Interactive Brokers (NASDAQ: IBKR) has expanded its business scope in Japan by introducing Contract for Difference (CFD) instruments, allowing Japanese traders access to U.S. CFDs and global stocks.

Interactive Brokers Japan CFD

CFDs are over-the-counter derivative instruments that enable leveraged trading, favored by active traders for both long and short positions. Operating in Japan through a local entity, the U.S.-based Interactive Brokers offers not only CFDs but also global stocks, options, and futures trading for traders in East Asia.

Dan Kerrigan, CEO of Interactive Brokers Japan, stated, "The addition of CFDs empowers Japanese clients to actively trade U.S. stocks and ETFs with leverage, providing them with a dynamic tool to enhance their investment strategies and maximize trading potential. The introduction of CFDs reaffirms our commitment to Japan and our dedication to helping our clients discover local and global investment opportunities through robust trading technology, competitive pricing, and a wide range of global products."

Competitive Commissions

The brokerage firm further elaborated that commissions for U.S. stock CFDs will be at least $0.0055 per share, while trading Japanese stock CFDs will incur a minimum commission of 0.033% of the trade value. For Singaporean stock CFDs, the minimum commission is 0.121% of the trade value. For stocks listed in Hong Kong, Europe, and Australia, the minimum commission is set at 0.055% of the trade value.

However, Interactive Brokers emphasizes that "the larger the volume traded for all stock CFDs, the lower the rates."

Meanwhile, the Connecticut-based brokerage firm reported $1.2 billion in revenue for the first quarter of this year, marking a 13% increase compared to the same period last year. Commission revenue on the platform also grew by 6% to reach $379 million. The number of client accounts increased by 25% to reach 2.75 million.