Exclusive: Capital.com Seeks Japan Licence

Capital.com is planning to enter the Japanese retail brokerage market and is seeking a local licence, FinanceMagnates.com has learned exclusively.

“As part of our global expansion strategy, Capital.com is exploring new licences in several markets, including Japan,” a Capital.com representative confirmed to FinanceMagnates.com, adding: “We are in the early stages of building a local team in Japan to support this initiative.”

Capital.com Plans for Japan

Indeed, the broker is already looking for a Head of Compliance for Japan.

The responsibilities include “liaising with the group executive management and the local authorities for the purpose of the firm’s licence application(s).”

The role also requires the candidate to have worked in a licensed capacity and to understand Japanese regulations.

FinanceMagnates.com recently reported that Capital.com might also be preparing to launch physical cryptocurrency products and services.

However, the broker did not specify the products it will offer in the Japanese markets.

“While it is too early to confirm specific products, our focus remains on ensuring that any services we launch meet the highest standards of compliance, transparency, and client support,” the representative added.

Capital.com, owned by billionaire Viktor Prokopenya, has grown rapidly since its launch in 2017. It offers contracts for differences (CFDs) under authorisation from regulators in the UK, Australia, Cyprus, the UAE, and the Bahamas.

A Market Dominated by Local Giants

Japan dominates retail forex trading. However, local giants like DMM, GMO Click, Gaitame, and Hirose capture most of the domestic market.

The Japanese unit of IG is the only international broker to establish itself in the CFDs market there. However, it recently discontinued its introductory trading programme for new clients, citing changes to product sizes that have altered trading conditions.

Interestingly, several established foreign brokers have entered the Japanese market over the past few years. Australia-headquartered ThinkMarkets acquired local FX firm Japan Affiliate in 2021 and launched services in the country the following year.

Plus500 also acquired a Japanese broker in 2022. The London-listed broker recently obtained a new commodities licence in Japan, which allows it to expand its OTC offering to the commodities asset class.