbiased Pros & Cons Revealed

WHO IS FXONLINE JAPAN?      

According to research in South Africa FXOnline Japan is a Japanese company founded in 2002 with headquarters in Tokyo, Japan.

FXOnline Japan is part of the IG Group which has several operating companies offering a variety of speculative products to retail and professional clients.

It has over 800 employees and has a head office in London and further offices in Tokyo, Singapore, Chicago, Melbourne, Madrid, Paris, Dusseldorf, Milan, Stockholm and Luxembourg.

IG Group’s headquarters is in London, England, and its Japan base is a financial service provider with a history of over 45 years. It offers a variety of asset classes such as individual stocks, stock indexes, bonds, and products from FX as a one-stop service.

SAFE OR SCAM

FXOnline Japan is not registered by a world known financial authority but funds entrusted to them are managed by Sumitomo Mitsui Banking’s dedicated trust account as required by law.

The company must separate the funds entrusted to it by customers and it is not merged with company funds. Customer assets are protected by established by banks.

In the unlikely event of a bankruptcy of the company, clients are protected from this risk in a trust agreement with Sumitomo Mitsui Banking Corporation.

PRO AND CONS

LEVERAGE

Leverage enables a trader to get a much larger exposure to the market the person is trading than the amount deposited to open the trade. Leveraged products, such as forex trading, magnify a trader’s potential profit – but also increase the potential loss.

Leverage is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1 000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the collateral to cover any credit risks that may arise during trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you need to have enough funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

It is not clear what leverage FXOnline Japan offers to traders. The website only states, leverage up to 25 times.

ACCOUNTS   

FXOnline Japan offers only one live account:

• IG Securities account

Beginner clients have the option to open a demo account with virtual money to practice with.

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

FXOnline Japan offers the following of the above:

• Forex
• CDFs
• Stocks
• Indices
• Knockout Options
• Binary Options
• Energies
• Metals
• Rates
• Bonds

FEES

Cost and fees depend on different factors, like spread and margins, and FXOnline Japan clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

With FXOnline Japan major currency pair spreads are offered at 0.2-yen dollars and 0.4 pips euro dollars. The minimum number of lots to trade depends on each issue.

There is no transaction fee for FX and various CFD transactions and fees to occur when the position is carried over across days.

Forex and Spot precious metal swap points are calculated using TomNext trading. Positions are automatically rolled over by performing Tomney trading.

At that time, swap points will be paid and received due to the difference in actual interest rates between the two currencies and the difference in interest rates between the lease rate and the currencies.

There are no commission charges, but some fees do apply from third parties.

DEPOSIT AND WITHDRAWAL

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of FXOnline Japan the following methods can be used to fund accounts:

• Quick deposit (Japanese Yen accounts only)
• Best receiver deposit (Japanese Yen account only)
• Bank Wire Transfer (US dollar account)

Only deposits from the same financial institution account in the name of the person registered with FXOnline Japan will be accepted.

To withdraw funds clients, have to login to the trading platform, click on “Live Account” and select “Withdrawal”.

Enter the requested amount and send the request. The requested amount will be immediately deducted from the margin balance of the account that made the withdrawal request.

It should be noted that withdrawals can only be done on the web-based platform and not on the mobile and tablet app.

Withdrawals usually reflect in your account within one business day. A withdrawal of less than 5,000 yen will be charged a 330-yen fee and a fee will also be charged for withdrawals from a US dollar account.

TRADING PLATFORMS

The forex trading platform provided by FXOnline Japan to its clients is the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

FXOnline Japan provide only one trading platform, the Pure Deal trading platform, which is web browser based. It also offers tablet, mobile and iPhone trading.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with FXOnline Japan for the first time, you will be required to go through a basic “know your customer” process, which will allow FXOnline Japan to ascertain that your submitted details and ensure the safety of your funds and account details.

Opening an IG Securities account is a simple process that is completed in four easy steps. Just follow the prompts on the screen and have your identity documents close by.

