- August 7, 2025
- BELONGING JAPAN
NISA Japan: You can open a NISA account through either a bank or a securities company, but you are allowed to have only one account. While transferring your NISA account to another institution is possible later, the procedure is complex. To avoid unnecessary hassle, it’s important to understand the differences between banks and securities companies before opening your account, so you can choose the one that aligns best with your investment goals.
This article is written and supervised by Yukako Yamazaki, a Certified Financial Planner® and representative of FP Office MIRAI.
Who This Article Is For
This article is designed primarily for residents in Japan, especially foreign nationals who are considering opening a NISA account and want to understand the differences between banks and securities companies. It is also helpful for beginners in investing who want to make informed decisions about tax-free investment options available through NISA.
Table of Contents
About the Supervisor & Writer
Yukako Yamazaki
Certified Financial Planner® / 1st Grade Certified Skilled Professional of Financial Planning
Founder of FP Office MIRAI (est. 2022)
Yukako Yamazaki is an experienced financial planner with a background as a registered customs specialist and bank teller. With her motto “Changing the future through reviewing the household budget,” she provides personal finance consultations, writes financial articles, and supervises financial books and publications.
Chapter 1: Key Facts to Know Before You Start
NISA is a Japanese tax-free investment program that allows individuals to invest in mutual funds and stocks without paying the typical 20% tax on capital gains, dividends, or distributions. This means any profits or income generated from your investments through NISA are exempt from taxation.
The NISA system was renewed in 2024 and made permanent, allowing for unlimited tax-free investing over time. The annual tax-free investment limit is now up to ¥3.6 million, combining the “Tsumitate Investment Quota” and the “Growth Investment Quota,” with a lifetime limit of ¥18 million. (Source: Financial Services Agency, Japan).
Opening a NISA account is free, and you can do so through either a bank or a securities company. However, you are only allowed one NISA account. Since each financial institution differs in fees, services, ease of use, and available investment products, it is crucial to research carefully before choosing where to open your account.
| Category | Tsumitate Investment Quota | Growth Investment Quota |
|---|---|---|
|
Usable Together |
✔️ |
✔️ |
|
Investment Method |
Regular (Monthly) Contributions |
Lump-sum Investment |
|
Eligible Investment Products |
Investment trusts approved by the Financial Services Agency for long-term, regular, and diversified investment |
Listed stocks, investment trusts, ETFs, REITs, etc. |
|
Tax-Free Holding Period |
Unlimited |
Unlimited |
|
Account Opening Period |
Permanent |
Permanent |
|
Annual Investment Limit |
¥1.2 million |
¥2.4 million |
|
Total Tax-Free Investment Limit |
Up to ¥18 million (including a ¥12 million cap within Growth Investment Quota) |
|
|
Eligible Age |
18 and older |
18 and older |
Chapter 2: Should You Open Your NISA Japan Account at a Bank or a Securities Company?
Where you open your NISA account affects the types of investment products you can buy, as well as the services and fees involved.
The best choice depends on your individual investment style. One important factor is whether you prefer to trade online or via an app, or if you want to visit a branch in person.
Before deciding, make sure to understand the characteristics of both banks and securities companies.
Below is a comparison table of the main financial institutions to help guide your decision.
Bank vs Securities Company Comparison Table (Created in July 2025)
| Category | Institution | Commission Fee (Accumulated Investment) | Commission Fee (Stock Investment) | Investment Trust Lineup Tsumitate Investment Quota | Investment Trust Lineup Growth Investment Quota |
|---|---|---|---|---|---|
|
Online Securities |
SBI Securities |
Free |
Free |
271 funds (*1) |
1,351 funds (*1) |
|
Rakuten Securities |
251 funds (*2) |
1,324 funds (*2) |
|||
|
Monex Securities |
266 funds (*3) |
1,257 funds (*3) |
|||
|
Face-to-Face Securities |
Daiwa Securities |
Paid (varies; from 1,925 JPY, proportional to transaction amount) |
36 funds |
201 funds |
|
|
Nomura Securities |
19 funds |
476 funds |
|||
|
SMBC Nikko Securities |
156 funds |
550 funds |
|||
|
Banks |
Sumitomo Mitsui Banking Corporation |
Not available |
4 funds |
97 funds |
|
|
MUFG Bank |
24 funds |
400 funds |
|||
|
Mizuho Bank |
16 funds |
133 funds |
*1 As of March 10, 2025
*2 As of February 28, 2025
*3 As of July 17, 2025
Important Points to Consider
Banks Only Handle Investment Trusts
NISA accounts opened at banks can only be used to invest in investment trusts. If you are interested in stock investments, you must open your NISA account with a securities company instead. Also, the number of investment trusts available at banks is limited compared to securities companies. If you already have a specific product you want to invest in, make sure to check in advance whether it is available.
