How to Invest in the Japanese Stock Market (6 Steps)

Get familiar with the three major indexes used to track developments in the Tokyo Stock Exchange. These are, first, the Nikkei 225 index of major companies as chosen by Japan's most popular business paper, the 'Nihon Keizai Shimbun.' The second is the TOPIX index, and the J30 index is also commonly used to track Japanese big business.
Open a trading account with a large, well-known brokerage. To invest in the Japanese stock market, your order will have to be routed to a licensed member of the Tokyo Stock Exchange. Larger brokerages have the best and most reliable access to TSE members.
Deposit capital into your new trading account, keeping in mind that it is unwise to place all your eggs in one basket. Make sure you have a contingency fund in place to cover your back in the event you lose your shirt in the Japanese stock market.
Work with your financial adviser to identify Japanese companies that you want to invest in. If you prefer to do your own digging, a good place to get started is on the Tokyo Stock Exchange's official English-language website (see Resources below).
Research Japanese companies using the same methods you would use to research domestic companies. If you have no experience researching stocks, pick up a comprehensive introductory guide to stock investing from your local bookstore and spend some time reading before you head into the real world. Keep in mind that it may be difficult or costly to obtain copies of Japanese companies' financial statements.
Place an order to buy the Japanese stock of your choice with your brokerage. Your stockbroker will then forward your request to a Tokyo Stock Exchange member for filling. The time delay involved may mean that the actual price of the stock could differ from your quote by the time your order is actually processed.

How to Buy Stock Shares Online

Go to the website of several online brokers to research which one is the best for you. Compare commission prices, minimum amount of funds needed to open and maintain an account and other fees, such as account inactivity fees. If you need help picking an online broker, many financial magazines publish guides to the best brokers. For example, Barron's has an annual ranking of the best online brokerages. In recent years Fidelity, Muriel Siebert and Scottrade have ranked well.
Open a brokerage account.
Fund your account. You can send the brokerage a check or you can transfer money directly from your bank account into your brokerage account. You can also set up automatic recurring investments. You will receive an email confirmation once the funds have been applied to your account.
Place trades. Log in to the brokerage website and place a trade. After you confirm the trade, the brokerage will send the trade to the stock exchange, execute the trade and send you a confirmation.
Track your Investments. Most online brokerages allow you to actively track your investments in real time. Log in to your brokerage account to see the current prices of your stocks, your profit and losses and your account balances.