Referred to as the Ninja on occasion, the USD/JPY pairing boasts some of the tightest spreads across the entire foreign exchange market. This makes it great for novices who are looking for trades that have relatively forgiving prices as they begin their journey into the forex market. In addition, this is also one of the reasons experienced investors see the USD/JPY as a great option for hedging. In addition, this pair’s liquidity is also very impressive due to how significant both the dollar and the Japanese yen are.
Despite all of its upsides, however, there are things one should keep in mind when they put their money on the line as they trade on their preferred forex pairing, the most major of which is your choice of broker. We will, therefore, introduce you to our top ten USD/JPY brokers.
How USD/JPY Trading Works for Traders and Brokers
Trading on the forex market is the simple act of trading one currency for another, and it is done in pairs. Structurally, it consists of two major roles: the base and the quote. Here, the base currency would be USD. This relationship shows us how much of the Yen, our current quoted currency, is needed for an investor to be able to buy a single dollar.
A major component of currency trading is the so-called spread. Spreads are the difference between the bid and the ask prices of the currencies within the pairing, and they often replace the commission and are considered a broker’s primary fee.
The USA’s central bank, along with the Bank of Japan, also play a major role in the price of the respective currencies. Japan’s interest rate is determined by the Policy Board of the Bank of Japan, while the dollar’s interest rate is determined by the Federal Reserve. In addition, Japan’s economy can be very heavily affected by natural disasters due to its size and geological location, which makes it prone to earthquakes. This, in turn, makes the Japan Meteorological Agency another significant aspect that influences the performance of the USD/JPY.
All in all, a major part of investing in the USD/JPY has to do with doing research and keeping up with the news and trends that can give you a hint of how the market will behave.
Top USD/JPY Trading Brokers
The world wide web has done wonders for aspiring USD/JPY investors. It made forex trading as a whole accessible to the average retail trader, and there are now dozens of online brokers eager to provide their users with a safe and convenient trading environment.
Although variety will always be one of the greatest benefits of the free market, it does make picking a USD/JPY forex broker an arduous task for some investors. There is a lot to each and every broker out there, after all, from a website’s reputation and history to the fees associated with trading online, and we have set out to make it easier for you to decide which broker will best fit your preferences.
- 1. AvatradeMin Deposit$100Fees
- No deposit or withdrawal fees.
- $50 per quarter after 3 months of inactivity.
- Additional $100 annually after 1 year of inactivity.
Leverage EU30:1Leverage non-EU
- Retail: 1
- Pro - 0.6
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Retail - 30:1
- Pro - 400:1
Avatrade is a broker which values all of its investors including those who prefer to trade on the go. The website has its own proprietary mobile trading platform AvaTradeGo which has all the tools one could need in a concise and well-organised package that makes mobile trading a breeze.
Traders should take care to use their account without taking breaks that are too long. A $50 fee will be imposed onto your account every quarter if you have been inactive for three months. Additionally, one year of inactivity will set you back another $100 each year.
Although withdrawing is not fast at three days being a possible wait time, you will not need to pay any additional money in fees. The situation is similar for deposits, that is, certain methods are not instant, but depositing will not cost you extra.
Your spread and leverage are reliant on two factors: your location, and your account type. Typical retail accounts will have a spread of 1 for the USD/JPY pairing, and the spread limit is 30:1. If you qualify for a professional status, however, the spread for the USD/JPY can reach as low as 0.6, while the leverage could be 400:1 at max provided you do not reside within an EU nation.
- 2. AxiMin Deposit$0Fees
- 3% deposit fee if you deposit more than $50,000 in a month and do not use bank transfer.
- $25 administration fee on withdrawals less than $50 (unless the withdrawal is your full balance).
- $10 inactivity fee if you are inactive for 12 months.
- Pro: $7 round trip (USD)
- Elite: $3.50 round trip (USD)
Leverage EU30:1Leverage non-EU
- Retail: between 1.2 and 1.5 pips.
- Pro and Elite: between 0 and 0.6 pips.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Elite: 500:1
- Other: 30:1
Based in Australia, Axi is a broker that caters primarily to traders who delve into forex trading, CFDs and crypto. There are numerous forex products, such as the stock index and commodity, as well as the previously mentioned crypto and stock CFDs. The website is reliable in terms of security, seeing as it is licensed by multiple regulatory entities. They include the Financial Conduct Authority, as well as the Australian Securities & Investments Commission, the Dubai Financial Services Authority, and the Financial Services Authority of St. Vincent and the Grenadines.
