Binary Option in Japan: Is it legal? – Tutorial & brokers


Yes, binary options trading is legal in Japan.

In Japan, binary options have recently become a popular way to profit from the financial market. It is regulated by the Japan Financial Services Agency (JFSA) and the Securities and Exchange Surveillance Commission (SESC). These regulatory bodies ensure that brokers operating in Japan comply with national financial laws and regulations.

Although trading binary options may seem simple, several risks are involved because binary options trading is prohibited in many nations. This article discusses the trading platforms available to binary options traders and provides a guide on starting your binary options trading journey.

Binary option trading tutorial in Japan
Binary Options Trading Tutorial in Japan

Key facts on binary options trading in Japan

  • Regulatory Body and Licensing: Binary options trading is regulated by the Financial Services Agency (FSA). Ensure your broker is licensed by the FSA to guarantee adherence to strict standards of transparency and customer protection.
  • Restriction on Short-Term Options: The FSA mandates a minimum expiry time of 2 hours for binary options contracts. This rule reduces the risks of short-term, speculative trading, promoting a more stable environment.
  • Standardized Product Features: The FSA requires brokers to standardize features such as payout rates, expiry times, and underlying assets. Brokers must also provide educational materials, ensuring all traders can access consistent information and conditions.

A Step-by-Step Guide to Trading Binary Options in Japan

1. Pick an available binary options broker in Japan

Broker:
Regulation:
Yield & Assets:
Advantages:
The offer:
12345
5 / 5
/
Yield: 95%+
100+ Markets
  • Min. deposit $10
  • $10,000 Demo
  • Fast Execution
  • High Profit up to 95%
  • Fast Withdrawals
  • Free Signals
Live-account from $10
  Sign up for free

(Risk warning: Trading is risky)

12345
5 / 5
MISA
Yield: 97%+
100+ Markets
  • Welcomes International Clients
  • Offers High Payouts: 90% – 97%+
  • Professional-grade Platform
  • Swift Deposit Process
  • Enables Social Trading
  • Provides Free Bonus Incentives
Live-account from $ 5
  Sign up for free

(Risk warning: Trading is risky)

12345
5 / 5
Financial Commission
Yield: 93%+
100+ Markets
  • Professional Platform
  • Free Demo Account
  • $10 Minimum Deposit
  • Webinars and Education
  • High Payouts
Live-account from $10
  Sign up for free

(Risk warning: Trading is risky)

Broker:
12345
Regulation:
/
Yield & Assets:
Yield: 95%+
100+ Markets
Advantages:
  • Min. deposit $10
  • $10,000 Demo
  • Fast Execution
  • High Profit up to 95%
  • Fast Withdrawals
  • Free Signals
The offer:
Broker:
12345
Regulation:
MISA
Yield & Assets:
Yield: 97%+
100+ Markets
Advantages:
  • Welcomes International Clients
  • Offers High Payouts: 90% – 97%+
  • Professional-grade Platform
  • Swift Deposit Process
  • Enables Social Trading
  • Provides Free Bonus Incentives
The offer:
Broker:
12345
Regulation:
Financial Commission
Yield & Assets:
Yield: 93%+
100+ Markets
Advantages:
  • Professional Platform
  • Free Demo Account
  • $10 Minimum Deposit
  • Webinars and Education
  • High Payouts
The offer:

First, ensure the broker is licensed and regulated. This regulation is crucial as it confirms the broker’s legitimacy and compliance with local laws.

Next, evaluate the broker’s platform features, such as bonuses and indicator tools. A broker offering sign-up and deposit bonuses can be beneficial as you start trading.

Also, check if the broker provides a demo account. Demo accounts are essential for beginners to learn without financial risk and for professionals to familiarise themselves with the platform’s interface.

Another important factor is convenience in depositing and withdrawing funds. Ensure the broker’s options match your needs for flexibility and ease.

Finally, understand the broker’s overall customer experience and specific terms and conditions. Reading these terms carefully can help avoid hidden clauses affecting your trading experience.

Considering these factors, you’ll be better equipped to choose a trustworthy binary options broker that meets your needs.

Quotex

Quotex in Japan
Quotex in Japan

Quotex provides various global banking options with a user-friendly interface. If you have a problem with another currency, you can deposit it in the pound, euro, dollar, or cryptocurrency. You may use this website’s trading features if you are at least 18 years old.

With Quotex, getting started is simple. First, you must go through a 3-step process that entails signing up, honing your skills with training materials and a free demo account, and then depositing money to start trading at a low rate of $5.

