Forex Investors in Japan are Increasingly Switching From Traditional Forex Trading to Bitcoin Trading

A growing number of Japanese retail investors are switching from leveraged FX trading to leveraged cryptocurrency trading, thus driving the crypto market, according to a recent Deutsche Bank’s research. Operators of Japan’s largest FX platforms are launching their own crypto exchanges, offering leverage of up to 25x.

 Investors are shifting their focus to leveraged crypto trading after failing to meet their profit goals with leveraged FX trading, Forbes reported.

Related Articles: Japanese Forex giant traders started trading Bitcoin

Retail investors are shifting from leveraged FX trading to leveraged cryptocurrency trading…Japanese men in their 30s and 40s who are engaged in leveraged FX trading are driving the cryptocurrency market.

The analysts noted that Japan accounts for 54% of global FX margin trading. According to data from GMO Click Securities, one of the world’s largest FX trading platforms, 79% of Japanese FX accounts are held by men, and 63% of them are between ages 30 and 49.

Japanese retail investors are also known as Mrs. Watanabe even though most of them are men. However, traditionally they were housewives running their households’ finances.

Why Japanese traders entered cryptocurrency trading?

Leveraged cryptocurrency trading services are available in Japan. For example, GMO Coin offers 5x, 15x and 25x leverage for bitcoin-yen trading. There is no transaction fee but the leverage fee is 0.05% per day. GMO Coin is the cryptocurrency subsidiary of GMO Internet, which also owns GMO Click Securities.

An increasing number of leading Japanese FX platforms are developing cryptocurrency exchanges after the Japanese government legalized bitcoin as a method of payment in April.

Japanese Forex giant traders started trading Bitcoin

 Reports from the Japanese Forex market, showed that Japanese Forex traders began to invest in Bitcoin Forex.

Japan’s financial giants will soon start to push startups out of the country’s cryptocurrency market. In fact, the CEO of block-chain identity startup Soramitsu is sitting across from Mike Kayamori, the CEO of bitcoin exchange Quoine, who is already shifting his company from the consumer market for this reason. 

 Takahashi, HAW International’s director, and Hitoshi Kakizawa, head of block-chain at Deloitte’s Japan subsidiary, Support and agree that when new legislation becomes law later this year, Japan’s block-chain market will see a radical change.

Takemiya, a member of the Hyperledger block-chain consortium, believes that “big financial institutions” are lining up to add a new asset class to their existing product offers.

 Kayamori, whose exchange raised $16m in a funding round last year, doesn’t agree with them, but he’s just as certain this transition will begin to take place in April. That’s when a law passed in Japan, which will require exchanges to register with the country’s Financial Services Agency (FSA), will go into force, and digital currencies will become regulated.

When that happens, major foreign exchange (FX) players including GMO Internet, SBI Holdings, Monex and Hirose Financial will all seek to launch services that help boost customer activity via new product offerings.

“They’re going to put bitcoin, ethereum and ripple, they just haven’t decided who they are going to outsource to, or who their liquidity partners will be,” Kayamori said.

Others at the table all agree that, despite the increasing focus on enterprise blockchain and distributed ledger applications, movement on cryptocurrency will be a beachhead in Japan. “They want to get the new business,” Kakizawa said. “They want more currency.”

Japan market changes:

Despite this agreement, the startups selected for the exchange program have varied views obout blockchain tech.

Kayamori, for instance, was there to meet exchanges including "Paxos’s itBit" and the "Winklevoss-backed" Gemini exchange, along with market makers and hedge funds.

On the other side, Takahashi noted that HAW International (18 years old IT services enterprise) is looking to conduct proofs-of-concept projects with financial institutions, encouraging them to explore how traditional assets could trade on public blockchains.

“These take three days of settlement, but on the blockchain this kind of program takes 10 minutes,” Takahashi said.

Takahashi favors the bitcoin blockchain for his work with institutions, praising its simple scripting language as an asset, even as interest migrates to platforms like ethereum.

By contrast, Tohmatsu, Kakizawa said, was there to observe and learn, so that it can keep tabs on the growing market as a value-add for its service offerings.

The delegation itself is part of a 55-strong startup group, of which 13 were sent to New York. All are there to meet business contacts and better understand how their products might fit into the world market.

When the changes ahead are expected to create new pressures, all agreed that they will improve Japan’s cryptocurrency market.

At the end of the meeting, Kayamori encourages Takemiya to apply his blockchain-based know-your-customer platform to the market, but he’s not sure it’s the right move.

Forex Gate thinks that changes will occur and Japanese trader will go to the bitcoin forex in the coming days. 

Tell us what do you think that is going to happen in the Japan Forex market! 

3 Biggest Forex Trades by George Soros with Trading Strategies

G. Soros

 Forex trade is the fastest way to make millions of money, but you need to learn which strategy to use and how to make use of indicators. Here, we will learn the exact strategies that George Soros used to earn massive amounts of money.

