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.
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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.