| Updated: In forex trading, certain currency pairs attract significant trading volume due to their high liquidity. One such pair is USD/JPY, which expresses the amount of Japanese yen (the quoted currency) you would need to spend to purchase one US dollar (base currency). As one of the most traded forex pairs, USD/JPY is available at any regulated broker, often allowing traders to make use of higher leverage ratios and tighter spreads. This article features regulated brokers suited for trading the USD/JPY pair.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro50% of retail investor accounts lose money
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.33% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Pepperstone72.9% of retail investor accounts lose money
FxPro74% of retail investor accounts lose money
VantageTrading leveraged products is risky
XM Group72.82% of retail investor accounts lose money
AvaTrade57% of retail investor accounts lose moneyTop 10 USD/JPY Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. FP Markets | 9,422 | 4.9 ⭐ |
| 2. Fusion Markets | 4,873 | 4.8 ⭐ |
| 3. IC Markets | 48,248 | 4.8 ⭐ |
| 4. AvaTrade | 11,076 | 4.7 ⭐ |
| 5. FXCM | 756 | 4.5 ⭐ |
| 6. Vantage | 10,604 | 4.5 ⭐ |
| 7. Admirals | 2,046 | 3.8 ⭐ |
| 8. Markets.com | 1,236 | 3.8 ⭐ |
| 9. FxPro | 751 | 3.2 ⭐ |
| 10. XM Group | 2,787 | 2.7 ⭐ |
Comprehensive Comparison of the Top 10 USD/JPY Forex Brokers
| Forex Broker | USD/JPY Spread | USD/JPY Commissions | Number of FX pairs to trade | Trust Pilot Rating |
|---|---|---|---|---|
| 1. XM Group | 0.8 (min) | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account | 50+ | 2.7 ⭐ |
| 2. IC Markets | 0.94 | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT | 62 | 4.8 ⭐ |
| 3. Fusion Markets | 1.04 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account | 90+ | 4.8 ⭐ |
| 4. Admirals | 1.1 | $3 per lot | 82 | 3.8 ⭐ |
| 5. Markets.com | 1.2 | $0 | 54 | 3.8 ⭐ |
| 6. AvaTrade | 1.3 | $0 | 50+ | 4.7 ⭐ |
| 7. FXCM | 1.4 | $0 | 40+ | 4.5 ⭐ |
| 8. Vantage | 1.41 | $3 per side on Raw; $1.50 per side on Pro | 60+ | 4.5 ⭐ |
| 9. FP Markets | 1.64 | $0 Standard Account; $6 round turn on Pro Account | 70+ | 4.9 ⭐ |
| 10. FxPro | 1.85 | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts | 70+ | 3.2 ⭐ |
This list features 14 regulated forex brokers to trade USD/JPY, and is based on factors like tight spreads, leverage, and related commissions. All of the brokers below are properly regulated, which provides regulatory oversight for client trading.
Top 14 Brokers Offering the Lowest Spread for USD/JPY
Fusion Markets is a globally recognized broker that began its financial service operations in 2017, and its products include forex trading, metals, indices, equity indices, commodities, and share CFDs. The broker offers a broad selection of products and trading tools and strives to maintain fair and secure trading conditions, following regulations imposed by regulators including ASIC, VFSC, and FSA.
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. FP Markets
FP Markets has operated since 2005, offering a wide selection of tradable assets including forex. FP Markets supports a range of trading platforms that allow easy market analysis and proper risk assessment. The broker is regulated by ASIC and CySEC.
Forex pair options include 60 currency tickers you can trade via platforms like MT4, MT5, and cTrader, to name a few. USD/JPY is also among the major currency options, with FP Markets offering competitive conditions on 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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.33% 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. BlackBull Markets offers over 60 currency pairs across multiple advanced platforms, including USD/JPY.
Forex traders can pick from three account types for live trading with BlackBull Markets, with each account option featuring different advantages. The ECN Standard account is recommended for low-risk traders as they will have no minimum deposit requirement to meet, and they can trade USD/JPY with no commissions.
If you wish to access reduced spreads when trading USD/JPY, you can also opt for the other account types at BlackBull Markets – ECN Prime or ECN Institutional. The former comes with a minimum deposit requirement of $0 and a small round trip commission of $6 per lot. The latter reduces the commission to $4 per lot traded on both sides but requires a higher minimum deposit of $20,000. All three accounts allow leverage trading, with the highest ratio available on USD/JPY trades being 1:500.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.- 4. XM Group
XM is a regulated broker offering a platform for forex trades. Being a part of the global trading scene since 2009, the broker offers its customers a wide range of trading assets, including forex, metals, commodities, and stocks, to name a few. The brand operates under the regulations of authorities like CySEC, ASIC, and the IFSC.
Traders can access more than 50 currency pairs, with USD/JPY being one of them. Competitive spreads are one of the factors that make XM a competitive option for forex trading, with the minimum spread traders can enjoy on USD/JPY being as low as 0.8. Those who qualify for professional trading accounts can 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. - 5. FXCM
FXCM has operated since 1999, and was the first FX broker listed on the New York Stock Exchange. The brand welcomes traders from different parts of the world, with FXCM holding authorizations issued by regulators like FCA, CySEC, ASIC, ISA, FSCA, and IIROC.
