Using a Credit Card to Invest in Japan

Using a Credit Card to Invest in Japan Money

Recently in Japan, it becomes possible to purchase mutual funds by credit card. Although there is a monthly purchase limit, purchases made with a credit card can earn cash back, which is one of the advantages when buying with credit card. In other words, if you buy stocks such as bonds that do not fluctuate much and sell them right away, you can earn rebates from your credit card without any risk. In this article, I will introduce some security companies that will allow you to purchase using your credit card.

Rakuten Card + Rakuten Securities

Rakuten Securities is one of the most stable and popular credit card investment services. The reason for its popularity is that it offers a high point return rate of 1% for accumulation using the Rakuten Card.

 It is said that 70% of the people who invest in mutual funds with Rakuten Securities use their Rakuten Card for payment. Rakuten Securities’ service offers a broad lineup of eligible mutual funds, with about 2,500 mutual funds to choose from. You can choose from a variety of mutual funds, from index funds that are linked to representative market indices, to those that emphasize protection, mainly bonds, and those that invest in domestic growth stocks. In addition to the extensive search function, there is also a page that introduces investment trusts carefully selected by Rakuten Securities’ fund analysts for those who are not sure which one to choose. Rakuten Securities allows you to accumulate funds within the range of 100 yen to 50,000 yen per month. 1 yen cash back per 100 yen of settlement amount. In other words, if you purchase 5,000 yen every month, you will get 500 yen cash back. If you buy and sell right away, you will make 500 yen.

Mitsui Sumitomo Card + SBI Securities

NL card

SBI Securities had teamed up with Mitsui Sumitomo Card to launch a service that allows you to use the card to purchase mutual funds on an accumulative basis starting June 30, 2021. You can gather funds in the range of 100 yen to 50,000 yen per month. Until December 10, 2021, the campaign will offer 1.5% return for ordinary cards and 3% return for platinum cards. This means that if you purchase 5,000 yen, you will receive 750 yen cash back for the regular card and 1,500 yen for the platinum card. After the campaign ends, the general card will offer 0.5% back and the platinum card will offer 1% back. You will also receive 0.1% annualized cash back if your average monthly holdings of eligible mutual funds are less than 10 million yen, and 0.2% annualized cash back if your average monthly holdings are 10 million yen or more.

Epos Card + Tsumiki Securities

Epos Card Tsumiki x Securities was the first to launch a service for savings investments using the Epos Card in August 2018. One of the biggest features of Tsumiki Securities, where 70% of customers are investment beginners, is its carefully selected product lineup. Only five mutual funds are available for purchase at Tsumiki Securities. For those who buy and sell immediately, “Marugoto Hifumi 15” is recommended because of its 85% bond. The cash back rate for purchases is as follows. 

  • 1st year: 0.1% of accumulated amount, annual cash back: 600 yen
  • 2nd year: 0.2% of accumulated amount, annual cash back: 1,200 yen
  • 3rd year: 0.3% of accumulated amount, annual cash back:1,800yen
  • 4th year: 0.4% of accumulated amount, annual cash back:2,400yen
  • From 5th year: 0.5% of accumulated amount, annual cash back: 3,000 yen

After the 5th year, the rate becomes 0.5%, so it is important to continue using credit cards for a longer period of time.

There are other combinations of brokerages and credit cards that allow you to make purchases with a credit card, but they all offer a cash back rate of 0.1% to 0.3%, which is not recommended. Also, the monthly purchase limit is limited to 5,000 yen at all brokerages. If you have sufficient funds, there is no need to buy and sell immediately. If everyone were to sell immediately in the first place, it would eventually become impossible to purchase mutual funds with a credit card.