USD/JPY Forex Brokers

Written by Zornitsa Stefanova
Zornitsa Stefanova is experienced forex and crypto analyst. She also covers various financial topics such as stocks trading and retirement investments.
, | Updated: May 14, 2024

In forex trading, there are certain currency pairs that enjoy huge popularity due to their high liquidity. One such currency pair is USD/JPY, which expresses the amount of JPY (the quoted currency) you would need to spend to purchase 1 USD (base currency). Being one of the most popular forex pairs, USD/JPY is available at any reputable broker, often allowing traders to make use of higher leverage ratios.

1Fusion Markets
Rating: 4.6 ⭐
74-89% of retail CFD accounts lose money
2XM Group
Rating: 2.7 ⭐
72.82% of retail investor accounts lose money
3FXCM
Rating: 4.2 ⭐
70% of retail investor accounts lose money
4Admirals
Rating: 4.1 ⭐
73% of retail investor accounts lose money
5FxPro
Rating: 3.9 ⭐
74% of retail investor accounts lose money
6AvaTrade
Rating: 4.5 ⭐
76% of retail investor accounts lose money
7FP Markets
Rating: 4.8 ⭐
73.85% of retail CFD accounts lose money
8Markets.com
Rating: 4.7 ⭐
74.2% of retail investor accounts lose money
9Vantage FX
Rating: 3.4 ⭐
10IC Markets
Rating: 4.8 ⭐
70.64% of retail investor accounts lose money

To make one’s choice easier, we have listed 10 of the best forex brokers to trade USD/JPY. Our list is based on factors like tight spreads, leverage, and related commissions. All of the brokers below are properly regulated, ensuring safe trading for any forex investor.

Top 10 Brokers Offering the Lowest Spread for USD/JPY

  1. One of the best destinations for forex traders is Fusion Markets, which is a worldly-wise broker that started its financial service operations in 2017. In addition to forex trading, other products covered by Fusion Markets include metals, indices, equity indices, commodities, and share CFDs. Not only does the broker offer a great selection of products and trading tools but it also strives to ensure fair and secure trading, following guidelines imposed by regulators like ASIC, VFSC, and FSA.

    When it comes to forex trading, Fusion Markets boasts more than 200 currency pairs to trade, with the major ticker USD/JPY also being one of them. The minimum spread that you can enjoy while trading the popular pair is as low as 0.0, while the average spread is rather reasonable, standing at 0.13 pips.

    Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
  2. Another reputable broker you can trust whenever you are looking for a platform for your forex trades is XM. Being a part of the global trading scene since 2009, this is a trustworthy brand that offers its customers a wide range of trading assets, including forex, metal, commodities, and stocks, to name a few. The brand operates under the regulations of authorities like the CySEC, ASIC, and IFSC.

    You will be able to trade more than 50 currency pairs, with USD/JPY being one of them. Competitive spreads are one of the factors that make XM a great choice for your forex trading, with the minimum spread traders can enjoy on USD/JPY being as low as 0.9. Those who qualify for professional trading accounts will be able to trade USD/JPY with no spread but a commission of $3.50 will be applied to trades.

    Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  3. 3. FXCM

    FXCM is one of the pioneers when it comes to forex trading, starting its financial service distribution back in 1999. The company was the first FX broker to be listed on the New York Stock Exchange. Nowadays, the brand welcomes traders from different parts of the world, with FXCM holding authorizations issued from regulators like FCA, CySEC, ASIC, ISA, FCCA, and IIROC.

    Members of the broker will have the opportunity to trade a vast variety of assets, with more than 40 major, minor, and exotic pairs also available to trade at FXCM. The popular currency pair USD/JPY is also available to trade, with low commission rates and competitive spread giving traders the opportunity to enjoy the best value for their trades. Being a major currency pair, USD/JPY can also be traded with higher leverage, with the maximum allowed ratio depending on the regulatory requirements that apply to trading in your territory of residence.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 
  4. When it comes to forex trading of USD/JPY and other currency pairs, you can definitely trust Admiral Markets, which is a forex and CFD broker operating since 2001. One thing you can be certain of when trading with Admiral Markets is that your funds will always be properly protected. To ensure a safe and fair trading environment, the broker abides by the regulatory conditions imposed by trustworthy authorities like CySEC, ASIC, JSC, and FSCA.

