Easy NISA and Mutual Funds with Online Securities! How to choose online securities without regret

If you don't know, you may not benefit at all from the difference between the commission and the points, or you may not be able to take advantage of the points redemption!

What is online securities?

The once much-discussed “20 million yen for retirement” problem and the recent economic uncertainty have led to an increase in the number of people investing in Japan. In recent years, in particular, the popularity of online securities has increased due to a surge in the number of individual investors who trade stocks and exchange rates at home due to self-restraint in going out.

Online securities are services that do not require a physical store and allow users to trade stocks and other securities over the Internet using smartphones and personal computers. Investing was once thought to be something only a few wealthy people did, but nowadays, everyone invests. Online securities companies have also been expanding their services for investment beginners in recent years.

Opening an account with an online securities firm is free of charge, and procedures are basically completed online. For example, SBI Securities, one of the online securities companies, offers a service that allows customers to earn T Points, V Points, Ponta Points, d Points, and JAL Points by investing, as well as a service that allows customers to invest using these points.

Even beginners who are afraid to start investing with their own money will find the hurdle much lower if they use their points to invest. In terms of ease of starting to invest, simplicity of procedures, and the geekiness of accumulating points, online securities are definitely a service that can be recommended to beginners.

However, there are more than 15 online securities companies like SBI Securities. Therefore, the first problem that beginners encounter when they start investing in online securities is “which service should I use? Here are some points to consider when choosing an online securities brokerage.

Points to consider when choosing an online brokerage

First of all, you should choose a securities company according to what you are going to invest in. For example, if you are planning to start NISA, it is better to use online securities that have a large number of stocks for NISA.

If you have already decided what you are going to invest in, you should choose an online securities company that is suitable for that purpose. An overview of each service will be introduced later.

If you do not want to pay any unnecessary commissions, compare the commissions of each company and make your choice. Normally, commissions are charged per transaction, but some online securities, such as Matsui Securities, determine commissions based on the total amount of transactions in a day.

For example, if you trade small amounts several times a day, Matsui Securities is very advantageous because it does not charge commissions for up to 500,000 yen worth of transactions per day. On the other hand, if you are planning to make a long-term investment of 1 million yen, a service that calculates commissions for each transaction is recommended.

Another option is to choose an online securities company based on the ease of accumulating and using points. For example, SBI Securities offers 1% V-Points if you use a Sumitomo Mitsui credit card for “Credit Card Accumulation. In addition, Platinum Preferred card holders can earn up to 5% back.

Similarly, Rakuten Securities offers a 0.5% to 1% return on Rakuten points if you use your Rakuten card to accumulate funds. If you are already using Sumitomo Mitsui Card or Rakuten Card on a daily basis to accumulate points, you may choose online securities accordingly.

As you can see, there are a number of factors to consider when choosing an online securities company, so it is safe to choose one with a high overall strength. Therefore, among the online securities companies, we would like to introduce three companies that are highly popular and offer a good number of stocks and services.

If you are still undecided about which online securities company is best for you, you will not go wrong if you choose one of these three companies.

Top 3 companies in the overall ranking

How to register for online securities

Basically, registration for online securities can be completed entirely online (you can also choose to have it sent by mail). Although the specifications differ from brokerage firm to brokerage firm, the process of opening an account is almost the same.

First, go to the page for opening an account on the website and complete the e-mail verification. Then, after entering your name and address, you can apply for various services such as NISA. Finally, submit identification documents such as a My Number card, and the application will be automatically reviewed. If there are no problems with the application, the account will be opened successfully in a few days.

The following is an example of the process of opening an account using the SBI Securities application screen. The application can be made either by smartphone or PC. When applying, you will need to have identification documents such as your My Number Card, so please have them ready at hand.

STEP 1.

First, go to the SBI Securities website and proceed to the account opening page.

STEP 2.

First, register your e-mail address. After entering your e-mail address, click “Next,” and you will receive an e-mail containing an authentication code.

STEP 3.

Enter the verification code in the e-mail and tap “Next.

STEP.4

Enter your name, date of birth, address, and other personal information.

STEP.5

There are various application fields, such as NISA, so enter the options that suit you best.

STEP.6

Once you have completed the various fields, choose how you would like to be notified after the account opening is completed. It is possible to receive notification by e-mail and complete everything online.

STEP.7

Select the method of account opening (method of verifying personal information). If you choose “Open an account online,” everything can be completed online.

STEP.8

Send us the image of your My Number Card. After that, an examination will be conducted, and if there are no problems with the application, the account opening will be completed successfully!

What should I invest in?

What is NISA, mutual funds, IPOs, foreign stocks, and mini stocks?

In addition to the well-known stocks, online securities offer services such as NISA, mutual funds, foreign stocks, and mini-stocks. Let us explain the advantages and disadvantages of each service so that even beginners can understand them.

▶NISA (Small Amount Investment Tax Exemption Scheme)

NISA is a system under which no tax is imposed on profits earned from investments. It is recommended that beginners use NISA first.

There are three types of NISA: General NISA, Tsumitate NISA, and Junior NISA, and a new NISA (New NISA) will start in 2024. Each has its own annual tax exemption limit, so use it according to your own budget and investment plan.

▶Investment trusts

Investment trusts are investment products in which funds are collected from many investors, managed by specialists at investment management companies, and the profits are distributed. They are like a packet of various individual stocks, and allow investors to diversify their investments within a single product.

However, investment trusts are managed by professionals at the investment management company, so it is necessary to confirm the investment policy and performance of the fund by yourself, and the fees may be high.

▶IPO (Initial Public Offering)

A company lists its shares on the public market for the first time and sells them to general investors. The share price tends to be expected to rise significantly due to the supply-demand balance immediately after listing.

However, there is a risk that the share price may not rise as much as expected or that the share price may fall, so it is advisable to invest in IPO stocks only after you are at least an intermediate investor.

▶Foreign stocks

Foreign stocks are shares issued by foreign companies. They are basically the same as Japanese stocks, but investors who are familiar with the economic situation in other countries are recommended to invest in foreign stocks because they need to be able to research the economic situation in each country.

▶Mini shares (odd-lot shares)

This is a system that allows investors to trade a smaller number of shares than the normal trading unit. Even stocks that normally trade in units of 100 shares can be traded in units of 1 share at online securities companies that offer mini-shares, making it possible to start investing with a small amount of money. However, the number of stocks handled is smaller than that of regular stocks.

What should beginners focus on when choosing a stock?

Point investment is to use Rakuten points or V-points to invest in mutual funds. If you are a beginner who wants to start investing but is not comfortable with the idea of losing money, point investing is highly recommended because you can invest in the same way as 1 point = 1 yen.

However, there are differences in the points available at each online securities company. For example, SBI Securities accepts T Points and V Points, and Rakuten Securities accepts Rakuten Points. In addition, points can not only be used for investment, but can also be accumulated through investment. While it is important to earn profits from investments, it is also important to remember that points can be efficiently accumulated and used if invested well.

Incidentally, Matsui Securities, introduced in this feature, offers “Matsui Securities Points,” which cannot be used for famous points. These points can be converted to PayPay points, so don't forget to save them.

As you can see, there are many products you can invest in using online securities. For beginners, it is recommended to start with NISA and learn about other products as you become more familiar with them.



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