Regulation and tax implications on OTC vs. Exchange FX trading in Japan

We've gone ahead and compiled a study about how the OTC and exchange (click365) Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading volumes compare in Japan and how they are affected by leverage caps and tax changes.

In August 2010 the max leverage was capped at x50 and in August 2011 it was reduced further to x25 max. The effect on OTC volumes was very strong and they dropped considerably, never being able to rebound since. The effect on exchange volumes was similar - volumes stagnated or dropped (more so in 2011) however their portion of the total traded volume actually increased.

Up until 2012 OTC Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term was taxed at 50% while exchange forex trading was taxed at 20%. Since January 2012 the tax is the same: 20%, this has had an adverse affect on exchange trading volumes.

First interesting period is between August 2010 and August 2011 - you can see the exchange volume growing while the OTC one is dropping. The second period to notice is 2012 (and few months preceding it) where the exchange volumes start dropping due to the tax change while OTC are back climbing (even if modestly).