GEMFOREX tried to cite important points for the Overseas Forex beginners

There are many overseas Forex companies. The number of people using overseas Forex has also increased, and it has been drawing attention. Why are there more people using overseas Forex even though there are many domestic Forex companies? GEMFOREX, an overseas Forex company, not to mention the attractiveness of overseas Forex, but we will keep you informed of the precautions such as questions and things that beginners often overlooked. GEMFOREX offers services keeping in mind that traders will trade with confidence in our company.

Since these are overseas Forex companies where people with different languages ​​and cultures operate, it may look natural in Japan, but there are many things that looks unnatural in overseas and there could be many who do not deal with perception that it is excessive. There are also things you need to understand to ensure safety, as rules and conditions are different between domestic Forex and overseas Forex.

For those who use foreign Forex companies for the first time, using overseas services is nothing but anxieties. Now, with the spread of the internet, you can immediately find out information and reputation you want to know in Google and the likes. However, even if you actually search on the net, you do not know what criteria you can trust based on biased information published by affiliates and IBs, right? Regardless of Forex, there are many sites that intentionally write negative information on the net. They are what we call negative campaigns.

Out of those, I think that it is almost impossible to understand without actually using either good or bad. Regarding the information on overseas Forex companies, we do not know whether they are true, such as "poor support", "refusal to withdraw" or "refusal to make a contract", such negative information comes and go. If so, postings like “support is extremely fast and courteous" "complete Japanese support" "MT 4 is stable" "Deposit and withdrawal is fast and smooth" "Order comes smoothly" that are opposite and completely positive information. You get confused on what you can trust.

Because of those things, GEMFOREX tried to cite important points for the Overseas Forex beginners who are first time in using overseas Forex companies for reference. Since we will post information about the basic of Forex, advantages and disadvantages, so please refer to it by all means.

Unlike Japanese Forex companies, overseas Forex companies leverage is very high, ranging from several hundreds to 1,000 times, is the most appealing. There are many people who use overseas Forex companies for this high leverage. There are abundant merits such as having a new account opening bonus. Aren’t there some people who feel the charm of overseas Forex and want to use it? But overseas Forex is not only good. There are many points that you have to pay attention to. It is necessary to carefully balance those parts.

What are the advantages of overseas Forex?

No leverage regulation

In the case of Forex trading in Japan, 25 times for individual accounts and 100 times for corporate accounts, very low leverage compared to overseas Forex companies. However, Forex greatest attraction lies in leverage. In view of such a high degree of leverage, many Japanese traders open accounts in overseas Forex companies and trade. I think even those overseas Forex beginners who are challenged in overseas Forex for the first time are mostly attracted to high leverage as well. The number of suppliers that can apply leverage of 888 times or 1,000 times has increased. Is it possible to leverage more than 1,000 times? It is possible because there is no regulation and it is technically possible on MT4. It may not be impossible that an overseas Forex company that can leverage 2,000 times may be born in the future.

No margin call

In the case of overseas Forex, there are many traders who have introduced the zero cut system, so there are many cases that margin call will not occur. On the other hand, since very few domestic Forex companies introduce the zero cut system, margin call may occur. In other words, in the case of Japan, since the worth of fund that became negative will be charged later to the trader, and if you do not pay it will be subject to foreclosure, so it is pretty high risk. However, in the case of overseas Forex companies, as mentioned above, many companies have adopted the zero cut system, no charge will be done even if your fund becomes negative. In other words, you won’t have debts due to price fluctuations arising from sudden market movements. For these reasons, Forex beginners choose overseas Forex companies.

Account opening is easy

Since overseas, many people think that opening an account is a bother. But surprisingly, it is easier and smooth for overseas Forex companies to open an account. For example, just by entering your name and email address from the account opening form, account opening is completed. It completes in as fast as 10 seconds. Since submission of documents accompanying the opening of an account can be done before withdrawal request, so there is no trouble at all.

New Account Opening Bonus

This is one of the campaigns that have become common among overseas Forex companies. It is a campaign to receive margin by opening a new account. With this margin you can trade in real account, so you do not have to try it in demo trade, and you can instantly experience a real trade. Various conditions differ for each Forex company, but you can continue trading the worth of winning as if it is your own money and you can withdraw them. In the case of GEMFOREX, you can withdraw the winning portion. If the profit exceeds 50,000 yen, GEMFOREX is available free and unlimited, a very great deal. Those who are new to overseas Forex who challenge overseas Forex for the first time, please do try using overseas Forex by availing this new account bonus.

Deposit Bonus

This is one of the campaigns that have become common among overseas Forex companies. It is a campaign in which deposits are made during the campaign period so that margin is added to the deposit amount and reflected in the account. For example, if the deposit is 30% bonus, if you deposit 100,000 yen, 130,000 yen will be reflected in your account. With a 50% deposit bonus, if you deposit 100,000 yen you will have an account balance of 150,000 yen. Since GEMFOREX regularly holds 100% deposit bonus, paying in this period will reflect the double amount of deposit in the account, for example if you deposit 100,000 yen, it will be 200,000 yen, 500,000 yen deposit is 1 million yen, if you deposit 1 million yen will be 2 million yen margin. In other words, it is this money deposit bonus campaign that it is possible to trade with more funds than your fund, so very profitable. Those who are new to overseas Forex who challenge overseas Forex for the first time, by all means open an account using the new account bonus, deposit it during the deposit bonus period, and try overseas Forex more advantageously.

