Even during EA operation, the narrow spread works to our advantage! Golden Way Japan's "Japan's No.1 Narrowest Spread Challenge Plan" - 耳より！FX会社情報 - Navi+ - GogoJungle | Auto Trading - Market Analysis

Golden Way Japan Co., Ltd. is conducting the "Japan's No.1 Narrowest Spread Challenge Plan" from September 26, 2019, and it is ongoing.
On October 16, 2019, the USD/JPY spread, which had been offered at 0.2 pips, was changed to 0.1 pips, making the charter realization within less than a month a major talking point.

【Overview of the "Japan's No.1 Narrowest Spread Challenge Plan"】

Golden Way Japan Co., Ltd. offersUSD/JPY,EUR/JPY,GBP/JPY,AUD/JPY,EUR/USD, five major currency pairs,
“We hereby declare that if other FX industry spreads are certified to be at low spread levels according to the verification results under our independently defined conditions and criteria, we will, in principle, promptly restore to the narrowest or equivalent spread levels by following the predetermined procedures to reduce the buy/sell spreads of the target currency pairs.”
and as the title suggests, we provide the narrowest spreads in the FX industry in Japan.

Official announcement →https://www.fxtrade.co.jp/wp-content/uploads/2019/10/Spreadchallenge_v3.pdf

Previous articles are here

・Golden Way Japan Co., Ltd. fulfills its pledge of the “Japan's No.1 Narrowest Spread Challenge Plan”! USD/JPY spread on MT4 reduced from 0.2 pips to 0.1 pips as a principle!!

https://www.gogojungle.co.jp/finance/navi/754/16735

・Golden Way Japan Co., Ltd. implements the “Japan's No.1 Narrowest Spread Challenge Plan”! USD/JPY spread on MT4 becomes 0.2 pips as a standard!

https://www.gogojungle.co.jp/finance/navi/754/16054

【Providing a better environment for users】

Golden Way Japan has broken the 0.3-pip barrier for USD/JPY spread
Previously, we reported that after Golden Way Japan reduced the USD/JPY spread from 0.2 to 0.1 pips on and after October 16, 2019, many FX companies followed suit and reduced their USD/JPY spreads to 0.2 pips.
Before the spread reduction, the USD/JPY spreads among FX companies had a 0.3-pip barrier, but Golden Way Japan’s “Japan's No.1 Narrowest Spread Challenge Plan” triggered a shift in the standard to the narrowest level of 0.2 pips.

Maintaining the narrowest level alone was not the goal

At this stage, Golden Way Japan's USD/JPY spread remained the narrowest at 0.2 pips. From the plan's outline, there was no pressure to further reduce it.
However, this time Golden Way Japan immediately conducted verifications after each FX company's USD/JPY spread changes and announced and promptly implemented a further spread of
“0.1 pips fixed in principle (with exceptions)”as a further offer.

This result reflects the company's strong desire to provide a better environment for users. Please also watch future developments.

【Real-time Spread Verification】

On the page that GogoJungle provides to measure real-time spreads of various FX companies (https://www.gogojungle.co.jp/markets/spreads), you can check the current spreads for Golden Way Japan’s various currency pairs.

・2019年11月12日18:00

▲USD/JPY spread graph as of 18:00 on November 12, 2019. The 0.1 pip (principle fixed with exceptions) has continued since the last article. In graphs comparing with other companies, Golden Way Japan consistently maintains the narrowest level.

・2019年11月13日15:00

Even in real-time, USD/JPY remains at 0.1 pip.

In addition to USD/JPY, the other target pairs of the “Japan's No.1 Narrowest Spread Challenge Plan” are EUR/USD at 0.2 pips, EUR/JPY at 0.4 pips, AUD/JPY at 0.5 pips, and GBP/JPY at 0.7 pips. It is noteworthy that all the target currency pairs maintain the narrowest spreads. If you trade with Golden Way Japan, you do not need to worry about spread size regardless of which currency pair you choose.

