My Japanese friend gave me some investing advice the other day and said that he uses SBI for his trades and that it’s objectively the best platform to use when investing in the Japanese market.
I’ve very much a beginner when it comes to investing, but I’ve done a sizeable amount of research on the American market and investing in US stocks. I’ve always stayed away from Japanese platforms and the Japanese market simply because it was too foreign to me and thus somewhat scary.
I’m fluent in Japanese, but there are still kanji words I can’t read, especially when it comes to something technical. Have any of you ever used SBI, what are your thoughts on it, and do you have any advice to give someone in my position?
Edit: I’ve been sifting through investment advice on this sub and I noticed more than a few people talking about how being a US citizen makes it a pain in the ass to invest especially if staying in Japan short-term. I’m a US citizen who will likely stay at least another 5 years in Japan but is unsure about what will happen after that time period. Anyone know how this will affect my investing situation?
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I use it and I’m happy with it. Easy enought to use, but it takes getting used to as a beginner.
It’s easy enough to use that I haven’t had issues with it. Google translate is your friend, some text is on buttons but it’s probably worth it to learn those words. The UI is what you’d expect from a Japanese company but still the best option I’ve found here.
I use rakuten but mostly cause it was really good closed environment a few years back but starting now SBI is legit.
> that it’s objectively the best platform to use when investing in the Japanese market
Objectively the best in what way? Lower fees?
I tried SBI, Rakuten and Monex. I prefer Monex, since it’s easier and when I checked it had the lowest fees.
I have used it for five years or so. The UI is a bit dated but I feel they are one of the better options available domestically.
They send a ton of unneccessary lengthy notices but other than that I have never had issues.
Side note: I am not from the US. I feel US folks will have a harder time signing up on SBI. I know they ask as part of the signup process.
SBI and Rakuten are probably the main platforms in Japan
However looking at your edit being a US citizen restricts a lot of what you can buy. The standard advice for US citizens is to open an interactive brokers account, transfer money to USD (bad time for that) and invest there. However they’re not accepting new applications at the moment.
US citizens should avoid anything that might be deemed a PFIC by the IRS: [https://www.investopedia.com/terms/p/pfic.asp](https://www.investopedia.com/terms/p/pfic.asp)
Generally this means non-US listed mutual funds and ETFs, as well as some stocks.
Many Japanese brokers will not let US citizens trade US stocks. SBI’s policy is here: [https://search.sbisec.co.jp/v2/popwin/info/home/pop6040_kokuseki_02.html](https://search.sbisec.co.jp/v2/popwin/info/home/pop6040_kokuseki_02.html)
So you can’t practically use iDeCo or tsumitate NISA, and you will probably only be able to buy single Japanese stocks in NISA or a taxable account.
For most people, it is just easier to invest in low-cost funds via a US broker at that point.
r/JapanFinance will be the right place to ask the gurus. many people will advice you there esp things related to US and Japan.
Oops American
– https://www.bogleheads.org/wiki/Taxation_as_a_US_person_living_abroad
– https://www.bogleheads.org/wiki/Investing_from_Japan_for_US_citizens_and_US_permanent_residents
If you’re an American, whatever you do don’t let the IRS know that you’re investing abroad. They’ll break your kneecaps and charge you for the service.
Didnt know anything about SBI, but since I already had a rakuten shopping account, credit card, points, and insurance, just went with the trend and started using Rakuten Shoken because they offered a 10k cashback in a campaign.
Have been using them for NISA for 4 years and I really like its platform. I’m currently only doing NISA, to prevent making my kakutei shinkoku any more complex that its already is; but its quite easy to invest in funds or stocks. I also use their instant deposit function to transfer to and from my different accounts without the usual bank transfer fees.
If you’re a us citizen and you want to buy foreign stocks or ETFs the best and only option is interactive brokers. It’s also not a bad option if you’re not American.
If you’re not a US citizen or only want to buy Japanese stocks then the many brokerages are not very different, some of them give more research tools or have options to buy shares in less than units of 100. I like Rakuten because it gives you access to the four seasons report, nikkei, barons, and some other news sources. Either way you can easily find comparisons on websites showing the differences between the different options. I don’t think there is any objectively best brokerage.