Are overseas FX companies dangerous? This article will explain why we don’t recommend them. Many people feel that they are very dangerous in terms of safety and reliability, so how are they actually dangerous? And what do you need to be careful about to trade with overseas FX companies? We will explain in this article, so we hope you will find it useful.
Why overseas FX is said to be risky
First, let me explain why overseas FX is said to be risky. I will talk about it from a Japanese perspective, so if you are interested, check the following points and confirm them. As you can see, there is surprisingly little risk. I will introduce the items that may be subject to problems.
Complicated rules for deposits and withdrawals
Overseas FX is prone to complicated rules for deposits and withdrawals. Compared to domestic FX, it also supports banks, credit cards, and virtual currencies, and in some cases there are various rules depending on the situation and state, which makes it difficult to understand. There are cases where you are refused when you try to settle your position in the market and withdraw your assets. If you do not calculate and judge properly, there is no guarantee of withdrawal. There are many prohibited items, which is troublesome for customers.
No Japanese financial license
Overseas FX does not have a Japanese financial license, but instead has an overseas financial license. A financial license is issued by the financial regulatory authority of each country and is often a required license when developing financial services in that country. Many people think that it is illegal for Japanese people to trade FX in Japan without a license from the Japanese Financial Services Agency, so it is said to be dangerous. However, it is actually possible to do so at your own risk. However, direct sales and solicitation are prohibited.
Not registered or warned by the Japanese Financial Services Agency
For the above reasons, overseas FX is often not registered or warned by the Japanese Financial Services Agency. For this reason, many people think that overseas FX is dangerous. On the other hand, there is no benefit for FX brokers to obtain a license from the Japanese Financial Services Agency in the first place. This is because the Japanese Financial Services Agency has the disadvantages of “maximum leverage of 25 times” and “zero cut system cannot be adopted”, which causes users to leave.
Trust preservation is not mandatory
One of the reasons why overseas FX is said to be unrecommended is that trust preservation is not mandatory. Trust preservation is a system in which funds are separated from operating funds and managed by a trust bank, so that funds are returned accordingly even if the company goes bankrupt or goes bankrupt. Most brokers do not adopt this system. However, even if they do not adopt trust preservation, they are often members of the “Investor Compensation Fund” or “Investor Fund Compensation Insurance”, so traders’ funds will always be returned. The Financial Commission is an example of this. Separation is well regulated and widely adopted.
Tax on FX
Even if you can make a large profit with overseas FX, most of it will be taken away by taxes. A tax system called comprehensive taxation is applied to profits, and the tax rate increases as profits increase. In contrast, in Japan, losses made in the first year can be carried forward until the fourth year, so the taxable amount can be reduced and taxes can be saved. A lot is deducted from income in tax returns, and we often see and hear cries of dissatisfaction on SNS. Although it is high leverage, the fact that you can settle at a high price can be a disadvantage. Many people are disappointed when their resident tax and income tax are specifically determined.
There are fraudulent companies
There are malicious fraudulent companies in overseas FX. They may refuse withdrawals, freeze accounts even if they are not violating prohibited items, and run away with funds. The key point is the length of operation. We recommend companies that have been operating for at least 5 years. This blog only introduces major, long-established brokers, so we recommend them as they are very safe and reliable. When you have a dispute with an overseas institution, there are many cases where it cannot be resolved no matter what the cause, and you will be told to stop. That’s why they say it’s not safe. In fact, I hear that some people end up in debt.
Are overseas FX companies recommended?
Are overseas FX companies recommended? We will explain the reasons. If you look at the following, you will understand that overseas FX is more recommended. In either case, you should compare the data and contents yourself and choose a place that can utilize your style. Be sure to check the program on the official website, and when choosing, make sure to decide on a good place. We will introduce the latest trends and information.
Few trading restrictions
Generally, there are few trading restrictions because it is usually high leverage. Nowadays, it is possible to have many lots and the same positions from the beginning. You can do as many as you want. Even if you are new, you can do it with a small amount of capital, so you can do it while learning the basics. For more details on the above, please see the official website later. By using it efficiently according to your purpose, the amount will increase completely.
