The Financial Services Agency (FSA) is Japan’s primary financial regulatory authority responsible for overseeing forex brokers, banks, insurance companies, and securities firms. Known for its stringent rules and proactive enforcement, the FSA promotes fair, stable, and transparent financial markets while protecting retail investors.
The Financial Services Agency (FSA) is one of the most reputable financial regulators globally, ensuring the safety and transparency of forex trading in Japan. Choosing an FSA-regulated broker ensures compliance with strict standards and strong investor protection.
- 25:1 maximum leverage for major currency pairs
- Lower leverage may be applied to more volatile pairs or at FSA discretion
- Licensing and supervision of forex brokers and financial institutions
- Enforcing trading leverage limits and margin requirements
- Monitoring compliance with anti-money laundering (AML) and investor protection laws
- Collaborating with the Japan Financial Services Intermediary Association (FIAJ) and the Japan Virtual and Crypto Assets Exchange Association (JVCEA)
- Visit the FSA Website (Japanese only)
- Navigate to the registry of licensed financial service providers
- Search by broker name or registration number
- Capital Requirements: Minimum net capital based on trading volume and client exposure
- Client Fund Segregation: Mandatory segregation of customer funds
- Leverage Caps: Strict 25:1 limit to protect retail traders
- No Bonus Policy: Promotional bonuses and incentives are restricted
- Reporting & Audits: Frequent financial and operational reporting to the FSA
- Negative Balance Protection: Required to prevent client loss beyond deposits
Advantages
- Strong enforcement and consumer protection
Transparent licensing framework
Stable regulatory environment for forex trading
Reliable broker registry and public accountability
Limitations
- Website and resources primarily in Japanese
Strict leverage limits may deter high-frequency traders
Bonus bans limit marketing incentives for brokers
Country
Japan
Established
2000
Contact
+81 3 3506 6000
Complaint bodies
Financial Services Agency (FSA) Japan Financial Services Intermediary Association (FIAJ) Financial Services Dispute Resolution Center (Ombudsman-style service)
Hotline
+81 3 3506 6000
Last updated on: March 27, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.