The Japan Financial Services Agency is the government body responsible for overseeing banking, securities, exchange, and insurance sectors in Japan. Established in 2000, the JFSA ensures the stability and integrity of Japan's financial system — one of the largest and most active forex markets in the world, with Japan being the single largest retail forex trading market globally.
About the JFSA
The Japan Financial Services Agency (JFSA) is the governmental authority responsible for supervising and regulating Japan's financial system. Established in July 2000, the JFSA oversees banking, securities and exchange, and insurance sectors, ensuring the stability of the financial system and protecting depositors, insurance policyholders, and securities investors.
Regulatory Framework
Japan is the world's largest retail forex trading market, and the JFSA maintains correspondingly robust regulatory standards. All financial instruments business operators must be registered with the JFSA, meeting strict capital adequacy, governance, and compliance requirements. Retail forex leverage is capped at 1:25, one of the most conservative limits among major trading jurisdictions.
Investor Protection
The JFSA mandates that all client assets be held in trust accounts, ensuring complete segregation from the broker's operational funds. In the event of broker insolvency, client funds are returned through the trust arrangement. The Investor Protection Fund provides an additional layer of security, while FINMAC offers mediation services for dispute resolution between investors and financial instruments firms.
- Investor Protection Fund providing compensation for client losses
- Mandatory client asset segregation in trust accounts
- Strict leverage limits — 1:25 for forex trading
- Comprehensive risk disclosure requirements
| Instrument | Retail | Professional |
|---|---|---|
| Major Forex | 1:25 | 1:25 |
| Minor Forex | 1:25 | 1:25 |
| Gold | 1:25 | 1:25 |
| Indices | 1:10 | 1:10 |
| Shares CFDs | 1:5 | 1:5 |
| Crypto | 1:2 | 1:2 |
Japan has strict leverage caps and does not distinguish between retail and professional traders.
Body: Financial Instruments Mediation Assistance Center (FINMAC)
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