If you intend to trade US stocks, then Japan might be the country you should consider. Why is this so?
Here are ten key benefits of trading US stocks in Japan:
2-hour double opening for NYSE and Nasdaq
The most important benefit of trading US stocks in Japan is that it has two-hour double opening sessions during the New York Stock Exchange (NYSE) business hours.
It is beneficial, especially if you’re working full time, because it allows you to check your investments.
During this period, the second session starts at 11 pm JST or 9 am EDT, where there are several financial instruments to choose from.
Work efficiency with brokerages providing English-speaking support
Another key benefit of trading US stocks in Japan is the English-speaking support companies provide.
For instance, it can be very frustrating to deal with a company that speaks limited English, but you will not encounter this kind of problem when your broker can communicate in English.
This benefit makes work more accessible, especially if you’re working full time, because it helps avoid misunderstandings.
Free commission on trades
The following key benefit of trading US stocks in Japan is that some brokers offer free transactions on foreign exchange or currency pairs under certain conditions.
You need to contact them and find out what these conditions are so you’ll know for sure if they apply before making trades.
Higher liquidity for shares traded on NYSE compared to TokyoStock Exchange
Another key benefit of trading US stocks in Japan is that it provides higher liquidity for shares traded on the NYSE than those traded on the Tokyo Stock Exchange (TSE).
It makes trading easy and efficient because you will have various choices. There are more chances that you will execute your order without actually influencing its price.
More affordable brokerage fee with no hidden charges
This next key benefit is that some companies offer lower brokerage fees as long as no additional fees are involved.
For instance, they might have a US$1 minimum commission or charge less per 100 shares traded. You can text them to inquire about this specific arrangement before deciding whether or not you will use their services.
One-day consolidation of trades for clearer recordkeeping
The following key benefit is that some brokers provide one-day trades consolidation to make documentation easier.
They allow clients to consolidate every transaction done on the same US stock over one day so you can see all transactions made on one particular date.
It makes keeping up with your investment records much more convenient than having numerous daily records.
24/5 market access
Another key benefit you’ll enjoy when trading US stocks in Japan is the 24/5 market access it provides, which means that you can go online or call your broker 24 hours a day and five days a week.
You will not experience any downtime, so it’s very efficient, especially if you’re working full-time. It also eliminates the need for intermediaries because you can monitor your investments on your own.
Easier transactions when trading US stocks in Japan
Easier transactions are another crucial benefit you will enjoy when trading US stocks in Japan.
The complete process of buying and selling these financial instruments can be easy and convenient, especially when it comes to placing orders online
Lower tax compared to other countries if stock gains are not withdrawn in cash
The following key benefit is that the Japanese government charges lower taxes than in most countries, so you’ll save more if you don’t withdraw any of your income in cold hard cash.
Instead, you should invest it back in the market so you may gain higher returns over time. According to reports, the maximum tax rate in Japan is only 20% compared to other countries that charge higher taxes.
Access original US stock prices
Finally, one key benefit of trading US stocks in Japan is that you will have direct access to prices for these financial products.
You won’t need to go through third parties or middlemen because your broker can provide you with updated information regarding the current market conditions. It means more opportunities for investment and possibly higher returns over time.
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