Japan Forex market shrinks in 2011

Japan Forex market shrinks explained by professional Forex trading experts the “Japan Forex market shrinks” FX trading team.

Japan Forex market shrinks

Two years of successive regulatory reductions in allowed leverage (now just 25:1) have taken their toll on the Japanese Forex market, knocking Japan out of first place in terms of volumes traded. The hit has been double-edged – lower leverage has reduced revenue-per-client at Forex firms operating in Japan by up to 20%, and has also caused many clients (up to 10%) to just abandon Forex trading altogether. The fact that the USDJPY pair has seen very little volatility, trading in a tight 76-78 band for the past six months, has not helped matters either.

Several leading international Forex firms have taken advantage of the turmoil in Japan, buying up troubled Japanese Forex firms:

Market leader FXCM acquired two Japanese firms in 2011 – Foreland Forex (for $17 million) and CGI Capital ($27 million), and now stands as one of the top five firms in Japan.
Alpari acquired CMS Japan KK.
Leading Ireland-based firm AvaFX acquired Art Co Japan.

Japan Forex market shrinks Conclusion

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