New NISA: US Stock Investment Exchange Fees and Timing | Foreign Currency FAQ for Yen Depreciation 2026

Kenji, a Tokyo office worker, has been putting off investing his ¥1 million savings. He reads about the new NISA and US stocks, but every article mentions "FX fees" and "exchange rate risk." With the yen at 162 to the dollar, he wonders: is now the right time to start? The answer isn't about timing the market—it's about understanding the costs. Here's the direct answer: when buying US stocks in a NISA, you pay a foreign exchange fee (typically 0.2–1% depending on your broker and settlement method) and you face currency risk, but you can manage both by choosing the right settlement method and using a strategy like dollar-cost averaging. This article breaks down the fine print of FX fees, timing, and currency risk, so you can decide with clarity.

Verdict: For a beginner like Kenji, start with a monthly dollar-cost averaging plan using foreign currency settlement to minimize FX fees and smooth out currency swings. The lowest-risk first step is to open a demo account or claim a no-deposit bonus ($30 where eligible No-Deposit Bonus) to practice without risking your own money. Start with a free demo.

How FX Fees Work: Yen Settlement vs. Foreign Currency Settlement

The first thing to understand is that when you buy US stocks, you're converting yen to dollars, and that conversion isn't free. Brokers charge a spread on the exchange rate, often hidden in the rate you get. In Japan, brokers like SBI Securities offer two settlement methods: yen settlement (yen-denominated settlement) and foreign currency settlement (foreign-currency-denominated settlement). According to a detailed comparison on nisa-rule.com, the key difference is the fee structure: yen settlement typically charges a spread of about 0.1–0.2% (or a fixed fee), while foreign currency settlement charges a lower spread, often around 0.02%–0.05%, but you need to hold dollars in your account. For example, if you invest ¥1,000,000, the fee difference can be several thousand yen—enough to matter over time. The article's conclusion: for regular monthly investing, foreign currency settlement is cheaper; for one-off purchases, yen settlement might be simpler. But the real cost depends on your broker's specific rates.

Pros and Cons of Yen Settlement

Yen settlement is convenient because you invest directly in yen, and the broker converts to dollars at the current rate. The downside is that the spread is often wider, and you have no control over the exchange rate you get. For example, if the rate is 162.00, you might get 161.90, meaning you lose 0.1% immediately. Over many trades, this adds up. Also, yen settlement means you're always exposed to the exchange rate at the moment of purchase, which can be volatile.

Pros and Cons of Foreign Currency Settlement

Foreign currency settlement requires you to first exchange yen for dollars (often at a better rate via a linked bank account like Sony Bank or SBI Sumishin Net Bank), then use those dollars to buy stocks. The advantage is lower FX fees per trade, and you can time your currency conversion to get a better rate. The disadvantage is that you need to manage two accounts and think about when to convert. For long-term investors, this can save money, but it adds complexity.

Fee Comparison Example: Investing ¥1,000,000

To make it concrete, let's use the example from nisa-rule.com: if you invest ¥1,000,000 in US stocks via SBI Securities, the fee difference between yen and foreign currency settlement can be around ¥2,000–3,000 per trade, depending on the current spread. Over a year of monthly investing, that's ¥24,000–36,000—enough to buy an extra share or two. The table below summarizes the key differences.

Source: nisa-rule.com comparison (2026)

Investing in Foreign Currencies During a Weak Yen: How to Think About It at 162?

As of July 2026, the yen weakened to 162 per dollar, a 40-year low, according to Money Magazine. This has two implications for US stock investors: your existing foreign assets have increased in yen value, but new investments are more expensive in yen terms. Should you wait for a stronger yen? The answer is: don't try to time the currency. As LIMO's article points out, a strategy like dollar-cost averaging (fixed-amount accumulation) automatically smooths out currency fluctuations—you buy fewer shares when the yen is weak and more when it's strong, averaging out your cost over time. This is the same principle as investing in stocks regularly. The article also warns against choosing currency-hedged funds if you want to benefit from yen weakness, as the hedge costs money and reduces returns.

The Real Nature of Currency Risk: Do You Lose When the Yen Strengthens?

Currency risk works both ways. If you buy US stocks when the yen is at 162, and the yen strengthens to 150, your investment's yen value drops, even if the stock price in dollars stays the same. This is a real risk, but for long-term investors, the stock's growth often outweighs currency swings. The key is to have a long time horizon and not panic over short-term moves. Money Magazine's article on foreign stocks in NISA notes that you also need to consider foreign tax withholding (10% on dividends) and the fact that NISA doesn't allow loss offsetting with other investments.

