Most popular form of foreign currency investment has been foreign currency deposit.But now FX is receiving attention for its low cost, mobility and investment efficiency that surpass foreign currency deposit.
In the case of foreign currency deposit, when dollar yen rate is at 100, you need 10 million yen to make a deposit of 100,000 dollars.
But we adopt “margin trading (leverage effect)” and you can start 100,000 dollar investment with less cash.
Leverage would be approximately 16 times if you can trade 10 million yen with 600,000 yen.
Leverage trade can increase the return but it also increases the risk.
Leverage management is very important in FX.
Please contact our staff for inquiries and consultations.
Another attraction of FX is swap points that are equivalent to interests for foreign currency deposit.
You can normally receive swap points by buying high yield currency and selling low yield currency.
In the case of foreign currency deposit, you need weak yen to make profit apart from the interests.
But you can make profit from strong yen in FX.
For example, if you believe yen will appreciate against dollar, you can make profit by selling dollar and buying it back after yen had appreciated.
It means there are opportunities to make profit in both strong and weak environment of yen.
Fee required for foreign currency deposit is generally one yen each way making the total cost of 200,000 yen for 100,000 dollar investment.
In the case of “Premier Course”, the maximum commission fee would be 12,000 yen for a transaction of 100,000 dollars (0.06 yen each way).
The cost is below 10% of foreign currency deposit.
In the case of investing 100,000 dollars at the dollar yen rate of 100.
FX | Foreign currency term deposit | |
---|---|---|
Initial deposit | Initial deposit. Margin equivalent to over 4% of transaction amount Margin: Daily margin requirement is 4% of the notional principal calculated by using the market closing rate on the previous day. |
10 million yen |
Transaction term | Free | Various restrictions |
Transaction time | Monday ~ Friday 8:00 ~ 23:00 | Bank business day. Normally 9AM to 3PM. |
Commission Fee (both ways) | Maximum 12,000 yen | Approximately 200,000 yen |
Interest | Swap points are reflected in the account every business day | (In principle) Receive at maturity |
Type I and Type II Financial Instruments Business (Director-General of the Kanto Finance Bureau (FIEA) Article 236),Commodity Futures Trading Dealers (OTC commodity derivative trading)
Member Associations:Japan Securities Dealers Association,Financial Futures Association of the Japan,Type Ⅱ Financial Instruments Firms Association,Japan Commodity Futures Association,Japan Investor Protection Fund,
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