The USD/JPY spread limit is between 1.2 and 1.5 for retail users. For pro and elite investors, the pip count can start at 0.0. What is more, you will need to pay a commission if you are a pro user or an elite one. For pro, it’s a $7 round trip, while for the USD – $3.50 round trip. In terms of leverage, the EU is capped at 30:1. Elite users from elsewhere have a 500:1 limit to work with, in contrast, while retail traders are again restricted to 30:1.
Typically, depositing into your Axi account does not require you to fork up any extra money. However, you might need to pay extra depending on how much you deposit and your method. A 3% deposit fee is imposed if you deposit over $50,000 in just a month and happen to use a method that is not bank transfer.
Withdrawals are also usually free, but a potential $25 can be charged if you withdraw less than $50, provided that the sum is not your full balance. Finally, there is an inactivity fee of $10 if you are inactive for twelve months.
If you believe you might need extra assistance regarding this or another aspect of trading at Axi, you can get in touch with the broker’s customer support. CS is available five days a week, at any time throughout the day and night. In terms of methods, you could go for email, live chat, or you could use your phone to call the website’s team.
- 3. FP MarketsMin Deposit$100FeesNo withdrawal, deposit, or inactivity fees.CommissionsN/ASpreadBetween 0 and 0.3 pips on averageLeverage EU20:1Leverage non-EU20:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.34% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Having launched in 2005, FP Markets has, by now, been running for more than a decade. Throughout the years, this broker has shown to be a reliable and excellent broker for both experienced investors and beginners alike.
The website features 63 currencies, of which the USD/JPY is a major pairing. The spreads are fairly tight, and in general, they range between 0 and 0.3 pips on average, while the leverage is 20:1.
Trading at FP Markets is conducted on the third-party MetaTrader platforms. You will have access to a variety of features, and the Trader Toolbox includes ones such as an economic calendar, an alarm manager, sentiment trader, historical data, and correlation matrix. In addition, orders the likes of market, limit, stop, trailing stop, as well as time limits such as GTC and GTT are available.
If you are an investor who is very new to forex trading, FP Markets also provides a selection of resources to help you learn. Webinars, educational tutorials, e-books and a trading glossary are all at the disposal of traders looking to increase their level of forex knowledge. Once you are confident in how much information you have managed to learn, you can take the next step and try FP Markets’ demo account option to get some practice.
- 4. Markets.comMin Deposit$100Fees
CommissionsN/ASpread1.10Leverage EU30:1Leverage non-EU30:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Depositing and withdrawing is free.
- $10 per month after three months of inactivity.
Markets.com offers several platforms to choose from, including MarketsX, the company’s proprietary platform. In addition, clients can also go with MetaTrader 4 or MetaTrader 5 based on their personal preferences. Either way, you can choose between 11 base currencies, the USD is one of the currencies in question, of course.In terms of the spread when it comes to the USD/JPY pairing, it is a competitive 1.10. As for the leverage, 30:1 is the limit.
If you are a novice trader, Markets.com has got your back. You will have a plethora of resources at your disposal, such as a substantial number of informative articles, an ebook, webinars, and a demo account that will help you practise. The website also boasts a streaming service.
Given that mobile trading is more relevant than ever before, it should not come as a surprise that Markets.com also has a convenient mobile application that is available on the App Store and Google Play.
Investors who prefer to change things up from time to time will be happy to learn that this broker offers stock index CFDs, ETF CFDs, and crypto trading as well.
- 5. OANDAMin Deposit$0Fees
CommissionsIf you use OANDA’s core pricing + commission trading option: $5 USD per 100,000SpreadAround 1.9 pips on averageLeverage EU30:1Leverage non-EU50:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.3% of retail investor accounts lose money when trading CFDs with OANDA Europe Markets Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Inactivity fee - $10 after 12 months of inactivity
- No withdrawal or deposit fees
OANDA is an oldie but a goodie in the forex world. Its roots date back to 1996 when it was founded by Michael Stumm and Richard Olsen, and it is now one of the most popular online brokers across the globe.
