Best CFD brokers in Japan in 2023

While many online CFD brokers and trading platforms catering to Japanese investors offer an excellent service, the ones in our toplist go the extra mile.

How much you have to pay for a trade in spreads, commission and other trading costs is a key broker selection criteria. ee the most important CFD costs in the table below for key assets.

If you are unsure how brokerage fees work, check out this article on the various fees, charges and costs.

Non-trading fees are charges not directly related to a given trade and typically include the account maintenance fee, deposit/withdrawal fees, and the inactivity fee.

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Check out what types of CFDs you can trade at the best CFD brokers and CFD trading platforms.

CFDs, short for Contracts for Difference, are derivative products used to speculate on the price movements of a wide range of underlying assets. A CFD is a contract between two parties under which the seller pays the buyer the difference between the current value of an asset and its value at the time the contract is due.

When trading CFDs, you speculate on whether the price of a financial asset (i.e. stock, bond, commodity, etc.) will go up or down, without actually buying the asset itself. Instead of buying a Vodafone stock, at a CFD broker you will bet on the direction you think the Vodafone stock will go. If your bet is right, you will make profit on your CFD trade.

CFDs are leveraged products meaning that you trade with your own money and the money you borrow from your broker. This makes CFD trading extremely risky and not suitable for beginners. A very high percentage of retail traders lose money when trading CFDs.

To better understand CFDs and the risk involved, read this article on CFD trading tips compiled by our team of experts.

Japan has one of the strictest financial markets regulations in the world. Financial service providers and transactions are regulated and overseen by several authorities:

• the Financial Services Agency of Japan (FSA Japan),
• the Japan Securities Dealers Association (JSDA),
• the Japan Investor Protection Fund (JIPF), and
• the Tokyo Commodity Exchange (TOCOM).

Under an investor protection plan operated by the JIPF, Japanese investors are entitled to protection of up to ¥10 million. The JIPF, however, does not protect over-the-counter derivatives transactions and foreign market derivatives transactions, meaning that CFD traders are not entitled to JIPF protection.

Germany-based nextmarkets is regulated by the Malta Financial Services Authority (MFSA) and provides up to €20,000 investor protection to its clients.

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52.55% of retail CFD accounts lose money

Japanese investors trade with IG Securities Ltd, an entity regulated by the Japanese Financial Services Authority (FSA). Japanese clients are not entitled to investor protection or negative balance protection.

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76% of retail CFD accounts lose money

Japanese investors trade with Ava Trade Japan K.K., a legal entity regulated by the Japanese Financial Services Agency (FSA) and the Financial Futures Association of Japan (FFAJ). AvaTrade provides negative balance protection for retail clients.

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71% of retail CFD accounts lose money

The broker is regulated by the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Securities Commission of the Bahamas. FxPro provides negative balance protection.

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79.27% of retail CFD accounts lose money

FBS is regulated by the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), the Financial Sector Conduct Authority (FSCA), and the International Financial Services Commission of Belize (IFSC). FBS provides negative balance protection to its clients.

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75.2% of retail CFD accounts lose money

Is CFD trading profitable in Japan?

Yes, CFD trading can be profitable in Japan or any other country where it's legal. Investors may make handsome prfofits when trading these products. Nevertheless, CFDs are very risky instruments, especially because they are leveraged products. Leverage refers to the loan extended by the broker, which allows you to invest a much larger amount of money. Close to three quarters of retail trading accounts lose money when trading CFDs. CFDs are by no means a guarantee for getting rich overnight.

Are CFDs good for beginners in Japan?

CFDs are not complicated financial instruments, so in this sense they are good for beginners in Japan. At the same time, CFDs are also very risky because they are leveraged products. Leverage in this case means that you trade with your own money and the funds your broker lends you. While you can open much larger positions this way, potentially locking in heftier profits, you also stand to lose a lot. CFDs are widely used by experienced traders with a deep undertsanding of financial markets and investment strategies. If you are an absolute beginner, it makes sense to open very small positions and doing a lot of research. Data shows that around three quarters of retail trading accounts lose money when trading CFDs.

Which are the best CFD brokers in Japan?

These are the top CFD brokers in Japan in 2023:

1. nextmarkets - Commission free real stocks and ETFs. Quick and easy account opening. Great email and phone support.
2. IG - First-class web trading platform. Superb educational tools. Great deposit and withdrawal options.
3. AvaTrade - Easy and fast account opening. Free deposit and withdrawal options. Great research tools.
4. FxPro - Superb account opening process. Great customer service. Free deposit and withdrawal.
5. FBS - Low stock and stock index CFD fees and no inactivity fee. Easy and fast account opening. Excellent customer support & education.