Members of the broker can trade a 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 spreads giving traders the opportunity to access competitive 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. - 6. FxPro
Operating since 2006, FxPro is a regulated forex broker offering 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 is regulated by the FCA, CySEC, SCB, 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 can choose from some of the most popular trading platforms, offering low commissions and tight spreads. An additional feature for FxPro members is fast order execution, with an average execution speed of under 13ms. FxPro offers competitive conditions for USD/JPY and other currency pairs.
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. - 7. AvaTrade
AvaTrade is a regulated brokerage that started its operations in 2006 and is serving traders globally.
The financial services offered by AvaTrade are monitored by regulators including FFAJ, CySEC, ASIC, ISA, and more, which provides oversight for client trading activities.
With 50+ currency pairs to choose from, traders will enjoy tight spreads and low commissions on various major, minor, and exotic pairs. USD/JPY is also available at AvaTrade, with leverage up to the regulatory maximum for the applicable entity.With an average USD/JPY spread of around 1.3 for retail accounts, AvaTrade offers competitive trading conditions for this major currency pair.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 57% 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.com
Markets.com has operated since 2008, offering CFDs in forex, indices, metals, stocks, and other products. The company has expanded, catering to more than 4.7 million customers across more than 170 countries.
The broker is regulated by the FCA, ASIC, CySEC, and other authorities.
If you are interested in forex trading, the broker offers over 50 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. Vantage
Vantage is a regulated forex and CFD broker that offers its customers a wide selection of assets to trade. Founded in 2009, the brand is currently a widely used platform for trading currency pairs, indices, shares, commodities, and 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.
Members of the broker have more than 60 currency pairs to trade, including USD/JPY and other popular and exotic currency pairs. Retail traders can access tight spreads on a wide range of pairs, with zero commission also available on select account types. However, although they are charged commissions, Zero Account members can trade with spreads starting at 0.0 pips.
- 10. IC Markets
Any time you wish to trade USD/JPY or any other major currency pair, you can visit IC Markets’ website. Launched in 2007, this retail broker caters to traders across Australia and Europe, operating under licenses issued by authorities including ASIC and CySEC. Members of IC Markets can trade CFDs of forex, stocks, bonds, crypto, and other popular trading products.
A total of 61 currency pairs are available to members of IC Markets, with a minimum spread of 0.7 on USD/JPY available to retail traders. The broker also offers Raw Spread accounts to trade higher volumes with a minimum spread of 0.0 pips.
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. - 11. Plus500
On Plus500, forex trading enthusiasts can trade more than 60 different forex pairs (traded as CFDs), including the USD/JPY pair, featuring high liquidity and trading volume, and tight spreads.
The multiregulated forex broker offers decent spreads of around 2 pips for this popular currency pair, with zero commission charged on trades. At the time of this writing, the overnight financing rates for long and short positions stand at 0.00454% and -0.01588%, respectively. New traders can learn more about the “Gopher”, as the pair is often referred to, through Plus500’s Trading Academy, as well as the related news and market insights, published regularly.
79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. - 12. Global Prime
If you wish to trade popular forex pairs or other products while paying a competitively low price for your trades, Global Prime is worth considering. The broker offers more than 50 Forex instruments, including major, minor, and exotic pairs, with USD/JPY also being one of the available tradable products.
Retail traders can open either a Standard or Raw account, choosing between different pricing models, both of which feature competitively low trading costs. The Standard account will allow you to trade USD/JPY with an average spread of about 1.32 pips and zero commissions applied to your forex trades.
If you opt for a Raw account, for the small commission of $3.50 per lot traded per side, you can reduce the average spread on USD/JPY to about 0.42 pips. Retail traders can access maximum leverage of 1:30 when trading the popular currency pair, but those who qualify for professional trading can increase the leverage up to 1:500.
Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017. - 13. ActivTrades
ActivTrades is a globally operating broker offering competitive spreads, no commissions, and a range of trading tools, suitable for new and experienced forex traders. Tight spreads, starting from 0.5 pips, on forex majors such as the USD/JPY pair are particularly attractive. Overall, the broker’s forex portfolio comprises 15 major, 16 minor, and 23 exotic pairs.
Based on the entity under which USD/JPY traders have registered their accounts, they can use leverage of varying levels and amplify their exposure. Customers registered under the FCA and CMVM entities of the broker can use leverage of up to 1:30 for forex majors such as the USD/JPY. To alleviate the risks associated with trading CFDs, traders are provided with negative balance protection and various risk management tools.
Mauritius customers of the brand can use dynamic leverage depending on the size of their position: 1:1000 for 0-5 lots, 1:500 for 5 to 50 lots, with all options available under the particular forex instrument.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% 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. - 14. Axi
Axi is a regulated broker offering competitive trading conditions. The broker facilitates trading through the widely recognized platform MT4, which offers access to a wide range of tradable instruments, including more than 70 currency pairs. USD/JPY is also available to trade by Axi clients, allowing them to speculate on the price movement of the pair and take either long or short positions.
