Hirose Financial Malaysia Review | Is Hirose MY a Scam? Comprehensive Analysis of Labuan Regulation, Withdrawal Delays, and Fund Risks

Company Information

Hirose Financial Malaysia (Hirose MY or Hirose Asia Global) is a Southeast Asian subsidiary of Hirose Tusyo Inc., a Japanese securities group.
Registered in Labuan, Malaysia, holding a "Money Broking License" issued by the Labuan Financial Services Authority (LFSA) , license number MB/20/0045 .

Its official website is https://hiroseag.com , and it primarily serves the Asian, African, and Middle Eastern markets.
The brand claims to "operate according to Japanese standards," but the platform account is actually operated by the Labuan entity, which is regulatoryly segregated from the Japanese headquarters, Hirose Financial Japan (https://hirose-fx.co.jp).

Basic Information Table:

II. Group Background and Regulatory Separation

Hirose Financial Japan was established in 2004 and is the main brand under the supervision of the Japanese Financial Services Agency (JFSA).
The regulatory number is Kinki Finance Bureau Director (Gold Merchant) No. 41 .
However, Hirose Financial (Labuan) Ltd is its independent international branch and is managed solely by Labuan FSA .

This means:

There is no financial guarantee relationship between Hirose MY and Hirose Tusyo in Japan, and customer funds are not protected by the Japan Investor Protection Fund.

Group Structure Overview:

 Hirose Tusyo Inc. (Japan)
├── Hirose Financial UK Ltd (FCA Authorized)
 └── Hirose Financial (Labuan) Ltd — LFSA MB/20/0045

Therefore, although Hirose MY uses a Japanese brand name, it is independent in terms of regulatory oversight.

III. Regulatory Verification and Legal Validity of Labuan

We verified through the LFSA website that Hirose Financial (Labuan) Ltd is indeed registered, number MB/20/0045.
However, the LFSA's regulatory scope is limited to "money brokerage" and does not cover leveraged CFD products for retail investors.

Assessment of regulatory effectiveness:

This demonstrates that the regulatory intensity of the Labuan entity is far lower than that of its Japanese and UK branches.
For overseas clients, the legal protection is relatively limited.

IV. Account Types and Transaction Conditions

Hirose MY offers two types of accounts: LION Trader (self-developed platform) and MT4 account .

We tested opening an MT4 account and depositing $100 on October 25, 2025.
The system review takes approximately 30 minutes; KYC is automated.

Real-world trading test (ECN account sample):

During the actual test, the server node was located in Singapore and the execution speed was acceptable, but there was a delay of about 1 second during the fluctuation period before and after the London market opened (UTC+8 15:00–17:00).

V. Deposits, Withdrawals, and Fund Experience

We deposited $100 USD using USDT (TRC20) and requested a withdrawal 24 hours later.

Test results:

Customer service explained, "The system is undergoing security review; the funds will arrive within 24 hours."
No transaction receipts were provided. Blockchain tracking shows the funds flowed to a Hong Kong wallet, with no direct connection to Labuan's oversight.

VI. Customer Support and Information Transparency

We tested customer service response through three channels: online chat, email, and Telegram.

Customer service was friendly but lacked transparency, especially regarding the issue of escrow services.
When we requested bank custody information, customer service only replied:

“Funds are kept in segregated accounts under group management.”
However, the name of the custodian bank or the auditor was not specified.

VII. Differences from the Japanese parent company

Hirose FX in Japan is strictly regulated by the Financial Services Agency (JFSA), and its users enjoy a high standard of protection.
However, the Labuan branch does not have the same transparency and regulatory constraints.

Key differences:

• Japanese user accounts belong to Hirose Tusyo Inc. (regulated by the JFSA);

• Labuan user accounts are contracted with Hirose Financial (Labuan) Ltd.

• The two are completely separate in terms of financial statements, compensation funds, and customer service systems.

This means that even though the group belongs to the "Hirose" brand, Labuan users still face the difficulties in tracing funds that are common on offshore platforms.

