Best CFD brokers in Japan in 2021

To help you find the best CFD broker in Japan for 2021, we went ahead and did the research for you. First, we selected 93 quality online brokers, then we checked and compared their CFD fees, product selection, deposit and withdrawal options, trading platforms and more. We dug deep so you don't have to. 5 brokers made it to the top in Japan. We strongly recommend all 5 to you. And now, without further ado...

Our top 5 picks for the best CFD brokers of 2021 for citizens in Japan:

1. Trading 212 is the best CFD broker in Japan in 2021. Real stocks and ETFs are commission-free. Quick and easy account opening. Great trading platforms.
2. AvaTrade takes the second place. Easy and fast account opening. Free deposit and withdrawal options. Great research tools.
3. IG rounds out the top three. First-class web trading platform. Superb educational tools. Great deposit and withdrawal options.
4. Capital.com, is ranked fourth. Low forex and stock CFD fees. Great account opening experience. Excellent customer support.
5. FxPro. Just made it to the list by moving to the fifth spot. Superb account opening process. Great customer service. Free deposit and withdrawal.

What makes a good CFD broker? First of all, fair fees. They should provide access to lots of products as well as easy account opening and depositing. Having a great trading platform is also a strong plus for a good CFD broker.

Easy to list, but hard to figure out. We are testing brokers based on more than 300 criteria with real accounts and real money. We know what's going on. You can find the details of all the ranking criteria in our methodology.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take that kind of risks. If you don't have a clue what a CFD is, you should start by reading more about CFD trading.

Not sure which broker to choose? For a tailored recommendation, check out our broker finder tool. Just enter the name of your country and you will see only the relevant brokers. Want more details? Compare brokers with this in-depth comparison table.

And now, let's see the best CFD brokers for Japanese citizens in 2021 one by one. Starting with the winner, Trading 212.

Trading 212 review summary

Trading 212 is a global CFD and forex broker, but clients can also trade stocks and ETFs free of charge. The company was founded in 2004 and is now headquartered in London. Trading 212 is regulated by the UK Financial Conduct Authority (FCA) and the Bulgarian Financial Supervision Commission (FSC). 

Trading 212 is considered safe as it is regulated by the top-tier FCA. 

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Our overall Trading 212 rating

Compare this broker to the best Trading 212 alternative here. 

Recommended for active cfd and fx traders and investors looking for intuitive trading platforms

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76% of retail CFD accounts lose money

#1 Trading 212
Fees

3.3

Trading 212 has commission-free stocks and ETFs, and there are also no fees for deposit, withdrawal or inactivity. However, fees for forex trading are high.

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

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76% of retail CFD accounts lose money

#1 Trading 212
Markets and products

3.9

Trading 212 focuses mainly on CFDs and forex. You can also trade real stocks and ETFs, but popular asset classes like bonds, mutual funds, options and futures are missing.

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76% of retail CFD accounts lose money

#1 Trading 212
Account opening

4.5

The account opening process is straightforward, user-friendly and quick. Our account was verified within one business day.

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76% of retail CFD accounts lose money

#1 Trading 212
Deposit and withdrawal

4.3

Trading 212 deposits and withdrawals are free, fast, and can be done in several way. On the negative side, there are only a few account base currencies available in each country.

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76% of retail CFD accounts lose money

#1 Trading 212
Web trading platform

4.9

Trading 212 has a user-friendly and customizable web trading platform. It also provides a two-step login.

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76% of retail CFD accounts lose money

#1 Trading 212
Verdict

Trading 212 works as a CFD and forex broker regulated by multiple financial supervisory authorities.

On the plus side, Trading 212 offers commission-free stocks and ETFs, while CFD fees and non-trading fees are low as well. The account opening process is seamless and the trading platforms are user-friendly.

However, Trading 212 has a limited product portfolio, lacking popular asset classes such as bonds or options. We missed phone and live chat support, and found forex fees relatively high.

