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USDJPY trading platforms let you speculate on the strength of the US Dollar versus the Japanese Yen through spot FX, CFDs, financial spread betting or futures & options.

Our picks of the best brokers for trading USDJPY

We have compared and reviewed what we think are the best USDJPY trading platforms. You can use our USDJPY comparison table to rank brokers by how much commission they charge and what it costs to hold a USDJPY position overnight. You can also see which USDJPY trading platforms let you trade via CFDs, spread betting, have DMA access through futures and options and what the minimum deposit is for each account.

We have chosen what we think are the best USDJPY trading platforms based on:

  • over 7,000 votes in our annual awards
  • our own experiences testing the aUSDJPY trading accounts with real money
  • an in-depth comparison of the features that make them stand out compared to alternatives.
  • interviews with the USDJPY broker’s CEOs and senior management

City Index: Best broker for USDJPY CFD trading

  • Costs & spreads: 0.9
  • Minimum deposit: £100
  • Overnight financing: 2.5% +/- SOFR
  • Account types: CFDs & spread betting

69% of retail investor accounts lose money when trading CFDs with this provider

Capital.com: Easy to use and intuitive USDJPY trading platform

  • Costs & spreads: 0.8
  • Minimum deposit: £20
  • Overnight financing: Long -0.003% Short -0.0072%
  • Account types: CFDs & spread betting

84.19% of retail investor accounts lose money when trading CFDs and spread bets with this provider

Interactive Brokers: Discount USDJPY trading & conversions

  • Costs & spreads: 0.0008%
  • Minimum deposit: $2,000
  • Overnight financing: -3.188% / -1.188% (BM -/+ 1%)
  • Account types: CFDs, DMA, futures & options

60% of retail investor accounts lose money when trading CFDs with this provider

Spreadex: USDJPY trading with personal service

  • Costs & spreads: 0.9
  • Minimum deposit: £1
  • Overnight financing: Tom/Next +0.8%
  • Account types: CFDs & spread betting

72% of retail investor accounts lose money when trading CFDs with this provider

CMC Markets: High-tech USDJPY trading platform

  • Costs & spreads: 0.9
  • Minimum deposit: £1
  • Overnight financing: Tom Next +0.98%
  • Account types: CFDs & spread betting

77% of retail investor accounts lose money when trading CFDs with this provider

Pepperstone: Automated USDJPY trading on MT4

  • Costs & spreads: 0.26
  • Minimum deposit: £1
  • Overnight financing: (1/FX Rate) * (Trade Size*Tom Next )
  • Account types: CFDs & spread betting

74% of retail investor accounts lose money when trading CFDs with this provider

IG: Best broker for spread betting on USDJPY

  • Costs & spreads: 0.9
  • Minimum deposit: £250
  • Overnight financing: Tom Next +0.8%
  • Account types: CFDs & spread betting

73% of retail investor accounts lose money when trading CFDs with this provider

Saxo Markets: Best broker for USDJPY ETFs & investing

  • Costs & spreads: 0.7
  • Minimum deposit: £500
  • Overnight financing: Tom/Next Swap +/-0.60%
  • Account types: CFDs, futures & options

70% of retail investor accounts lose money when trading CFDs with this provider

eToro: Copy other people’s USDJPY trading

  • Costs & spreads: 0.8
  • Minimum deposit: $10
  • Overnight financing: 6.4% +/- SOFR
  • Account types: CFDs

77% of retail investor accounts lose money when trading CFDs with this provider

What is USDJPY?

Forex (FX) is the short name for ‘foreign exchange’. It is a market about trading money. Unlike stocks, FX is about measuring one money against another foreign currency. For example, USDJPY is the ticker symbol for the exchange rate between the Japanese Yen against the US Dollar. Specifically, it measures how many Yen convert into one US Dollar. Currently, it takes about 110 Yen to change one US Dollar.

What is the major attraction of trading USDJPY?

The Japanese Yen is one of the most traded FX currencies globally. According to the latest Bank of International Settlements (BIS) Triennial Global FX Turnover Survey (Sept 2019, available here), the Japanese Yen is the third most traded currency in the world after the USD and EUR (see below).

Its daily turnover exceeds $1 trillion, one of the three currencies to do so. In other words, most major Yen pairs are highly liquid and the bid-ask spreads are competitive.

You can trade the Japanese Yen in most financial hubs, such as Tokyo, Hong Kong, Singapore, London or New York. Hedging FX exposure with future contracts are routinely done.

FXValue Traded (US,Bln)
USD$5,819
EUR$2,129
JPY$1,108
GBP$843
AUD$445
CAD$332
CHF$327
CNY$284
Others$1,892

Source: BIS (Data as of Apr 2019)

What are the major risks of trading USDJPY?

Despite good liquidity and a deep market, FX rates can sometimes go haywire.

Why? Because of fear and greed, because of algorithmic trading, because of a temporary structural mishap.

For example, earlier in the year the Japanese Yen suffered a ‘flash crash’ in the early hours of January 3. Prices of USDJPY surged uncontrollably for a few minutes before retracing much of its gains just hours later (see below). Those with stop losses orders are likely to see them triggered, even though that move was temporary.

When trading becomes highly volatile, transaction costs are likely to go up simply because brokers may exit the market temporarily.

The other risk is leverage. Many retail FX accounts lose capital over time because of the overly high leverage. Minute, random price movements decimate accounts equity quickly if traders are caught on the wrong side. Small losses piled up. This can lead to early termination of the account.

What moves the USDJPY price?

A currency is impacted by many factors, primarily monetary policies, fiscal announcements, and technical factors.

For example, during 2012-2016 the direction of the Japanese Yen was propelled by the Bank of Japan. Especially the Yen was driven down by the massive quantitative easing (QQE) policy enacted by the newly-appointed governor Kuroda. From 78 Yen to the Dollar, the rate plummeted to as low as 124 Yen to the Dollar.

Since that low in 2015, the rate has been trading in a 20-Yen range, occasionally falling to 104 on market setbacks.

Note that the Japanese Yen is a ‘safe haven’ currency. So it tends to strengthen when market uncertainties increase.

What are the costs of trading USDJPY?

Given that FX trading are mainly financial trading – without any underlying currencies changing hands, there are a few trading costs you need to be aware of:

  • Commission (if any)
  • Bid-ask spread (the difference between buying and selling at any time)
  • Rollover costs – this is the cost of rolling over current positions

Alternative Forex Pairs For Trading

You can read about the the most liquid forex pairs in our guide to the best forex pairs for trading.

Rank.SymbolFX Pair
1EUR/USDEuro vs US Dollar
2GBP/USDBritish pound vs US dollar
3USD/JPYUS Dollar vs Japanese Yen
4EUR/GBPEuro vs British Pound
5AUD/USDAustralian Dollar vs US Dollar
6USD/CADUS Dollar vs Canadian Dollar
7USD/CHFUS Dollar vs Swiss Franc
8NZD/USDNZ Dollar vs US Dollar
9EUR/JPYEuro vs Japanese Yen
10EUR/AUDEuro vs Australian Dollar