Key features:

  • Start trading with $1.
  • Up to 98% of the possible returns.
  • A $10k trade fund and a free demo account are available.
  • All devices can use the web-based platform.
  • The minimum deposit is $10.
  • No deposit fees are charged.
› Sign up on Quotex for free

Info: (Risk Warning: Your capital can be at risk.)

Pocket Option

Pocket Option in Japan
Pocket Option in Japan

Gembell Limited, a registered member of the Mwali International Services Authority (MIWA), operates Pocket Option, a legally recognised trading platform in Japan. With a low minimum deposit of just $5 and transaction amounts starting at $1, it’s easy to begin your trading journey. New users can also use a generous 50% welcome bonus on their initial deposit.

Pocket Option offers a high payout rate of up to 128% and access to over 130 tradable assets, ensuring a diverse and rewarding trading experience. The platform supports excellent banking options and is available to traders worldwide, including those in Japan.

Key features:

  • Offers a demo account with $10,000.
  • Get the highest possible payout of 128% from more than 130 assets.
  • Minimum deposit is $5.
  • There is a $1 minimum trade.
  • On your initial deposit, you receive a 50% bonus.
  • iOS, Android, Web, & Windows are all supported.
› Sign up on Pocket Option for free

Info: (Risk Warning: Your capital can be at risk.)

Olymp Trade 

olymp trade

Olymp Trade is a top choice for individuals in Japan looking to start binary options trading. With a minimum deposit requirement of only $10, it offers an accessible entry point for new traders. The platform is regulated by FinCom, ensuring its legitimacy on a global scale.

Olymp Trade provides a maximum payout of 95% for its assets, depending on market conditions. Japanese traders can engage in Forex, Binary Options, Stocks, Cryptocurrencies, and Commodities trading. The platform also offers a dedicated mobile application for both Android and iOS, allowing traders to manage their activities anytime, anywhere.

Equipped with advanced indicators for technical analysis and charting tools to project asset prices, Olymp Trade has everything a Japanese trader needs to begin their trading journey.

Features:

  • Olymp Trade minimum deposit of $10
  • OTC, stocks, CFD, and metals are trading tools on Olymp Trade.
  • Web and mobile platform 
  • reliable customer support 
  • Leverage of 1:500
  • Variable bonus 

2. Sign up for a trading account

Signing up for a trading account in Japan
Signing up for a trading account in Japan

Check out the initial deposit needs and your preferred broker’s account options to see which will work best for you. Additionally, educate yourself on the broker’s margin specifications for various options and strategies. This ensures you have enough money in the trading account to support the options you wish to trade. You may now sign once you’re content.

› Sign up for the best binary options broker Quotex in Japan

(Risk Warning: Your capital can be at risk.)

3. Use a demo account

Use a demo account for binary trading in Japan
Use a demo account to trade binary in Japan.

A trading demo account, also known as a demonstration account, is provided by trading sites. It enables a potential client to test the trading system and its many features before activating a genuine account. A wide range of online trading platforms provides demo accounts.

Results obtained from trading on a demo account might differ significantly from actual live trading results—often due to the absence of real money investment. Even if someone trades exceptionally well on a demo fund, their results on a live account frequently vary greatly. Generally speaking, this phenomenon happens because trading with real money often results in a different mindset than trading with fake money.

4. Pick an asset to trade

Pick an asset to trade
Pick an asset to trade.

Select a market from the ones that your broker offers. Naturally, you’ll have a preference for specific markets over others. Every trader tends to become more intrigued by particular markets that fit their preferences. The following markets are regularly traded:

  • Forex
  • Stock Indices
  • Commodities
  • Synthetic Indices

5. Make an analysis

Make a proper analysis
Make a proper analysis

Finding a strategy that uses one or more trading fundamentals of risk management, strikes, signals, and emotional control while analysing binary trading.

6. Place the trade

Place the binary option trade in Japan
Place the binary options trade in Japan.

After deciding on a strike price, placing your transaction is simple. You can select between the sell and buy options and put a margin requirement or a market order.

7. Wait for the result

Wait for the result of the binary trade
Wait for the result of the binary trade.

A lot of the time, trades don’t go as planned. The alternative is to close out slightly earlier and limit your losses if the markets are trending against you. If the markets move in your favour, you might exit the position early and take a smaller confirmed profit.

Waiting until expiration increases the chance that market volatility will cause your contract to settle at zero. Options can be sold before expiration to lock in a gain or reduce a loss.

Payment Methods for Traders in Japan

Japanese binary options traders have access to local transaction options because the binary options market in their country is localised.

Available methods include the following:

Bank wires

Account transactions can also be carried out locally through bank transfers.

