How to buy Japanese stocks from the UK and Europe in 2026 — Tokyo Stock Exchange via eToro

Why investing in Japanese stocks was a hassle until 2026

For most UK and European retail investors, "how can I buy Japanese stocks?" had no clean answer. Here's what brokers actually offered going into 2026:

Anyone wanting Japan exposure ended up with one of two compromises: US-listed ADRs (a short menu of dual-listed mega-caps with decent liquidity), or the friction of opening a DEGIRO / Interactive Brokers / Saxo account. Mid-caps like Nintendo (7974) or Keyence (6861) sometimes had OTC ADRs, but most UK and European retail apps don't carry OTC instruments at all — so for many readers, the "best" option was no option.

What changed on 13 April 2026

eToro turned on direct Japan Exchange Group (JPX) access for UK and European clients. Three pieces of the launch are worth calling out:

• Nikkei 225 live, full TSE in batches. The first wave covers the Nikkei 225 — 225 large-cap Japanese names selected across sectors. Wider TSE Prime / Standard / Growth segments are being rolled out in subsequent batches.
• Real-time market data. Japanese instruments stream live quotes inside the app, replacing the 15-minute-delayed feed that had been standard for many non-US markets on retail platforms.
• One funded account, no JPY wallet. Account base currency stays USD, EUR or GBP — eToro converts to JPY at execution and back to your base on close.

How to invest in Japanese stocks: what's on the menu

The Nikkei 225 covers the largest, most liquid Japanese names across sectors. Some of the ones international investors usually want first:

The full live list is in eToro's instrument-search — filter the Stocks Screener by Tokyo Stock Exchange:

JapanEconomy Smart Portfolio — for the don't-want-to-pick crowd

Why ADRs aren't a clean substitute

Until now, the workaround for "I want Sony / Toyota / Honda" on a typical UK or European retail broker was a US-listed ADR (American Depositary Receipt) — a US-traded certificate backed by the underlying Japanese share, held in custody by a depositary bank. The mechanics are not free:

• Depositary fees. The depositary bank charges roughly 1–3 cents per ADR per dividend distribution (sometimes annually), deducted automatically from your dividend payment.
• Ratio is rarely 1:1. Nintendo's NTDOY ADR represents 1/8 of one TSE-listed share (7974.T), so the ADR price doesn't match the Tokyo quote. Sony's ADR is 1:1; Toyota's is 1:2. You can't just compare the USD ADR price to the JPY chart and assume parity.
• Liquidity tier. Some Japanese ADRs trade on NYSE/Nasdaq (Sony, Toyota — listed). Others trade only OTC (Nintendo NTDOY, Keyence KYCCF, Fast Retailing FRCOY) — much thinner volume, wider spreads, and most UK and European retail apps don't carry OTC instruments at all.
• No retail ADR for many names. Recruit Holdings, Tokyo Electron, Mitsubishi UFJ have ADRs of varying accessibility; plenty of mid-caps simply have no ADR. Direct Tokyo Stock Exchange access is the only retail route to those.
• Tax treatment. Japanese-company ADR dividends are subject to Japanese 15% withholding (the depositary applies it before USD conversion), not US withholding — the share's economic origin determines source-country tax, not the trading venue. Your country's treaty credit still applies.

That's why this isn't "another broker that does ADRs." The same names you already know, but the actual TSE-listed share, traded in Tokyo, with a real-time feed.

Why invest in the Japanese stock market in 2026?

Most UK and European investors filed Japan under "lost decade" and stopped looking. Three structural shifts in 2024–2025 make the current setup different:

1. Bank of Japan exited negative rates in March 2024, ending 17 years of zero-cost yen funding. Banks finally earn margin again — Mitsubishi UFJ posted record profits FY2024.
2. Corporate-governance reforms. The TSE began publicly listing companies trading below book value in 2023, shaming them into buybacks and dividend increases. Average payout ratio jumped from ~30% to ~40% in two years.
3. The weak yen. USD/JPY at ~155 (down from ~115 pre-2022) makes Japanese exporters more competitive abroad and Japanese assets cheap for foreign buyers — TOPIX hit a 35-year high in summer 2025 partly on overseas inflows.

The flipside: if the yen reverses — BOJ hikes more aggressively, Fed cuts faster — foreign-currency returns compress sharply. Japan exposure is partly a yen bet whether you frame it that way or not.

