"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 most advantage of overseas FX is the leverage. Leverage in Japan was capped at 25 times (100 times for corporations) by the regulations of the Financial Services Agency in 2011. Recently, it has been considered reducing it even by 10 times. It will be impossible to make a wide range of choices for investors. Therefore, overseas Forex draws more 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 timely leverage is an ideal environment for investors.
Depending on the sudden market price change, you may lose more than the margin. Domestic Forex has claimed "margin" depending on 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 within only in the margin. The risk is still high, but the risk is limited to the margin only is a big advantage that you can trade with confidence. Therefore, Zero Cut System 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 and decides whether or not to pass the order. Such a method is called the dealing desk method (DD method), and the actual customers’ trading partner is the Forex company. In the case of the DD method, the customers’ order does not go directly, which may cause inconvenience or delay 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 promises a very natural environment in which the profits from your transactions belong to you.
Most of the main transactions of domestic Forex currencies are paired with the Japanese yen. It can be a little limited to investors comparing to the other countries in global trading. Overseas Forex is capable of trading not only many currency pairs, but also CFD (Contract For Difference), that is, contract for different trading, indexes, world-class stocks, virtual currencies, and other varieties of products. Since the global financial crisis of 2008, investors began to invest in several products instead of one to avoid lose all their asset at once. In other words, the risk management is the key to long-term profits. Overseas Forex can be an great environment by providing more options for customers to accomplish their dreams in long term.