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Best Nikkei 225 Index Trading Brokers

Written by Miro Nikolov
Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.
, | Updated: November 12, 2024

Our team of expert traders tested several regulated and trustworthy Nikkei 225 brokers and compiled a toplist with the best among them. Every platform allowing CFD’s on the Nikkei 225 Index received received a quality score based on several factors, including Trustpilot rating, regulation, fees and commissions, available trading platforms, customer service and more.

  1. Fusion Markets
    Rating: 4.9
    74-89% of retail CFD accounts lose money
  2. FP Markets
    Rating: 4.8
    73.85% of retail investor accounts lose money
  3. Pepperstone
    Rating: 4.7
    75.5% of retail investor accounts lose money
  4. Global Prime
    Rating: 4.4
    74-89% of retail CFD accounts lose money
  5. eToro
    Rating: 4.2
    51% of retail investor accounts lose money
  6. XM Group
    Rating: 2.9
    72.82% of retail investor accounts lose money

Top Nikkei 225 Trading Brokers

choosing a brokerNow 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.

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

Nikkei 225 TradingWe 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:

  1. Set up an account with a Nikkei 225 trading broker that enables operation with international securities.
  2. 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.
  3. 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.

Related Topics

Nikkei 225 FAQ

1. What affects the movement of the Nikkei 225 index?

The price of the Nikkei Stock Average is influenced by a set of factors related to the performance of the industries within the Japanese economy. They include but are not limited to the strength of the yen, the country’s monetary policy, major political events, and the current state of the individual companies composed by Nikkei 225.

2. What is the “Price Adjustment Factor”?

PAF represents a number used to adjust stock prices of the Nikkei 225 constituent companies. After prices are adjusted, the index is calculated by dividing the resultant summation by the divisor. The Price adjustment factor came into use in October 2021 succeeding the “presumed” par value.

3. What is meant by the Magnification of Nikkei 225?

The Magnification of the index shows how much a change in the Nikkei 225 is related to a 1 yen change in the arithmetic average of the 225 adjusted prices.

4. Are Nikkei 225 and TOPIX the same?

It is strange how often this question is asked given the obvious differences between the two Japanese indices. Stocks ranking within the TOPIX index is subject to the principle of free-float adjusted market capitalization while as mentioned above, Nikkei 225 is a price-weighted index. Furthermore, TOPIX covers all domestic companies whose stocks are traded in the First Section of the Tokyo Stock Exchange, not just blue-chip entities as Nikkei 225 does.

5. Which are the best performing companies within Nikkei 225?

As per the latest revenue data published, the current Top 5 Nikkei 225 constituent companies are Toyota, Mitsubishi Corporation, Honda, Nippon Telegraph & Telephone, and Mitsui Bussan. Toyota also leads the list when it comes to market cap and number of employees.