Japanese Regulator Blacklists AAFX, Justforex and GlobePro

The Kanto finance bureau of Japan’s Ministry of Finance (MoF) on Friday reminded the public to exercise caution when dealing with Affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers compensate affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The bro Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers compensate affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The bro Read this Term or introducing brokers of unregulated FX companies. In an advisory, the MOF warned the public against AAFXTrading Company LTD, which operates FX and CFDs business based out of Saint Vincent and the Grenadines.

The watchdog has also blacklisted other FX brands, most of which are offshore brokers that operate in a loose regulatory environment such as GlobePro, which is regulated by the VFSC in Vanuatu. The list also includes JF Global Limited, which owns the brand Justforex.

The MOF explained that both types of operators, IB or Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term brokers, should implement and maintain appropriate measures to ensure compliance with all applicable rules and regulations.

Registration is required in principle

The firms on Kanto’s list may be regulated in other jurisdictions. This was the case with Genius Trading (Genetrade), which is regulated by the International Financial Services Commission (IFSC) in Belize. However, foreign licenses are not sufficient as no such passports are recognized, and firms need to also obtain JFSA authorization to do business in Japan.

The firms cited have either made solicitations or offered services online in Japan and/or in Japanese, while not being permitted to do so. Japanese customers of these firms are not afforded the protections available to customers of firms properly licensed and regulated in the country.

The Japanese watchdog confirmed that registration under the Financial Instruments and Exchange Act is required in principle, even for overseas operators, for offering financial instruments for Japanese residents or for transacting with them as counterparties.

The agency noted that the information used in the warnings was obtained from solicitation materials, and therefore may be inaccurate. In addition, investors are able to check on the Japanese Financial Services Authority (JFSA) website to confirm if a company is registered and regulated in the country.