The USD/JPY pairing is included within this broker’s catalogue, and its spread tends to be over around 1.9 on average. In terms of the leverage, the limit in Europe is the ESMA-approved 30:1. Investors who live in different locations, on the other hand, have a 50:1 limit at their disposal. Alternatively, you could go with OANDA’s core pricing + commission trading option, which has better spreads, but there is a 5 USD per 100 commission attached. We are also happy to report that there are no deposit fees, nor will you be charged when you withdraw your funds. The only significant non-trading fee is that you can incur by being inactive for a year. If you end up in such a situation, you will pay a $10 inactivity fee on a monthly basis.
The user experience at OANDA is good, especially if you make use of its proprietary fxTrade platform, which can be found on both PC as well as portable smart devices. It is available in a good number of languages besides English, including but not limited to Japanese, Portuguese, and German.
You can also be certain that trading on OANDA is secure. The broker is licensed by institutions such as the Futures Commission Merchant, the NFA, the CFTC, the Japanese Financial Services Agency, the FCA, and the FSCS, among others, and two-factor authentication is present.
- 6. FxProMin Deposit$100Fees$15 one-time fee after 12 months of inactivity, afterwhich inactivity costs $5 a month.CommissionsN/ASpread1.4Leverage EU30:1Leverage non-EU30:1Trade Responsibly. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.46% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Established in 2006, FxPro is a broker regulated by the Financial Conduct Authority, the Cyprus Securities and Exchange Commission and the Financial Sector Conduct Authority, among others. It is a reputable entity which also complies with the ESMA restrictions and provides negative balance protection to its users, and it also keeps its leverage within the 30:1 limit set by the ESMA. The USD/JPY is among the currencies that have leverage at 30:1, given that it is one of the major pairings. In addition, this pair’s spread tends to hover around 1.4.
The spread is the main trade-related fee, and the broker will also not charge you for depositing or withdrawing money to and from your account.
FxPro is known for its stellar customer service. You can contact the website’s team 24/5 a week, and live chat, email, and telephone are the available options. Furthermore, support is available in numerous languages, including, but not limited to, English, French, German, Japanese, Chinese, Arabic, Turkish, Spanish, Vietnamese, and Russian. This means that a large portion of the website’s non-anglophone users will be able to seek help by using their native language.
- 7. CMC MarketsMin Deposit€0Fees
CommissionsN/ASpread0.70 minimum spreadLeverage EU30:1Leverage non-EU30:1Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
- Withdrawals and deposits - none
- Inactivity fee - €10 per month after one year of inactivity
CMC Markets is a London-based broker. It is listed on the London Stock exchange, and it is regulated by the Financial Conduct Authority, making it an all in all trustworthy broker.
Its web platform is developed in-house, and it has a lot to offer to CMC’s customers. First and foremost, it is very secure as it features two-factor authentication, which ensures that you can log in only by confirming that it is you who is attempting to access your account. In addition, it is available in a good number of languages – Chinese, English, French, German, Italian, Norwegian, Polish, Spanish, and Swedish.
As for the actual tools that are available, you have a lot to work with customizability-wise. There is a search bar and category-based search too. It is effortless to set up any alerts you find necessary, and you will also have access to your trading history. Charts-wise, there are dozens of technical indicators available, and features such as trading ideas and technical analysis are present as well. Last but not least, the orders include market, limit, stop, trailing stop and guaranteed stop-loss. The time order limits GTC and GTT are also available.
As for trading the USD/JPY pairing specifically, the minimum spread is 0.70 pips. Meanwhile, the leverage limit for forex trading is 30:1.
- 8. FXTMMin Deposit
- Micro: $10
- Advantage: $500
Commissions$0.40 - $2 based on volume with an Advantage accountSpread
- $3 withdrawal fee with credit card
- Between $20 and $40 withdrawal fee with bank transfer
- $5 monthly fee if you are inactive for 6 months
- No deposit fee
Leverage EU30:1Leverage non-EU30:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Standard min: 1.7
- Micro min: 2.4
- Advantage: 0
- Advantage plus: 1.4
FXTM is a broker that was launched in 2011, and it is under the regulation of the FCA. The number of base currencies available is relatively limited, but the US dollar is available, which is all USD/JPY investors need.
