Japan's 5 Major Online Brokers to Offer Daytime U.S. Stock Trading in Response to Nasdaq's 23-Hour System

Japanese investors will soon have easier access to U.S. stocks, with five major online brokerages planning to offer daytime trading as early as December. This shift is a direct response to Nasdaq's impending 23-hour trading system, which aims to break down traditional barriers between major global exchanges.

Currently, trading U.S. stocks in Japan is largely confined to nighttime and early morning hours. The new service will allow investors to buy and sell shares listed on the New York Stock Exchange and Nasdaq during Tokyo Stock Exchange business hours. SBI Securities, Rakuten Securities, Monex Securities, and Matsui Securities are set to launch these extended hours from December 6. PayPay Securities, which already offers 24-hour U.S. stock trading, will also enhance its system.

This move comes as individual investor interest in foreign stocks, especially U.S. equities, has surged in recent years. Data from Japan's Ministry of Finance shows foreign stock trading via investment trusts doubled in five years to 77 trillion yen in 2025. The popularity of diversified investment trusts has fueled this trend, encouraging Japanese investors to look overseas. Rakuten Securities president Yuji Kusano anticipates a portion of young investors who currently trade Japanese stocks will shift their funds to U.S. equities following the 23-hour trading launch.

Several factors are driving this change. The increasing number of U.S. initial public offerings (IPOs), such as SpaceX which saw over 1 trillion yen in subscription interest from Japanese investors, and planned listings by AI developers like OpenAI and Anthropic, are further accelerating capital flow to the U.S. market. The convenience of U.S. trading, where single shares can be bought and the trading day is significantly longer than Japan's 5.5-hour session, also appeals to investors. This trend could potentially impact the attractiveness of Japanese exchanges for domestic companies considering listing locations, especially as companies like PayPay have already listed on Nasdaq.

However, traditional brick-and-mortar brokerages are adopting a more cautious approach. Only a few, including Okasan Securities and Tokai Tokyo Securities, are considering adapting, while others like SMBC Nikko Securities and Ichiyoshi Securities have no immediate plans. This hesitation is partly due to the increased costs associated with system upgrades and staffing for extended hours, especially since their client base often consists of institutional investors whose demand for daytime U.S. stock trading remains uncertain. The potential for a hollowing out of Japan's domestic capital market looms if this trend continues, posing a challenge to the government's "asset management nation" policy.

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The 23-hour trading system will likely see a certain proportion of young people who originally traded Japanese stocks shift their funds to U.S. stocks.