NISA question - ETFs, stocks...

[jeronimoski]

Hi all,

Sorry, another dumb American question.

So I applied for a Rakuten and a SBI account. NISA regular (which is the 1.2 million choice).

Here are my questions:

1. Can invest up to 1.2 million in each account, or will I get flagged for that (by the govt, etc.)?
2. NISA is just the name of my account, right? I can use that account to buy ETFs, bonds, and stocks, right?
3. I will be going on with the US market cause of tax purposes and will be avoiding mutual funds cause that's a big no-no for Americans. With regard to the US ETFs, I shouldn't buy any Japanese ETFs right?
4. What's the procedure for buying stocks and ETFs? I'll be transfering funds from my Mizuho account to Rakuten and SBI. Then I'll have to convert and then buy?

Many thanks in advance to everyone.

[Kanto]

You can only have one single NISA account per person, regardless of where that account is. Hopefully, one of your applications is accepted and the other is rejected.....

I believe each broker has different rules on what American citizens can purchase. I believe some limit Americans to domestic funds.

Rakuten -> https://www.rakuten-sec.co.jp/web/domes ... ution.html
SBI -> https://search.sbisec.co.jp/v2/popwin/i ... ki_02.html

Some banks and brokers do not give good exchange rates. Do your research.

You may want to read through this thread -> http://www.retirejapan.com/forum/viewto ... 8&start=10

[jeronimoski]

Wait a second. So US people cannot buy anything with Rakuten or an SBI account? So what can Americans buy? Only Japanese stocks and ETFs? That other thread doesn't really answer it.

[captainspoke]

If you're US, I'D be really careful about any fund (ETF/mutual) to avoid that PFIC crap. Even if it says "vanguard", if it's in a 'wrapper' I think it'll be a PFIC.

I'm told that SBI does have vanguard ETFs (would be okay), but at the same time am told that SBI won't let you buy them if you're US...

And if you're US, investing via a US broker, or IB, will make tax reporting there sooo much easier. If you have a such a fund here you'll have to figure out how to do exchange rates for the US, and so on.

Individual stocks are okay, from any country, as far as I know, so with an account here you could buy IBM, or AAPL, etc., and any other stock that your broker can get for you. I'm not sure how IB's trading commissions compare to here, tho US outfits have moved to commission-free trading.

Good luck with it all!

[jeronimoski]

I thought SBI and Rakuten had access to US ETFs and Americans could buy them, but now I'm reading that we most likely cannot. But what about individual stocks? I would like to buy individual US stocks. So this is also out of the question for Americans??? I do have Vanguard, but I didn't want to put my eggs all in one basket.

[Kanto]

I thought SBI and Rakuten had access to US ETFs and Americans could buy them, but now I'm reading that we most likely cannot. But what about individual stocks? I would like to buy individual US stocks. So this is also out of the question for Americans??? I do have Vanguard, but I didn't want to put my eggs all in one basket.

You can buy individual stocks. SBI and Rakuten have access to the Nasdaq, NYSE and Southeast Asian exchanges. Taxes are your responsibility though.

[captainspoke]

... I do have Vanguard, but I didn't want to put my eggs all in one basket.

So you do have vanguard (which most any US expat here would envy), yet you find it somehow untrustworthy, or open to doubt...?

Excuse my french, but wtf?!?

[jeronimoski]

... I do have Vanguard, but I didn't want to put my eggs all in one basket.

So you do have vanguard (which most any US expat here would envy), yet you find it somehow untrustworthy, or open to doubt...?

Excuse my french, but wtf?!?

This is the second rude post you've written about me. Did you wake up with a massive hangover? Try to be more polite, please.

I have been doing a lot of research on the brokers here. So again, I'm not completely clueless like you suggested in another thread. I'm just asking questions, so pardon me if they don't meet your 'rookie' standards. I want to put some money into Japanese stocks here...and maybe buy some ETFs but I just found out from my accountant that I should avoid ETFs from outside the US. So I was wondering about what kinds of things Americans here were able to buy with their NISA. Yes, I use Vanguard. Yes, I trust them. But I just wanted to diversify, too. I also have some Fidelity and American Funds mutual funds, but I cannot put any more money in them cause they shut me out cause of the rules.

And I've had some success recently with opening accounts with TDAmeritrade and Robinhood. So I shared that information here without being rude. C'mon man. Be nice with your posts and stop raking me over the coals.

[Kanto]

... I do have Vanguard, but I didn't want to put my eggs all in one basket.

So you do have vanguard (which most any US expat here would envy), yet you find it somehow untrustworthy, or open to doubt...?

Excuse my french, but wtf?!?

This is the second rude post you've written about me. Did you wake up with a massive hangover? Try to be more polite, please.

I have been doing a lot of research on the brokers here. So again, I'm not completely clueless like you suggested in another thread. I'm just asking questions, so pardon me if they don't meet your 'rookie' standards. I want to put some money into Japanese stocks here...and maybe buy some ETFs but I just found out from my accountant that I should avoid ETFs from outside the US. So I was wondering about what kinds of things Americans here were able to buy with their NISA. Yes, I use Vanguard. Yes, I trust them. But I just wanted to diversify, too. I also have some Fidelity and American Funds mutual funds, but I cannot put any more money in them cause they shut me out cause of the rules.

And I've had some success recently with opening accounts with TDAmeritrade and Robinhood. So I shared that information here without being rude. C'mon man. Be nice with your posts and stop raking me over the coals.

Caveat, I am not American or a tax expert.

Due to the tax implications, restrictions, and headaches I think most American would avoid investing through a Japanese broker if they could. The Americans who do invest directly here usually do so because they did not open accounts before they left and cannot open accounts after the fact. Many of them also want to avoid the fees and requirements of international brokers such as IBKR.

If you have a trading accounts already open in the states, as well as retirement accounts (401k, IRA etc) it probably makes far more sense to continue to trade an invest through those accounts.

If you want to invest in Japan and buy Japanese stock I think you should be fine. It may be a bit more work for your accountant.

If you trade regularly and can afford the minimal deposit International Brokers (IBKR) might be a better bet
.

[captainspoke]

...
This is the second rude post you've written about me. Did you wake up with a massive hangover? Try to be more polite, please.
...

Okay, my apology. Perhaps I was a little frustrated. Note that above I said trading stocks was fine, "Individual stocks are okay, from any country, as far as I know, so with an account here you could buy IBM, or AAPL, etc., and any other stock that your broker can get for you."

And the next post (yours), seems to have missed that: "But what about individual stocks? I would like to buy individual US stocks."

So another poster said it again, "You can buy individual stocks. SBI and Rakuten have access to the Nasdaq, NYSE and Southeast Asian exchanges."

Anyway, good luck!