EZTD, formerly known as EZTRADER and trading on the OTC Markets, has announced that it has become licensed as a regulated broker in Japan. Registered as a Securities Company with the Financial Futures Association of Japan (FFAJ), EZTD adds its name to a short list of foreign retail brokers becoming regulated in the country. Other foreign based retail firms include Saxo Bank, OANDA, Dukascopy, AVA Trade and GAIN Capital.
Operating several different trading brands, EZTD offers both binary options and forex and CFD trading to retail customers under their Cyprus regulated brokerage. Entering Japan, the firm is operating under the EZINVEST brand, with the Japanese unit offering forex trading to clients. However, with the FFAJ license, EZTD has the ability to additionally launch binary options in the country as well, a model used by many local brokers.
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Although one of the most restrictive markets for forex brokers due to restrictions on leverage to 20:1, Japan is the largest country by retail trading volume. Helping drive volumes higher are industry-wide tight spreads as well as investor bias to favor forex trading over other asset classes. In this regard, Japan contrasts with other markets such as the US where stocks are the main asset traded by retail clients.
Commenting on the potential of Japan, Shimon Citron, CEO of EZTD, stated: “Obtaining a license in Japan, a country with a population of nearly 130 million, provides EZTD with an opportunity to expand into one of the largest markets worldwide for foreign exchange (FX) and CFDs.”
Overall, the news continues a busy period for EZTD. In January, EZTD fulfilled requirements to be listed on the OTC Market’s OTCQX Market. In addition, the firm signed a sponsorship deal with the Tottenham Hotspur Football team last month. Those set of announcements occurred after the firm’s EZ Trader binary option brand was hit with a €340,000 fine from CySec in Q4 2015.