To buy Japanese stocks, it is necessary to live and have a bank account in Japan.

This guide explains the actual purchase procedure of stocks from opening a stock trading account to management methods.

1. Create a stock trading account

At the start, choose a securities company.

Securities companies are classified into two types: over the counter trading and website trading.

There are many securities companies in Japan and each company has its own set of tools, perks, and services to offer customers.

The trade fees for online securities are especially cheap because there is competition.

The following table illustrates the advantages and disadvantages of each trading method.

In the case of over the counter trading, go directly to the reception of a securities company and fill out the required documents.

In the case of network transactions, fill out the forms on the securities company’s website and upload scans of the required documents.

At first select Individual customers (個人のお客様) → a securities general trading account (総合証券取引口座)

1-1 Confirmation of terms

Since it is necessary to confirm the document was delivered before your account can be finished, put a check mark indicating consent.

1-2 Input basic information

Enter your basic information, such as name, gender, date of birth, address, phone number, email address, etc.

1-3 Select the type of transaction

Select In-kind transactions(現物取引) for a specific account (特定口座) / tax withholding (源泉徴収あり)

* Margin trading is extremely risky, so I do not recommended it.

* If you select a specific account with "tax withholding", the securities company will calculate the profit and loss and tax on the sale, and it will be able to deduct the tax from the sale price, This way you do not need to worry about putting it on your tax return.

1-4 Input financial institution account

Select and enter a bank account that’s in your name to use when depositing and withdrawing money from your securities account.

After a period of about 2 weeks, your member ID and login information will arrive by mail.

From there you can assign your own password.

2. Depositing money

Before buying stocks, it is necessary to deposit some money.

The minimum amount needed is around 100 thousand yen.

The amount you decide to deposit will differ according to your budget and investment plan.

Note: Investing carries a lot of risk, so I recommend only using money that you can spare.

4. Ordering the stock

Confirm your budget and the unit price of the stock at that moment before ordering then decide the quantity. Finally, place the order.

At the start, enter the 4 digit enterprise code.

There are two order methods, so choose the appropriate one.

A. market order

B. limit order

A. market order is easy to contract, but in most cases contract prices are expensive.

If you are dying to buy certain stock immediately select market order.

B. Limit order ensures that you have price certainty.

For instance, suppose you place a limit order when the price of a stock is likely to go down. you will buy only when the price falls to the level you have specified. Generally, it is better to select B limit order.

If you select limit order, specify the purchase unit price and period.

5. Confirming the contract

In order to confirm the agreed unit price and quantity, check the contract information.