How to invest in the Nikkei 225

The Nikkei 225 is an index of 225 top Japanese companies that trade on the Tokyo Stock Exchange. It features a host of globally recognized brands and offers plenty of potential investment opportunities. In this guide, we’ll show you how to invest in the Nikkei 225 from Canada.

How to invest in the Nikkei 225 in Canada

1. Choose a trading platform. Compare online trading platforms to find one that suits your needs. The right broker will provide access to the markets you want to trade, like the Tokyo Stock Exchange, plus have low or no trading commissions and a user-friendly platform.
2. Open an account and deposit funds. Open a trading account by providing your personal information, contact details and proof of ID. You’ll then need to deposit the money you want to invest — you can usually do this by e-Transfer or electronic funds transfer.
3. Research Nikkei 225 investments. Research Nikkei 225 ETFs or individual stocks to find investments that suit your financial goals and time frame.
4. Place a buy order. Choose a market order to buy shares immediately at the current market price, or set your desired purchase price with a limit order.
5. Monitor your investment. Keep track of the performance of any stocks or ETFs you hold. Check your portfolio regularly to make sure all of your investments still suit your goals.

What is the Nikkei 225?

The Nikkei 225 index — also called the Nikkei Stock Average or simply the Nikkei — is Japan’s leading stock index. It’s a price-weighted index that tracks 225 blue-chip stocks traded on the Tokyo Stock Exchange across 36 industries.

The Nikkei 225 has been calculated since 1950 and is one of the world’s major stock indices. It’s seen as a key barometer of the performance of the Japanese stock market and the country’s economy as a whole.

The stocks that make up the index are reviewed semi-annually in April and October.

What does Nikkei 225 stand for?

The Nikkei 225 is named after the Japan Economic Newspaper, Nihon Keizai Shimbun. This newspaper is commonly known as the Nikkei and its publisher, Nikkei Inc., is responsible for calculating the index. The 225 obviously refers to the number of blue-chip stocks the index tracks.

The Nikkei is often regarded as the Japanese equivalent to the Dow Jones Industrial Average. Both are price-weighted indices, which means that the higher a company’s stock price, the greater the impact it has on the performance of the index.

What stocks are in the Nikkei 225?

While there are 225 stocks included in the Nikkei 225, these are some of the most popular or well-known stocks in the Nikkei 225:

Nikkei 225 historical performance

Two ways to invest in the Nikkei 225

The Nikkei 225 is an index that tracks the performance of 225 stocks, so you can’t invest in it directly. But there are two ways you can gain exposure to the companies in this index.

1. Buy shares of a Nikkei 225 ETF

The simplest way to invest in the Nikkei 225 is to buy shares of an exchange-traded fund (ETF) that tracks the Nikkei 225. Index funds invest in a basket of stocks and are designed to replicate the performance of the underlying index, so if the Nikkei 225 goes up, your fund should too.

There are several ETFs that track the Nikkei 225. These funds are only available through brokers that provide access to ETFs listed on the Tokyo Stock Exchange. You’ll also need to consider the CAD/JPY exchange rates when trading these ETFs.

Alternatively, you could search for Japan stock ETFs that trade on other exchanges, such as the New York Stock Exchange. While there are no Nikkei-specific ETFs listed on the Toronto Stock Exchange, you could also consider options like the BMO Japan Index ETF, which invests in large and mid-cap Japanese stocks.

Examples of Nikkei 225 ETFs

2.Buy Nikkei 225 stocks individually

The second option is to invest in individual stocks included in the Nikkei 225. Rather than investing in all 225 companies, you’ll need to invest in a selection of Nikkei 225 stocks you like.

This approach gives you complete control over your investments, but it’s more time-consuming and will cost more in brokerage fees. ETFs also make it easier to create a diversified portfolio, especially since the Nikkei tracks 225 blue chip stocks across 36 industries.

Once again, you’ll need a trading account that provides access to the Tokyo Stock Exchange to start investing.

Compare trading platforms to invest in the Nikkei 225

• Access the Tokyo Stock Exchange (TYO)
• Access major Canadian and US stock exchanges

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Finder Score	Available Asset Types	Account Types	Stock Trading Fee	Monthly Account Fee	Offer
Promoted Finder Score 8.8 Great Interactive Brokers	Finder Score 8.8 Great	Stocks, Bonds, Options, Index Funds, ETFs, Forex, Currencies, Futures	RRSP, TFSA, Personal, Joint	min $1.00, max 0.5%	$0	Go to site More info Compare product selection Compare	loading
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Finder Score 7.4 Great Moomoo Financial Canada	Finder Score 7.4 Great	Stocks, Options, ETFs	RRSP, TFSA, Personal, FHSA	$1.49/stock	$0	Enjoy a 6% cash rebate plus up to $4,600 in trading perks. Offer ends November 30, 2025.	Go to site More info Compare product selection Compare	loading
Finder Score 8.1 Great Qtrade Direct Investing	Finder Score 8.1 Great	Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, IPOs	RRSP, RESP, RRIF, TFSA, Personal, Joint, FHSA	$0	$0	Get 5% cash back on every dollar you invest up to $15,000 and 1% cash back on any amount above that. Plus, new clients receive unlimited free trades. Use code QTRADE2025. Valid until December 31, 2025.	Go to site More info Compare product selection Compare	loading

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Finder Score for stock trading platforms

To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score, the better the platform—it's that simple.

