Japan’s leading online securities firms are capturing a larger share of the investment trust market, overtaking traditional banks and brokerages that have long relied on face-to-face sales. The growing popularity of the tax-free investment program, NISA, has encouraged users—most of whom are in their 40s or younger—to manage investments on their smartphones and laptops. This shift helped online brokerages boost their share in the publicly offered investment trust market to over 20% by the end of June, up from around 16% a year earlier, according to Nomura Research Institute (NRI) estimates.
In contrast, banks that once dominated the market with over 50% share 15 years ago now hold just over a third. Traditional securities firms also saw their market share dip slightly from 44% to 43%.
As Japan faces an aging population and strained public finances, policymakers are encouraging individuals to shift from savings to investments to generate better returns, despite higher risks. Many investors, accustomed to near-zero interest rates on bank deposits, have moved into investment trusts, similar to mutual funds in the US. The net asset value of publicly offered investment trusts reached a record ¥237.4 trillion ($1.7 trillion) in June, driven by NISA inflows and strong stock market sentiment.
Despite sharp market volatility in early August, when the Nikkei 225 and Topix indexes plunged 12%, investor behavior remained steady. Hisashi Kaneko, senior researcher at NRI, attributes this to a growing focus on long-term investment strategies.
Leading online brokers in Japan include SBI Securities, Rakuten Securities, Monex Group, and AU Kabucom Securities.