Generally speaking, the broker offers three account types, with trades for the pair in the Standard account having a spread that starts at 0.6 pips and a $0 commission applied to trades. Meanwhile, Pro and Elite accounts are the other two options that will offer you the chance to trade USD/JPY with a spread starting at 0.0 pips, with a small round trip commission attached to trades. The Pro account charges $4.5, and the Elite account applies an even smaller commission of $3.50 per lot traded. Keep in mind that the Elite account may not be available to retail traders in certain jurisdictions.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. 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 represents the amount of Japanese yen required to trade one US dollar. It is widely followed by traders due to the economic significance of both the United States and Japan, two of the world’s largest economies.
This pair is known for its relatively high liquidity and typically tight spreads, making it attractive for both short-term and long-term traders. USD/JPY consistently ranks as the second most traded currency pair, with the most recent stats showing daily volumes that surpass $1.37 trillion globally.
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 plays 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 significant impact on the exchange rate of the USD/JPY pair.
The pair’s price movements are also impacted by Japan’s status as a major exporter, as fluctuations in trade balances can affect the yen’s value against the dollar. Additionally, USD/JPY is noted for episodes of volatility during major announcements from either country’s central bank or during periods of risk aversion in global markets, where the yen often acts as a safe-haven currency.
Because of its importance, USD/JPY is a core offering among forex brokers, with many providing competitive trading conditions, including low spreads and advanced trading tools to help investors analyze and respond to its price movements. Understanding USD/JPY dynamics helps improve overall forex trading decisions.
What is Spread in Forex Trading?
One key concept in forex trading that traders should understand before trading any currency pair is the spread. No matter the type of pair you plan on trading, you will notice that there is a bid (sell) and ask (buy) price. The difference between the two values is the spread, which represents one of the key costs of trading.
Whenever there are small movements in the price values of a pair, the spread also changes. Unlike most currency pairs that are quoted to four decimal places, yen are typically quoted to only two decimal places because the yen has a much lower value compared to other major currencies. As a result, the smallest unit of movement, or pip, in yen pairs corresponds to the second decimal place rather than the fourth. It is also worth noting that many modern brokers now quote the USD/JPY to three decimal places, where the third decimal is called a pipette or fractional pip.
The spread can be either wide (high) or tight (low), with more pips indicating a wider spread. Traders prefer lower spreads as that means the trade results in lower trading costs.
What is the Lowest Spread for USD/JPY?
The spread offered on the USD/JPY pair can be as low as 0.0 pips or go slightly higher, depending on the broker and account type you choose. The availability of such tight spreads for USD/JPY is due to its high liquidity and heavy trading volumes, which encourage brokers to keep trading costs low to attract clients.
As some brokers prefer to charge no commission, they tend to build any surcharges into the spread, which may also affect its value. However, some brokers might include commissions or slightly wider spreads depending on their pricing models.
As USD/JPY is one of the commonly traded pairs, most brokerages 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. The brokers featured in this article offer some of the lowest spreads available on the pair.
Choosing a broker with narrow spreads can help minimize trading costs, especially if you are a frequent trader or use strategies that involve many trades. Consider spreads along with other factors like execution speed, platform reliability, and regulatory oversight when selecting a broker for trading USD/JPY.
How Long are USD/JPY Markets Open?
While the global forex market is open 24 hours, five days a week, certain hours offer higher trading volume for specific 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 offer the highest volume for 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. The USD/JPY pair still enjoys stable trading throughout the day, making it a suitable trading option at virtually any time of the day.
Trading USD/JPY with Leverage
Choosing currency pairs can be difficult, but comparing the pros and cons of trading USD/JPY. Here are some of the key advantages of trading this pair with leverage:
- Substantial Leverage Ratios: Being one of the major currency pairs you can find at any regulated broker, USD/JPY typically allows traders to make use of higher leverage. This can be both rewarding and extremely risky, so it is crucial to exercise caution when using leverage.
- High Liquidity: The USD/JPY’s high liquidity is another feature, with bigger volumes of trading often indicating potentially more trading opportunities.
- Availability: Additionally, USD/JPY is one of the most commonly traded pairs, which means you can find it at any regulated broker that offers forex trading with leverage. 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.
- Low Spreads: Since this is a high-liquidity pair, most brokers that offer leveraged trading provide competitive spreads, with many brands offering a spread as low as 0.0 pips.
Trading USD/JPY with leverage also involves some considerations. This pair experiences somewhat smaller daily movements, with changes rarely exceeding more than 100 pips, making it unsuitable for traders who prefer highly volatile assets. Regarding leverage trading, trading USD/JPY with higher leverage will also increase the risk level, so traders should be careful when assessing the risk of trading this major currency pair with a higher leverage ratio.
You might also be interested in exploring these forex brokers:
- USD/CAD Forex Brokers
- USD/CHF Forex Brokers
- USD/CNY Forex Brokers
- AUD/USD Forex Brokers
- GBP/USD Forex Brokers
- EUR/USD Forex Brokers
- EUR/GBP Forex Brokers