Digital wallets

Despite Japan’s sizable financial services sector, e-wallets are rarely used for binary options transactions. Common e-wallets include WebPay and Square. PayPal entered the Japanese market relatively late and hasn’t yet established a significant presence.

Card options

Money is frequently deposited and withheld from Japanese binary accounts using VISA, MasterCard, and JCB debit/credit cards.

Bitcoin

Several Japanese binary options brokers now permit the use of Bitcoin.

How Do I Deposit and Withdraw Funds?

How to deposit funds?

Most brokers make it incredibly simple to add money to your account. There won’t be much delay in finishing the procedure. Go to the tab labelled “Deposit.” Next, decide on a method for adding money to the account. Next, specify which currency you want to use to make the deposit. Enter the deposit sum in this box. Complete the necessary information, then confirm your payment.

How do I withdraw funds?

The procedure of withdrawing money from your account is straightforward.

To withdraw money from an account, you will need the same method you used to deposit it. For example, if you deposit money into your account using the Visa payment system, you withdraw it using the exact mechanism.

Registering an account solely for yourself is essential to confirm your rights because the company may require authentication when withdrawing a sizable amount (verification is requested at the company’s sole discretion).

Pros and Cons of Binary Options Trading in Japan

The Pros of Binary Trading are:
  • Entirely online – There is no requirement to download any software because binary options can only be traded online. Additionally, trading online with binary options is much simpler, thanks to mobile apps.
  • Easily comprehensible—Binary options trading is easier to understand than traditional trading. Any level trader will find it enjoyable, simple, and profitable. As a result, it is a popular choice for countless traders drawn to simple trading styles.
  • Speedy and compelling return on the payout -Comparing trading in binary options to other forms of trading, the return on investment is quick and effective. A payout on investment of up to 70% is sometimes offered by the return you witness in hours and minutes. This is what attracts many traders to binary trading options.
The Cons of Binary Trading are:
  • Pricey compared to Forex positions – Trading binary options cost more than holding Forex positions. The payout is lower than on the forex market. Despite the low cost, the risk connected with binary options trading is lower than that of forex positions.
  • Only a few trading tools – Many brokers won’t give you the tools and information you need to help and guide your decision-making. Due to the rapid pace and high level of risk involved in this type of trading, it can be simple to lose focus on the potential for loss.
  • Uneven distribution of wins and losses – Similar to conventional trading, you could lose all of your money if you lose money. Of course, you could win and get good returns of up to 70% of your initial investment (dependent upon the broker you select). It is, therefore, wise to discuss the probability of winning and losing with your ideal binary options broker.

Risks of Binary Options Trading in Japan

Volatility

A highly volatile asset is one whose price fluctuates rapidly in either direction or none at all, which is what traders of these assets typically seek out. Unfortunately, this is among the worst things a trader can do, as extremely volatile assets make forecasts more challenging than assets that move slowly and steadily.

All-or-nothing

You share in the percentage profits or losses that an investment in a financial asset experiences when you trade that asset. There are no percentage gains when you trade binary options. Instead, you’re engaging in an all-or-nothing deal, meaning you risk losing all your money in a few minutes.

Difficulty withdrawing money

Before a trader may withdraw money from their account, several brokers—even some reputable ones—require that their account be active. Getting your own money is more challenging as a result of these obstacles.

Conclusion: Binary Options trading is available in Japan

The legality of binary options trading in Japan has already been established, but it is subject to various restrictions. Binary options trading is legal and available in Japan, but there is some financial risk involved, as was already mentioned. You must, therefore, be fully informed of the rules, strategic plan, and threats before investing in this options market.

Also, it would be best to trade options with one of the three brokers. You can choose from any of them to start your trading career.

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Frequently Asked Questions (FAQs)

Are binary options legal in Japan?

Trading binary options is legal in Japan. However, brokers in Japan may not be regulated or reliable enough. We advise traders looking for a broker to check out the brokers mentioned in this article, do their due diligence, and ensure that the brokers they want to use are widely recognised and regulated.

Is binary options trading secure in Japan?

In Japan, trading binary options is very secure. The FFAJ rules have been excellent for traders.

Can I buy and sell binary options with foreign brokers if I’m a citizen of Japan?

The FFAJ forbids trading binary options through foreign brokers. To prevent binary options firms from cross-border marketing to their respective nationals, Australia’s regulator and the FFAJ have collaborated.

About the author

Marc Van Sittert
Marc Van Sittert is an experienced Binary Options Trader and coach who is originally from South Africa. He started his career in 2014 by trading old-school Binary Options online. His main focus is on short-term contracts with 60-second trades.

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