If you want to stop paying extortionate fees for your money transfers to Japan while avoiding the long wait until the money arrives, be sure to read our entire Japan Money Transfer Guide.
Say goodbye to your old ways of sending money and most importantly, forget about the big fees, long waits and the paper work you’ve been used to when dealing with banks. Say hello to the new way of transferring money – Foreign Exchange (FX) companies.
Take a look at the table below, which shows some great FX companies, and select the company you would like to transfer with.
The Guide’s Topics:
- Best Way to Send Money to Japan
- Best Company to Transfer Money from Japan
- Today’s Japanese Yen Rates
- Reasons to Move Funds into Japan
- Regulation and Limitations
Best Company To Transfer Money To Japan
* Expected Rates reflect our rate expectations based on our research. We do not guarantee accuracy. For some companies we used a range of rates because they offer wholesale rates for large trades and higher rates for small trades.
Supported Countries & Payment methods
World First is able to send money internationally with zero fees and complete any transfer in less than 2 days. All this while providing a currency exchange rate that can’t be match by any of the High Street banks. And most importantly, you can do any money transfer in seconds with their new mobile app. For more details about it, be sure to check their website.
MoneyCorp will also provide a fee free transfer to Japan from any of the popular destinations like Canada, USA, Australia, Germany, Spain, South Africa, Israel, Mexico or any of the many locations supported. Just fill the quote form on their website and you will be contacted by someone from their staff.
Best Company to Transfer Money from Japan
|Min. Transfer: £ / € 1,000.|
Transfer: Online or by Phone.
Why Them? 75,000+ Active Clients. 100+ Currencies Available. 98% Positive Client Feedback.
Supported Regions & Currencies
The government of Japan has a loosely regulated the money transfers to and from Japan, so there aren’t many restrictions in this business. The Financial Services Agency (FSA) overseas all the institutions and companies that work in the currency exchange market and the FX companies can serve clients from all regions of the country.
Important to add is the fact that World First has Japanese version of their website, which is a great news for those who don’t master the English language and are afraid of the finance terminology.
Currencies: With World First you can rest assured that any country you would want to transfer money to is supported. They have access to over 100 currency at any give moment, so rest assure that any client can and will be helped.
Today’s Foreign Exchange Rates for JPY
Japanese yen behaviour
The yen is influenced strongly by trends in risk appetite and changes US interest rates. The Bank of Japan will resist currency gains and, longer-term, there are concerns over potential heavy losses.
The Bank of Japan is engaged in an aggressive monetary policy to combat deflation and reach their 2% inflation. There is a programme of bond purchases and a target level for long-term bond yields of zero while a weaker yen is also seen as essential to raise inflation. The Japanese currency will tend to weaken when US bond yields rise.
Competitiveness also remains a very sensitive issue given the importance of exports. On both trade and inflation grounds, the Bank of Japan, under instruction from the Finance Ministry, will discourage a strong yen and is prepared to intervene to weaken the currency if necessary.
Japan generally runs a current account surplus with no annual deficit since 1980 and there are strong income flows back to Japan from substantial overseas asset holdings. These flows provide robust underlying yen support and the currency will strengthen if capital outflows are weak.
The yen is still seen as a safe currency and the performance is correlated strongly with overall global risk appetite. The currency will strengthen when confidence in the global economy and asset prices are weak, losing support when confidence is high.
From a longer-term perspective, government debt is running at close to 250% of GDP, maintaining fears over eventual currency depreciation.
Transferring Money To Japan Bank Account
The Japanese yen is one of the most powerful currencies in the world, taking the 4th place as reserve currency. The strong and stable economy has led to the Yen being the third most traded currency in the foreign exchange market, after the USD and EUR.
Forex: Japan’s economy is very stable and, therefore, so is the yen. A stable currency is a great weapon for those who trade in the Forex market.
The Japanese yen is the most traded currency in Asia and is seen as a proxy for the underlying strength of Japan’s economy.
