Japan is known to be home to many forex brokers, and that includes some ECN forex brokers that offer traders commission-based ECN trading with tight spreads. The ECN brokerage model differs from other brokerage models in that the broker only passes orders on to a computer network it shares with other brokers and banks. This way, the broker does not match any orders itself, and it is therefore not considered to have any conflicts of interest with its clients.
All ECN forex brokers registered in Japan are overseen by the Japan Financial Services Agency (JFSA), which is considered one of the most experienced financial regulators in Asia. Japan is also known to require brokers that accept Japanese traders to be regulated in Japan, which is one reason why so many international brokerage companies have set up local branches in Japan.