So is Trading 212 good? Trading 212 is a good choice for those interested in investing in equities or trading leveraged forex and CFD products, with the use of a great trading platform. As it offers a demo account, don't hesitate to give it a try.

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76% of retail CFD accounts lose money

AvaTrade is a global CFD and forex broker founded in 2006. It is regulated by several financial authorities, such as the Central Bank of Ireland.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Recommended for forex and cfd traders looking for an option to use metatrader platforms

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71% of retail CFD accounts lose money

#2 AvaTrade
Fees

3.5

AvaTrade has low CFD and average forex fees. Withdrawals are free of charge, but inactivity fees are quite high.

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

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71% of retail CFD accounts lose money

#2 AvaTrade
Markets and products

2.0

AvaTrade offers only forex and CFDs, such as stock, index, forex and commodity CFDs. It doesn't offer other popular asset classes such as real stocks, bonds or mutual funds.

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71% of retail CFD accounts lose money

#2 AvaTrade
Account opening

5.0

Account opening at AvaTrade is seamless and fully digital. You can start trading literally in minutes.

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71% of retail CFD accounts lose money

#2 AvaTrade
Deposit and withdrawal

4.5

AvaTrade offers several free options for deposit and withdrawal. On the negative side, withdrawal took us 3 business days, and debit card deposits can also be slow.

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71% of retail CFD accounts lose money

#2 AvaTrade
Web trading platform

3.8

AvaTrade's web platform is user-friendly, well-designed, and has a unique order type to protect you from losses. However, it lacks customizability, two-step login and price alerts.

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71% of retail CFD accounts lose money

#2 AvaTrade
Verdict

AvaTrade is regulated by several authorities globally, including the top-tier Central Bank of Ireland and the Australian Securities and Investments Commission (ASIC), therefore it is considered safe.

We liked the seamless and hassle-free account opening. You can use a lot of deposit and withdrawal options, all free of charge. We also liked that you can use many user-friendly tools for research.

AvaTrade has some drawbacks though. The product range is limited to forex, CFDs, and cryptos, and there is a high fee charged for inactivity. Lastly, there are better alternatives if forex trading fees are your main concern.

As there is only a small minimum deposit, and your account will be ready for trading quickly, feel free to try AvaTrade.

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71% of retail CFD accounts lose money

IG was established in the UK in 1974 and is one of the biggest CFD brokers in the world. It is regulated by several bodies globally, including top-tier regulators like the UK's Financial Conduct Authority (FCA) and Germany's Federal Financial Supervisory Authority (BaFin). IG Group is listed on the London Stock Exchange.

IG is considered safe because it is listed on a stock exchange, discloses its financials and is overseen by top-tier regulators.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFDs are not provided for US clients. Forex trading involves risk. Losses can exceed deposits.

Recommended for traders of any experience level looking for an easy-to-use trading platform

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70% of retail CFD accounts lose money

#3 IG
Fees

3.1

IG has low non-trading fees. There is no fee for withdrawals and an inactivity fee is charged only after 2 years. On the negative side, the forex and stock CFD fees are high.

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

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70% of retail CFD accounts lose money

#3 IG
Markets and products

3.9

At IG, most clients can only trade with CFDs, forex and options. There are literally thousands of CFDs available to trade. Residents in the UK and some other countries can also trade with real stocks. Other popular assets, however, like mutual funds and bonds, are not available.

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70% of retail CFD accounts lose money

#3 IG
Account opening

4.4

IG's account opening is seamless and fully digital. There is no minimum deposit for bank transfers and a low, $/€300 minimum deposit for credit/debit cards and PayPal. On the other hand, account verification takes around 3 business days, which is slower than at some other brokers.

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70% of retail CFD accounts lose money

#3 IG
Deposit and withdrawal

4.5

IG offers free and fast deposits and withdrawals. There are various options for funding your account, including traditional methods such as bank wire transfer and credit card funding, as well as PayPal.

