GEMFOREX tried to compare the spreads of Japan domestic Forex companies and overseas Forex companies.

We tried to compare the spreads of Japan domestic Forex companies and overseas Forex companies.

Spread is the difference between the bid price and the selling price, which is the portion that becomes the profit of the Forex company. Overseas Forex beginners and those who are already using overseas Forex probably consider that narrow spread is better.

Spread is the difference between the bid price and the selling price, which is the portion that becomes the profit of the Forex company. The "Spread" used in Forex refers to the difference in exchange rate between buying and selling transactions that occurs when trading through a Forex dealer. No matter what trading is done, spreads usually occur when using Forex companies. This is a fee that the trader will pay for the Forex company as a portion of swap every time you make a deal. So spread is a very important point in dealing with Forex.

However, the spread varies in every companies, there are Forex companies fixed rules and Forex companies with fluctuating range, spread setting differs for each Forex company. Domestic Forex companies mostly have fixed spread (fixed principle), whereas overseas Forex companies mostly adopt variable spreads. This influences the difference between domestic and overseas trading.

In addition, there are exceptions in the numerical values of all spreads, and spread figures may widen due to rapid market fluctuations, low liquidity or the like. The spread range is largely affected by corporate efforts, and in principle there are fixed and also fluctuating Forex companies. Since spreads are specified by various Forex companies, it’s a great comparison material for choosing a company.

The wider the spread, the more burden on the transaction will increase. Although traders think that the narrower the spread the better, but it is not always the only choice. Other services such as service fees, support, a comprehensive service balance and so on, are important in choosing a Forex dealer.

Focusing on the spreads, I hope you would compare and verify the spread of each overseas and domestic Forex companies. Please do compare the spread of Japanese domestic Forex companies and overseas Forex companies and use them as your reference.

Forex companies in Japan often have lower dollar-yen spreads as a whole. One reason is that trading in dollar is famous and active in Japan. In addition to this, the currency pair associated with the euro has a low spread.
By the way, spreads in Japan domestic Forex companies are fixed in principle. On the other hand, overseas Forex companies tend to have narrower spreads on dollar yen as companies that are conscious of Japanese Forex companies. In addition, the spread of overseas Forex companies is generally variable. Let's compare the spreads of Japanese domestic Forex companies and overseas Forex companies here. By the way, we are not introducing all Forex companies. Especially with respect to overseas Forex companies, we will make additional changes at any time. As one of the options when choosing a Japan domestic Forex company, an overseas Forex company, please refer to the information on the spread comparison introduced on this page.

Domestic Forex companies spread comparison table

Company name and Service name USD/JPY EUR/USD EUR/JPY GBP/JPY AUD/JPY NZD/JPY GBP/USD CAD/JPY
DMM.com Securities 0.3 0.5 0.6 1.1 0.7 1.4 1.1 1.7
GMO Click Securities 0.3 0.5 0.6 1.1 0.7 1.4 1.1 1.7
Invast Securities 0.3 0.8 2.0 2.2 1.8 2.3 2.5 2.7
FX Prime by GMO 0.6 1.0 1.3 1.8 1.3 2.0 3.0 1.7
Money Square Japan 4 5 5 8 6 8 - 6
Hirose Trade 0.3 0.4 0.5 1.3 0.8 1.3 1.0 1.7
YJFX! 0.3 0.6 0.7 1.2 0.8 1.8 1.5 1.8
Everyone’s FX 0.4 0.9 0.6 1.0 1.9~2.5 2.2~2.8 3 5
Forex Online 1 1 2 3 3 6 3 5
Forex dotcom 0.3 0.5 0.6 1.1 0.7 1.4 1.1 1.7
Himawari Securities 1 2 3 6 4 7 3 7
Money Partnes 0.5 1.9 1.9 3.5 1.9 4.8 4.8 4.8
Live star Securities 0.6 0.6 1.6 2 1.5 2 1.5 2.5

