Questions regarding NISA

[dangocurry]

Hey Everyone!

I have a few questions regarding NISA and finding funds to invest in the same.

1. Since capital gains and dividends are tax-free over 5 years in NISA, when after 5 years are over, can I shift the holdings from NISA to some other broker under taxable accounts? Like opening NISA in Rakuten, keeping it open for 5 years and then once 5 years are over shifting to IB, in the event of leaving japan? or do I have to liquidate everything and then rebuy from IB or some other broker if I'm leaving Japan?

2. What are some good resources to find and learn about the Stocks, ETFs and domestic funds in which I can invest through NISA?

3. Which is considered good? Investing directly in S&P through domestic broker or investing in some tracker fund which tracks S&P?
I read that these tracker funds have the same weightage and composition of stocks as S&P itself. So, on paper, if S&P rises 8% over the year, then this tracker should also rise 8% over the year, right? The major difference being on S&P, I buy the share in dollar and on domestic tracker I will buy it in yen.

4. Lame question but, between Monex, SBI and Rakuten, which has the best currency exchange rate for buying US entities? I already have Rakuten credit card. I read that if one exchanges yen to dollar directly in NISA, the rates are more but if done in forex account and then transferred, the spread being less, you pay less fees? So does it make sense to open a forex account for currency exchange?

5. On the news of NISA ending in 2023, so if someone opens it this year, the account will still be under NISA scheme until Dec, 2025, right? Even if the government ends the NISA program and doesn't replace it with some other program.

6. On any of the platforms(Rakuten, SBI, Monex), How much time did it take to open the NISA account? A rough estimate in general sense, so if it takes more, I can speed up my decision process on whether to open or not?

Thank you!

[Kanto]

Hey Everyone!

I have a few questions regarding NISA and finding funds to invest in the same.

1. Since capital gains and dividends are tax-free over 5 years in NISA, when after 5 years are over, can I shift the holdings from NISA to some other broker under taxable accounts? Like opening NISA in Rakuten, keeping it open for 5 years and then once 5 years are over shifting to IB, in the event of leaving japan? or do I have to liquidate everything and then rebuy from IB or some other broker if I'm leaving Japan?

2. What are some good resources to find and learn about the Stocks, ETFs and domestic funds in which I can invest through NISA?

3. Which is considered good? Investing directly in S&P through domestic broker or investing in some tracker fund which tracks S&P?
I read that these tracker funds have the same weightage and composition of stocks as S&P itself. So, on paper, if S&P rises 8% over the year, then this tracker should also rise 8% over the year, right? The major difference being on S&P, I buy the share in dollar and on domestic tracker I will buy it in yen.

4. Lame question but, between Monex, SBI and Rakuten, which has the best currency exchange rate for buying US entities? I already have Rakuten credit card. I read that if one exchanges yen to dollar directly in NISA, the rates are more but if done in forex account and then transferred, the spread being less, you pay less fees? So does it make sense to open a forex account for currency exchange?

5. On the news of NISA ending in 2023, so if someone opens it this year, the account will still be under NISA scheme until Dec, 2025, right? Even if the government ends the NISA program and doesn't replace it with some other program.

6. On any of the platforms(Rakuten, SBI, Monex), How much time did it take to open the NISA account? A rough estimate in general sense, so if it takes more, I can speed up my decision process on whether to open or not?

Thank you!

EDIT: Are you American? Proceed with caution. -> https://www.retirejapan.com/us-citizens ... d-holders/

1. I do not think transferring from a Japanese broker to IB is possible.

2. First pick a broker, then look at their offerings. I recommend checking SBI, Monex and Rakuten.

3. All S&P500 Index funds are trackers. They are tracking the same index. If you are not American choose the cheapest Domestic ETF or Mutual fund. If you buy an American domiciled fund you need to deal with currency conversion. FX account could make sense depending on the volume and frequency of the trades. However, you need to deal with transfer fees and bank fees etc etc.

4. The rates are listed so you should check to be sure. I believe SBI is favored here.

5. https://www.retirejapan.com/blog/nisa-changes/
https://www.retirejapan.com/blog/new-ni ... ion-rules/

6. Rakuten
Me - Account 1 month, Nisa 1-2 months.
Japanese wife Both in 2-3 weeks

What did I miss?

