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Japanese Binary Options Brokers – Legal

Binary options have become one of the fastest-growing segments of the financial markets. They’re simple to understand, easy to trade, and there’s less uncertainty regarding the amount of money at risk compared to other speculative investments. Unsurprisingly, the contracts have become increasingly popular around the world, including throughout Asia. A number of Japanese binary options brokers have emerged to meet the demand.

Financial transactions are monitored by regulatory agencies in the host country. Binary options brokers that maintain offices within the country are subject to the same level of scrutiny as the firms headquartered there. This page will focus on Japan. You’ll learn which watchdog agencies are in charge of monitoring Japanese binary options brokers, and the reasons many brokers set up operations outside the country’s borders. We’ll also give you a list of legitimate firms that welcome those who are interested in binary options trading in Japan.

Regulations For Japanese Binary Options Brokers

There are two agencies in Japan that oversee the securities and exchange markets. The Financial Services Agency (FSA) – headquartered in Tokyo, but with additional offices elsewhere – was established in 2000. It is responsible for making certain that the financial markets in Japan remain stable, no small task given the volume of trades executed each day. The agency’s authority actually extends to banking, insurance, and accounting. That means it is tasked with monitoring the entire financial system.

Because the FSA’s responsibilities are so varied, it relies on a second regulatory agency to oversee transactions involving stocks, bonds, currencies, and other securities. The Securities and Exchange Surveillance Commission (SESC) was created in 1992, preceding the FSA by nearly a decade. It is in charge of ensuring compliance by all member firms and investigating violations. When violations in the securities markets occur, the SESC imposes fines and penalties. Japanese binary options brokers, specifically those with offices in Japan, fall under the jurisdiction of the SESC.

Why Some Binary Options Brokers Operate Outside Japan

It goes without saying that the watchdog agencies in Japan, much like those in the U.S., Europe, and other developed nations, enforce strict rules for their financial markets. As we noted earlier, brokers with offices in the country must follow the rules closely, and in most cases, disclose their transactions. In other words, they must subject themselves to oversight.

For small firms that lack the capital of Japan’s largest banks and financial institutions, sticking to these rules can be costly. Doing so also makes trading binary options more cumbersome than would otherwise be the case. The rules create obstacles.

This is the reason a majority of binary options brokers open to Japanese traders operate from places like Cyprus, a small country in the Mediterranean Sea. The regulations that oversee financial firms there are much more relaxed. Brokers can operate without having to jump through hoops in order to meet the needs of their customers.

Another reason binary options firms operate from Cyprus is because there is more predictability. There is less chance that an arbitrary rule passed by the government will decimate their business model. Contrast this to the U.S., where a single stroke of the pen in 2006 (UIGEA) relegated online poker to a legal purgatory. A similar situation can easily happen in other developed nations, including Japan. By operating in Cyprus, Japanese binary options brokers can keep their doors open to traders in Japan while minimizing their exposure to arbitrary regulations.

It’s worth pointing out that binary options traders seldom need to visit a physical office in order to resolve issues. Everything can be handled seamlessly online (e.g. email, Skype, online chat, etc.) or on the phone.

Japanese-Friendly Binary Options Brokers

There are plenty of binary options brokers that cater to Japanese traders. A few have offices in Japan while most of the others operate from places like Cyprus. The most important things to look for are the three Rs: reputation, returns, and reliability. You want to work with brokers that have a solid track record; you want to take advantage of comparatively high returns; and you want to know that payouts are sent out on time, every time. Asset variety, an intuitive trading platform, and special features, such as Option Builder, are also important.

Here are the 4 Japanese binary options brokers we currently recommend…

Expert Option
www.expertoption.com
Phone: 03-4579-0341
No sales office in Japan.
1st Floor P.C. 3082,
Limassol, Cyprus

This broker allows you to trade several commodities, more than a dozen currency pairs, and a healthy list of stocks and indices for as little as $1 per trade. You’ll have access to common binary options, such as high/low and touch/no touch contracts. Expert Option also hosts less common instruments, including 60 second options. The returns for a majority of the binaries are between 70% and 91%, with a small rebate (less than 10%) given for select out of the money trades. Visit ExpertOption.com today, and get started with a low $10 minimum deposit.

24Option
www.24option.com
Phone: +(81) 34520-9224
No sales office in Japan.
Estias 11B Ilioupoli Dali,
Nicosia, Cyprus

This firm continues to be one of the highest-rated among its competitors. They offer solid customer support, use their own proprietary trading platform, and provide access to a number of different binary options types. In addition to high/low, touch/no touch, and 60 second options, you’ll have an assortment of range and high-yield contracts at your fingertips. Percentage returns typically climb to 85% on most contracts with high-yield instruments providing substantially higher returns. We recommend that you visit 24Option today. One quick note: the broker offers a promotional 50% bonus on deposits of $2,500 or more. Conditions do apply, so check the fine print.

IQOption
www.iqoption.com
Phone: +(44) 20809-97262
No sales office in Japan.
Estias 11B Ilioupoli Dali,
Nicosia, Cyprus

It only takes $10 to start trading binary options at IQOption. After making your initial deposit, you can trade high/low and one-touch contracts, with payout percentages between 70% and 85%. They also return 15% as a rebate on out of the money trades, making this broker one of the only firms to do so consistently. One of the main strengths of IQOption is their huge list of assets. Dozens of stocks and indices are joined by several currency pairs and commodities. You can also take advantage of Option+, a feature that allows you to sell binary options back to IQOption after you purchase them. Visit the site today to register your account and find out more.

Marketsworld
www.marketsworld.com
Phone: 1-800-656-6163
No sales office in Japan.
40 Wall Street New York,
NY 10005 USA

Markets World is consistently among the top 5 binary options brokers recommended to new and experienced traders. The firm uses its own trading platform (called Digital Options Pro), and gives traders access to high/low and 60 second options. Marketsworld.com also extends a feature called Option Builder that allows you to tailor trades to accommodate your trading strategy. Few brokers offer this feature. Once you make your first deposit ($500 minimum), you’ll be given access to a helpful demo account. Use this account to get accustomed to marketsworld’s trading platform. Visit marketsworld.com and claim your 50% sign-up bonus on your initial deposit.

The number of Japanese binary options brokers is growing. Software provider SpotOption recently inked a few deals to provide the binary trading platform for Alpari and Option-Game, new entrants to the field. Additionally, IG Markets continues to make inroads. All 3 firms currently have offices in Japan, placing them under the watchful eyes of the Financial Services Agency and Securities and Exchange Surveillance Commission.

We suggest starting with two or three of the brokers listed above. They are legitimate firms that strive to provide a positive experience to their customers. And that goes a long way toward gaining our trust.

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