Overview of Arakkal Markets
Securities Japan, established in 1944 and based in Japan, operates under the regulation of the Financial Services Agency (FSA). Their trading platform, Japan Trade, offers a variety of tradable assets including stocks, investment trusts, bonds, futures and options, and insurance products. They provide two main account types: Regular Accounts (Ippan Kouza) and Specified Accounts (Tokutei Kouza). While they do not offer a demo account, they provide customer support via phone, email, and in-person visits.
Deposit and withdrawal options include face-to-face, internet, IFA, and inter-broker transactions. Educational resources such as FAQs, service guides, and courses are available to assist clients in making informed investment decisions.
Pros and Cons
Pros:
Established in 1944: Securities Japan's long history since its establishment in 1944 suggests stability and experience in the financial industry, which instills confidence in clients regarding its reliability and expertise.
Regulated by the Financial Services Agency (FSA): Being regulated by the FSA ensures that Securities Japan operates within the legal framework and complies with industry standards, providing a level of security and protection for investors.
Offers a wide range of tradable assets: Securities Japan provides a diverse array of tradable assets, including stocks, investment trusts, bonds, futures and options, and insurance products, allowing clients to create diversified investment portfolios tailored to their preferences and risk tolerance.
Multiple deposit and withdrawal options: The availability of various deposit and withdrawal methods gives clients flexibility and convenience in managing their accounts, accommodating different preferences and circumstances.
Cons:
No demo account available: The absence of a demo account means that prospective clients don't have the opportunity to test the trading platform and familiarize themselves with its features and functionalities before committing real funds, potentially leading to a higher barrier for entry for some users.
Limited customer support outside business hours: Securities Japan's customer support availability is limited outside regular business hours, which could pose challenges for clients who require assistance or have inquiries during non-standard operating times.
Complex process for opening a specific account: The process for opening a specific account, such as a tax-reporting account, may be intricate and involve various documentation requirements, potentially leading to delays or confusion for clients navigating through the application process.
Fees for face-to-face transactions can vary widely: Face-to-face transaction fees for domestic and foreign stock trades vary significantly based on factors such as transaction amount and additional services, which could lead to unpredictability in trading costs for clients conducting in-person transactions.
Regulatory Status
Securities Japan operates under the supervision and regulation of the Financial Services Agency (FSA) of Japan. As a regulated entity, Securities Japan holds a Retail Forex License, indicating its authorization to offer foreign exchange trading services to retail clients.
The regulatory oversight is conducted by the FSA of Japan, ensuring compliance with the relevant laws and regulations governing financial services in the country. Securities Japan's license number, issued by the Kanto Financial Bureau Director (Kinsho), is 関東財務局長（金商）第170号, indicating its official recognition and authorization to operate within the Japanese financial market.
Market Instruments
Securities Japan offers a wide range of financial products and services to both individual and institutional investors.
Stocks
Securities Japan offers trading in both domestic and foreign stocks. They provide margin trading for domestic stocks and have competitive commission rates for both online and in-person trading.
Investment Trusts
Securities Japan offers a wide selection of investment trusts, including mutual funds, ETFs, and REITs. They also offer investment trust accumulation services and have a variety of money market funds available.
Bonds
Securities Japan offers trading in a variety of bonds, including Japanese government bonds, corporate bonds, and convertible bonds. They also have competitive commission rates for bond trading.
Futures and Options
Securities Japan offers trading in a variety of futures and options contracts, including index futures, stock futures, and options on stocks and indexes. They also have competitive commission rates for futures and options trading.
Insurance
Securities Japan offers a variety of insurance products, including life insurance, property and casualty insurance, and health insurance.
Account Types
Securities Japan offers two main types of accounts: regular accounts (ippan kouza) and tax-reporting accounts (tokutei kouza).
Regular Accounts (Ippan Kouza)
Regular accounts are the most basic type of account offered by Securities Japan. They can be opened by both individuals and corporations. Regular accounts are used for trading stocks, bonds, and other securities. When you sell security in a regular account, you are responsible for reporting your capital gains or losses to the Japanese tax authorities.
Specified Account (Tokutei Kouza)
Tax-reporting accounts are a special type of account that can be used to save on taxes when you sell stocks. With a tax-reporting account, Securities Japan will automatically withhold and pay capital gains taxes on your behalf. This can save you time and hassle, and it can also help you to avoid penalties if you forget to report your capital gains.
How to Open an Account？
To open an account in Securities Japan, there are two main types: a regular account and a specific account.