[dangocurry]

EDIT: Are you American? Proceed with caution. -> https://www.retirejapan.com/us-citizens ... d-holders/

1. I do not think transferring from a Japanese broker to IB is possible.

2. First pick a broker, then look at their offerings. I recommend checking SBI, Monex and Rakuten.

3. All S&P500 Index funds are trackers. They are tracking the same index. If you are not American choose the cheapest Domestic ETF or Mutual fund. If you buy an American domiciled fund you need to deal with currency conversion. FX account could make sense depending on the volume and frequency of the trades. However, you need to deal with transfer fees and bank fees etc etc.

4. The rates are listed so you should check to be sure. I believe SBI is favored here.

5. https://www.retirejapan.com/blog/nisa-changes/
https://www.retirejapan.com/blog/new-ni ... ion-rules/

6. Rakuten
Me - Account 1 month, Nisa 1-2 months.
Japanese wife Both in 2-3 weeks

What did I miss?

Thank you for the quick reply!
I'm not American but reading all the posts, I surely got to know that situation!


1. After a little searching, I found a forum thread regarding the transfer from a JP broker to IB.
viewtopic.php?t=118

this eventually led me to this page on SBI regarding the same. I assume Rakuten or Monex may also have something like this, just have to dig it up.
https://www.sbisec.co.jp/ETGate/WPLETmg ... n_out.html

If I'm understanding correctly, I can transfer US and China entities to some other broker, but not the domestic one. So, since I'm not so sure of the period of my stay in Japan, I think if this case is possible then, I can open up a NISA and after 5 years, assuming I'm still in japan and not leaving, maybe rollover to next term or transfer the foreign entities to some broker like IB if I leave.

2. Okay, understood! thank you!

3. Makes sense if I'm just going to buy ETFs, then better to buy something domestic which would save the currency conversion fees.
If I need something specific from US market, then I think I can buy it and deal with the fees. But for most part, domestic makes sense.

4. Yes, will check all the 3(Monex, rakuten, SBI)

5. I found a similar query thread that resolved my query along with the posts!

6. I already have account with SMBC Prestia. On my previous thread, it was advised to buy whatever I want to buy at the start of the year, if possible all the 1.2 million quota and forget about it till next year. In the sense that I'll will be benefitted with 12 months of growth(or loss) in the market.
Since NISA year starts from January, Should I get in the process to open account or wait till next year now?
I believe that with the time you have said to open the account(1-2 months) I will have that amount saved. So should I still go forward with opening the account for this year?

7. This is a new question but do we have any domestic ETFs for the like of ARKK, ARKG and ICLN. I personally think I can allocate some resources to these sectors, so asking. If such domestic ETFs are not present, do people usually then buy them directly?

Sorry if the questions sound lame but I'm just clearing out things before doing anything.

Thank you!

[Kanto]

EDIT: Are you American? Proceed with caution. -> https://www.retirejapan.com/us-citizens ... d-holders/

1. I do not think transferring from a Japanese broker to IB is possible.

2. First pick a broker, then look at their offerings. I recommend checking SBI, Monex and Rakuten.

3. All S&P500 Index funds are trackers. They are tracking the same index. If you are not American choose the cheapest Domestic ETF or Mutual fund. If you buy an American domiciled fund you need to deal with currency conversion. FX account could make sense depending on the volume and frequency of the trades. However, you need to deal with transfer fees and bank fees etc etc.

4. The rates are listed so you should check to be sure. I believe SBI is favored here.

5. https://www.retirejapan.com/blog/nisa-changes/
https://www.retirejapan.com/blog/new-ni ... ion-rules/

6. Rakuten
Me - Account 1 month, Nisa 1-2 months.
Japanese wife Both in 2-3 weeks

What did I miss?

Thank you for the quick reply!
I'm not American but reading all the posts, I surely got to know that situation!