1. Soros breaks the Bank of England and earns $1 billion in 1 day

 “Black Wednesday” is September 16, 1992, the most notorious forex market event where Soros earned the nickname “the man who broke the Bank of England” because of the transactions he performed together with other traders against the Sterling (British Pound).

They didn’t break the bank directly, but the devaluation of the pound was so bad that Britain had to take it out of the European Exchange Rate Mechanism (ERM).

Britain was in a recession in 1990, the pound (sterling) joined the ERM that year. It fixed the pound’s rate to the Deutsche mark in order to make the investments between Britain and Europe more predictable and stable. But as the political and financial situation in Germany changed during its unification, many ERM currencies were under big pressure to keep their currencies within the agreed limits.

Britain had the most problems: its inflation rate was very high and the USD rate (many British exporters were being paid in USD) was also falling. As it became clear that the pound was not able to artificially withstand the natural market forces, more and more speculators began circling around and making plans on how to profit from this situation.

They waited until the financial situation got as bad as it could naturally get, and then created extra pressure on the pound by selling it in huge amounts. The most aggressive of them was G. Soros who performed this transaction every 5 minutes, profiting each time as the GBP fell by the minute.

Technical analysis and forecasting methods of currency market enabled G. Soros to earn 1 billion USD in just 1 day.

2. Soros earns $790 million, crashes the Thai baht and triggers the Asian crisis

In the year 1997 G. Soros saw a possibility that the Thai baht could go down. So he went short on the baht (by going long on USD/THB) using forward contracts.

His actions were often considered a triggering factor, which resulted in the big Asian financial crisis that affected not only Thailand but also South Korea, Indonesia, Malaysia, Philippines, Hong Kong, and others.

Steps of the strategy G. Soros used in 1997:

1. Soros goes short on the Thai baht.

2. Thailand spends almost $7 billion to protect the baht against speculations.

3. Soros sells all his baht resources and publicly warns people about its possible fall and ensuing crisis.

4. On July 2, Thailand is forced to give up the fixed rate of the baht and it starts to float freely. Thailand asks for help from the International Monetary Fund (IMF).

5. Thailand takes on hard austerity measures to secure the loan from the IMF.

6. Baht falls from 1 USD for 25 baht to 56 baht and Soros gains more than $790 million!

3. Soros gains $1.4 billion from the falling yen

In the year 2011 Japan’s economy was seriously damaged after the tsunami and its economic recovery had been slow. Since then, traders have been waiting for the yen to weaken.  This started to happen at the end of 2012 when Shinzo Abe (then a candidate for the Prime Minister post) publicly spoke about his plans to weaken the yen in order to boost the economy.

Taking into consideration his high approval rating, this was a good signal for the investors to open big USD/JPY deals, betting that the value of the dollar would rise against the yen.

The first one to jump in was Soros who is legendary for his skills of shorting different currencies with high leverages and worldwide consequences. He forecasted the upcoming trend and the Soros Fund Management allocated 10% of its $24 billion to USD/JPY in mid-November 2012. Since then, they have gained $1.2 – $1.4 billion (according to sources close to the Fund) in this deal and the yen is still going down.

Here, we can see how forecasting currency rates can easily make you a huge amount of money in no time with small effort. News and learning markets changes will help besides technical indicators.

Read more: Maximize your Forex Trading profit through new Technical Indicators

Figures Source: forexillusrated.com

4Forexxx experts: Maximize your Forex Trading profit through new Technical Indicators

 Trade is a range of methods to select and manage trades in order to be profitable

 Forex traders research the market and stocks daily. As a trader you should focus your eyes on the indicators. It's a very difficult job to move through various stocks and currency markets searching and analyzing indicators.

 How to select potential trades!

Well, it's the hard part of the job, a wide range indicators based on:

-The various domestic economies of the currency pairs you are interested in trading,

-using primarily price movements in the form of support and resistance areas, candlestick patterns, Elliott wave patterns, Fibonacci retracements, etc.

-Technical indicators such as moving averages, MACD (Moving Average Convergence Divergence) momentum and volatility indicators : and may be

a combination of some indicators.

 Our past experience in investigating, researching and testing a myriad of different systems, our experts found that the most effective method is to make good use of technical indicators. Experts compared the trade entries and exits being signaled by other methods with those of the main technical indicators, and they found very little difference in results. Finally, experts focused on strategies using technical indicators and they found great results.

 Why technical indicators!

Because they are both simple and effective to use. And they can be easily automated. Great results can be achieved easily by technical indicators analysis of markets and stocks.

What are technical indicators you need to use in working with forex trade?

The main trading indicators are Moving Averages, RSI, MA of RSI, double MA crossover of RSI, and (zerolag)MACD.

Moving Averages:

 Moving averages are techniques of smoothing out the price over a given time period. They are working as trend indicators.