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70% of retail CFD accounts lose money

#3 IG
Web trading platform

5.0

IG's web trading platform is great for both beginners and professional traders. It is easy to use, has all the necessary functions and can be customized.

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70% of retail CFD accounts lose money

#3 IG
Verdict

IG is one of the biggest and most reliable CFD brokers. It is regulated by several financial authorities around the world. IG Group is listed on the London Stock Exchange.

IG has one of the best web trading platforms BrokerChooser has tested. The deposit and withdrawal conditions are great. You can also expand your knowledge with great educational materials.

On the other hand, there are some drawbacks. The forex and stock CFD fees are high and the product portfolio in most countries is limited to forex, CFDs and options. Customer support could be better.

Feel free to test IG's first-class trading platform, since there is no minimum funding amount for bank transfers and you can also easily open a demo account. 

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70% of retail CFD accounts lose money

Capital.com is a global CFD and forex broker that was founded in 2016. It is regulated by the UK's Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), and the National Bank of the Republic of Belarus (NBRB).

Capital.com is considered safe because it is regulated by the top-tier FCA.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.77% of retail investor accounts lose money when trading CFDs with this provider. Make sure you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Recommended for forex and cfd traders looking for great trading platform and customer service

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78.77% of retail CFD accounts lose money

#4 Capital.com
Fees

4.3

Capital.com has low forex and CFD fees. It's great that commission-free real stocks are available for clients under FCA and CySEC. Non-trading fees are low, too, there are no inactivity or withdrawal fees. On the other hand, stock index CFD fees aren't competitive.

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

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78.77% of retail CFD accounts lose money

#4 Capital.com
Markets and products

3.0

Capital.com has an impressive selection of CFD, forex and crypto products compared to other CFD brokers. However, it lacks popular asset types like real ETFs, funds, or futures.

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78.77% of retail CFD accounts lose money

#4 Capital.com
Account opening

5.0

Capital.com has one of the best account opening processes we've ever seen: it is simple, quick, well-designed and intuitive. We are impressed.

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78.77% of retail CFD accounts lose money

#4 Capital.com
Deposit and withdrawal

4.5

Deposits and withdrawals are free at Capital.com and many options are provided, including Apple Pay. However, only four major currencies (USD, GBP, EUR, AUD) and one smaller (PLN) are available.

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78.77% of retail CFD accounts lose money

#4 Capital.com
Web trading platform

3.9

Capital.com has an easy-to-use and well-designed web trading platform, with clear fee reports and a two-step login. However, it has limited customizability and lacks price alerts.

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78.77% of retail CFD accounts lose money

#4 Capital.com
Verdict

Capital.com is a great CFD and forex broker, regulated by the FCA, a top-tier authority.

On the plus side, the stock CFD and forex fees are low, the account opening is very user-friendly, and customer support is exceptional.

On the other hand, Capital.com offers only CFDs (equity, index, crypto, commodity, forex) and real stock asset classes. Minor account base currencies and price alerts are missing from the web platform.

As there is no inactivity fee and the account opening is fast, feel free to try Capital.com.

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78.77% of retail CFD accounts lose money

FxPro is a global CFD and forex broker founded in 2006. It is regulated by several financial authorities globally, including the UK's top-tier Financial Conduct Authority (FCA).

FxPro is considered safe because it is regulated by the top-tier FCA and it has a relatively long track record.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 86.32% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Recommended for forex and cfd traders looking for a broker with great account opening and familiar with metatrader platform

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86.32% of retail CFD accounts lose money

#5 FxPro
Fees

3.4

FxPro has free deposit and withdrawal options. On the negative side, FxPro charges an inactivity fee, and stock CFD fees are high.