Business: Japan ranks 29th of 185 countries in the Ease of Doing Business Index 2015. Maybe it is because it has one of the smallest tax rates in the developed world or perhaps it is because of the country’s infrastructure and educated labor force (one of the world’s best-educated populations and zero illiteracy). Regardless of how many other factors influence it, one thing is for certain – Japan is a great environment for businesses.
Real Estate: Japan (mostly Tokyo) is one the leaders in the top Asian destinations for real estate investors in 2016, followed by Australia, Hong Kong, China and Singapore. According to Forbes, the main targets of this year are office spaces, residential and logistics.
Thinking To Relocate To Japan?
If you consider relocating to Japan, you may find the following information helpful.
Advantages Of Moving To Japan:
- Affordable Transportation: 35% lower on average than the UK.
- Safety: Japan is exceedingly safe with a crime rate that is 15% lower on average than most Western countries.
- Cleanliness: Japan boasts a 22% rate of higher cleanliness than most European countries, which is surprising to many.
Disadvantages Of Moving To Japan:
- High Housing Costs: Housing Costs are only 14% lower than the UK, which could be beat in other expat destinations.
- Less Opportunity for Women: Japan, like many nations in Asia still has a 1950’s mentality towards women. Thus, women can be limited to secretary role or housewife positions.
- Expensive Food: Japan’s cost of food is only 3% lower than the UK, which is quite expensive for Asia.
How Can You Send Money To Japan Cheaper
The Foreign Exchange company’s business model is pretty straight forward – buy currency at a low price and then sell it for a profit.
The longer explanation begins with the fact that these companies are buying currency in large quantities and that’s why they’re getting a wholesale price. So on any day of the week, they can offer better exchange rates compared to your local banks.
A fast delivery time means a higher rate of customer satisfaction, but it also means that they are able to obtain a profit more quickly as the currencies have been exchanged. That’s why these companies are able to offer so much for so little. Because it’s a system that benefits both parties.
*If you are interested in buying a house overseas, FX companies are the best solution for it because you can easily set up recurring international payments with little to no additional fees.
Info Needed To Initiate A Transfer:
- Account Number
- Bank Name and Address
- Receiver’s Complete Name
- Swift/BIC Code
After you provide all the details listed above, the process is simple:
- Create a free account with your chosen company.
- Request a quote from one of the dealers and get a quick reply online or by the phone.
- Send the money to your account so you can fund the transfer.
- Get a confirmation from the company that the transaction is completed.
Our Company Recommendation:
- Send Money to Japan: Companies that provide international money transfers to Japan.
- Send Money from Japan: Companies that take on Japanese Customers.
Regulations and taxes when transferring money to and from Japan
Japan’s currency is the Japanese Yen (JPY). The JPY is fully convertible, making transfers in and out of Japan relatively simple.
The Japanese Yen was the 3rd most traded currency in the world in 2014, above the British pound.
The Bank of Japan
The Bank of Japan oversees payment systems, monitors the proper function of financial systems, and works to preserve price stability. Its oversight extends to monitoring the activity of all financial institutions.
The Bank of Japan committed not to engage in manipulation of exchange rates, and has not intervened in the foreign exchange market since 2012.
There are no transfer restrictions on money going in and out of Japan. However, foreign investment in 10% (or more) shares in sectors that have “national security or national sovereignty implications” must obtain prior approval from the Ministry of Finance. Included agriculture, petroleum, and telecommunications.
Although this may appear as an excessive regulation, this makes sure foreign exchange fiascoes like Dahabshiil won’t happen.
Taxation on foreign income
Japanese residents are taxed on any foreign income. Non-residents are taxed only on income originating in Japan. Double tax treaties are in place to avoid double-taxation.
Biggest banks in Japan
- Mitsubishi UFJ
- Sumitomo Mitsui
Even tough Japan is a well developed country, is not that easy to send money to Japan from UK. The banks will charge you a lot and some will even take a percentage cut. So when you make a big transfer, a chunk of it will be going to the banks. And the same thing happens also if you need to send money from Japan, is not only a thing for UK banks – it’s banks in general. So stop overpaying and start enjoying the many benefits that the FX companies can provide.