Moving Averages types:

*Simple Moving Average (SMA)

*Exponential Moving Average (EMA)

*Smoothed Moving Average (SMMA)

*Linear Weighted Moving Average (LWMA)

 Combining Moving Averages to develop a trading strategy is just a matter of researching and testing.

Strategies like this can be done on any timeframe but you have to experiment with different settings for the MAs.

By using Moving Averages in combination with added confirmation by other indicators, you can provide even greater certainty for your entry and exit points.

Choosing Forex Brokers in USA 2019

The US dollar is one of the most powerful currencies in the forex trading system. It is actually one of the most basic trading values used in this specific market. So if you are new in the market and you would like to learn the ins and outs of the US dollar trading, you might be able to boost your profits with the help of forex brokers in USA. Forex brokers serve as the middle man between two different parties-you and your buyers or sellers. They can also give you their consultancy services in the process.

You can choose to either get in touch with forex brokers in USA as a consultant or you can also choose to employ them as your trading partner. Either way, they can be an asset for you if you know how to use their influence and expertise accordingly. Two of the most important things that you need to understand when choosing your US forex broker is the forex spread which they currently use and the reputation as well as the capital they have to sustain them.

Utilizing the Forex Spread through these Brokers

A forex spread is actually the method of trading in itself. When you trade with people in the currency market, each network you have can be considered as a spread. But when you make use of forex brokers, they use a number of spread methods to make sure that you get more exposure which can also translate into more profits for them. The term is coined as spread because it makes efficient use of scanning the market for potential customers. But one thing you should keep in mind is that its different spread strokes for different forex brokers.

Forex brokers in USA may or may not publish their prices on their site. This is actually an important point to consider because it helps you understand how much profits you can gain out of them when done in comparison with spreads. There are actually two different types of forex spreads-the fixed spread which makes use of a fixed method and currency rates regardless of the trading time and the variable spread which may depend loosely on the current scene in the trading market.

Reputation and the Brokers' Capital Resources

Of course there's also the issue of choosing your broker depending on the reputation they have. Reputation is important especially if you want to expand your networks. You will also be surprised how some potential business partners may choose to not deal with you if you have a forex broker who's professional ethics are questionable. In the world of forex, it may not always be about profits.

Another important consideration is capital resources, because it gives you an idea of the rates and features you will get to enjoy through the forex broker you choose to hire. Some may be able to waive your fees and there are also those who will be able to connect you with other rising forex markets. They may end up to be a wealthy source of vital business information.

Want to succeed in the forex market?

That sure is possible now with the best online forex trading news place on the web.

Now you can be updated with the most trusted forex brokers out there with: online forex review scam

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The Answer to the Question: Is Forex Trading Tax Free?

You may be faced with this conundrum: Is forex trading tax free? It all depends on your jurisdiction and the type of activity which you are getting involved in. In the first instance you may be a USA based firm trading internally with a brokerage firm within the same loop. The government has designated foreign investors as tax exempt on foreign exchange profits. Some international companies specifically avoid the USA because of perceived complexities.

If you are unsure about anything it is better to consult with an expert instead of relying on a website page. Keeping records might save you from the problems associated with wrong calculations. The end of the year is a very busy time and you have to be prepared well in advance. You have to make the distinction between futures and cash.

The complexity of government instruction

The IRS has all the rules placed in section 1256 of their contractual schedule. There are also special rules under IRC 988. This is the default position unless you elect otherwise. Under rule 1256 US based merchants are given preferential treatment when compared to stock traders. For example you can split your capital gains using schedule D in the proportions of 60% and 40%.

The variations in the rate will give you the advantage. The state can go as low as 12% and as high as 35%. Therefore you have room to maneuver depending on your classification. Some companies are specifically forbidden from receiving the benefits of rule 98 especially if they are US FX firms. This would automatically preclude them from the split profile.

Fluctuations in currency values may be classified as assets and liabilities depending on the direction. Keep the relevant records and present them as part of the exemption application. The practice of waiting for a year to capture other capital gains is dangerous because the IRS may decide to install a crackdown process for this particular loophole. The broker might give you form 1099 in order to prepare you for the complexities.

The consequences of a lax attitude

Notwithstanding the relative novelty of the idea, the IRS is coming down hard on rogue traders who fail to pay their liabilities. The critical point is to understand the fact that your home authority is ultimately responsible for determining how much you pay. This figure may change with time.

Remember that some clients are rejected for this specific reason. Before sending your application form, it is advisable to first answer the question; is forex trading tax free? If there are difficulties then you can deal with them in advance.


Adam has been trading forex for 5 years and until recently with little success. Adam recently joined the World Forex Club and has since seen his profit margin quadruple in the past two years. Colin is a professional trader who shares his trading live, over a webinar three times a day 5 days a week, all you have do is copy what he does and take the profits. Since Adam joined Colin he has had the money to invest in other projects and gone on to be a successful full time forex trader and internet marketer.

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