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

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86.32% of retail CFD accounts lose money

#5 FxPro
Markets and products

1.8

At FxPro you can trade CFDs of underlying asset classes including forex, stocks, commodities, futures and indices. However, popular products such as real stocks or ETFs are not available.

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86.32% of retail CFD accounts lose money

#5 FxPro
Account opening

5.0

FxPro account opening is hassle-free, straightforward and very fast; it may take less than two hours to verify your account.

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86.32% of retail CFD accounts lose money

#5 FxPro
Deposit and withdrawal

4.5

FxPro offers free and fast deposit and withdrawal, via various channels including bank transfer, credit/debit cards and electronic wallets.

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86.32% of retail CFD accounts lose money

#5 FxPro
Web trading platform

2.8

FxPro offers several trading platforms. The MT4 platform we tested is highly customizable and has a clear fee report, but the platform lacks price alerts and the design is outdated.

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86.32% of retail CFD accounts lose money

#5 FxPro
Verdict

FxPro is regulated by several authorities globally, including the top-tier FCA.

On the plus side, opening an account is fast and takes place fully online and there are a lot of free deposit/withdrawal options. FxPro has great customer service, with many languages supported. 

FxPro has some drawbacks though. Its product range is limited to CFDs and forex. Its trading fees are generally low, but relatively high for some stock CFDs. A $15 one-off account maintenance fee and a monthly $5 fee is charged after 12 months of inactivity.* 

We recommend FxPro for those who are interested in CFD and forex trading and appreciate a quick and hassle-free account opening process. Feel free to test it via the demo account.

*May vary on jurisdiction

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86.32% of retail CFD accounts lose money

Trading with CFDs became widely popular over the past decade. Keeping your eyes on important criteria like CFD fees or the number of CFDs offered can help find the best CFD broker for you.

In 2021, we ranked CFD brokers based on more than 300 criteria. We list below only the five most important criteria to make sure you don't get overwhelmed.

Fees, fees and fees. We bet fees are always on your mind when you’re looking for the best CFD broker. Let's see how we compared the fees of the various CFD brokers.

It is not easy to compare CFD broker fees, but we are here to help. There are two categories: trading-related fees and non-trading fees.

Trading-related fees

As to trading-related fees, brokers can charge commissions, spreads and overnight fees. To make your life easier we calculated all fees based on real-life scenarios so you can make a simple comparison. We looked at the following products:

• Stock index - S&P 500 index CFD and Europe 50 index CFD
• Stock - Apple CFD and Vodafone CFD
• Forex - EURUSD and GBPUSD

Our assumptions included opening a position, holding it for a week, and then closing it. We calculated with the following positions: $2,000 for stock index and stock CFDs and a $20,000 forex position. These real-life assumptions make CFD fees comparable.

Compare more fees

CFDs are derivatives, where you can make bets on the price movement of a wide range of products. However, it is a leveraged product, which means that it is quite risky.

CFDs are derivatives: you bet on price movements

With CFDs, you can bet on whether the price of an asset will go up or down, without buying the underlying asset. Let's say you want to profit from the Microsoft stock price going up. At an online stockbroker, you would simply buy the Microsoft stock. In comparison, at a CFD broker you can instead bet directly on the stock price going up. However, CFDs are much like knives: they can be very useful, but if you have no idea how to use them, you can easily hurt yourself.

CFDs are an easy way to reach a lot of markets with leverage

Why would this be interesting for you? Well, CFDs have three big advantages:

• 1. You can make bets on all kinds of products. If you want to trade with Turkish stocks, you can do so via CFDs, which might not be possible with an online stockbroker. It is easier for a broker to provide a CFD than to have access to the Turkish stock exchange.
• 2. The second advantage is leverage. The potential return on your bet will be much bigger than with owning the actual stock. But this certainly carries greater risks, so you should fully understand leverage before you invest.
• 3. Lastly, CFDs are an easy way to have short positions. This is indeed a big plus.

To better understand these advantages, educate yourself by reading our CFD trading tips.

