A study by Deutsche Bank: Japanese investors move from Forex to crypto currencies

According to a recent study by Deutsche Bank, more and more Japanese retail investors are switching from trading Forex at cryptocurrency trading, which stimulates the development of the market of digital currencies. Operators of Japan’s largest trading platforms of the foreign exchange market are launching their own cryptocurrency exchanges offering margin trading with leverage up to 25x.

Last week, Murakami Masao (Masao Muraki), head of the research Department of Deutsche Securities Inc (DSI) in Japan, said that Japanese retail investors are increasingly switching from traditional trading to trade cryptocurrencies (DSI included in the Deutsche Bank Group). Muraki explained that investors switched to cryptocurrency transactions after are unable to achieve the desired level of profit through Forex trading.

He noted that «speculation in the cryptocurrency reaches proportions that cannot be ignored». The analyst also said that Japan accounts for 54% of the world margin trading in Forex. According to a GMO Click Securities, one of the world’s largest trading platforms in the Forex market, 79% of Japanese foreign exchange accounts belong to men, 63% of whom are aged 30 to 49 years.

Japanese retail investors are also known under the common name of «Mrs Watanabe», although most of them were men. This is because traditionally, Housewives managed the household finances.

High risks, high profits

GMO Coin platform allows margin trading with leverage up to 5x, 15x and 25x for the pair bitcoin/yen. The transaction fee is not charged, however the fee for a shoulder is 0.05% per day. GMO Coin — cryptocurrency is a subsidiary company of GMO Internet, which also operates GMO Click Securities. Muraki said:

«Some of the larger Forex brokers offer leverage up to 25x, as in the traditional trade, there is no clear guidance on such proposals for the cryptocurrency trade.»

However, he said, «Japanese investors are positive about the volatility as the typical Japanese investment style is a combination of low-risk low-income and high-risk high-income,» reports the Wall Street Journal.

After bitcoin was legalized
in Japan as a means of payment in April of this year, a platform dedicated to Forex trading, have started to develop cryptocurrency direction. For example, the Internet giant GMO Internet in may opened a subsidiary GMO Coin. Among other organizations that began to pay attention to the cryptocurrency — SBI Group, Money Partners Group, Kabu.com Securities and DMM.com.

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