Tax saving measures

Those who opened a Forex account overseas to trade is obviously tax saving measure rather than opening and trade in a Forex account in your country. However, there are tax arrangements in every country, so we must not deviate too much from that rule. Take Japan as an example, you will also be obligated to pay taxes on the profits from investment. Please understand that point and receive advice from a tax accountant and think about tax saving measures within reasonable scope.

What are the disadvantages of overseas Forex

Of course it costs tax

It seems that some people think that tax will not be applied if you use overseas Forex company. Unfortunately, overseas Forex, like domestic Forex will cost you a certain percentage of the profit amount and tax if some profit comes out. For example in Japan, in many cases the profit amount of 200,000 yen seems to be a criterion as to whether or not tax will occur. If you do not declare without knowing this, it will be tax evasion and you will be asked for additional tax, so be careful. However, if you are doing Forex by individual, even if you are using an overseas Forex company, taxes will not be incurred even if unrelated profits increase without being withdrawn as cash. As for taxes, there is an obligation to pay at the tax rate set by the country you live in, so it is neither a merit nor a disadvantage. However, for people who are misunderstanding that they do not have the obligation to pay taxes, this seems to be a big disadvantage.

Support is not a mother tongue

This is the most uneasy part. When using overseas Forex companies, it is true that many companies do not have support of their mother tongue. Taking Japan as an example, it is true that many companies do not have Japanese language support. Recently there are an increasing number of overseas Forex companies claiming that "Japanese support is sufficient" or "Japanese support is complete", but when I actually call, the other party is a foreigner who speaks broken Japanese. Even if they managed to speak in Japanese somehow it would be hard for someone to understand my intention. This will be the most difficult for those who are planning to use overseas Forex. In such a case, we recommend that you contact by phone or email before you start using it. You will know from the response if they are familiar with Japanese. There are overseas Forex companies with Japanese staff that really support Japanese customers. By the way, in GEMFOREX, there are several Japanese staffs that provide Japanese support, exclusive staff who can speak English for English-speaking countries and exclusive staff for Chinese and Taiwanese. For overseas Forex beginners who will be using overseas Forex for the first time, support is very important, so we recommend that you check whether or not the support can communicate or not.

There are places where funds cannot be withdrawn

When you look at a site that is performing a negative campaign or 2 channels, there are written contents about overseas Forex companies that says "*** Forex withdrawal refusal" etc. From the standpoint of operating the Forex company, although "refusal to withdraw" is a difficult consideration, but it’s possible that not all overseas Forex companies operate conscientiously. However, since it is unlikely that there are companies that deliberately refuse to withdraw money, but for the case that said "withdrawal is temporarily stopped" in relation to violation of some Terms of Use, is true. For these reasons, it is important to understand the Terms of Use and Guidelines stipulated for each Forex company. Terms of use and guidelines are the rules established by each Forex company and are the first agreement with customers, so agreeing to use without reading may end up in violation without knowing or understanding but acting in violation, since it doesn’t chance the fact of violating the Terms of Use agreement in either case, it is obvious that it will be eligible for punishment accordingly. Writing it on the net as a counterattack is a violation of the rules as a person, and now it is safe to not write wrong information as we can quickly find out who is writing and from where. I am sorry that the talk diverted a little, but it is a fact that any Forex company wants to build a valid relationship with the customers. Although it is not limited to overseas Forex companies, I think that knowing the rules established by the other party is the shortest distance for building effective relationships, so first read the Terms of Use and guidelines firmly and ask for the unclear points and don’t use it if you do not thoroughly understand it. I think this is a very important step for overseas Forex beginners who are using overseas Forex for the first time.

There is a risk of bankruptcy

Although this is not limited to overseas Forex companies, but with regards to domestic Forex companies that generate margin calls, overseas Forex companies introduce a zero cut system, many companies do not generate margin call. In other words, in the case of Forex companies in Japan, the trader's loss is charged to the trader as a loss, but in the case of overseas Forex, the company will take over without charging the trader’s loss to the trader. For that reason, if a trader makes a big loss due to a rapid price movement like the Swiss franc shock, the cover destination of the Forex company cannot completely cover and go bankrupt. In addition, it is safe for those who knew that such Forex company is a subsidiary somewhere in order to reduce the possibility of bankruptcy as much as possible. Even a Japanese Forex company is actually a white label of an overseas Forex company, that is, a subsidiary company or a goodwill division, so in such a case, if the main body goes bankrupt, sometimes it goes with it. Of course, even if bankruptcy occurs, trader's funds will be fully guaranteed if there is segregated management, but since all positions held by that Forex company will be settled, in that respect, it seems necessary to organize a trading strategy.