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.
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.
That depends on which trading platform you use. Our comparison looks at the fees that some top providers charge for a trade on the Tokyo Stock Exchange. Don’t forget that stocks on the TSE are traded in Japanese yen, so the exchange rate will have a bearing on the cost of the trade you have in mind. Each platform adds a little mark-up on the exchange rate (these are in our table too).
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:
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.
The Tokyo Stock Exchange lists many of Japan’s largest and most famous companies, including:
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.
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.
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