Hirose Tusyo Inc.
7185・Standard Market・Securities & Commodity Futures
Business
Hirose Tusyo Co., Ltd., established in 2004, is a company specializing in online foreign exchange margin trading (FX), providing FX trading services to individual investors through its flagship brand "LION FX". It features small-lot trading from 1,000 currency units, no commission fees, and low spreads, targeting a wide range of customers from beginners to advanced traders. In addition to its two-brand domestic structure, which includes its consolidated subsidiary JFX Co., Ltd., the company operates overseas subsidiaries in the UK, Malaysia, and Antigua and Barbuda. It also provides White Label Service to other financial instruments business operators and handles over-the-counter securities CFD and over-the-counter commodity CFD trading, operating the Financial Instruments Trading Business across the group as a whole.
Business Model
In response to customer orders, the company obtains the best rates from more than 20 counterparties and executes cover transactions, earning revenue from the difference (spread margin) between the customer's execution price and the cover counterparty's execution price. Under "FX marrying," where buy and sell orders are matched internally within the company, the entire spread becomes revenue, with the company taking on risk only to the extent that falls below the cover transaction ratio. Swap point margin is also one of the revenue sources. Through a risk-neutral operating policy that avoids holding proprietary positions as much as possible, the company seeks to secure stable earnings.
Company Strengths
The company has built trading relationships with more than 20 established domestic and overseas financial institutions such as banks, and has a system that delivers the best rate to customers from among the rates offered by multiple counterparties. This enables it to continuously offer highly competitive spreads, and the depth of its customer base is reflected numerically in the FY2026 (ending March 2026) foreign exchange margin deposits received of ¥88,359 million (up 14.4% year on year).
Rather than the common 10,000-currency-unit lot size, the company mainly offers 1,000-currency-unit lots, and has continuously provided a commission-free trading environment since the launch of "LION FX" in 2008. By lowering the entry barrier for customers with small amounts of capital, it has acquired a broad customer base including beginners, and has built a diversified sales base that does not depend on specific large customers.
Rather than outsourcing, the company provides 24-hour customer support using its own employees. It seeks to standardize support quality through long-term training and testing periods, and maintains a development cycle that upgrades trading tools roughly once a month while incorporating customer feedback ("Voice of the Customer"). Unique initiatives such as "reflection meeting" seminars also contribute to customer retention.
ENVALITH's Perspective
Performance Trend
Operating revenue peaked at ¥10,713 million in FY2024 (ended March 2024), fell to ¥10,204 million in FY2025 (ended March 2025), and recovered slightly to ¥10,491 million in FY2026 (ending March 2026), but remains 2.1% below the peak. Operating profit declined 28.6% over two periods, from ¥4,256 million in FY2024 to ¥3,040 million in FY2026. Net income also fell 29.5% to ¥2,061 million, compared with ¥2,925 million in FY2024. As for external factors, FY2026 saw a mix of yen appreciation (briefly reaching the ¥139 level) and a return to yen depreciation (¥158 level at period-end), and the volatility environment was generally favorable; however, an increase in selling, general and administrative expenses (up 4.3% year on year) and higher corporate taxes (from ¥840 million to ¥1,031 million) squeezed profits. Operating cash flow deteriorated sharply to negative ¥443 million from ¥2,242 million in the prior period, as an increase in deposits accompanying higher customer margin balances tied up funds.
Growth Strategy
Revenue diversification and trading activation through CFD expansion, tool sophistication, and deepening of the domestic customer base
Launched a physical gold gift campaign for LION CFD, deploying measures to capture the recent rising interest in safe-haven assets. The number of CFD customer accounts, margin deposits, and trading volume are currently undisclosed as their materiality relative to foreign exchange trading is small, but the business is being nurtured as a pillar of revenue diversification.
Added real-time volatility and position ratio display functions to LION Chart Plus+, and added a swap simulation tool, an earnings calendar, and a measurement tool to LION FX C2. Monthly-level functional improvements promote continued trading among existing customers and the acquisition of new customers.
Implemented a spread reduction for Turkish lira/yen in April 2025. Combined original campaigns such as food, freezer, and physical gold gifts with cashback for new account openings to stimulate trading appetite among both existing and new customers. Foreign exchange margin deposits expanded 14.4% year on year to ¥88,359 million.
Deconsolidated LION PAYMENT UK LTD. and terminated the LION Trader and MT4 services at HIROSE FINANCIAL UK LTD. and others. Unprofitable, low-earning overseas businesses were reorganized to concentrate management resources on the domestic FX business. The impact on consolidated results is described as minor.
Last updated: July 19, 2026