The Nikkei Stock Average (Nikkei 225) is known around the globe as the primary index of Japanese stocks. The commencement of its calculation dates back to 1950, so we can say that the period of the index’s existence coincides with the country’s economy after World War II. In brief, Nikkei 225 is a price-weighted equity index that encompasses 225 blue-chip stocks listed on the Tokyo Stock Exchange. An Annual Review is conducted each year in September and any eventual constituent replacements take place in October.
As the Nikkei Stock Average is Asia’s oldest index and because of its calculation method, it is often considered an equivalent to the Dow Jones Industrial Average (DJIA) in the US.
How Nikkei 225 Trading Works for Traders and Brokers
We are often asked the question, is it possible to trade the Nikkei 225 if you are not residing in Japan, but in the USA or Australia for example. Such an issue probably arises due to the general impression of relative reticence and conservatism of Japanese culture. To what extent this is true we do not undertake to say, but it is certain that if there are any restrictions they do not apply to Nikkei 225 online trading.
Generally speaking, the way to trade the Japanese prime stock index is by buying and/or selling exchange-traded funds that track its performance. To do that you need to follow a few simple steps:
- Set up an account with a Nikkei 225 trading broker that enables operation with international securities.
- Fund your account via any of the supported payment solutions. Pay attention to transaction fees and other charges. There is a good enough choice of trusted brokerage companies that allow for fee-free deposits, so better choose one of them.
- Purchase securities and use the broker’s tool to properly monitor and manage your investment.
If you are used to operating with US-listed ETFs and do not want to change your trading behavior, you have one option, the MAXIS Nikkei 225 Index ETF. It is denominated in US dollars and trades on the New York Stock Exchange.
Holders of international brokerage accounts can choose between Blackrock Japan’s iShares Nikkei 225 ETF, Daiwa Asset Management’s Daiwa ETF Nikkei 225, and Nomura Asset Management’s Nikkei 225. A factor that should always be kept in mind is the currency exchange rate as the TSE/TYO works primarily in yen.
Top Nikkei 225 Trading Brokers
Now that we have covered the Nikkei Stock Average basics and the ways for trading the index, it is time for you to select a reliable trading broker. We advise you to take some time and choose a well-regulated brokerage brand that is transparent about its pricing policy, has a good track in the market, and is constantly in line with innovations.
- 1. AvaTradeMin Deposit$100FeesOvernight fees:
CommissionsNoneSpread10.0 over marketLeverage EU20:1Leverage non-EU200:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Sell: -0.0084%
- Buy: -0.0083%
The Irish-headquartered AvaTrade brokerage brand is one of the most popular and trusted entities in the nowadays online trading field. The company has satellite offices in the Asia-Pacific region and Europe and holds multiple licenses issued by top-tier regulatory bodies, a fact that puts AvaTrade among the brokers ensuring the safest trading environments.
The broker offers a broad variety of platforms so that both manual and automated Nikkei 225 trading is enabled regardless if traders prefer using desktop computers or mobile devices. The default in-browser accessible interface is WebTrader, the most simplified and easy-to-use option provided by AvaTrade. Those who prefer operating with more advanced trading tools, can opt-in either for MetaTrader 4 or MetaTrader 5. Among other functionalities, MT4 and MT5 feature Guardian Angel, a risk-management instrument that provides instant feedback for traders’ actions.
The variety of markets accessible through AvaTrade’s platforms is quite rich. As regards indices, they are currently more than 30, with the most popular being DJIA, DAX, Nikkei 225, US TECH 100, etc. The Nikkei Stock Average comes with spreads of 10.0 over market and a 5% margin. One click on the index symbol opens a new window with detailed information about retail and pro leverage, overnight fees, minimum trade size, and others.
- 2. FBSMin Deposit$1Fees
Commissions0%Spread13.0 (avg.)Leverage EU20:1Leverage non-EUUp to 33:1ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider. You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.