Choosing Between Hedged and Unhedged Currency Exposure

Some mutual funds offer currency-hedged versions, which protect against yen appreciation but cost extra. For US stocks, unhedged is often recommended for long-term growth, as the dollar has historically strengthened over time. The hedging cost is built into the fund as an ongoing expense, which compounds over decades and steadily reduces your total return. For new NISA investors with a long-term horizon, we recommend going unhedged. There are two reasons: first, hedging costs add up every year and erode the power of compounding. Second, because dollar-cost averaging smooths out currency fluctuations, an unhedged approach tends to deliver higher total returns over a 20- to 30-year investment period. However, if you plan to use the funds within a few years, or if you cannot tolerate losses from a stronger yen, a hedged option is also worth considering.

Starting US Stock Investing with the New NISA in 3 Steps

Starting US stock investing in the new NISA is not difficult, as Finasee's guide explains. Here's a simplified 3-step process:

1. Choose a brokerage that offers NISA accounts and US stocks, such as SBI Securities, Rakuten Securities, or Monex. Consider their FX fees, trading platform, and customer support.
2. Open a NISA account (Growth Investment Allowance or Accumulated Investment Allowance) and link your bank account. This can be done online in minutes.
3. Set up a monthly investment plan (regular accumulation) for US stocks or ETFs like S&P 500. Use foreign currency settlement to save on FX fees, and automate it to take advantage of dollar-cost averaging.

For Kenji, this means he can start with a small amount, say ¥10,000 per month, and gradually increase. The key is to start now rather than wait for the perfect time.

Comparison of Major Brokerages: Fees and Services

To help you choose, here's a comparison of major Japanese brokerages for US stock investing, based on public information as of 2026. Among these three, SBI Securities and Rakuten Securities offer the lowest foreign currency settlement fees at 0.02% along with the widest product range, making them the top choices for most NISA investors starting US stock investments.

Source: Broker official sites and public comparisons (2026)

Who should pick which:

• SBI Securities is great for beginners due to its low fees and extensive educational resources.
• Rakuten Securities is ideal if you use Rakuten services, as you can earn points.
• Monex Securities offers unique research tools for active investors.

For Kenji, SBI or Rakuten would be a solid choice, but the important thing is to start.

為替手数料を抑える裏技：外貨MMFや銀行連携

Beyond choosing foreign currency settlement, you can further reduce FX fees by using a linked bank account like SBI Sumishin Net Bank or Sony Bank, which offer better exchange rates. For example, SBI Securities allows you to link your SBI Sumishin Net Bank account to exchange yen to dollars at a lower spread, sometimes as low as 0.02%. Additionally, you can use foreign currency MMFs (foreign currency money market funds) to hold dollars and earn a small yield while waiting to invest. This strategy is mentioned in Money Magazine's article on yen weakness, where they suggest using MMFs to park your dollars without leaving them idle.

Frequently Asked Questions (FAQ)

How much are the foreign exchange fees when buying US stocks with the new NISA?

Foreign exchange fees vary depending on the brokerage and settlement method. With yen settlement, fees are typically around 0.1%–0.2%, while with foreign currency settlement, they are generally around 0.02%–0.05%. For example, when investing 1 million yen, yen settlement incurs fees of 1,000–2,000 yen, whereas foreign currency settlement keeps them to around 200–500 yen. Over long-term investing, this difference becomes significant, so for fixed-amount periodic investments, choosing foreign currency settlement is advisable.

Is it okay to invest in US stocks now that the yen is weak?

A weak yen pushes up the yen-denominated value of US stocks, but new investments carry currency risk. However, over the long term, the dollar-cost averaging method can smooth out currency fluctuations, so starting early matters more than timing the market. While a further weakening of the yen could eventually lead to yen appreciation, historical trends show that US stock growth has often outpaced currency movements.

Which is recommended: yen settlement or foreign currency settlement?

If you are investing periodically on a regular basis, foreign currency settlement helps reduce costs. For one-off large investments, the fee difference with yen settlement is small, but if you trade frequently, foreign currency settlement is more advantageous. Additionally, with foreign currency settlement, you can further reduce exchange fees by using a linked bank.

How can I avoid currency risk?

Currency risk cannot be completely eliminated, but you can smooth it out using the dollar-cost averaging method, maintain a long-term perspective, or choose products with currency hedging. However, hedging comes with costs, so if you prioritize long-term growth, going without hedging is preferable.

How are taxes handled for foreign stock investments under the new NISA?

Under the new NISA, domestic capital gains and dividends are tax-exempt. However, a 10% local withholding tax is applied in the US, and this is not exempted even under NISA. Also, while it is eligible for the foreign tax credit, note that loss carry-forward and offsetting are not permitted under NISA. For details, please refer to the Money Magazine article.

How do I receive the bonus?

With overseas FX brokers such as XM, you may receive a bonus when opening an account. To receive it, simply open an account on the official website and enter the bonus code. However, bonuses come with withdrawal conditions. The key points are two: the bonus itself cannot be withdrawn and only profits can be withdrawn, and a certain trading volume (lot count) must be achieved for withdrawal. Since you cannot withdraw unless the conditions are met, make sure to plan your trading before taking it on. Trying a demo account first is also recommended.