    We recommend Admiral Markets to forex traders as they will have a total of 82 currency pairs to trade, with the popular option USD/JPY also being supported. Low spreads are definitely one of the broker’s strengths, offering a minimum spread of 0.001 and an average spread of 0.01. Being one of the major currency pairs, USD/JPY offers a leverage ratio of up to 1:5000 and a maximum of 30:1 for retail traders.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  5. Operating since 2006, FXPro is one of the best forex brokers that offer low spreads on multiple currency pairs, including the popular ticker USD/JPY. The broker offers CFD trading on several different assets, including 70 currency pairs. While the company is based in the UK, it has been authorized to operate by the CySEC and FSCA, allowing the broker to offer its services to a wide range of traders.

    If you decide to trade currency pairs with FXPro, you will be able to choose from some of the most popular trading platforms, offering low commissions and tight spreads. Another great advantage of trading forex as an FXPro member is enjoying extremely fast orders, with an average execution speed of under 13ms. As you can see for yourself, this broker is one of the best destinations for your USD/JPY on any other trades.

    Trade Responsibly. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  6. Trusting a broker with your investments has never been as easy as it is with AvaTrade. This reputable brokerage company started its operations in 2006 and is currently welcoming thousands of traders from all over the world. The financial services offered by AvaTrade are monitored by top regulators like FFAJ, CySEC, ASIC, ISA, and more, ensuring fair and secure trading for any customer of the broker.

    With 55 currency pairs to choose from, traders will enjoy tight spreads and low commissions on various major, minor, and exotic pairs. The popular USD/JPY option is also available to AvaTrade members, allowing them to make use of the maximum leverage allowed by the regulators authorizing the operations of the brokerage entity. With an average USD/JPY spread of 1.5, AvaTrade offers some of the best trading conditions for this major currency pair.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  7. Since its inception in 2005, FP Markets has been catering to its clients, offering them a wide selection of assets to trade, with forex being one of the options supported by the broker. Catering to the needs of any trader, FP Markets supports a range of trading platforms that allow easy market analysis and proper risk assessment. As for the regulators authorizing the operations of the broker, you have major watchdogs like ASIC and CySEC regulating FP Markets.

    Forex pair options include 60 currency tickers you can trade via platforms like MT4, MT5, and cTrader, to name a few. You will also discover USD/JPY among the major currency options, with FP Markets offering some of the most fair conditions for trading the pair. Zero commission and spreads starting from 1.0 pips are applied to standard accounts, while professional FP Markets traders can further reduce spreads, starting at 0.0 pips on numerous currency pairs.

    Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.23% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  8. Markets is the right broker choice for your trading endeavors, with CFDs in forex as well as indices, metal, stocks, and other products being offered to customers of the broker. Operating since 2008, the company has expanded tremendously, catering to more than 4.7 million customers across more than 170 countries. Some of the regulators that have authorized the operation of Markets include top-notch authorities like the FCA, ASIC, CySEC, and more.

    If you are interested in forex trading, you will be pleased to know that the broker offers a total of 56 currency pairs. These include exotic, minor, and major currency pairs, with USD/JPY also being included in the pairs you can trade with low spreads and slim commission rates.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.2% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  9. We consider Vantage FX as one of the best forex and CFD brokers that offer their customers a wide selection of assets to trade. Founded in 2009, the brand is currently one of the most popular destinations for trading currency pairs, indices, shares, commodities, and plenty of other products. The broker welcomes traders from multiple regions across the globe, with regulatory bodies like ASIC, FCA, FSCA, CIMA, and VFSC monitoring the operations of Vantage FX.

    Members of the broker will have more than 40 currency pairs to trade, including USD/JPY and other popular and exotic currency pairs. Retail traders will be able to enjoy tight spreads on a wide range of pairs, with zero commission also being one of the perks customers of Vantage FX can enjoy. Meanwhile, while they will be charged commissions, Zero Account members of the broker will be able to enjoy spreads starting at 0.0 pips.

  10. Any time you wish to trade USD/JPY or any other major currency pair, you can head to IC Markets’ website. Launched in 2007, this retail broker caters to traders across Australia and Europe, operating under licenses issued by reputable authorities like ASIC and CySEC. Members of IC Markets will be able to trade CFDs of forex, stocks, bonds, crypto, and other popular trading products.