Many stocks handled
There are many stocks handled by overseas FX, such as CFDs, stocks, and currency pairs, so there are many ways to earn money. In many cases, these can be used for both sides and scalping, and there are also actual cases where you can do it as you like. Even if you are worried about the operation, it is safe because you can trade from a small amount. It is a highly recommended investment in the industry because you can really earn profits carefully while maintaining profits and losses. Since overseas FX allows you to trade automatically and freely over the Internet, you can seize opportunities under certain favorable conditions.
Trading Platform
Domestic trading platforms are often done using original systems, which have their own quirks and are difficult to use. In contrast, overseas FX uses MT4, MT5, and cTrader. This has a wide range of indicators and is a very useful tool, so it is very popular with traders. Rather than using your own original platform that is difficult to use, learn metatrader and become a professional.
Strong Servers
Overseas FX is generally very blessed with funds, so the internal environment such as servers in the office is strong. Since the corresponding environment is excellent and well-equipped when using it, it is practically possible to avoid contract rejection, so it is unlikely to occur during operation. If you trade after thoroughly researching how to use it, you can earn money with little burden. Financial products allow free methods and actions, and individuals can earn money by making full use of the functions. Compared to domestic FX, which has strict regulations, it is recommended because there are a wide variety of methods and types to choose from.
Bonuses galore
Foreign FX has a lot of bonuses. The spreads are wider and it’s a disadvantage, but the bonuses can be used as credits, so they’re great. Check out the unique bonuses, campaigns, and cashbacks from the home page. Ideally, you should start with a place that keeps costs and amounts low. Even professionals use places that are 100% slip-free. The main places are well managed and you can receive more bonuses than other companies, so you can make money by placing orders.
Zero-cut system
Unlike Japanese FX companies, overseas companies apply the zero-cut system. In the zero-cut system, if the balance becomes negative due to some sudden market fluctuation, the broker will shoulder the negative amount, so there is no margin call. This system can reduce risk in conjunction with loss cut. Basically, this system exists because volatility increases when economic indicators are announced.
Maximum leverage
The maximum leverage is 25 times in Japan, and the same is true in Europe, which requires a considerable amount of margin. However, overseas FX companies have a maximum leverage of 1000x or 2000x, so you can trade even with very small amounts. Basically, choose the appropriate leverage before creating an account. If you have funds, it is also suitable for large transactions. Ideally, you want a high leverage that will never slip.
Events are also popular
Events are also popular in overseas FX. There are trade contests and seminars aimed at Japanese people, and you can check them on the website. There are many services that have been developed in-house for many years, and many projects that allow you to aim for returns such as cashback. You can almost trade the reward as credit, and by increasing it well, you can naturally increase your profits. It is a highly recommended product with a lot of images.
Introducing overseas FX with high contract power
Now, let’s introduce some overseas FX companies with high contract power. We have selected some very popular and reliable brokers and compiled them into a list, so we hope you will find it useful.
XMTrading
XM actually has three companies. When you search online, you will find three hits: XM.com, XMtrading.com, and XMGlobal. Among them, XMTrading offers a comfortable environment for Japanese users, and is highly recommended as it has KIWAMI and Zero accounts.
| Brand name | XM | XMTrading | XMGlobal |
| Operating company | Trading Point Holdings LTD | Tradexfin Limited | XM Global Limited |
| URL | www.xm.com | xmtrading.com | xmglobal.com |
| location | Cyprus | Seychelles | Belize |
| license | FCA、ASIC、CySEC | FSA | IFSC、DFSA、ASIC、CySEC |
| Service Countries | Europe | Asia | others |
FXGT
FXGT is a relatively new FX company established in 2019. The operating company is 360 Degrees Markets Ltd., with a registered address in the Republic of Seychelles. Originally, they also offered services called Global GT and Crypto GT, but they were merged into FXGT in 2023. Of course, they also have a financial license, so you can rest assured that they have a high reputation among people. In the past, they have added many bonuses, and they are a good deal as they are a top-ranked broker.