1. After a little searching, I found a forum thread regarding the transfer from a JP broker to IB.
viewtopic.php?t=118

this eventually led me to this page on SBI regarding the same. I assume Rakuten or Monex may also have something like this, just have to dig it up.
https://www.sbisec.co.jp/ETGate/WPLETmg ... n_out.html

If I'm understanding correctly, I can transfer US and China entities to some other broker, but not the domestic one. So, since I'm not so sure of the period of my stay in Japan, I think if this case is possible then, I can open up a NISA and after 5 years, assuming I'm still in japan and not leaving, maybe rollover to next term or transfer the foreign entities to some broker like IB if I leave.

2. Okay, understood! thank you!

3. Makes sense if I'm just going to buy ETFs, then better to buy something domestic which would save the currency conversion fees.
If I need something specific from US market, then I think I can buy it and deal with the fees. But for most part, domestic makes sense.

4. Yes, will check all the 3(Monex, rakuten, SBI)

5. I found a similar query thread that resolved my query along with the posts!

6. I already have account with SMBC Prestia. On my previous thread, it was advised to buy whatever I want to buy at the start of the year, if possible all the 1.2 million quota and forget about it till next year. In the sense that I'll will be benefitted with 12 months of growth(or loss) in the market.
Since NISA year starts from January, Should I get in the process to open account or wait till next year now?
I believe that with the time you have said to open the account(1-2 months) I will have that amount saved. So should I still go forward with opening the account for this year?

7. This is a new question but do we have any domestic ETFs for the like of ARKK, ARKG and ICLN. I personally think I can allocate some resources to these sectors, so asking. If such domestic ETFs are not present, do people usually then buy them directly?

Sorry if the questions sound lame but I'm just clearing out things before doing anything.

Thank you!

6. If you have all the funds handy, then theoretically the sooner the better.

The opposite approach is dollar cost averaging. Vanguard has a good writeup on it, http://www.smartretirement.com.au/wp-c ... raging.pdf.

7. No not through a Japanese broker. Only IBKR or the like.

There is an ARK -Nikko monstrosity which costs 1.658 %.

https://www.nikkei.com/nkd/fund/?fcode=02312196

There are also Emaxis NEO funds.

https://emaxis.jp/lp/neo/fundchart.php
https://emaxis.jp/index.html

[dangocurry]

6. If you have all the funds handy, then theoretically the sooner the better.

The opposite approach is dollar cost averaging. Vanguard has a good writeup on it, http://www.smartretirement.com.au/wp-c ... raging.pdf.

7. No not through a Japanese broker. Only IBKR or the like.

There is an ARK -Nikko monstrosity which costs 1.658 %.

https://www.nikkei.com/nkd/fund/?fcode=02312196

There are also Emaxis NEO funds.

https://emaxis.jp/lp/neo/fundchart.php
https://emaxis.jp/index.html

Thank you!

I understand your point.

Regarding 7, that's quite a lot.

I used the search on Monex, SBI and Rakuten. I was able to find that SBI lists ARKK and ICLN. Monex lists ICLN. Rakuten Neither.

Monex search: https://mst.monex.co.jp/mst/servlet/ITS ... lSearchGST
SBI search: https://www.sbisec.co.jp/ETGate/
Rakuten search: https://www.rakuten-sec.co.jp/web/marke ... eoch_10=on

Am I looking at the right places?
I have a doubt regarding SBI. On the search I'm able to find ARKK and ICLN. Is it just displayed, or can one actually buy/sell from SBI?
Monex specifically says on the search website that "You can search for issues that can be traded with Monex, Inc. by issue name or business description.
After selecting the individual stock / ETF, enter the keyword."

Thank you!

[Kanto]

As far as ARK goes...

Some funds may show up on listings, but may not be available to purchase.

A search in Japanese seems to indicate that it is not available with any Japanese brokers as of late 2020.

https://tabiryman.com/ark-innovation-etf/.


Not sure about ICLN.

[dangocurry]

As far as ARK goes...

Some funds may show up on listings, but may not be available to purchase.

A search in Japanese seems to indicate that it is not available with any Japanese brokers as of late 2020.

https://tabiryman.com/ark-innovation-etf/.


Not sure about ICLN.

I see! Thank you for making it clear.

What do think of FirstTrade as a platform?

Does anyone on the forum use it or used it before?

Thank you!