    A total of 75 currency pairs are available to members of IC Markets, with a minimum spread of 0.8 on USD/JPY available to retail traders. The broker also offers clients who enjoy trading higher volumes to open Raw Spread accounts and enjoy a minimum spread of 0.0 pips on a wide selection of currency pairs.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

About the USD/JPY Currency Pair

The USD/JPY pair is quoted in JPY, which means that it reveals the amount of Japanese yen required to trade one US dollar. The reason why this is one of the currency pairs that enjoys the largest trading volume on a global scale is the growing Japanese economy as well as the country’s status as a major exporter.

The currency pair is influenced by various factors that have an impact on the value of the US dollar and the Japanese yen. The relation between the two as well as their link to other currencies also play a role in the status of the USD/JPY pair. The interest rate differential between the rates introduced by the Federal Reserve (Fed) and the Bank of Japan (BoJ) has a massive impact on the exchange rate of the USD/JPY pair.

What is Spread in Forex Trading?

There is one key element in forex trading that any trader should get familiar with before trading any currency pair. No matter the type of pair you plan on trading, you will notice that there is a buy (bid) and sell (ask) price. The difference between the two values is called spread, which is one of the most important features of trading.

Whenever there are small movements in the price values of a pair, the spread also changes. In pairs quoted in JPY, like the USD/JPY ticker, spread change is spotted in the second decimal place of the pair. The spread can be either wide (high) or tight (low), with more pips indicating a wider spread. Traders often prefer tighter spreads as that would mean the trade is going to be more affordable.

What is the Lowest Spread for USD/JPY?

Depending on the broker you have joined, the spread offered on USD/JPY can be as low as 0.0 or go slightly higher. As some brokers prefer to charge no commission, they tend to build any surcharges into the spread, which may also affect its value. The popularity of the USD/JPY currency ticker is also a factor that has an impact on the spread typically offered when trading the pair.

As USD/JPY is one of the commonly traded pairs, most brokers strive to offer lower spreads of 0.0, 0.3, or around 0.8. Since the pair enjoys a low interest rate and daily changes of the pair are usually rather small, indicating movements of about 100 pips, many traders enjoy trading the USD/JPY pair. Our list of brokers features websites offering some of the lowest spreads on the pair, making the choice for a reputable broker brand easier.

How Long are USD/JPY Markets Open?

While the global Forex market is open 24 hours, five days a week, there are particularly good hours for trading certain currency pairs. Due to the time difference, there is always a major trading market open at a certain time of the day. That said, not all markets will actively trade each currency pair, which explains why certain trading hours are the best for trading particular pairs like the USD/JPY.

While pairs that include the US dollar and the Canadian dollar are traded the most when the New York market is open, the USD/JPY ticker typically enjoys the largest trading volume between noon and 3 pm (GMT). These are the hours when the Tokyo market still has not opened. That said, the USD/JPY pair enjoys somewhat stable trading throughout the entire day, making it a suitable trading option pretty much at any time of the day.

Trading USD/JPY with Leverage

Choosing currency pairs to trade may not be an easy task but you can make things easier by comparing the pros and cons of trading USD/JPY. Being one of the major currency pairs you can find at any reputable broker, USD/JPY typically allows traders to make use of higher leverage. This can be both rewarding and extremely risky, so we do advise traders to be extra careful when trading with leverage.

Pros of trading USD/JP include the high liquidity of the pair, with bigger volumes of trading often indicating more opportunities for successful trades. Since this is a major currency pair, no matter the regulatory body governing the broker operations within your country of residence, you will be able to make use of the highest allowed leverage ratio.

It is also quite advantageous that USD/JPY is one of the most commonly traded pairs, which means you can find the option at any reputable online broker offering forex trading. Since this is a high-liquidity pair, most brokers will make sure to offer competitive spreads, with many brands offering a spread as low as 0.0 pips. It is also worth mentioning that USD/JPY is a pair that enjoys somewhat stable trading volumes throughout the entire day, which means that traders can trade the pair at any hour of the day.

Compared to the advantages of the currency pair, there are very few weaknesses related to trading USD/JPY with leverage. This pair experiences somewhat smaller daily movements, with changes rarely exceeding more than 100 pips. When it comes to leverage trading, we should also mention that trading USD/JPY with higher leverage will also increase the risk level, so we advise traders to be extra careful when assessing the risk of trading this major currency pair with a higher leverage ratio.


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