Summary: Why You Should Start Even with a Weak Yen

Kenji decided to stop waiting for the perfect exchange rate. He opened a NISA account with SBI Securities, set up a monthly investment plan using foreign currency settlement, and started with ¥10,000 per month. He also opened a demo account with XM to practice forex trading on the side, without risking any real money. The key takeaway: Rather than waiting for the perfect time to start investing, it's more important to take a small step now using a cost-effective approach. By using dollar-cost averaging and minimizing FX fees, you can navigate the yen's fluctuations and build long-term wealth. With a demo account, you can practice in the same trading environment as the real platform without risking any funds at all. By using the no-deposit bonus ($30 where eligible No-Deposit Bonus), you can also experience real trading with zero capital of your own. Open a free XM demo account now to start your journey without any financial risk.

Risk Warning: Trading foreign exchange and CFDs carries a high level of risk and may not be suitable for all investors. The majority of retail CFD accounts lose money. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Because of this risk, it's important to start with a demo account or no-deposit bonus to learn without risking your own capital. We recommend practicing risk-free with a demo account first, understanding how trading works, and then starting with small amounts.

Methodology: This article aggregates publicly available data from broker official pages, regulator public registers, and independent review aggregators verified on 2026-08-25. The editorial team has not personally traded on the broker(s) reviewed. For our hands-on testing protocol when implemented, see our methodology. Affiliate disclosure: Some links are affiliate links — we may receive compensation at no extra cost to you. Compensation does not influence broker rankings; see our editorial policy.

FAQ

What are the foreign exchange fees when buying US stocks with the new NISA?

Foreign exchange fees vary depending on the brokerage and payment method. For yen-denominated settlements, fees are typically around 0.1% to 0.2%, while for foreign currency settlements, they are generally around 0.02% to 0.05%. For example, when investing 1 million yen, yen-denominated settlement incurs fees of 1,000 to 2,000 yen, whereas foreign currency settlement keeps them to around 200 to 500 yen. Since this difference grows over long-term investing, choosing foreign currency settlement is advisable for fixed-amount periodic investments.

Is it okay to invest in US stocks now that the yen is weak?

A weak yen pushes up the yen-denominated value of US stocks, but new investments carry currency risk. However, over the long term, dollar-cost averaging can smooth out currency fluctuations, so starting early matters more than timing the market. While the yen could strengthen further, historical trends show that US stock growth often outpaces currency movements.

Which is recommended: yen-denominated or foreign currency settlement?

For regular periodic investments, foreign currency settlement helps reduce costs. For one-off large investments, the fee difference with yen-denominated settlement is small, but foreign currency settlement is more advantageous for frequent trading. Additionally, with foreign currency settlement, you can further reduce exchange fees by using linked banks.

How can I avoid currency risk?

Currency risk cannot be completely avoided, but you can mitigate it through dollar-cost averaging, maintaining a long-term perspective, or choosing products with currency hedging. However, hedging comes with costs, so if you prioritize long-term growth, going without hedging may be better.

How are taxes handled for foreign stock investments under the new NISA?

Under the new NISA, domestic capital gains and dividends are tax-exempt. However, a 10% local withholding tax is applied in the US, which is not exempted under NISA. Also, while it qualifies for the foreign tax credit, note that loss offsetting is not available under NISA. For details, refer to the Money Magazine article.

How do I receive the bonus?

With overseas FX brokers like XM, you may receive a bonus when opening an account. To claim it, simply open an account on the official website and enter the bonus code. However, bonuses come with withdrawal conditions, so be sure to check the terms of use. Trying a demo account first is also recommended.

Sources & Verification

This article was fact-checked on 2026-08-25. Key claims:

• "As of July 2026, the yen had weakened to the 162 range against the dollar, reaching levels not seen in about 40 years" — verified via https://money-magazine.org/yen-weak-162-foreign-assets-nisa-2026/ on 2026-08-25
• "In the comparison of SBI Securities' yen settlement and foreign currency settlement fees, foreign currency settlement is more advantageous for fixed-amount installment plans" — verified via https://nisa-rule.com/sbi-securities-us-stock-yen-foreign-currency-settlement-comparison/ on 2026-08-25
• "Starting U.S. stocks under the new NISA is possible in 3 steps" — verified via https://media.finasee.jp/articles/-/18875 on 2026-08-25
• "When buying foreign stocks through NISA, attention must be paid to foreign tax credits, exchange rates, and fees" — verified via https://money-magazine.org/foreign-stock-nisa-tax-currency-risk/ on 2026-08-25
• "Products with currency hedging incur costs, so for long-term investment, unhedged products may be recommended in some cases" — verified via https://limo.media/articles/-/134249 on 2026-08-25