* Spreads always fluctuate. Please consider as a reference value

Overseas Forex companies spread comparison table

Company name and Service name EUR/USD GBP/USD USD/JPY GBP/JPY USD/CAD EUR/AUD EUR/JPY EUR/GBP
FXCM 1.2 1.4 1.2 1.2 2.0 1.0 1.8 2.1
IC Markets 1.1 1.5 1.3 1.5 1.6 1.2 1.5 1.5
XM 1.7 2.3 1.8 2.1 2.1 2.0 2.6 1.8
AAAFx 0.1 0.6 0.5 1.5 0.4 1.5 0.8 0.6
AvaTrade 3.0 4.0 3.0 7.0 4.0 8.0 4.0 3.0
Forex.com 1.8 2.2 1.6 4.9 2.2 3.6 2.3 1.4
FXCC 2.0 2.7 2.0 3.6 2.3 3.3 2.8 2.5
IronForex 2.2 2.3 2.6 6.5 3.1 8.1 3.4 3.2
OANDA 1.3 1.9 1.6 3.0 1.4 3.2 2.3 1.8
Turnkey Forex 0.5 0.5 0.6 1.9 0.9 1.9 1.0 1.0
AXIORY 1.6 1.9 1.5 3.0 1.9 3.3 2.3 1.6
AxiTrader 1.5 1.2 1.0 1.7 1.6 1.7 1.5 1.5
BigBoss 1.6 1.9 1.4 2.3 2.4 3.1 2.4 2.1
DirectFX 1.8 2.3 1.8 3.0 2.4 3.1 2.4 2.1
eToro 3.0 4.0 2.0 6.0 3.0 7.0 4.0 4.0
FinFX 1.6 1.9 1.5 2.4 2.0 2.0 1.7 1.9
FXDD 0.5 1.0 1.0 1.0 1.0 1.5 2.7 1.0
FXPro 1.4 1.8 1.4 3.0 1.9 3.2 1.9 1.2
LAND FX 0.8 1.2 0.8 1.8 1.6 2.2 1.5 1.6
TITAN FX 0.8 1.2 1.2 2.2 1.6 2.4 1.6 1.2
FXOpen 0.4 0.9 0.5 1.3 0.8 0.9 0.6 0.8
FXPrimus 1.5 2.1 2.0 3.3 2.4 2.5 2.1 2.0
MiltonMarkets 1.2 1.4 1.2 2.1 - - 1.1 1.5
GCIFinancial 1.0 3.0 2.0 5.0 3.0 5.0 3.0 3.0
IFCMarkets 1.8 2.0 1.8 5.5 3.0 4.0 2.5 1.8
iForex 1.8 3.0 1.8 5.0 4.0 9.0 1.8 3.0
InstaForex 3.0 3.0 3.0 7.0 3.0 7.0 3.0 3.0
LMAXExchange 0.2 0.4 0.2 0.7 0.4 0.4 0.3 0.6
MGKGLOBAL 0.2 0.4 1.0 0.7 1.4 2.0 0.4 1.2
MyfxMarkets 1.2 1.7 1.1 2.2 1.7 2.1 1.5 1.6
Orbex(AFBFX) 1.5 1.8 2.3 2.4 2.3 2.5 2.5 2.2
ThinkForex 0.8 1.2 1.0 1.1 1.2 1.8 1.1 1.3
TradersTrust 1.2 1.6 0.7 1.5 3.0 3.5 1.1 2.5
TradeviewForex 0.3 0.3 0.2 0.7 0.5 0.8 0.5 0.5
GEMFOREX (All-in-One Account) 1.2 1.5 1.2 1.9 1.5 2.3 1.4 1.5
GEMFOREX (No spread account) 0.0 0.8 0.0 1.0 0.3 1.5 0.5 0.3

* Spreads always fluctuate. Please consider as a reference value

How was it?

I think that it is quite probable to confirm the spread comparison of each company at a glance, but both Japan domestic Forex companies and overseas Forex companies’ spread vary. However, regardless of Japan domestic Forex company or overseas Forex company, the profit of Forex company is on the spread. Does this mean the Forex company with low spread have little profit? That is not true. If it stops operating, the trader is most likely to be in trouble. Forex companies that provide narrow spread collect transaction fees separately from traders and consistently secured sales. So, as I explained at the beginning, although traders prefer narrow spread, but it is not necessarily just that. In the end we have to compare and consider with comprehensive service balance. A spread comparison is only one of the consideration materials.

Compare with the reason for spread fluctuation tendencies

Why is the overseas Forex companies’ spread easy to fluctuate? Also, how do the fixed spreads in Japanese domestic Forex companies is achieved?

To do that, the difference in the order process "covering the transaction" is involved. In overseas Forex companies, there are many places where the customer 's order is connected to the cover destination bank (to cover) as it is. Cover destination banks are some of the banks with which they are contracted, which means when the market grows it will be able to smoothly handle large orders.
Since the buy and sell ordering of currency pair comes at various prices, so the order will not be established unless each price is determined. However, if the market grows and the traders increase, it is easy for the trading price to be compromised. However, fluctuations in spreads cannot be fixed at their own company in order to comply with the cover banks. There are many places where overseas Forex companies can connect to cover destination banks without intervention at all by their own customers, and spreads tend to fluctuate due to the circumstances of the cover destination. Such a method is called an NDD method which recently domestic Forex companies in Japan have been adopted.

On the other hand, that is not so much managed by its own company that is called DD method.