Differences Between Face-to-Face and Online Securities Companies
Securities companies offer a wider range of investment options, including stocks, investment trusts, ETFs, and REITs, giving you greater flexibility in managing your investments. There are two types of securities companies: face-to-face (with physical branches) and online (without branches). Understanding the features of both types can help you choose the one that suits your needs.
Face-to-face securities companies provide the reassurance of being able to consult with a representative, but they typically charge higher fees for transactions. On the other hand, online securities companies allow you to complete all procedures online, keeping costs to a minimum.
Chapter 3: Important Notes for Foreign Residents Opening a NISA Account in Japan
Language Barrier
Foreign nationals aged 18 and over who reside in Japan can open a NISA account as long as they have a valid residence card or special permanent resident certificate that shows a domestic address, along with a My Number card or notification document.
However, when opening a NISA account in Japan, it’s important to note that financial institutions do not offer application processes or documents in foreign languages. This includes essential steps such as reviewing the terms and conditions. As a result, a basic level of Japanese proficiency is usually required to complete the process smoothly.
Even after successfully opening a NISA account, investors must navigate key documents such as fund prospectuses, which are provided only in Japanese. These documents contain critical information about the investment products and must be read and understood before making any purchase decisions.
While NISA Japan offers a tax-exempt benefit on investment gains, it does not guarantee protection of the principal. Because investments carry the risk of loss, it’s essential to fully understand the system and the products—in Japanese—before proceeding. All investment decisions should be made at your own responsibility.
Moving Abroad or Transferring Overseas
If you may become a non-resident in the future due to an overseas job transfer or relocation abroad, be sure to understand how your NISA account will be affected.
In the case of a temporary transfer overseas, you can continue managing your assets in your NISA account without closing it by submitting a “Notification of Continued Use of Tax-Exempt Account” within five years. However, you will not be allowed to make any new investments during this period. Note that the types of products you can continue holding vary by securities company, so it’s important to check in advance. A common issue we see is that some clients misunderstand this rule and believe they can continue investing while abroad, which is not allowed. Clarifying these details early helps avoid surprises.
If you do not submit the “Notification of Return to Tax-Exempt Account” by the end of the five-year period, your NISA account will be automatically closed, and your assets will be transferred to a standard taxable account.
If you move abroad for personal reasons or do not plan to return to Japan, your NISA account must be closed. In that case, you will need to sell your assets, convert them into cash, and submit a “Notification of Account Closure” to your financial institution to officially close the NISA account.
Security and Legal Considerations
When opening a NISA account, applicants must provide sensitive personal information, including their My Number. It’s important to ensure this data is securely handled by the financial institution to protect your identity and personal information.
Additionally, compliance with Japanese tax and financial laws is required to maintain your NISA account properly. If you plan to move abroad or have complex tax situations, consulting a tax advisor or legal professional experienced in cross-border issues is strongly recommended. This helps you avoid potential legal pitfalls and ensures your investments are managed correctly under both Japanese and international regulations.
Chapter 5: Summary
You can open a NISA account at either a bank or a securities company. However, investment options through a bank’s NISA account are limited. If you are looking for a wider range of investment products, a securities company may be a better choice. Keep in mind that there are two types of securities companies: face-to-face (traditional) and online, and they differ in terms of services, fees, and available products.
Which option is best depends on your individual investment style. The key is to understand the features of each option before making a decision.
* This article is provided for general informational purposes only and does not constitute individual financial, tax, or legal advice. While reviewed and supervised by a certified financial professional, readers are encouraged to consult with their own financial advisor before making any investment decisions. Belonging JAPAN is not affiliated with or endorsed by any financial institution mentioned.
