Before opening an account, many people wonder whether offshore forex is illegal and whether using a broker the Financial Services Agency (FSA) has warned about could get them punished. In short, the Financial Instruments and Exchange Act (FIEA) requires registration of the operators carrying out financial instruments business, and FSA warnings are also issued to operators. However, the absence of a penalty provision for users does not mean the activity is safe.
Using the FSA's 'Names of unregistered persons conducting financial instruments business' (updated 25 September 2026, Reiwa 8), its warning page, and the text of FIEA Article 29 as primary sources, this article sets out what the warnings mean, the difference between the regulation of operators and the position of users, the risks of using an unregistered operator, and four checks to make before opening an account. For a final legal judgement, consulting a lawyer or other professional is assumed.
Is offshore forex illegal? First separate 'who the regulation applies to'
The phrase 'offshore forex is illegal' mixes two separate questions. One is whether an operator conducting financial instruments business for residents of Japan is registered, which is regulation on the operator's side. The other is the responsibility of the user of that operator. What the FSA states to be illegal is the former.
| Point | What public information confirms | Source |
|---|---|---|
| FIEA Article 29 | 'Financial instruments business may not be conducted by anyone who has not been registered by the Prime Minister.' The provision that requires operators to register | e-Gov Law Search (Financial Instruments and Exchange Act) |
| FSA's position | 'Conducting financial instruments business in Japan without registration is illegal.' Even an operator licensed overseas is prohibited from conducting financial instruments transactions as a business for residents of Japan without registration in Japan | FSA warning page |
| Effect on users | The FSA says that if you trade with an unregistered operator, pursuing any trouble is extremely difficult. In the range we checked, we found no statement of penalties for the user personally | FSA warning page |
| Individual disputes | The FSA says it cannot arrange, mediate or conciliate individual disputes | FSA warning page |
※ 'No provision penalising users was found' is not the same as 'there is no problem'. For individual trades, taxation and the relationship with other laws, consult a lawyer, tax accountant or other professional.
FIEA Article 29 regulates those who conduct financial instruments business without registration. For that reason, an offshore forex broker that is not registered in Japan and provides services to residents of Japan is a matter on the operator's side and is the subject of warnings. Users trade outside the framework of Japanese investor protection, so the risk of bearing losses and withdrawal problems themselves is greater.
What are FSA warnings on offshore forex? How to read the unregistered operator list
In 'Names of unregistered persons conducting financial instruments business', the FSA publishes the names of unregistered operators to which it has issued warning letters, and of unregistered operators located overseas. The latest list was updated on 25 September 2026 (Reiwa 8). The page notes that those listed are limited to persons confirmed to be conducting unregistered business at the time the warning letter was issued.
A warning is a notice that unregistered solicitation took place, not a finding of fraud
In the contents column of the list, many overseas operators are described as 'having solicited over-the-counter derivatives transactions through the internet'. This is a public statement of the fact that they solicited without the registration required in Japan, and does not judge whether withdrawals are possible or whether trading is fair. At the same time, it is important risk information showing that the counterparty is not covered by Japanese law's protections.
Examples among brokers listed on this site whose entity names appear in the publication
These are examples of four companies for which this site's existing columns checked the FSA list. What is published is not the brand name but the entity name, which does not necessarily match the entity contracting with customers in Japan. We state only what is listed; this is not an evaluation.
| Brand | Entity name and service name on the list | Date published |
|---|---|---|
| AXIORY | Axiory Global Ltd. (service name: AXIORY) | June 2015 |
| Exness | Nymstar Limited (service name: Exness) | April 2023 |
| Vantage Trading | Vantage Global Limited / Vantage Prime Trading Limited / Vantage Trading Ltd. | March 2023 / June 2024 / August 2026 |
| DecodeFX | Decode Global Limited (service name: DecodeFX) | September 2025 |
※ For listed brokers other than those above, search the FSA list for the entity name yourself. The list is by entity name and may be updated.
Exness reputation and safety: company overview and the FSA publication →
Are users punished for using offshore forex? The structure of the FIEA
The registration obligation in the FIEA (Article 29) is a provision directed at those who conduct financial instruments business. The text says only that financial instruments business may not be conducted by anyone who is not registered; it does not contain wording that prohibits users from opening an account. The FSA warning page likewise does not set out penalties for users, but calls on them to check whether an operator is registered before trading and not to trade with unregistered overseas operators.
- The registration obligation is placed on the operator side (those who conduct financial instruments business). The provision is FIEA Article 29
- The FSA publishes the names of unregistered operators and urges users not to trade with them
- In the range this site has checked, we found no FSA statement that explicitly says users themselves are punished
- However, we cannot rule out that individual circumstances (such as involvement in solicitation or referring others) could raise a different issue
Whether a penalty provision exists and whether your funds are protected are separate questions. The FSA warns that even if trouble arises from trading with an unregistered operator, pursuing it is extremely difficult. For a final judgement on the legal position, consult a lawyer or other professional. This site does not provide information that substitutes for legal advice.
Trading only for yourself and recommending account opening to others on social media or a blog in return for rewards may raise different issues. If you plan to be involved in referrals or advertising, check individually with a professional.
