Best broker for the Japanese market?

Discussion in 'Online Brokers' started by JulianWilliams, Jan 14, 2015.

  1. JulianWilliams

    JulianWilliams Well-Known Member

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    I'd like to give the Japanese market a go. They have a lot of great companies, from fairly small ones to some absolute giants, so I think there are plenty of opportunities to earn a buck or two there. The Japanese people also save a lot of money which they then use to make investments, so over the long term the value of Japanese stocks should increase.
    So, what broker would you recommend for the Japanese market?
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'm not really familiar with any Japanese broker dealers, but I have often invested in a few ADR's of Japanese companies through my US-based broker dealers.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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  4. Onionman

    Onionman Senior Investor

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    It depends on what you want to do really. In terms of general reputation within Japan, you would always start with Nomura. Whether they can provide you with what you need is another matter, as I don't know what they are like with retail accounts (if that's what you are looking for). But their stock research is generally well-respected. Outside of them, you can look at Daiwa - smaller, less market coverage, but with an international presence (some of the bigger internationally-focused brokers were forced to merge/went bust a while back).

    As a market, Japan is a curious being. Japanese people certainly save a lot, and have one of the largest savings rates in the world, but they don't particularly invest as much as you might think. They are very conservative (the culture is as a whole to be fair) and so they have a history of basically buying up very low yielding JGBs (the government bonds) and playing FX. A lot of stock market outperformance tends to be based on international investor involvement (i.e. if you see international investors selling/buying the market then you would act accordingly).

    Japan has a lot of well-known brands but no one would honestly say that Nintendo, Sony or Sharp, for example, are strong long-term stories. They all have structural problems inherently reflective of a country that has its own structural problems: aging population, low birthrate, low female participation in the workforce, low migrant workforce etc.

    The Japanese market has certainly done well on the back of Abenomics, but if you stripped out the last two years you would have seen a very different story when investing in the market. They had what was termed the "Lost Decade" for a reason.
     
  5. fxstreet

    fxstreet Senior Investor

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    I think many brokers allow traders from all region and also trading pairs or instruments of different countries including Japan. So, it is best to use an international broker. Try Forexchief broker; I personally use their platform. Install their mt4 or 5 and see for your self.
     
  6. Andris

    Andris Active Member

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    Forexchief broker does not accept traders from the USA. They are an excellent broker of good reputation.
     
  7. tradermuslim

    tradermuslim Active Member

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    OP is probably from Japan, so he can use Forexchief, which is a very good option for the Japanese Market. I have been using them for months now for all kinds of asset trading.
     

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