Not owning the underlying asset exposes you to additional risks

If you do not own the stock (or any other underlying asset), you are running a whole different kind of risk, which you need to understand before trading CFDs.

Let's say Bob owns Siemens stock, while Janet has an open long Siemens CFD position, both of them with “Bust Brokers.” The worst happens, and Bust Brokers goes bust. Bob's Siemens stock is in custody with his custody service provider. This means that sooner or later he will be able to access it again. However, Janet did not own any stock, only a long CFD position, therefore she will be compensated only up to the investor protection scheme of the broker’s country. In most cases, this is a maximum of €20,000.

The regulation of CFDs changed significantly in the last few years. One of the most significant changes were the measures European Securities and Markets Authority (ESMA) published back in 2018. Most recently the Australian regulator followed ESMA's direction and introduced similar regulations for brokers operating in Australia. These measures clearly show how regulators globally aim to protect retail investors from the dark side of the retail brokerage industry.

Based on ESMA's research, around 74-89% of investors were losing money on their CFD investments, and in many cases it was not entirely their fault. One core problem is that some dealing desks brokers made a profit when their clients lost money. If you don't know what this model looks like, this Financemagnates article clearly explains it. Another problem was the aggressive and unbridled marketing of deposit bonuses, cheap prices and messages that promised easy ways of getting rich.

The new ESMA and ASIC regulation is aimed at lowering the proportion of accounts suffering losses. Here are the measures with their explanations:

• Limiting leverage: it was not uncommon to be able to open a position with 400:1 leverage. The possible maximum leverage is now limited to 30:1 for major currency pairs. The limitation varies according to the underlying asset's volatility:
  • 30:1 for major currency pairs
  • 20:1 for non-major currency pairs, gold and major stock indices
  • 10:1 for commodities other than gold and non-major stock indices;
  • 5:1 for single stocks and any underlying not otherwise mentioned
  • 2:1 for cryptocurrencies
• Margin close out on a per account basis: if an account's total margin falls below 50% of the initially required margin, brokers must close one or more of your positions.
• Negative balance protection: you cannot lose more money than you invested.
• Restrictions on marketing and incentive tools: instead of promoting CFD trading by get-rich-quick, promises, brokers have to clearly show what percentage of their customers are losing money.

To sum it up, do the stricter regulations mean that trading CFDs will become nothing but a bedtime story we tell our kids? On the one hand, retail investors are now protected from losing more than they invest. On the other, canny investors won't be able to multiply their profits by using high leverage. All in all, we think CFDs will remain popular despite the new regulations as trading becomes safer and more transparent.

You should be aware that investor protection regulation is different in every jurisdiction. You should always check the relevant rules.

Being part of a banking group or listed on an exchange should be your primary compass for finding the best CFD brokerss

It's time to discuss how to make a well-informed choice in today's changing landscape of CFD brokers. We prefer exchange-listed and/or banking licensed brokers. Why?

• Being listed on any developed exchange means additional regulations, strict and frequent audits and also the need for constant communication between shareholders and other stakeholders. No wonder that only a small portion of retail brokers decide to give up money in exchange for transparency.
• Banks are the crucial building blocks of any economy. Strict capital requirements, regulations and transparency are a must. Therefore any broker backed by a bank can be considered more reliable than the ones that aren't.

For more help on these points, check out ourcomparison table for online brokers.

Compare protection amounts

You've seen the details, now let's zoom out. here are once again the best CFD brokers in 2021 for citizens in Japan:

Trading 212 is our winner, the best CFD broker for Japanese citizens in 2021. Real stocks and ETFs are commission-free. Quick and easy account opening. Great trading platforms.

All the five top brokers are great choices. However, do not forget, that CFDs are really risky. If you are experienced, pick your winner, and take the next step in your trading journey. Let us know what you think in the comments section.

Still unsure? Use the broker finder and find the best broker for you.