| Operating company | 360 Degrees Markets Ltd. |
| Registered address | セーシェル共和国 Room 12, First Floor, Kingsgate House, Victoria, Mahe, Seychelles |
| Financial License | FSA: Seychelles Financial Services Authority |
| Established | 2019 |
Axiory
Axiory is an overseas FX broker established in 2015 by Axiory Global Ltd. Axiory is headquartered in Belize and incorporated as a “tax haven”. It has obtained the IFSC license from the Financial Services Agency of the Belize International Financial Services Commission, making it a very reliable and safe FX broker.
| Operating company | Axiory Global Ltd. |
| Established | 2015 |
| location | No. 1 Corner of Hutson Street andMarine Parade Belize City, Belize |
| Financial License | IFSC: Belize International Financial Services Commission |
Bigboss
BigBoss is an FX company established in 2013. It is based in Saint Vincent and the Grenadines and is operated by Prime Point LLC. It has a good reputation among traders and has not experienced any major problems or withdrawal refusals, so it can be said to be a very reliable company.
| Company | Prime Point LLC |
| Found | 2013 |
| Address | 1/F, First St Vincent Bank Ltd Building James Street Kingstown St. Vincent and the Grenadines |
| License | SVG FSA |
easyMarkets
easyMarkets was founded in 2001, making it by far the oldest company among overseas FX brokers. It is operated by EF Worldwide Limited, and is an FX broker based in the Marshall Islands. The Marshall Islands are a tax haven, so they tend to be the base of FX brokers.
| Operation Company | EF Worldwide Limited |
| Address | Ajeltake Road, Trust Company Complex, MH 96960, Ajeltake Island, Majuro, Marshall Islands. |
| License | CySEC,ASIC,FSA,FSC |
| Found | 2001 |
| URL | Click here |
Exness
Exness is a world-famous FX brand founded in 2008 with global expansion. It is a multinational corporate group that has obtained official financial licenses in multiple countries, including European and overseas subsidiaries and affiliates. As of April 2022, it boasts a trading volume of over 2105 trillion dollars.
| Operating company | Exness Limited |
| Registration number | 8423606-1 |
| Country of registration | Japan-Seychelles Relations |
| Company Address | 9A CT House, 2nd floor, Providence, Mahe, Seychelles |
| Established | 2008 |
| Number of Employees | 1054 |
| URL | Home Page |
| telephone number | (+248) 4346767 |
| email address | support@exness.com |
| Financial License | Seychelles Financial Services Authority |
FBS
FBS is an FX broker based in Vanuatu. Founded in 2009, it is a FX broker with a long history of operation. It has successfully expanded globally and has branches all over the world. It also has a financial license. It is well-known among overseas FX brokers, and deposits and withdrawals are safe.
| Operation Company | Mitsui Markets Ltd. |
| Established | 2009 |
| Address | 133 Santina Parade, Elluk, Port Vila, Efale, Vanuatu |
| License | VFSC、IFSC、CySEC |
HFM
The company profile of HF Markets is as follows. The company name has always been Hot Forex, but it changed to HFM in 2022. HFM is a very popular company, especially in Europe, and has won more than 60 awards, so it is very popular and well-known.
| Company Name | HF Markets(SV)Ltd |
| CEO | – |
| Found | 2010 |
| Address | Suite 305, Griffith Corporate Centre, P.O. Box 1510, Beachmont Kingstown, St. Vincent and the Grenadines. |
| Capital Stock | ? |
| Number of employees | 250 |
| support@hfm.com | |
| Licence | IBC No: 22747 IBC 2015 St. Vincent and the Grenadines |
| URL | Home Page |
iForex
iForex is a very long-established FX company, and this alone makes it trustworthy. The operating company is Formula Investment House Ltd, which was established in 1996, so it has a history of 30 years. It is based in the British Virgin Islands and has a financial license registered with the Financial Services Commission of the British Virgin Islands (BVI FSC).