- Swap long: -6.2
- Swap short: -7.0
FBS is an award-winning trading broker with a huge number of registered users residing in more than 100 countries. Trades can be executed via the MetaTrader 4 and MetaTrader 5 platforms or through the proprietary FBS Trader, a mobile trading application that can be downloaded from the AppStore or Google Play.
Pricing information for the Nikkei 225 index is readily accessible so after a couple of clicks or taps, you can see that the average spread is 13.0 for example. Other important issues are presented within the same window, namely swap rates, initial margin, and leverage. You can also see the index price movement for different time periods ranging between 5 minutes and 1 week. Do not forget that as with all other brokers, swap fees shown are amendable, and therefore valid for a limited period.
The brokerage website has an analytical section comprising subsections for news and market updates, and also a TV section with informational videos, weekly insights, and others.
Except for the competitive trading conditions it offers, this Nikkei 225 broker entices its customers with a diverse selection of bonuses and promotional offers. Currently, FBS registered users can benefit from a 100% Deposit Bonus, a Level Up Bonus of up to $140, different cashback promotions, CopyTrader Referral Program, and FBS Loyalty Program. Eligibility and T&Cs may vary from country to country, so check with the brokerage for further details.
- 3. AxiMin Deposit$0FeesAmendable future rolloversCommissionsFrom $0SpreadFrom 8.0Leverage EUUp to 30:1Leverage non-EUUp to 500:1Over-the-counter derivatives are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone and may result in you losing substantially more than your initial investment. You do not own, or have any rights to, the underlying assets. You should only trade with money you can afford to lose.
Axi is a reputable brokerage brand that offers a wide selection of trading markets as well as trading conditions capable of satisfying both novice and experienced users. The only available platform is MetaTrader 4, giving traders the opportunity to operate with indices, shares, commodities, precious metals, and other assets. MT4 can be used as a desktop application, in its WebTrader version, and as a dedicated app for iOS and Android devices. As far as commissions are concerned, they start at $0 for Standard accounts and reach $7 round trip for Pro accounts.
Within Axi’s platforms, Nikkei 225 is considered a future index and as such is subject to rollover charging. Exact amounts are announced once liquidity providers provide them, usually a bit closer to the date of the rollover charge. Keep in mind indices may be unavailable for a short time while the rollover is being applied.
If you experience any difficulties while operating with Axi, feel free to contact the friendly and proficient customer care team by live chat, phone, or email. Customer support representatives are proven helpful and open to questions without the need for the trader to be a registered user of Axi.
- 4. XM GroupMin Deposit$5Fees
CommissionsNoneSpread6.0Leverage EU20:1Leverage non-EU200:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Swap long: -2.15
- Swap short: -2.19
If you are in search of a reputable Nikkei 225 broker that offers commission and fee-free trading, XM is a brand you better take into account. The brand has experienced significant growth since its foundation in 2009 and today serves traders from almost 200 countries. XM provides its users with the opportunity to choose between three different account types – Micro, Standard, and XM Zero.
As you might guess, this variety is dictated by the trading broker’s desire to attract different types of traders to its platform – novices, active practitioners, and even professionals. If you are not sure if you will properly handle the XM platform, you can first try operating with a Micro account. It accommodates all the functionalities of a Standard account with the only difference being a 100x lower contract size. On the other hand, if you are an experienced trader whose top priority is to cut trading costs as much as possible, you will probably decide to opt in for an XM Zero account. It enables trading with spreads as low as 0 pips in exchange for a certain commission.
XM has one of the most comprehensive learning sections we have come across while reviewing online trading brokers. What is more, a significant part of the educational hub is occupied by video content, both pre-recorded and live, which makes it intriguing even for the young audience. There is a Beginner room and an Advanced room, each with an individual schedule for the upcoming week.
- 5. FP MarketsMin Deposit$100FeesOvernight interest (Daily):
CommissionsNoneSpreadFrom 7.62Leverage EU20:1Leverage non-EU20:1Trade Responsibly: Derivative products are highly leveraged, carry a high level of risk and are not suitable for all investors.
