9 reasons why you should trade CFDs in Japan

When it comes to trading CFDs, many people have a general misconception that they’re highly risky and too complicated for them to get into.

If you’re a beginner trader in Japan, your reasons may even be further reinforced by a local broker who would prefer if you just stuck to essential investment products such as mutual funds or exchange-traded funds (ETFs).

However, this couldn’t be more wrong. There are risks when crossing the bridge into foreign derivatives like CFDs, but that doesn’t mean the bridge is unsafe.

The problem with most market research conducted in Japan is there’s no distinction between forex trading and CFD trading, two completely different things!

Let’s set the record straight and give you 10 reasons why CFDs belong in a balanced portfolio of investment products that any beginner should have.

Leverage is your friend, not the enemy 

Many online articles from Japanese brokers make it sound like leverage is some highly volatile snake oil.

In reality, though, leverage isn’t a tool only to be used by professional traders but a viable investment product for beginners.

The point they fail to understand is that too much leverage can backfire on anyone, even those with decades of trading experience under their belt.

No more scouring other websites for real-time pricing

Traders bring all the analysis and research tools a trader needs into one place where they can freely access them.

People who trade CFDs in Japan don’t need to depend on expensive online research tools when they can get it all here for free.

It’s also why they review brokers for our readers instead of making blanket statements about how great or awful they are.

Why is the yen so strong? 

We love the yen, but there are days when it feels like you can’t put a foot right without stepping on some political landmine that could trigger another global selloff.

If you’re not entirely comfortable trading forex in Japan, then maybe CFDs are more your thing with less market uncertainty and more defined risk-reward ratios.

As long as you choose reputable brokerages in Japan, your funds will be safe in segregated accounts and not mixed with the company’s funds.

No need to open a new trading account

If you’re still thinking of opening a forex trading account in Japan, think again. You can avoid all that paperwork and get started right away when you fund your CFD account in Japanese yen (JPY).

If you want to set up an actual forex trading account, we can help you figure out which brokerages support what type of legal entity.

Trading 24/7 just like the big boys

Don’t be fooled into thinking that forex markets only trade during office hours in Tokyo. They don’t!

A good broker should never turn down an opportunity for their traders, no matter when it is in Japan or the rest of the world. Many brokers offer their clients live to chat support all night long and at weekends if something goes awry during your trading session.

Copy other people’s trades for a fraction of the price

If you have no idea how forex pricing even works, don’t worry! You can copy other people’s successful trades and let them do all the worrying about where to put stop losses or what should set target prices.

It might sound like an easy way out, but even professionals need good mentors from time to time.

Stop using outdated research sources

There’s no such thing as cutting corners when it comes to trading, which is why we conduct our independent reviews on Japan-based forex brokers and CFDs.

It’s why our readers don’t have to scour other websites for broken links, out-of-date news articles, or questionable accuracy in their analysis.

No more limits when trading futures in Japan 

Futures contracts have been around forever, but they have only recently become popular in Japan.

We say this because Japanese citizens used to be banned from trading futures due to regulations aimed at protecting their savings.

Imagine the average Japanese salaryman’s surprise when they discovered an entire market of tradable derivatives just waiting to be explored!

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