There are many different ways to trade stocks in Japan. You’ll find that most traders use trusted and regulated brokers to trade on the stock exchange successfully. However, several online platforms allow investors to trade directly. Although good brokerages typically offer these platforms, they can allow you more freedom in your choices and execution of trades.
What you need to start trading stocks in Japan
Regardless of the trading method used, there are a few essential tools and resources that all Japanese stock traders need to be successful, and here are some of the most important things you need:
A good broker
To trade stocks in Japan, you will need to open an account with a broker. Several online brokers cater to Japanese investors, so finding one should not be too difficult. When you have selected your broker of choice, you need to open an account and deposit money.
A Trading platform
Your broker will provide you with an online trading platform where you will place your trades. Choosing a user-friendly platform with all the features you need is essential.
You need to be able to access real-time market data to make informed trading decisions. You will find many market data sources, including online news sites, broker websites, and financial newspapers.
Technical analysis is an integral part of stock trading, and you will need charting software to do it effectively. There are many different charting packages available, so it is essential to do your research and select one that meets your needs.
Before you place your first trade, you must focus on creating a solid and clear trading strategy. It should include:
- Clear and achievable goals,
- Your risk tolerance and planned stop loss strategies
- The types of trades you are willing to make.
Finally, you will need to place your order with your broker. You will need to specify the number of shares you want to buy and the price you are willing to pay. Once your order has been placed, you will need to wait for the stock to be traded on the exchange before receiving your money.
Best resources for Japanese traders
Fortunately, there are several great resources available for Japanese stock traders. Some of the best include:
The Tokyo Stock Exchange website
It seems like an obvious one, but it’s worth mentioning nonetheless. The TSE website has excellent information for traders, including stock prices, company information, and market news.
Nikkei Asian Review
You will find it is one of the best sources for business and economic news in Japan. It’s essential reading for anyone interested in stocks, as it provides valuable insights into the Japanese economy.
Yahoo! Finance Japan
Yahoo! Finance is an excellent resource for stock information all around the world, and that includes Japan. The site has stock prices, company information, charts, and more.
Bloomberg is another global financial news powerhouse, and its Japanese website is full of helpful information for stock traders.
Tax implications of trading stocks in Japan
Finally, it’s essential to understand the tax implications of trading stocks in Japan. The Japanese government taxes stock trades at a rate of 20%. However, there are several ways to minimize or even eliminate this tax. Some of the best resources for information on Japanese stock taxes include:
The Japan Exchange Group website
This site has a lot of great information on the taxation of stocks and other securities in Japan.
The Tokyo Stock Exchange Tax Guide
This guide provides detailed information on the taxation of different types of securities, including stocks.
PWC’s Taxation of Equity Transactions in Japan
This guide from PWC is a comprehensive overview of the taxation of equity transactions in Japan, including stock trades.
Stock trading in Japan can be a lucrative way to make money, but you must have the right forex trading tool and resources before you get started. With the proper preparation, you can be well on your way to making a profit. New traders are advised to use an experienced and reliable online broker like Saxo Bank and trade on the Saxo demo account before investing in stocks.