Rakuten Securities Temporarily Stop Offering Fixed Spreads over Market Volatility

Fazzaco learned that Rakuten Securities, a Japanese Forex, CFD and stock broker, has announced recently the temporary suspension of offering fixed spreads for all currency pairs of Rakuten FX and Rakuten MT4 for the time being over market volatility.

The broker clarified that market liquidity has declined in the recent Forex industry, which were attributed to the depreciation of the yen due to the widening interest rate differential between Japan and the US, Forex intervention by the Bank of Japan, and the volatility of the British pound following the announcement of economic policies by the new British government.

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In line with the above measures, Rakuten Securities will temporarily suspend the "[Rakuten FX] spread reduction campaign" that has been running since September 6, 2022. "We will do our best to present spreads," said the firm.

Besides, in preparation for forced settlement (stop loss) due to sudden fluctuations in the market, the company asks its customers to pay close attention to the management of their open interest (position) and funds.

Shortly before, Fazzaco reported that Mizuho Financial Group's securities unit planned to acquire a 19.99% stake​ in Rakuten Securities from its parent Rakuten Group for 80 billion yen ($552 million) to beef up its online brokerage business.