"Overseas FX" has been attracting attention for the past few years.
What is different from domestic Forex?
In the first place, why is it overseas Forex instead of domestic Forex while staying in Japan?
There is a big merit of overseas Forex that domestic Forex does not have.
Here, I will explain the merits of using overseas Forex one by one so that even beginners can understand.
After all, the advantage of overseas FX No. 1 lies in leverage. Leverage in Japan is capped at 25 times (100 times for corporations) by the regulations of the Financial Services Agency in 2011. Recently, it has been said that it is considering reducing it by 10 times, making it impossible to make a wide range of choices for investors. Therefore, overseas Forex is now attracting attention. With overseas Forex, even individual investors can use leverage several hundred times. Overseas Forex companies approve high leverage at the customer's responsibility without being bound by Japanese regulations. Of course, there are high risks involved, but trading using leverage in the competition is an ideal environment for investors.
Depending on the sudden change in the market price, you may lose more than the margin. Domestic Forex has a "margin" that claims the loss, but overseas Forex does not have that margin! Even if the loss is more than the margin, a system called "Zero Cut System (Zero Margin Service)" is adopted, which makes the loss only the margin. The risk is still high, but the fact that the risk is limited to margin only is a big advantage that you can trade with confidence, and it is the best system for overseas Forex where you can set high leverage.
Before the customer's order is sent to a financial institution, the domestic Forex company sends it to its dealing desk once and decides whether or not to pass the order. Such a method is called the dealing desk method (DD method), and the actual customer's trading partner is the Forex company. In the case of the DD method, the customer's order does not go directly, which may cause inconvenience to the customer, and it is not always fair. In this regard, overseas Forex adopts the non-dealing desk method (NDD method) that many Forex companies do not mediate as described above. Since your order is sent directly to a financial institution, transparency and fairness are always maintained. Overseas Forex realizes a very natural environment in which the profits from your transactions belong to you.
Most of the main transactions of domestic Forex are currency pairs centered on the Japanese yen, and it can be said that the environment is a little narrower than investors in other countries that are doing global trading. Overseas Forex is capable of trading not only many currency pairs, but also CFD (Contract For Difference), that is, contract for difference trading, indexes, world-class stocks, virtual currencies, and other abundant products. After the global financial crisis of 2008, investors began to make diversified investments, investing in several products instead of one. In other words, the idea is that risk management leads to long-term profits. Overseas Forex can be said to be an environment that enables customers to realize their dreams and continue for a long time by offering more options to them.