Japan has a strong reputation as one of the most stable and safe jurisdictions in the world for forex brokers. However, most forex brokers that are registered in Japan do so to serve local Japanese traders, and not so much to serve other countries and regions.
Forex brokers in Japan are regulated by the Japan Financial Services Agency (JFSA). The JFSA actively works to restrict trading for Japanese people with forex brokers that are not regulated in the country. This is the reason why so many international forex brokers have set up local offices in Japan, despite the regulatory conditions there not being particularly favorable for a forex broker.
Japan is also home to a large and active community of forex traders. Because of the large Japanese market, and the JFSA’s policies, many of the world’s biggest forex brokers have local entities registered and regulated in Japan.