Overview of Mizuho FX

Mizuho FX, headquartered in Japan since 1917, offers a range of financial products regulated by the Financial Services Agency (FSA). Despite its current license revocation, it provides diverse investment options like stocks, bonds, and NISA, along with pension and insurance solutions. Investors can open General or Specific Accounts with a minimum deposit of 1,000 yen. Trading occurs via the Mizuho Securities Stock App, featuring real-time updates.

Customer support is available through a toll-free number, and deposit/withdrawal methods include ATMs and real-time transfers. Educational resources include seminars, newsletters, and specialized support for inheritance and gifts, alongside transparent commission information.

Pros and Cons

Pros

• Wide Range of Financial Products: Mizuho FX offers a diverse selection of investment opportunities beyond just foreign exchange trading. This includes stocks, bonds, investment trusts, NISA (tax-exempt investing), and even solutions for pensions and insurance needs. This allows investors to create a well-diversified portfolio and satisfy various financial goals.

• User-Friendly Mobile Trading Platform with Real-Time Data: The Mizuho Securities Stock App provides a convenient and user-friendly interface for trading on the go. Real-time data access with features like charts and news empowers investors to make informed decisions. Additionally, features like biometric authentication and customizable My Page enhance security and personalize the trading experience.

• Competitive Fees and Commissions: Mizuho FX boasts competitive fees and commissions across various transactions. This transparency allows investors to understand the associated costs beforehand.

• Convenient Deposit/Withdrawal Options: Mizuho FX offers a variety of deposit and withdrawal methods satisfying user convenience. This includes ATM transactions using Mizuho Securities Cards at partner financial institutions, real-time account transfers, and the Mizuho Securities Net Club's web deposit service. Notably, ATM withdrawals are free of usage fees and reflect instantly in your trading account.

• Educational Resources: Mizuho FX goes beyond just a trading platform and offers educational resources to support investors. This includes informative seminars on investing basics, trading strategies, and risk management. Regular email newsletters keep clients informed about market trends and investment opportunities. Additionally, specialized support for inheritance and gift planning helps with estate planning and tax implications.

Cons

• Retail Forex License Revoked by FSA: While Mizuho FX operates under the oversight of the Financial Services Agency (FSA) of Japan, their Retail Forex License is currently revoked. This raises concerns about regulatory oversight specifically for foreign exchange trading, which is no longer available on the platform.

• Minimum Commission Applies: Although Mizuho FX offers competitive fees, a minimum commission of ¥2,750 applies to most transactions. This can be a disadvantage for smaller investment amounts.

• Limited Customer Support Hours: Customer support is only available via phone during weekdays (8:00 AM to 7:00 PM) and Saturdays (9:00 AM to 5:00 PM). This limited availability might be inconvenient for those needing assistance outside these hours.

Regulatory Status

Mizuho FX operates under the regulatory oversight of Japan's Financial Services Agency (FSA). The platform previously held a Retail Forex License, allowing it to offer forex trading services to retail clients. However, as indicated by the current status of “Revoked,” the license is no longer active. The company was regulated by the Kanto Financial Bureau (金融局長) with License No. 94.

Market Instruments

Mizuho FX offers a diverse range of financial products satisfying various investment needs.

Their stock offerings allow investors to participate in equity markets, providing opportunities for capital appreciation and dividend income.

Bonds provide a fixed-income alternative, offering stability and regular interest payments. Investment trusts offer diversified portfolios managed by professionals, satisfying different risk appetites and investment objectives.

Mizuho FX's NISA (Small Investment Tax Exemption System) facilitates tax-efficient investing for individuals, encouraging long-term wealth accumulation. The Investment Trust Accumulation Service enables systematic investment into trusts, promoting disciplined saving and wealth growth.

Additionally, Mizuho FX provides solutions for pension and insurance needs, ensuring comprehensive financial planning and security for the future.

Account Types

Mizuho FX offers two main account types: General Securities Account and Specific Account.

A general securities account is the basis for trading stocks and mutual funds through a securities company. It's fee-free and easy to use, allowing customers to deposit funds for trading securely. Assets are strictly separated from the firm's, meeting legal requirements for safe management.

Choosing a specific account eases tax duties by assigning tax calculations and payments to the securities company, saving time. Capital gains and dividends are taxed, requiring precise calculations and filing. Specific accounts simplify this with an agency function. Customers can pick from different types tailored to their needs. Mizuho Securities offers comprehensive assistance for complex tax returns with specific accounts handling withholding tax and dividend acceptance.

How to Open an Account？

To open an account with Mizuho FX, follow these steps:

Preparation:

• Review the “Important Information Sheet” before applying. You can find it on their website (https://www.mizuho-sc.com/first/index.html).

Opening an Account:

Option 1: Open an Account with the App (Fastest - 3 Business Days)

1. Download the Mizuho FX app (available for Android and iPhone).

2. Follow the in-app instructions for opening an account.

Option 2: Open an Account on the Web (Approximately 10 Business Days)

1. Note: Web applications are currently unavailable due to maintenance until May 13, 2024.

2. After May 13th, visit the Mizuho FX website and navigate to the account opening section.

3. Enter the required information on your computer or smartphone.

Spreads & Commissions

Mizuho FX ensures fair and transparent pricing for its clients through competitive fees and commissions across various types of transactions. These fees and commissions are subject to revision, and taxes may apply.