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

In the case of FXOnline Japan customers can reach the support team in real time by phone on email weekdays from 09:00 to 18:00.

EDUCATION       

Before starting to trade, potential clients of FXOnline Japan should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

FXOnline Japan offer learning programs that can be utilized by people of all levels, from beginners to advanced trading.

By clicking on the “Skill up at IF Academy” clients will find information on the nature of CFDs and a video tour of the platform.

It further offers a wide variety of courses that include the following key themes:

• Trading in multiple asset classes such as FX, commodities, stock indices, stocks
• Take advantage of ups and downs, both trends
• Leverage to improve investment efficiency and create effective trading plans
• Manage risks properly and protect assets from loss.
• Discover trading opportunities and determine how to trade what stock in any market
• Teach with easy to understand charts, videos, and quizzes at the end of courses.
• Use webinars and seminars
• Financial and economic glossary

RESEARCH         

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

With FXOnline Japan customers have access to daily analysis reports from fundamental to technical to help keep you up to date with daily analyst reports. It also provides an economic calendar that shows important economic events of the day immediately.

AWARDS

There is no indication on the internet or FXOnline Japan whether the company has received any awards since its inception.

CONCLUSION  

FXOnline Japan is a privately owned broker with no global acknowledge authority protecting client funds. It does fall under the protection of Japanese laws and seems to have the client’s best interest at heart.

It does not offer much in the choice of accounts or trading platforms and most of the information available is in Japanese.

It focusses on the beginner and advanced trader as is clearly indicated in the help given with educational and research tools.

DISCLAIMER

Forex Margin (FX) and CFD transactions are leveraged transactions, and the principal and profits are not guaranteed.  The stop order and forced loss cut functions do not guarantee limited loss, and losses above the margin may occur due to sudden changes in the market prices of foreign exchange, stocks, stock indexes, products, bonds, etc.

There may be a difference between the selling price and the buying price, which may increase, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with FXOnline Japan?

You can trade several different instruments with XXXX, which include the following:

• Forex
• CDFs
• Stocks
• Indices
• Knockout Options
• Binary Options
• Energies
• Metals
• Rates
• Bonds

Which platforms are supported by FXOnline Japan?

FXOnline Japan provides the following popular trading platforms:

• Pure Deal Trading Platform

Does FXOnline Japan offer leverage?

Yes, FXOnline Japan offers a maximum leverage of 25 times

What spreads can I expect with FXOnline Japan?

FXOnline Japan offer major currency pair spreads at 0.2-yen dollars and 0.4 pips euro dollars

Does FXOnline Japan charge commission?

No FXOnline Japan does not charge commissions.

Is FXOnline Japan regulated?

No, FXOnline Japan is not regulated

Is FXOnline Japan a recommended forex trading broker for experts and beginners?

FXOnline Japan offers a trading environment for beginner and experienced traders.

What is the overall rating out of 10 for FXOnline Japan?

6/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does FXOnline Japan offer a demo account?

Yes

How long is the demo account valid?

It does not indicate for how long the demo account can be used.

Which live trading accounts does FXOnline Japan offer?

• GI Security Account

What are the available deposit currencies for a live trading account?

USD and JPY.

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for FXOnline Japan?

There is no minimum deposit required

How do you make a deposit and withdrawal with FXOnline Japan?

FXOnline Japan offers the following deposit methods:

• Quick deposit (Japanese Yen accounts only)
• Best receiver deposit (Japanese Yen account only)
• Bank Wire Transfer (US dollar account)

Withdrawals can be done by logging into the trading platform, click on “Live Account” and select “Withdrawal”.

Does FXOnline Japan charge withdrawal fees?

A withdrawal of less than 5,000 yen will be charged a 330-yen fee and a fee will also be charged for withdrawals from a US dollar account.

How long does it take to make a withdrawal?

Withdrawals usually takes only one business day to reflect into your account.