| 運営会社 | Formula Investment House Ltd |
| 設立 | 1996 |
| 所在地 | 1, Wickham’s Cay, Road Town,Tortola BVI VG1110 |
| 金融ライセンス | BVI FSC：英領バージン諸島金融サービス委員会 |
IronFX
IronFX is a globally expanding FX broker established in 2010. As service information is provided worldwide, there are many registered users in Europe, Asia, the Middle East, Africa, and Latin America, and awareness is increasing. IronFX is recognized as a fast-growing FX broker, and in 2012 it won the Best Trading Platform 2012 award.
| Broker | IronFX |
| Established | 2010 |
| Headquarter | Cypros |
| Service Area | Europe Asia Africa Oceania North America South America |
| License | CySEC FCA ASIC |
| Address | 2, Iapetou Str., Agios Athanasios, 4101 Limassol, Cyprus |
| Tel | +44(0) 203 282 7777 |
| Owner | Markos A. Kashiouris Peter G. Economides |
| Company Name | Notesco Limited |
| URL | Home |
LandPrime
Land-FX is an FX broker established in 2013 by the operating company Land Prime Ltd. It has been in operation for over 10 years, so it can be said to be a fairly established broker. Its greatest appeal is its narrow spreads and high contract power, and it has traders all over the world.
| Operation Company | Land Prime Ltd. |
| Established | 2013 |
| Address | ? |
| License | SVG FSA |
| URL | Home |
MILTON MARKETS
MILTON MARKETS is an FX company established in the Republic of Vanuatu in 2015. It is regulated by the Vanuatu Financial Services Commission and has a financial license from the VFSC, so it is a very reliable company.
| 運営会社 | Milton Markets Ltd. |
| 設立 | 2015 |
| 所在地 | バヌアツ共和国 2nd Floor, Transpacific Haus Lini Highway Port Vila, Vanuatu |
| 金融ライセンス | VFSC：バヌアツ金融サービス委員会 |
GeneTrade
GeneTrade is an FX service company established in 2018 by the operating company Genius Trading LTD. The company is headquartered in Belize and holds a financial license from the Belize International Financial Services Commission (IFSC), so it is operated under regulations.
| Operation Comapany | Genius Trading LTD |
| Found | 2018 |
| Address | 5 Cork Street, Belize City, Belize |
| License | IFSC |
TITANFX
TITANFX is an FX company established in the Republic of Vanuatu in 2014. It offers a wide range of services, including free VPS, free EA, and copy trading, and is highly recommended. The maximum leverage is 500x, so you can deposit and withdraw funds with peace of mind.
| Operation Company | Titan FX Limited |
| Establishment | 2014 |
| Address | Pot 564/100, Rue De Paris, Pot 5641, Centre Ville, Port Vila, Vanuatu |
| Financial license | VFSC |
TradersTrust
It is now TTCM TRADERS CAPITAL LIMITED, a group of companies that operate TradersTrust, and was founded in 2009. It is headquartered in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is difficult to obtain.
| Operation Compamy | TTCM Traders Trust Capital Markets Limited (ltd) |
| Found | 2009 |
| Address | 3 Thalia Street, Office Number 310-318, 3rd Floor, 3011, Limassol, Cyprus |
| License | CySEC |
Axi
We will explain the basic information of Axi. Axi is an FX broker established in Australia in 2007. Of course, it holds a license from the Financial Services Agency and is one of the famous brokers with many users. All account types offer up to 1,000 times leverage.
| Broker | Axi |
| Established | 2007 |
| Max Leverage | 1000x |
| License | SVG ASIC FSA |
| Trading Tool | MT4 |
FXPRIMUS
The basic information of FXPRIMUS is as follows. Naturally, it holds a financial license and is operated under strict regulations. It has bases in Vanuatu and Cyprus and has obtained licenses from the financial authorities of each country.
| Broker | Primus Markets INTL LTD(Cyprus) Primus Global LTD(Vanuatu) |
| Location | Cyprus Vanuatu |
| License | CySEC VFSC |
| Established | 2009 |
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