There are several account options, Standard, Micro, Advantage, and Advantage Plus. The USD/JPY pairing will differ based on your account type. The minimum for a standard account is 1.7 pips, 2.4 for Micro traders, an impressive 0 for Advantage accounts, and 1.4 for those who have Advantage Plus.
USD/JPY traders can choose between MetaTrader 4 and MetaTrader 5 when it comes to PC trading. As for mobile, both platforms are an option here as well, but FXTM developed its very own stand-alone application. It can be downloaded from the Google Play Store or the App Store, depending on your smart device.The application features a clean interface and live currency rates while the forex market is open, i.e., five days a week. A trading dashboard with all the relevant information pertaining to your trade and the ability to close, modify and track your positions are also available. In addition, charting tools and 1-click trading will also be at your fingertips regardless of where you are.
- 9. Vantage FXMin Deposit$200 for standard usersFees
- No fees attached to withdrawal and deposits
- No inactivity fee
SpreadUSD/JPY: around 0.1 pipsLeverage EU
- Raw ECN: $3
- Pro ECN: $2
- Retail: 30:1
- Pro: 500:1
Risk Warning: Trading derivatives carries significant risks. It is not suitable for all investors and if you are a professional client, you could lose substantially more than your initial investment. When acquiring our derivative products, you have no entitlement, right or obligation to the underlying financial assets. Past performance is no indication of future performance and tax laws are subject to change. The information on this website is general in nature and doesn't take into account your personal objectives, financial circumstances, or needs. Accordingly, before acting on the advice, you should consider whether the advice is suitable for you having regard to your objectives, financial situation and needs. We encourage you to seek independent advice if necessary. Please read our legal documents and ensure that you fully understand the risks before you make any trading decisions.
- Retail: 30:1
- Pro: 500:1
Vantage FX is an ASEC and FCA-approved broker which offers competitive spreads to USD/JPY investors at 0.3. The website’s general forex spread and leverage are mostly reliant on the type of account someone has. Standard STP users do not need to pay commission, have a 1.4 limit in terms of spread pips, and cannot deposit less than $200. Investors who have a RAW ECN account that can enjoy spreads of 0 pips but with a $3 commission attached when it comes to trading. The minimum deposit amount is also $500. The last account type is for very experienced and ambitious investors who do not find a problem with a deposit minimum of $20,000. They, too, have 0 pips to work with spread-wise, while the commission amount is $2. Additionally, the leverage at Vantage FX can reach 500:1.
Available are several platform options – MetaTrader 4, MT 5, and Vantage’s own platform if you are fond of mobile trading. The MT4 and MT5 experiences are as reliable as one would expect of the third-party tools they offer, but Vantage’s mobile software is particularly good. It is easy to navigate, all the relevant tools such as a robust search and various order types are present, and it is secure to boot, thanks to the fact that two-factor authentication is available.
- 10. IC MarketsMin Deposit$200Fees
- Deposit and withdrawal - free
- No inactivity fees
SpreadMin - 0.6 and average - 0.74 for standard accounts.Leverage EU30:1Leverage non-EU500:1Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.93% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Raw Spread: $3.5 per lot per side
- Standard: $0 per lot per side
There are many online brokers out there nowadays, but not all can boast how reliable and trustworthy IC Markets has proven itself to be throughout its nearly two decades of servicing forex investors. The website is regulated by the FSA and ASIC, which means that all of its operations are well-monitored.
Making mistakes or running into problems is a possibility for any trader, and IC Markets has thus ensured that you will be able to find help regardless of which day of the week it is, seeing as customer support is available 24/7. On the topic of assistance, the broker is also great on the educational front as well. There are numerous video tutorials and educational articles on the website’s platform, as well as webinars. Practising on a demo account is an available option.
IC Markets offers excellent spreads in general, and we were thus not surprised to find that the USD/JPY pairing is not an exception. The spread for raw accounts ranges from 0 pips to around 0.14, while standard users can see spreads between 0.6 and 0.74 on average. Whether you will need to pay commission is, once again, account type-related. Raw Spread investors have a commission of $3.5 per lot per side to keep in mind, while standard accounts do not need to pay commission. The leverage will be 30:1 for EU residents, while investors living in different locations have a limit of 500:1 to work with.