Before you trade — three things to check first

The full risk list is at the end of the article. The three most likely to cost you money on the way in:

1. Your funding currency. eToro's account base is USD, EUR or GBP. Anything else (CZK, PLN, HUF, RON, CHF, SEK, NOK, DKK, AUD…) goes through your bank's FX before it reaches the platform. All-in entry + exit cost on a Japanese trade can sit anywhere from ~0.75% on a USD- or GBP-funded account up to ~3% on accounts funded in non-supported currencies. Run the numbers against your bank's FX before assuming a small-ticket trade is worth it.
2. Tokyo's session is overnight from the UK and Europe. TSE runs 09:00–11:30 and 12:30–15:30 JST = 00:00–02:30 and 03:30–06:30 UTC. A market order placed in UK/EU afternoon executes at the next Tokyo open — roughly 12 hours of news risk between click and fill. Use Limit orders if entry price matters.
3. Lot sizes can bite small accounts. Some Japanese stocks trade in 100-share "tan'i" lots; Keyence at ~75,000 JPY/share means a single share sits around 500 USD. Whether eToro fractionalises TSE listings has not yet been confirmed in the launch materials — check the order ticket on the specific instrument before assuming a 10 USD minimum applies.

How to buy Japanese stocks step-by-step (Tokyo Stock Exchange via eToro)

Six steps to buy a Tokyo Stock Exchange share from your UK or European eToro account:

1. Open or verify your eToro account. Standard ID + proof-of-address verification is required before live trading. Account base currency is USD, EUR or GBP.
2. Search the ticker. Type Toyota, 7203, Sony, 6758 into the top search bar. Tokyo Stock Exchange listings show a JP flag and the "Tokyo" exchange tag.
3. Open the instrument page, click Trade. Switch the order type to Buy (not Sell/short — that turns the trade into a CFD). Leverage stays at 1× for real-share ownership.
4. Set the amount in USD/EUR/GBP. eToro converts to JPY at execution. No need to pre-fund a yen wallet.
5. Choose order type. Market order executes at the next TSE session open if you place outside hours (Tokyo Stock Exchange: 09:00–11:30 and 12:30–15:30 JST = 00:00–02:30 and 03:30–06:30 UTC). For price-sensitive entries, use a Limit order.
6. Open trade → done. The position appears in your portfolio with the JPY market value displayed in your account currency.

Costs and fees

How to trade Japanese stocks safely — full risk list

"Real Tokyo shares, one app" is the easy headline. The friction is in the things that don't fit on a marketing page:

• FX conversion fee — and it varies by your country. eToro currently offers account base currencies in USD, EUR and GBP only. If your bank account is in any other currency (CZK, PLN, HUF, RON, SEK, NOK, DKK, CHF, AUD, etc.), every deposit and withdrawal goes through your own bank's FX on top of eToro's spread, and every JPY trade adds another conversion. The all-in cost of getting into and out of a Japanese position can sit anywhere from roughly 0.75% for a USD- or GBP-funded account up to around 3% for accounts funded in non-supported currencies, depending on your bank's FX markup and which side of the trip you're measuring.
• JPY conversion is not separately quoted. The JPY leg is built into the order spread at execution and isn't shown as a line item. You can estimate it by comparing the executed JPY price against the Tokyo mid-quote at the same timestamp, but the broker doesn't break it out for you.
• Tokyo trading hours are overnight from the UK and Europe. TSE runs 09:00–11:30 and 12:30–15:30 JST = roughly 00:00–02:30 and 03:30–06:30 UTC. A market order placed during UK/EU afternoon executes at the next TSE open, exposing you to ~12 hours of news risk between click and fill. Limit orders avoid that, at the cost of possible non-execution.
• Withdrawal fee (5 USD) compounds with FX. Pulling £100 back to your bank means you lose 5 USD plus the GBP/USD spread on the way out — small in absolute terms but meaningful on small accounts.
• Inactivity fee. 10 USD/month after 12 months without a single login. Charged from cash balance; if there's no cash, eToro liquidates a small position to cover it.
• Japan withholds 15% on dividends at source. The UK, all EU member states and Switzerland have treaties allowing you to credit that against domestic dividend tax — but the credit isn't automatic. You pull the year-end tax statement from eToro and claim it yourself in your annual filing. If you're in a country without a Japan tax treaty, the 15% is a flat hit. Tax rates and treaty terms change; for the rules that actually apply to you in the year you file, consult a qualified tax adviser.
• USD/JPY exposure is unavoidable. The reported price of your Japanese stock in your account currency moves with two things: the local share price and the JPY cross-rate. A flat TOPIX year can show as a -10% loss in EUR or GBP if the yen weakens, or vice versa. There's no JPY-account option on eToro to hedge that.
• Lot sizes on TSE. Some Japanese stocks trade in 100-share "tan'i" lots; minimum tickets can be larger than a 10 USD eToro minimum implies. Whether eToro fractionalises specific TSE listings is not yet documented in the launch materials — confirm on the instrument's order ticket.
• No options, no T+1 short-sell, no margin on TSE listings (yet). If you need derivatives or to short Japanese names, eToro is not the venue.
• Coverage isn't the full TSE yet. The Nikkei 225 launched first; broader Standard- and Growth-segment listings (smaller mid-caps, recent IPOs) are being added in batches and aren't all live on day one.

This guide is informational, not investment advice. Currency-translated returns are highly path-dependent on USD/JPY moves; past performance of TOPIX or any single Japanese stock isn't a guide to future returns. Risk only what you can afford to lose.

FAQ