- Sell: -18.08
- Buy: -19.01
FP Markets is a prominent international broker that enables trading via the MetaTrader 4, MetaTrader 5, and Iress platforms across multiple asset classes. Currently, the list of CFD indices comprises 13 names including Nikkei 225. In addition to the usual information about spreads and overnight fees, users can read short articles about what affects the respective index and what the key moments in its history are.
Traders who decide to use the MT4 or MT5 platforms can choose between Standard and Raw accounts. The first type features a zero commission and spreads starting from 1.0 pips while raw accounts are characterized by very tight spreads in exchange for a $3 commission (each way). Trading conditions with Iress accounts available to Australian users are different. Each of the Standard, Platinum, and Premier accounts comes with a certain commission (ASX) and the minimum deposit varies between AU$1,000 and AU$25,000.
CFD index trading can be performed on the go thanks to the in-house mobile application launched in 2021. Except for indices, FP Markets mobile traders can operate with shares, commodities, futures, and cryptocurrencies. The app that can be downloaded from the App Store and Google Play features a set of useful analysis and trading tools and enables fast in-app transactions.
- 6. CMC MarketsMin Deposit$0FeesHolding costs:
CommissionsNone on indicesSpreadFrom 7.0Leverage EU20:1Leverage non-EU20:1Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
- Buy: -2.9840%
- Sell: 3.0160%
CMC Markets is a publicly-traded brokerage company established in 1989 in the UK. Its operations are strictly regulated and comply with the requirements of the most reputable authorities in the industry – FCA in the UK, ASIC in Australia, MAS in Singapore, IIROC in Canada, BaFin in Germany, and FMA in New Zealand.
In the About us section of the broker’s main website, there is a kind of Hall of fame where you can see all the awards won by CMC Markets so far. The last achievement is Best CFD Provider at the 2022 Online Money Awards. Among last year’s honors, we see Best Spread Betting Broker from the Good Money Guide Awards 2021. These two awards reflect the two main directions of the brokerage’s operations, namely spread betting and CFD trading. They encompass different asset classes – indices, commodities, shares, ETFs, etc.
CMC Markets gives its clients access to both proprietary and third-party trading platforms. Next Generation is the name of the in-house proposal that boasts an abundance of features and functionalities. The range of order types supported by the platform includes market orders, limit and stop entry orders, stop-loss, trailing stop-loss, and take-profit orders. An advanced charting package, module linking capability, and pattern recognition scanner are just part of the enticing features Next Generation provides.
- Min Deposit$100FeesSwap rates as per formulaCommissions$0SpreadFrom 0.5Leverage EUUp to 30:1Leverage non-EUUp to 500:1Margin trading involves a high level of risk and is not suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Blueberry Markets, and seek independent advice if necessary. Forex and CFDs are highly leveraged products, which means both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford to incur losses that will not adversely affect your lifestyle.
Blueberry Markets is a trusted Australian trading broker that ranks very high in clients’ reviews mainly due to its competitive pricing and super fast customer support. We personally checked the latter by initiating a live chat session and received a competent reply in less than half a minute. The Aussie’s operations of Blueberry Markets are regulated by ASIC while for all other eligible regions the broker holds a license issued by the Securities Commission of the Bahamas (SCB).
A major part of the portfolio of Blueberry Markets is index CFD trading with options for zero commission and ultra-tight spreads. Currently, traders who have set up accounts with the broker are enabled to operate with more than 30 indices including JPN225, ASX200, SPX500, UK100, etc. Both Standard and Direct accounts come with a minimum deposit amount of $100. As regards swap rates, they are calculated by the following formula:
Swap Rate x Lots (Volume) x Number of Nights = Swap (in base currency)
Exact numbers can be seen if you log in to your MT4 or MT5 platform account and right-click on the index symbol.
For those traders who are new to the brokerage company or index trading as a whole, a 100% free-to-use demo account is provided. It is virtually funded with $100,000 and comes with a 30-day expiration period.
