Trading vs Investing under NISA

[RMA]

Hello all,

I have started using NISA from this year and plan to max it out by the end of the year. I want to go with 80% investing (mainly in emaxis slim funds) and try trading stocks with balance 20% of my portfolio. So now I am facing 3 options:

1. Under NISA I do 100% investing and use non-NISA account for trading stocks.
2. I do 100% trading under NISA account and use non-NISA account for investing long term.
3. I do both under NISA.

Any advice on above?

As for me, I am non-US citizen and maximum can allocate JPY 1.2M for investing and JPY 300K for trading in 2021.

[mighty58]

If by "trading" you mean "repeatedly buying and selling stocks", then no, NISA is not the right account in which to do that. You have a maximum of JPY1.2m you can put into a NISA account per year, and once you use that up, it's gone. You cannot sell something to "regain" space under the 1.2m and then buy back in as long you stay under 1.2m.... it doesn't work that way. Once you sell what's in there, you have lost your tax-free status. As such, NISA is best suited, by design, for long-term buy and hold.
Trading is best done within a regular taxable (tokutei kouza) account.

[RMA]

If by "trading" you mean "repeatedly buying and selling stocks", then no, NISA is not the right account in which to do that. You have a maximum of JPY1.2m you can put into a NISA account per year, and once you use that up, it's gone. You cannot sell something to "regain" space under the 1.2m and then buy back in as long you stay under 1.2m.... it doesn't work that way. Once you sell what's in there, you have lost your tax-free status. As such, NISA is best suited, by design, for long-term buy and hold.
Trading is best done within a regular taxable (tokutei kouza) account.

Ok I understood, thanks. So I will use NISA strictly for long term investing and will try trading under regular taxable account.