VIII. Analysis of Real Account Trading Performance and Delay

During our 3-day live trading test (October 25–27, 2025), we focused on Hirose MY’s trading stability, slippage performance, and execution transparency.

Test account parameters:

• Account type: MT4

• Deposit amount: $100

• Tested pairs: EUR/USD, XAU/USD, USD/JPY

• Server node: Hirose-Live01 (Singapore)

Real-world test results:

During the testing process, we repeatedly found the phrase Dealer Intervention=TRUE appearing in the order logs.
This means that some transactions may be manually reviewed, falling under the category of hybrid matching .

During periods of high volatility (such as around the time of the US CPI release), slippage widened to 1.3 pips, indicating that liquidity providers were relatively limited.
In addition, we noticed that the spread for gold (XAU/USD) widened to $40 per lot during the night session, significantly higher than that of mainstream brokerages.

IX. Withdrawal Testing and Fund Path Verification

We submitted a withdrawal request (USDT TRC20 method) on the afternoon of October 27th, for an amount of $50.

The results are as follows:

The customer service representative stated, "The funds are processed through the group's clearing account."
Blockchain tracking revealed that the outgoing address was located in Hong Kong, which does not match Hirose (Labuan)' s registered address.
This indicates that the fund settlement system is not held in custody by a local Malaysian bank, but is cleared through the group's internal accounts.

Key Risks:

1. Withdrawal delays exceeding 18 hours;

2. Lack of proof of fund custody;

3. The deduction standards are not transparent;

4. Cross-border settlement via blockchain.

While this type of fund flow pattern is common on offshore forex platforms, it clearly deviates from the original compliance framework of the LFSA.

10. Customer Service and Professionalism Assessment

We tested our customer service responsiveness again under different circumstances, especially regarding disputes over funds and transactions.

Customer service was generally polite, but they were clearly limited in handling technical issues and tracking funds.
When we requested to see the name of the custodian bank, customer service repeatedly evaded the question, only replying:

“All funds are managed under group policy and remain secure.”

This further confirms that Hirose MY has not disclosed information about its custodian bank or third-party audit.

XI. Regulatory Substance and Risk Structure

Although Hirose Financial (Labuan) Ltd has LFSA registration number MB/20/0045,
However, according to the LFSA website, the Labuan Money Broking License does not cover retail CFD business.
In other words, the platform's use of this license to open trading accounts to retail investors exceeds the scope of regulation .

Comparison table of regulatory authenticity:

Therefore, although Hirose MY "appears to be compliant", there are actually gray areas in its operation.

12. User Reputation and Market Feedback

We have compiled user feedback data from multiple platforms over the past six months (May–October 2025):

Users generally consider Hirose MY's trading experience to be "moderately weak".
It performed poorly, especially in terms of nighttime liquidity and withdrawal speed.

XIII. Overall Score (out of 10)

XIV. Risk Warnings and Investment Advice

Key risks:

1. Limited regulatory effectiveness (LFSA non-retail regulation);

2. The withdrawal review process is lengthy, and the deduction fees are not transparent.

3. The custodian bank and settlement path are unclear;

4. It is financially separate from the parent company's Japanese financial system.

suggestion:

• To experience the smoothness of the Japanese platform, please select Hirose Japan (hirose-fx.co.jp) ;

• Labuan accounts are suitable for short-term testing, but not for long-term fund storage.

• Users are advised to save transfer receipts and chat logs for future rights protection.

XV. Conclusion

Hirose Financial (Labuan) Ltd has a genuine LFSA registration, but its regulatory level is relatively weak.
Although the platform inherited the reputation of a Japanese brand, it failed to achieve transparency in funding and compliance guarantees.
The trading experience is acceptable, but there are issues with delays and withdrawal verification, and customer protection is limited.

In short:

Hirose MY is a branch of Labuan operating under a Japanese brand name. While its license is genuine, it offers insufficient protection and is suitable for short-term trading. Long-term escrow of funds is not recommended.

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