Japan's lone traders growing force in forex market

Discussion in 'Forex' started by traderob, Sep 28, 2006.

  1. http://asia.news.yahoo.com/060928/3/2qjpi.html
    TOKYO, Sept 28 (Reuters) - Japanese retail investors, fed up with near-zero interest rates at home, are flocking to foreign exchange margin trading -- which allows investors to make huge bets with a relatively small amount of money.

    Analysts and margin brokers say flows related to margin trading may account for 10 percent or more of all spot currency trading during Tokyo trading hours.

    Margin brokers have mushroomed since deregulation of foreign exchange trading in 1998, and retail currency margin trading took off in Japan last year, due in part to an industry clean-up by financial authorities that helped tidy up the sector's image.

    Client assets parked with foreign exchange margin brokers totalled roughly 380 billion yen ($3.25 billion) at the end of March, up 30 percent from a year earlier, according to a survey by private think tank Yano Research Institute.

    The number of customer accounts increased by over 82 percent to over 330,000 accounts, it said.
     
  2. im sure theyre making a lot of brokers very happy.