There are Japan domestic Forex companies which have been consistent with this system for a long time. This method has the merit that you can fix spread on your company. Among overseas Forex companies, OANDA (Oanda Japan) is a company that is easy for Japanese people to use, but this is also NDD method. However, Oanda Japan seems to strive to narrow spreads, such as the popular dollar / yen compared with other overseas Forex companies.
I often see blogs such as "DD method is not good as the way of ordering is unclear", but the DD method is easier to make fixed spread. However, since contract denial easily occurs as a disadvantage of the ordering process, it’s where one places importance on. So, if always narrower spread is good, it may be better to choose the DD method. This method is mostly at the beginning of DMM.com

There are other points to note about the NDD method.

For example, if a situation arises in which even cover destination banks cannot offer prices, spreads widen extensively. The Swiss franc shock in 2015 is a good example. At that time, there was a cry to the London traders "Euro Swiss price is not presented anywhere!" As it was a market where orders of the world gather like London, so there were some companies that broke down that were taking the NDD method in a medium-sized overseas Forex companies. For overseas Forex companies, since there are cases margin calls do not occur so there are cases bankruptcy occurs.

As mentioned above, there are always advantages and disadvantages. Even in the NDD system of overseas Forex companies GEMFOREX and XM spread of popular currency pairs do not widen that much, so this area may be choices with presence of mind. Most overseas Forex companies are under the jurisdiction of the case of the Cysec which is the Financial Services Agency of Cyprus, which also strictly keeps the attitude of protecting traders every year, so even though it is an overseas Forex company, it is not scary in lawless areas.

Comparison of the advantages of spread of Japan's domestic Forex companies and overseas Forex companies

As a merit of Japan domestic Forex companies on the spread side, there is an extraordinary narrowness than overseas Forex companies. However, in recent years the overseas Forex companies have been pressing closer to the domestic Forex companies. It is a point to worry because there is unique attractiveness to overseas Forex companies.

However, there are still more Japanese campaigns such as spread campaigns in Japanese domestic Forex companies. The narrowest campaign among those recently conducted was 0.27 pounds (0.27 pips) in dollar terms. This is a SBIFX trade, which was limited to 10,000 currencies, but since it is usually 0.5 yen, it will be possible to trade with half the spread, which is very appreciated by the scalping traders. As expected, I have never seen a dollar / yen spread fixed at 0.27 pips in an overseas Forex company.

Spread comparison and tips to get along well with each Forex company

Just focusing on spreads, I feel the domestic Forex companies are advantageous, but you will also be in trouble if slippage and contract refusal occur. Slippage is when spread opens than how much you though at the time of ordering, and the contract refusal is in literal way will end without placing orders. It is impossible to lose this by 100%, the lesser the better as much as possible.

As for personal feeling, the overseas Forex companies such as GEMFOREX mentioned earlier seem to have less stress at the time of these orders. Also, many overseas Forex companies conducting cash back and bonus campaigns, if you use this campaign skillfully account funds will increase and your fund exposure to risk will decrease. It is not a feature of each Forex company, when placing order on MT4 it may be good to remember that spreads tend to be wider than places that have their own platform (ordering system).

There are Forex companies placing an order through MT4, there is also in overseas as well as in Japan. Famous in overseas Forex companies are XM, OANDA, GEMFOREX · · ·. However, as was written above, these three companies are almost equal to Japan domestic Forex, the spread is narrow. Most domestic Forex companies in Japan withdraw from MT4. It may have been disadvantageous for spread competition in Japan.

It depends on each style, like "Since I do more scalping, I want to try more in narrow spread as much as possible" or "since I want swap, I want to maintain one pair of currency for a long time, so more or less wide spreads may be better". Some people say "There is nothing to do about spreads, just a place with campaigns is better". If you use the campaign skillfully, you may not mind some spread differences.

As mentioned above, GEMFOREX tried to compare the spread between Japan domestic Forex companies and overseas Forex companies.
It would be greatly appreciated if you could refer to it to find a Forex company that suits you.

We tried to compare the spreads of Japan domestic Forex companies and overseas Forex companies.

Spread occurs in trading Forex. Spreads are often expressed in wide and narrow. Spreads is the difference between bid and sell, so the narrower the spread is, the closer the fee...
As overseas Forex companies can generate revenue more efficiently than investing in domestic Forex companies, more people are making investments by opening new accounts. Oversea...
Spread is a fee for Forex trading. There are differences in spreads set by security companies. If the spread is narrow, you can reduce the fee for one transaction. Spread is ce...
In order to do Forex trading, it is fundamental to open an account with a Forex company that will act as an intermediary company. Because Forex companies also have to manage the...
For a Forex trader, since the narrower spread will cost less, many often think that it is a good dealer. The magnitude of the spread is natural as it relates to the cost to the ...