For a regular account, follow these steps:
Fill out and submit account opening information via the provided online form.
Once the account opening process is completed, your account number will be sent to you via simple registered mail.
Upon receiving the mail, you can log in to start trading.
Note that prior to placing any orders, it's necessary to deposit funds equivalent to the amount you intend to invest in stocks or have the stocks ready for sale due to our pre-receipt policy.
For a specific account:
Existing customers with a securities trading account:
Request the necessary documents through the account management section on our trading platform.
Fill out the required documents and send them back along with the necessary identification papers.
After verifying the submitted documents, we will proceed to open your specific account.
New customers without a securities trading account:
Open a trading account with Securities Japan.
During the application process for opening a securities trading account, you will find a section for selecting a specific account.
Choose between “Specific Account (with withholding tax)” and “Specific Account (without withholding tax)” accordingly.
Note that changes to the taxation classification (withholding tax or without withholding tax) can be made until the first sale within the specific account for that year. Once a withholding tax regime is chosen, it generally cannot be changed until the following year.
Spreads & Commissions
The spreads and commissions at Securities Japan vary depending on the type of transaction and the chosen commission course.
Online Trading
Commission ranges from 550 yen (under 1 million yen) to 1,100 yen (over 1 million yen) per trade. Margin trading has a flat fee of 550 yen or a daily flat rate of 1,650 yen (up to 3 million yen) with additional charges for exceeding 30 daily transactions.
Phone Orders
Commission rates vary based on contract price, ranging from 2,750 yen (under 500,000 yen) to 132,000 yen (over 30 million yen).
IFA Accounts
Stock commissions are similar to online trading rates.
For more information, please refer to the following link (https://www.secjp.co.jp/service/commission/net/).
Deposit & Withdrawal
Securities Japan offers a variety of payment methods and fees across its four business segments: face-to-face, internet, IFA (Independent Financial Advisor), and inter-broker transactions.
For face-to-face transactions, fees for domestic stock trades vary based on the transaction amount, while fees for foreign stock trades differ based on factors such as brokerage fees, exchange fees, and taxes. Similarly, domestic inter-broker transaction fees are determined by the transaction amount, with additional costs for services such as stock transfer and shareholder meeting material requests. For specific fees, please refer to the content on the following website (https://www.secjp.co.jp/service/commission/meeting/index.html).
In the case of internet trading, customers are required to pre-fund their accounts, and withdrawals are processed free of charge.
The IFA segment satisfies clients interested in financial product intermediation, offering value-added services to build trust and support their success.
Inter-broker transactions involve receiving orders from non-member securities firms and executing them on behalf of clients, leveraging Securities Japan's extensive network.
Customer Support
Securities Japan offers comprehensive customer support through various channels, including phone, email, and in-person visits. Customers can reach out to specific departments depending on their inquiry, such as online trading, face-to-face trading, general inquiries, inheritance procedures, passwords, institutional trading, and financial intermediary business.
Educational Resources
Securities Japan provides a wide range of educational resources to support its clients in making informed investment decisions. These resources include frequently asked questions (FAQs) covering a wide array of topics related to investment strategies, account management, and market analysis. Additionally, clients have access to a detailed service guide that outlines the features and benefits of the two main trading courses offered by Securities Japan: face-to-face and internet trading.
Conclusion
In essence, Securities Japan (founded 1944, FSA-regulated) offers a secure and experienced platform for investors. Despite a variety of assets and deposit/withdrawal methods, the lack of a demo account and limited after-hours support are downsides. Complexities in opening specific accounts and variable face-to-face fees might deter some.
However, robust regulation and diverse investment options make it attractive for those seeking stability and a wide range of opportunities within the Japanese market.
FAQs
Question: What types of accounts does Securities Japan offer？
Answer: Securities Japan provides two main account options: Regular Accounts (Ippan Kouza) and Specified Accounts (Tokutei Kouza), satisfying different investor needs and preferences.
Question: How can I contact Securities Japan for support？
Answer: For assistance, you can reach Securities Japan through various channels including phone, email, and in-person visits, ensuring prompt and personalized assistance for your inquiries and concerns.
Question: What regulatory body oversees Securities Japan？
Answer: Securities Japan is regulated by the Financial Services Agency (FSA) of Japan, ensuring compliance with the country's financial laws and regulations to protect investors' interests.
Question: : Does Securities Japan offer educational resources for investors？
Answer: Absolutely, Securities Japan provides a range of educational resources including FAQs, service guides, and courses to empower investors with the knowledge needed.
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