Currency trading is one of the most popular methods of individuals and institutions in Japan to safeguard and accrue wealth. In fact, Japan accounts for roughly a third of the global forex trading volume, which makes it an important financial centre in the global economy.
The Japanese yen is the third most traded currency on the market and is generally viewed as a safe haven investment.
However, as the software used for forex trading has improved over the years, most Japanese traders have stuck with the legacy MT4 platform that had been the most popular option globally for over a decade.
There are several key reasons as to why the likes of cTrader and MT5 have not enjoyed the same amount of success among Japanese traders, which we will discuss in greater detail below.
Why MT4 is so successful in Japan
MetaTrader 4, or MT4, is a forex and CFD trading software that was released to the public in 2005 – quickly cementing its place as the top choice among brokers and FX traders alike.
However, its successor platform, MetaTrader 5, was released in 2010 with added features and an improved design. Despite this, most traders in Japan, as well as their brokerage platforms, still use MetaTrader 4.
The stability and ease of use of the software has essentially removed the need for traders to update and jeopardize their strategies by introducing an unfamiliar platform.
Stability and reliability
The main reason for the initial success of MetaTrader 4 was its stability, consistency, and precision, which are all traits that are positively viewed within Japanese society.
MT4 has built a reputation over nearly two decades of being a safe and reliable platform for currency and CFD trading.
This is critical in a trading culture where small price movements and timing can be the difference between profits and losses, especially for Japanese traders who frequently engage in scalping and day-trading on the forex market.
Deep customization and technical tools
MetaTrader 4 offers highly customizable charting tools, indicators, and Expert Advisors for automated trading. Japanese traders are known for their meticulous and detail-oriented approach, which makes MT4 highly appealing to them.
The ability to modify indicators and build automated trading systems is a major advantage of using MetaTrader 4.
Furthermore, numerous free and paid plug-ins are available for MT4, which further adds to the customizability of the platform.
Lightweight and accessible
Compared to modern forex trading platforms, MT4 is lightweight and works smoothly even on lower-end computers and mobile devices. This is important in Japan, where most traders prefer flexibility to monitor and trade the market outside work hours. Furthermore, the mobile version of MT4 is well-optimized, offering a consistent and predictable trading experience across different devices.
The simplistic UI is also easier on the eyes and quick to navigate, which gives traders a routine of logging into their accounts and quickly placing their trades.
Broker support and liquidity access
Virtually every forex broker catering to the Japanese market supports MT4, offering seamless interaction with Japanese yen pairs and local trading methods.
Many brokers even provide server-side enhancements like low-latency execution or VPS hosting optimized for MetaTrader 4 users.
Because of the high liquidity demand in JPY pairs, MT4 setups offered by Japanese brokers are often fine-tuned for fast execution and tight spreads. This makes it all the more convenient for Japanese traders to stick with MetaTrader 4 and remain loyal to the platform.
Educational content
Beginner traders in Japan can take advantage of the robust educational infrastructure that is built around MetaTrader 4. From beginner tutorials to advanced programming courses on MQL4, traders have easy access to extensive learning resources surrounfing forex trading.
Such an ecosystem creates a positive feedback loop – traders who are trained on MetaTrader 4, continue to use the platform, which further enforces the dominance of MT4 in Japan.
Culture favoring consistency
The Japanese society typically values predictability, stability, and consistency, which means that traders prefer to master a particular trading platform, rather than making constant adjustments.
MT4’s familiar layout, functionality, and long-term track record align perfectly with Japanese cultural values. Even after the introduction of MT5, traders chose to continue using MT4 because it was simpler for pure forex trading and did not require re-learning or reprogramming existing strategies.
Regulatory and broker alignment
Japan’s financial regulators, notably the FSA (Financial Services Agency), enforce strict trading and reporting rules. Over the years, MT4 has proven adaptable for brokers to meet these regulations while maintaining a user-friendly experience for clients.
Brokers often create highly localized versions of MT4. preloaded with yen-denominated accounts, Japanese language support, and access to domestic liquidity providers, making it even more attractive to local traders.