For domestic stock commission under the Direct Course, spot trading incurs a minimum commission of ¥2,750, with commission rates varying based on the contract price, ranging from 0.92400% to 0.00880%. Internet transactions in this category are exempt from charges, while miscellaneous fees apply separately. Online margin trading follows a similar structure, with a minimum commission of ¥1,045 and commission rates ranging from 0.34650% to 0.00330%.

Under the Support Course, face-to-face transactions carry a minimum commission of ¥2,750, with commission rates ranging from 1.15500% to 0.01100% based on the contract price. Call center transactions and internet transactions in this category also have a minimum commission of ¥2,750, with commission rates ranging from 1.03367% to 0.00550% and 0.57750% to 0.00550%, respectively.

Fees for foreign (consignment) transactions of foreign stocks encompass various charges such as overseas agency fees, exchange fees, exchange taxes, and stamp duty. These fees vary depending on the contract price and destination country.

The commission fee for convertible bonds (CB) differs for consignment and face-to-face transactions. Consignment fees range from 0.94050% to 0.09900%, with a minimum commission fee of ¥2,750. Meanwhile, face-to-face transactions incur commission rates ranging from 1.04500% to 0.11000%, also with a minimum commission fee of ¥2,750.

Trading Platform

The Mizuho Securities Stock App, available for Android and iPhone, offers a user-friendly interface for stock trading. Real-time updates, intuitive design, and comprehensive stock data, including charts and news, facilitate informed decision-making. Testimonials praise its ease of use, with features like slide movements and biometric authentication streamlining access. The app's customizable My Page feature tailors the experience, while board ordering allows for efficient trading alongside market depth monitoring.

Deposit & Withdrawal

Mizuho FX offers convenient payment methods and fee structures to facilitate transactions.

Deposits and withdrawals can be easily made through ATMs of partner financial institutions using Mizuho Securities Cards, ensuring accessibility and real-time reflection in trading accounts without any usage fees. Partner financial institutions include Mizuho Bank, Japan Post Bank, etc. Customers can deposit and withdraw in units of 1,000 yen, with a daily withdrawal limit of 2 million yen unless specified otherwise. Any usage fees incurred during ATM transactions are covered by Mizuho FX.

Additionally, customers can opt for alternative deposit methods, such as real-time account transfers or Mizuho Securities Net Club's web deposit service, offering flexibility and convenience. Withdrawals, including proceeds from sales, bond interest, and investment trust distributions, can be transferred to registered savings accounts without any transfer fees. For detailed instructions and assistance, customers can consult their dealer, call center, or Mizuho Securities Net Club.

Customer Support

Mizuho FX offers customer support through a toll-free number (0120-324-390) during business hours. Weekdays are covered from 8:00 AM to 7:00 PM, while Saturdays have shorter hours from 9:00 AM to 5:00 PM. Customer support is unavailable on year-end and New Year holidays.

Educational Resources

Mizuho FX offers educational resources beyond just foreign exchange trading. These resources include informative seminars covering various aspects of investing, trading strategies, and risk management. Clients also receive regular updates and insights through the platform's e-mail newsletter, keeping them informed about market trends and investment opportunities.

Additionally, Mizuho FX provides specialized support for inheritance and gifts, offering guidance on estate planning, tax implications, and wealth transfer strategies. The platform maintains transparency regarding commissions, ensuring clients understand the costs associated with trading and investment services.

Conclusion

Mizuho FX offers a compelling selection of investment products beyond forex trading, with a user-friendly mobile platform and competitive fees. Convenient deposit/withdrawal options and educational resources are a plus.

However, the revoked Retail Forex License and limited customer support hours. Additionally, a minimum commission applies, and information on the minimum deposit is unclear. Carefully weigh the advantages and limitations to see if Mizuho FX aligns with your investment goals and trading style.

FAQs

Question: Can I trade foreign currency with Mizuho FX？

Answer: Currently, Mizuho FX does not offer foreign exchange trading due to a revoked Retail Forex License. However, they boast a diverse selection of other investment products you might find attractive.

Question: Is the Mizuho FX platform easy to use？

Answer: Their mobile trading app, the Mizuho Securities Stock App, is known for its user-friendly interface and real-time data.

Question: Are there any fees associated with using Mizuho FX？

Answer: Yes, Mizuho FX charges commissions on transactions, but they are generally competitive. There's a minimum commission to consider, though, so make sure it aligns with your investment strategy.

Question: How can I fund my Mizuho FX account？

Answer: Mizuho FX offers several convenient deposit methods, including ATM transactions with partner financial institutions using their cards, real-time account transfers, and a web deposit service.

Question: Does Mizuho FX provide educational resources for investors？

Answer: They offer informative seminars on various investment topics, regular market updates via email newsletters, and even specialized support for inheritance and gift planning.