What is the JFSA and how does it regulate forex brokers?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers EU editorial desks (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related
What is the best forex broker for Japanese traders in 2026?
Japan restricts retail forex to JFSA-licensed brokers, with leverage capped at 25:1 (the strictest among major jurisdictions). Top JFSA-registered brokers include GMO Click, DMM.com Securities, SBI FX Trade and Saxo Bank Securities Japan. Non-Japanese brokers cannot legally solicit Japanese residents.
How is forex trading taxed in Japan in 2026?
Japanese residents pay a flat 20.315% tax on retail forex profits under the separate self-assessment system (shinkoku bunri kazei) — 15% income tax, 5% local inhabitant tax, and 0.315% special reconstruction surtax. This applies to JFSA-registered margin FX and certain OTC derivatives. Losses can be carried forward for three years against the same income class.
What are the ESMA leverage limits for retail forex traders?
ESMA limits retail forex leverage to 30:1 on major currency pairs, 20:1 on minors and major indices, 10:1 on commodities and non-major indices, 5:1 on individual equities, and 2:1 on cryptocurrencies. These limits apply to all EU/EEA regulated brokers since 1 August 2018.