Read the full methodology

Is now a good time to invest in the Nikkei 225 in Canada?

There’s a lot to consider when deciding whether or not to invest in the Nikkei 225.

First, it’s good to gain some historical perspective. From 1950 to 1989, the Japanese economy experienced a period of sustained growth, but then the bubble burst, and the Nikkei fell from highs of over 38,000 in December 1989 to a little over 16,000 by July 1992.

What followed was an extended period of economic stagnation known as the Lost Decades. It wasn’t until 2012 and Prime Minister Shinzo Abe’s “Abenomics” economic policies that the Nikkei started to recover. And it has recovered in style, to the point that as of October 1, 2025, it is trading at all-time highs of over 44,500.

A relatively weak yen, a strong corporate outlook and the July 2025 announcement of a trade deal with the US have all helped drive growth. But there’s still plenty of global trade uncertainty brought about by the Trump administration’s tariffs, and it’s impossible to predict with certainty what the future holds for stock markets, so whether or not now is a good time to invest in the Nikkei 225 remains to be seen.

Why should I invest in the Nikkei 225 from Canada?

There are lots of good reasons to invest in the Nikkei 225:

• Diversify your portfolio. Investing in Japanese stocks allows you to diversify your portfolio beyond Canadian and US stocks, allowing you to reduce risk during times of market volatility.
• Easy to gain exposure. ETFs make it quick and easy to gain exposure to a diversified basket of Nikkei 225 stocks.
• Invest in major global companies. Some of the biggest names in the Nikkei 225, including Toyota, Mitsubishi UFJ Financial, SoftBank and Sony, are among the world’s top 100 largest companies by market cap.

Risks of investing in the Nikkei 225

There are also a few drawbacks to consider when investing in the Nikkei 225:

• You could lose money. Like any investment, there’s no guarantee that your Nikkei 225 stock or ETF holdings will make money. If the index performs well, you’ll make a profit. If the index drops, so will your investments.
• Currency risk. If you’re investing directly in stocks or ETFs listed on the Tokyo Stock Exchange, you’ll need to take currency conversion costs and exchange rate fluctuations into account.
• Staying up to date with Japanese markets. You’ll need to take into account any economic, political and other developments in Japan that could impact the price of Nikkei 225 stocks. For example, the Nikkei fell more than 10% after a record-breaking 9.1 magnitude earthquake shook the country in March 2011.
• Trading hours. If you’re investing in stocks and ETFs on the Tokyo Stock Exchange, you’ll need to check the difference in trading hours — Tokyo is 13 hours ahead of Toronto.

How much does it cost to invest in the Nikkei 225?

There are several factors that affect the cost of investing in the Nikkei 225:

• Your broker. While some brokers offer commission-free trading, many will charge brokerage fees each time you place a trade.
• How many trades you place. If your broker charges trading commissions, placing frequent trades will increase the cost of investing.
• Account subscriptions. Some brokers charge extra for you to subscribe to features such as financial news and analysis or real-time market data.
• Fund management fees. If you invest in an ETF, make sure to check the fund’s management expense ratio.
• FX costs. If you invest in stocks and ETFs listed on the Tokyo Stock Exchange or other international exchanges, you’ll need to factor currency conversion costs into your calculations.

Bottom line

The Nikkei tracks 225 of the largest and most profitable companies in Japan. While you can’t invest in the index directly, you can use an international brokerage account to invest in ETFs that track the index or individual stocks included in the index.

Compare brokerage account options across numerous trading platforms to find the broker that best fits your investment goals.

FAQs about investing in the Nikkei 225

• How do I invest in Japanese stocks?

  If you want to invest in Japanese stocks, you'll need to look for a broker that provides access to international markets including the Tokyo Stock Exchange. You'll then need to open a trading account, deposit funds, and choose which stocks you want to invest in. When you're ready, you can then place a buy order.

• What is the best online trading platform?

  The best online trading platform for you depends on factors like where you want to invest, how often you trade and your level of experience. You'll need to compare a range of brokers to find a provider that offers low fees, access to all the assets you want to trade, and a user-friendly trading platform. You may also want to check out the best brokerage signup bonuses before making your final decision.

• Which country stock is the Nikkei 225?

  The Nikkei 225 is an index that tracks 225 leading companies listed on the Tokyo Stock Exchange in Japan. Commonly referred to simply as the Nikkei, the Nikkei 225 is widely seen as the most important Japanese stock index.

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Written by

Tim Falk

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

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