Day Trading Tokyo Stock Exchange

blueraincap · Feb 20, 2015

yes, i prefer to use a local broker because i am usually long small-caps and hedge by shorting small caps too. But am lost in the set-up, how to open an account with a japan broker using an offshore entity.

I can open a Japanese Co as the manager of the offshore fund and open an account, but that will create tax issues in japan.

blueraincap · Feb 20, 2015

Do you know any foreign brokers with shortable names as good as the local brokers?

20% capital gain tax is a total rip-off.

blueraincap · Feb 20, 2015

http://www.tse.or.jp/english/about/participants/index.html

The only members that can open retail accounts outside of Japan to access TSE seem to be:

-InteractiveBloke: all good, except poor shorts inventory
-Monex's Boom: not sure if Boom will give me access to Monex's short inventory, will ask
-Phillps: doubt it can offer better shorts than IB

learner2007 · Feb 20, 2015

blueraincap said:
yes, i prefer to use a local broker because i am usually long small-caps and hedge by shorting small caps too. But am lost in the set-up, how to open an account with a japan broker using an offshore entity.

I can open a Japanese Co as the manager of the offshore fund and open an account, but that will create tax issues in japan.

Just remembered that you can (could?) open an account from outside Japan at Nissan Century. Not cheap though. Also there's Boom in H.K. and Philip in Singapore. Also not cheap.

learner2007 · Feb 20, 2015

blueraincap said:
Do you know any foreign brokers with shortable names as good as the local brokers?

20% capital gain tax is a total rip-off.

But if you trade in Japan, a small part of the 20% tax can be offset by
'zero' commission at Matsui.

volpunter · Feb 21, 2015

really? Taxes in Japan generally pale in comparison to US taxes, when considering capital gains and income taxes. When looking only at capital gains, averaged across all asset classes, the figures in the US and Japan are pretty comparable. You need to be in Hong Kong or Singapore if you want to really benefit from zero or low capital gains tax exposure. But if you are a US citizen things get ultimately more complex. You won't in 2015 find a financial institution that would work with you on "tax optimization schemes" if you are a US citizen. In effect many global private wealth management firms rather reject American citizens than putting up with the pain it takes to go through the many steps required by Uncle Sam.

blueraincap said:
Do you know any foreign brokers with shortable names as good as the local brokers?

20% capital gain tax is a total rip-off.

blueraincap · Feb 22, 2015

fortunately i am not a US citizen. but taxing on capital gains is totally lame. I think i will trade using IB or Monex Boom as well as a local japan when IB doesnt have shorts

volpunter · Feb 23, 2015

before you worry about capital gains taxes I would worry about even making money with a Broker like Monex Boom (the name already sounds ridiculous, are you seriously consider this clown broker?): A broker that charges 0.3% of notional traded as commission puts you 60 basis points behind just to get the trade done. That is, you have to generate 0.6% at the very least just to break even. Almost a sure fire way to lose for retail accounts.

Interactive Brokers in comparison charges 8 basis points (0.08%) per trade.

blueraincap said:
fortunately i am not a US citizen. but taxing on capital gains is totally lame. I think i will trade using IB or Monex Boom as well as a local japan when IB doesnt have shorts

learner2007 · Feb 23, 2015

blueraincap said:
fortunately i am not a US citizen. but taxing on capital gains is totally lame. I think i will trade using IB or Monex Boom as well as a local japan when IB doesnt have shorts

If you open a margin account at SMBC Nikko you pay zero commission and have access to all stocks that can be shorted on TSE.

d08 · Feb 23, 2015

Are there any brokers that cater to english speaking customers (besides IB naturally)? Most seem to be Japanese only.