- 8. IC MarketsMin Deposit$200FeesFrom 0%CommissionsNoneSpreadFrom 6.0Leverage EU20:1Leverage non-EU200:1Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Since its establishment in 2007, IC Markets has constantly grown to become one of the key entities in the online trading field. It is quite a bit short of being defined as a global brand since at least for now traders from the US, Canada, Japan, New Zealand, Israel, and Iran are not authorized to operate via the brokerage. The activities of IC Markets are regulated by the ASIC, the CySEC, and the Financial Services Authority of Seychelles.
Nikkei 225 is one of the 25 indices that can be traded via the platforms provided by IC Markets. The minimum spread is 6.0 while the average from all accounts is 8.858. The range of markets encompassed by the broker also includes Forex, commodities, bonds, digital currencies, stocks, and futures. Depending on whether your priority is low spreads or no commission, you have the choice to use a Standard account, a Raw Spread account, and a Raw Spread account with cTrader. Commissions for the latter two account types are $3.5 and $3.0, respectively.
Novices will find the educational content on the IC Markets website very helpful and those traders who are used to a passive trading approach can try the value-added tools ZuluTrade and AutoTrade.
- 9. Global PrimeMin Deposit$200 (recommended)FeesSwaps:
CommissionsFrom $0Spread7.0 (avg.)Leverage EU20:1Leverage non-EU100:1Trading derivatives is high risk. Losses can exceed your initial investment. You should only trade with money you can afford to lose. Any Information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Past performance of any product described on this website is not a reliable indication of future performance.
- Short points: - 1.08
- Long points: - 1.08
Global Prime is a multi-asset trading broker which has been on the market for more than ten years. The brokerage is an Australian-owned entity and holds licenses issued by the relevant regulatory authorities in Australia, Seychelles, and Vanuatu. The markets currently present in Global Prime’s portfolio are indices, Forex, crypto CFDs, commodities, shares, and bonds.
Global Prime is among those online brokers that do not feel bashful about their pricing policy. Just the contrary, the broker provides all the necessary information in an excellently structured and comprehensible manner. It took us no more than a couple of minutes to figure out what the Nikkei 225 spreads and swap rates are and that’s considering we were accessing the platform for the first time. You can find a summary of the information in the table below. We further clarify that Global Prime does not have a requirement for a minimum account balance. However, it recommends deposits to be of at least $200 or equivalent in another supported currency.
Unlike many of its competitors in the online trading sector, Global Prime offers only one account type – ECN Trading Account. It comes in two models, Commission Free and Spreads + Commission. Apart from these two parameters, all others are the same – 1 ms execution speed, one-click trading, MT4, TraderEvolution, TradingView platforms, etc.
- 10. SpreadExMin Deposit$0FeesNoneCommissionsNoneSpread8.0 - 16.0Leverage EU20:1Leverage non-EU200:1Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.8% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
SpreadEx is a top-notch trading broker, which, along with all its advantageous functionalities, is distinguished by an excellent customer support service. As it is a UK-based company, the brokerage is licensed by the Financial Conduct Authority (FCS). SpreadEx is the proud winner of multiple awards through the years, with some of them being deserved multiple times. This shows the persistence and earnestness with which the brand drives its operations.
Nikkei 225 traders who set up accounts with SpreadEx are in no way limited as regards the device that will be used for their trading experience. The brokerage offers an in-house developed reliable platform that is accessible via the web or in the form of a downloadable application for Android devices as well as for iPhone and iPad. All apps come with SSL encryption and as a second security step, there is either a Touch ID login or PIN login.
SpreadEx does not burden its clients with fees that are not directly related to the trading process. This means you won’t be charged if your account stays inactive for a certain period and what is more, there is no minimum deposit requirement and no obligations to trade. For the sake of convenience, traders do not need to make any amendments if they travel to another country. However, this does not apply to the US and Turkey where legislative regulations impede the use of SpreadEx.