A growing number of Japanese retail investors are switching from leveraged FX trading to leveraged cryptocurrency trading, thus driving the crypto market, according to a recent Deutsche Bank’s research. Operators of Japan’s largest FX platforms are launching their own crypto exchanges, offering leverage of up to 25x.
Masao Muraki, Head of Research at Deutsche Securities Inc (DSI) in Japan, said last week that Japanese retail investors are increasingly moving from traditional FX trading to cryptocurrency trading. DSI is a member of the Deutsche Bank Group.
Muraki explained that investors are shifting their focus to leveraged crypto trading after failing to meet their profit goals with leveraged FX trading, CNBC reported.
Citing “speculation in cryptocurrency is growing to a scale that cannot be ignored,” he elaborated:
We think that retail investors are shifting from leveraged FX trading to leveraged cryptocurrency trading…Japanese men in their 30s and 40s who are engaged in leveraged FX trading are driving the cryptocurrency market.
The analyst noted that Japan accounts for 54% of global FX margin trading. According to data from GMO Click Securities, one of the world’s largest FX trading platforms, 79% of Japanese FX accounts are held by men, and 63% of them are between ages 30 and 49.
Japanese retail investors are also known as Mrs. Watanabe even though most of them are men. However, traditionally they were housewives running their households’ finances.