Risks of using an unregistered offshore forex broker and the scope of your own responsibility
Customers of registered Japanese operators trade within a Japanese framework, including regulation and supervision under the FIEA and the dispute-resolution scheme of the Financial Futures Association of Japan (FINMAC). When using an unregistered overseas broker, you rely on your contract with the broker and the system of the counterparty's country, outside that Japanese framework. The FSA also states that when trading with a malicious operator, investors may suffer disadvantages such as execution prices being deliberately adjusted against them.
| Item | Japan-registered operator | Unregistered overseas operator |
|---|---|---|
| Main laws that apply | FIEA and Japanese supervision | The system of the country where the contracting entity is located, and the customer agreement |
| Where to turn in a dispute | For member operators, the FINMAC dispute-resolution scheme and others exist (per the FSA) | The FSA says it cannot arrange, mediate or conciliate |
| Leverage | Up to 25 times for individuals (domestic rule) | Depends on the broker's terms (the FSA warns of advertising examples far above the domestic limit) |
| Tax | Separate self-assessment taxation (domestic over-the-counter forex) | Treated as subject to aggregate (progressive) taxation (check the tax article and the tax office for details) |
※ The domestic leverage cap for individuals is a general description based on FSA regulation. For a final judgement on tax, consult the tax office or a tax accountant.
Offshore forex tax: aggregate taxation, rates and differences from domestic forex →
Using offshore forex is trading at your own responsibility, with an understanding of the terms, the entity and the withdrawal route. This site's articles do not guarantee profit or safety. Consider it only with funds you can afford to lose, and with an understanding that losses are possible.
Checks before opening an account: the FSA lists and how to look up registered operators
- 01Confirm the contracting entity
On the account opening screen or in the legal documents in the personal area, check the name of the entity your account will be registered with. Search by entity name, not by brand name.
- 02Search the FSA list of unregistered operators
Search the entity name and service name in the list 'Names of unregistered persons conducting financial instruments business', and read the date published and the contents.
- 03Cross-check with the FSA list of registered operators
The FSA page 'List of businesses holding licences, permissions and registrations' has a PDF and Excel file for financial instruments business operators (as of 31 August 2026). Use it to confirm whether an operator is a registered domestic operator.
- 04Save the terms and withdrawal conditions
Save the customer agreement, withdrawal policy and bonus terms before depositing, and check the withdrawal route and identity verification conditions.
- Even if you are rushed on social media or LINE, check the entity name yourself before deciding to deposit
- For a site that only says 'registered with the FSA', cross-check the registration number and operator name against the FSA list
- If any doubts remain, do not deposit, and ask official support or a public consultation service
Frequently asked questions
Q. Is offshore forex illegal?
A. The FSA states that conducting financial instruments business in Japan without registration is illegal. What is illegal is the act of the operator providing trading to residents of Japan without registration, and FIEA Article 29 requires operators to register. How users are treated can differ with individual circumstances, so consult a lawyer or other professional for a final judgement.
Q. Are users punished for using offshore forex?
A. In the FSA warning page we checked, we found no statement of penalties for users themselves. What the FSA calls for is not trading with unregistered overseas operators and checking whether an operator is registered before trading. However, the absence of a penalty provision does not mean safety, and you should consult a professional about individual circumstances.
Q. What does an FSA warning on offshore forex mean?
A. It is a publication of the names of unregistered operators to which warning letters were issued, and a list updated on 25 September 2026 (Reiwa 8) is available. It is a public statement that they solicited without the registration required in Japan, not a finding of fraud, but it is risk information showing that investors are outside the protection of Japanese law.
Q. What risks come with using an unregistered offshore forex operator?
A. The FSA says that even if trouble arises, pursuing an unregistered operator is extremely difficult, and that it cannot arrange, mediate or conciliate individual disputes. Treatment of customer assets and withdrawals depends on the contracting entity's terms and the system of its country, so it is important to check the terms and withdrawal conditions in advance.
Q. How can I check whether an offshore forex broker is registered with the FSA?
A. Check the list of financial instruments business operators (as of 31 August 2026) on the FSA page 'List of businesses holding licences, permissions and registrations', and also search the entity name in the list 'Names of unregistered persons conducting financial instruments business'. Cross-check by the contracting entity name, not the brand name.
Sources and conditions
- FSA: Names of unregistered persons conducting financial instruments business (updated 25 September 2026, Reiwa 8; verified on 10 October 2026) →
- FSA: Names of unregistered persons conducting financial instruments business (consolidated list; verified on 8 October 2026) →
- FSA: Beware of solicitation by unregistered overseas operators (verified on 10 October 2026) →
- FSA: About so-called foreign exchange margin trading (verified on 10 October 2026) →
- FSA: List of businesses holding licences, permissions and registrations (verified on 10 October 2026) →
- e-Gov Law Search: Financial Instruments and Exchange Act (Article 29; verified on 10 October 2026) →
- Risks of offshore forex (beginner's guide) →
FX Textbook is an independent information site, not a broker or provider of personal investment advice. Forex and CFDs involve risk. You may lose some or all of your invested capital. No trading result is guaranteed.
NEXT STEP
After checking the contracting entity and the FSA publications, compare each broker's conditions.
Compare the account types, leverage and minimum deposits of listed brokers on the same basis. Consider them only after understanding the fact of non-registration and the risks.
Brokers covered in this column
Account types, trading conditions and current offers are on each broker page.