【Results of comparing a pro trader’s real forward with Golden Way Japan’s real forward】

This time, we would like to compare and verify the forward results between the popular EA “Pips_miner_EA” on demo and real accounts.

https://www.gogojungle.co.jp/systemtrade/fx/13820

・Demo account

・Real account

The display time differs by time zone: demo account is minus 6 hours, Golden Way Japan’s real account is minus 7 hours, there is a difference with Japan time.

In addition to trades at the same timing, the real account shows more trades during the same time period. The profit and loss on the Golden Way Japan real account are profits from all trades during that period. The narrow spreads may have helped execution.

【We asked a professional trader for the real voices!】

We asked full-time trader Kawasaki Doruemon to share what he considers about FX company spreads in trading and his thoughts on them.

Kawasaki Doruemon profile

Feeling limits in discretionary trading, he sought a system-trade method that is as easy on the mind as possible and profitable. After many simulations, he completed Guruguruto Rein (Gurgle Train) [note: likely a transliteration of a strategy name]. Official site：Kawasaki Doruemon’s FX BlogTwitter：https://twitter.com/kawasakidoruemo

Editorial staffWhat currency pairs do you trade most often?

Kawasaki Doruemon (hereafter, Doruemon)There isn’t a particular currency pair I am fixated on, but recently I have been trading more pound-related currencies.

Editorial staffCurrently there is currency spread competition among FX companies with USD/JPY at 0.1 pips, centered on Golden Way Japan. How do you feel about it?

Doruemon　

Editorial staffWhich currency pairs would you like to see even narrower spreads for?

DoruemonRecently, overall market volatility has decreased, so more traders are handling pound-related currencies. Therefore, I hope Golden Way Japan’s pound-related currency pairs spreads become even narrower.

Editorial staffAre FX company spreads something you consciously consider when trading? And what would you like Golden Way Japan to do?

DoruemonI am aware of spreads when trading. Most firms widen spreads during mornings or events, so I avoid trading then, but I prefer firms where spreads revert quickly. Also, if USD/JPY spreads are 0.1 pips, many would want to scalp, so expanding services for scalp-friendly charts like 10-second bars could be beneficial.

【Important Notes】

・This plan may be changed, suspended, or terminated without notice due to external factors such as future economic or market trends, Golden Way Japan’s financial/earnings condition, or other circumstances.

・The FX companies being compared are retail FX brokers.

※ Retail FX companies registered as First-Class Financial Instruments Business Operators; overseas firms and unregistered companies are excluded. Also, companies less than one year old are excluded.

・Displayed spreads apply from 8:00 AM to 5:00 AM Japan time. During low-liquidity periods, economic data releases, or unexpected events such as natural disasters, spreads may widen and actual executions may not match the displayed spreads.

【Important Matters】

In foreign exchange margin trading, customers’ deposited margin is used as collateral to trade much larger currency amounts. Therefore, fluctuations in exchange rates can magnify gains and losses according to the ratio of margin to trading size.

• Foreign exchange margin trading is high risk and high return, and there is no principal guarantee. Losses may occur due to currency price movements, and losses may exceed the amount of margin deposited by the customer because the trade size can be larger than the margin.

• Swap points may move from receiving to paying due to changes in interest rates of the traded currencies.

• In rapid market changes, the bid-ask spread may widen, or desired trades may not be possible.

• If the trading system or networks connecting the broker and customer malfunction, orders may not be placed, executed, confirmed, or canceled.

• For corporate accounts, the required margin is the product of the currency pair’s exchange risk ratio calculated by the Financial Futures Association of Japan and the contract size. The exchange risk ratio is calculated using a quantitative model defined in the Cabinet Office Ordinance for Financial Instruments Business.

Please fully understand the contents of the trading manual (pre-contract disclosure document) and other materials, and engage in trading at your own judgment and responsibility.

Kanto Finance Bureau Chief (Finance) Registration No. 258 / General Incorporated Association Financial Futures Association No. 1570 / Japan Investment Advisers Association member