All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Originally founded in 1878, the Tokyo Stock Exchange (TSE/TYO) is home to some of the world’s biggest companies, and in 1990, accounted for more than 60% of all stock market capitalisation. It is currently the world’s third-largest stock exchange by market capitalisation, with over 3,700 listed companies valued at more than $5.6 trillion.
Can I invest in the Tokyo Stock Exchange from the UK?
Yes, you can invest in the Tokyo Stock Exchange from the UK, and many Japanese stocks are available to buy on foreign stock exchanges like the NASDAQ, New York Stock Exchange and London Stock Exchange. While you’ll need to be a Japanese citizen or permanent resident to directly trade stocks on the TSE, many trading platforms and brokers list stocks from the Tokyo Stock Exchange, which means they can be bought using your UK account.
How to invest in the Tokyo Stock Exchange
- Choose a broker or trading platform. When choosing a trading platform, consider things like usability and cost. If you’re looking to invest in specific TSE stocks, you should also check that that specific platform or broker lists the stocks you’re interested in buying.
- Open a share-trading account. Once you’ve selected a broker or platform, you’ll need to open a trading account so you can start investing in Japanese stocks.
- Deposit funds. In order to begin trading, you’ll need to deposit money into your account. Depending on which platform you use, your money may automatically be converted from pounds into Japanese yen, US dollars, or another currency, and you may need to pay a foreign exchange fee.
- Buy TSE stocks. Once your account is funded, you’ll be able to buy and sell shares. Use the platform or broker’s search function to find the specific Japanese stock you want to buy.
How much does it cost to buy shares on the Tokyo Stock Exchange?
Here are some of the fees that some top providers charge for a trade on the Tokyo Stock Exchange. Make sure you check out the individual providers to find out about any additional fees.
Platform | Fee for a US trade | Foreign exchange fee |
---|---|---|
Fineco | $3.95 (£2.98) | 1% |
eToro | £0 | 1.5% |
Hargreaves Lansdown | £11.95 | 1% |
Stake | £0 | 0.5% |
Read platforms reviews and get more detailed information about each of them
Tokyo Stock Exchange ETFs
You can also indirectly invest in the Tokyo Stock Exchange via exchange-traded funds (ETFs), which are index funds that track the performance of certain stocks on the TSE. They are often based on popular stock market indices, such as the Tokyo Stock Price Index (TOPIX), or Nikkei 225 and Nikkei 400, which track the top 225 and 400 companies listed on the Tokyo Stock Exchange, respectively.
ETFs are a low cost way to invest in a certain subsection of stocks, and can also help you diversify your portfolio without having to buy multiple individual stocks. Some of the most popular Japanese ETFs include:
- iShares JPX-Nikkei 400 (JPXN)
- iShares Nikkei 225
- Deutsche X-trackers Japan JPX-Nikkei 400 Equity ETF
- WisdomTree Japan Hedged Equity Fund
- SPDR Solactive Japan ETF
- JPMorgan BetaBuilders Japan ETF
- Franklin FTSE Japan ETF
Why should I invest in the Tokyo Stock Exchange (TSE/TYO)?
As the world’s third largest stock exchange, and Asia’s largest, the Tokyo Stock Exchange offers investors the ability to buy shares in some of the most important and successful companies in the world, such as Toyota and Sony. Many of these stocks are also available to buy via international brokers and digital trading platforms, which means they’re often just as easy to buy as British stocks.
Which stocks are on the Tokyo Stock Exchange?
The Tokyo Stock Exchange lists many of Japan’s largest and most famous companies, including:
- Toyota Motor Corporation
- SoftBank Group Corp
- Sony Corporation
- Keyence Corporation
- Nippon Telegraph and Telephone Corporation
- NTT Docomo
- Mitsubishi UFJ Financial Group
- Honda Motor
- Nintendo
- Hitachi
- Daikin Industries
- Canon
Bottom line
If you’re interested in investing in the Tokyo Stock Exchange then it’s possible to do so from the UK as long as your broker allows it. There may be different fees for these stocks compared with stocks on the London Stock Exchange or US shares and you’ll need to factor in currency exchange fees.
Compare trading platforms
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