After emerging from World War II, the country of Japan developed into one of the biggest economic powers in the world. And even though China continues to knock on their financial door, to this day Japan still has one of the largest financial trading markets in Asia. Because of this, many financial businesses have based their headquarters there or have branches located there to better serve the market in the region.
But when it comes to binary options trading , does Japan offer brokerage services? And if so, what regulations must they follow in order to legally do business there? Yes, binary options trading in Japan is big business. This happened largely thanks to blocking the IPs of brokers who operate within the country without a license, slowing down the capital that flowed out of the country as a result.
Due to the increased interest in trading binaries, most brokers offer a special Japanese platform for traders. There have been some other recent changes in Japan that brokers now must follow. A couple of agencies undertake the regulation of financial markets in Japan: Thanks to enabling laws, the two organizations also work to make sure that technology and providers follow the relevant regulations and procedures as well.
To get a license to broker binary options in Japan, you must meet a number of rules that first appeared on the books in These rules include pricing, payout, cash-back caveat, minimum trading period, and client suitability. A couple of rule sets exist with regard to pricing. They must offer traders a crystal clear, unequivocal environment in which to execute business until just prior to the expiry time they choose.
Brokers in Japan cannot offer payouts in amounts based on a fixed price at the moment the trade begins. Instead, broker platforms must show what payouts will be for multiple investment amounts. This way, traders can better evaluate the risks without jumping into trades based on speculation only. Japanese-based brokers also cannot offer cash back incentives or bonuses as an enticement for attracting traders to their platform.
FFAJ rules state that brokers also need to prevent any of their affiliates from offering bonuses and gifts to persuade potential customers either. The FFAJ no longer allows short-term trades less than two hours on platforms offered by Japanese-based brokers. Every OTC binary options broker has to settle on the base hour per trading period and the expiry times dependent on that base hour.
The award winning software allows you to trade more profitably with less work. The best thing about it is that it is now completely free for our readers, but probably not for very long time, so I recommend you to try it out today. Other recommended auto trading robots: Binary options brokers in Japan must also determine the suitability of potential customers to trade in the market. Rules for trading and trading limits per transaction need to be transparently laid out.
Safeguards must exist to determine whether or not a customer has the needed knowledge of binary options which usually comes in the form of a questionnaire upon account registration. Since the new regulations released in , binary options brokers in Japan have changed their trading platforms to come in line. As a trader in Japan, you should feel confident in executing trades. You can also select from a list of brokers offering white-label solutions from companies like MarketsPulse, TechFinancials, and Tradologic.
In the last few years, binary options platform providers in Japan have worked to capture the interest of traders with new technology that reflects the changes required by law. Tradologic released its FFAJ-compliant platforms first. Then TechFinancials and MarketsPulse followed, first going through a testing phase before scheduled release to the public. Companies developed other compliant platforms for use on mobile devices like the iPad, iPhone, and Android smartphones and tablets.
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