Overview of KAGAWA
Kagawa Securities, a Japanese brokerage firm founded in 1944, is regulated by the Financial Services Agency (FSA) and offers a variety of investment products including stocks, investment trusts, bonds, and structured products. They also provide inheritance and gift planning services.
While Kagawa Securities doesn't offer online trading and has a minimum leverage of only 1:2 for certain ETFs, they boast educational resources like market reports, seminars, and an online account access portal. To fund your account, you can utilize various methods including bank transfers, online banking, checks, and cash deposits at a branch.
Pros and Cons
Pros
Variety of Investment Products: Kagawa Securities offers a wide range of investment options, including domestic and foreign stocks, investment trusts, government bonds, REITs, ETFs, and even structured products. This allows investors to diversify their portfolios and potentially achieve their financial goals.
Educational Resources: Kagawa Securities provides educational resources to help investors make informed decisions. These resources include market information reports, weekly stock reports, corporate IR seminars (where company leaders discuss growth strategies), asset management seminars led by industry experts, and branch seminars on various investment topics.
Account Management and Personal Service: Kagawa offers a comprehensive securities account that provides all-in-one management of your assets. This includes deposits, withdrawals, and asset management services. Additionally, with all transactions conducted in person, you receive personalized service from a financial advisor who can guide you through the investment process.
Multiple Deposit/Withdrawal Methods: Kagawa Securities offers a variety of convenient ways to fund your account and withdraw your money. These methods include bank transfer, online banking, check deposits, and cash deposits at a branch office.
Cons
No Online Trading Platform: Kagawa Securities does not offer an online trading platform. All transactions must be conducted in person at a branch office. This can be inconvenient for investors who prefer the flexibility of online trading.
Limited Leverage: Kagawa Securities offers a maximum leverage of only 2x for leveraged ETFs and ETNs. This is significantly lower than what some other brokers offer, which limit potential returns (and magnify potential losses) for investors seeking leveraged strategies.
Relatively High Commissions: Kagawa Securities charges commissions on stock trades, with a maximum rate of 1.166% (including tax) on the transaction amount. This can be a significant expense for active traders, especially those making frequent smaller trades. There is a minimum commission of ¥2,200 (including tax) if the calculated fee is lower.
Regulatory Status
Kagawa Securities is regulated by the Financial Services Agency (FSA) of Japan and holds a Retail Forex License. This license number is 四国財務局長(金商)第3号, issued by the Shikoku Financial Bureau Chief. As a holder of this license, Kagawa Securities is authorized to provide retail foreign exchange trading services in Japan.
Market Instruments
Kagawa is a financial services company that offers a variety of products, including investment trusts, foreign currency bonds, structured products, and inheritance and gift support.
Investment trusts are a type of financial product that pools money from multiple investors and invests it in a diversified portfolio of stocks, bonds, or other assets. Investment trusts are managed by professional investment managers who aim to generate returns for investors.
Foreign currency bonds are bonds that are denominated in a foreign currency. This means that the bond issuer will pay interest and principal in the foreign currency, and the bondholder will receive payments in the foreign currency. Foreign currency bonds can be used to hedge against currency risk or to gain exposure to foreign markets.
Structured products are a type of financial product that combines the features of two or more traditional financial products. For example, a structured product could combine the features of a stock and a bond. Structured products can be used to create a variety of investment outcomes.
Inheritance and gift support: Kagawa offers a variety of products and services to help individuals plan for and manage their inheritance and gifts. This includes insurance products, tax planning advice, and estate planning services.
Beyond these core offerings, Kagawa provides account management and trades in a variety of securities including Japanese and foreign stocks, IPOs, government bonds, REITs, and ETFs. However, it's important to note they do not have online options and all transactions must be conducted in person.
Account Types
The Kagawa Securities Comprehensive Securities Account is a convenient and affordable account that provides all-in-one management of your assets, from deposits and withdrawals to asset management. Funds that are in the form of deposits are automatically invested in the Japanese MRF (Money Reserve Fund), so you can make the most of your investments without waste. Kagawa will regularly report on the status of your assets and your transactions. When you open a Comprehensive Securities Account, the account management fee is free.
How to Open an Account？
To start trading with Kagawa Securities, you must first open a comprehensive securities account. There are two ways to open an account:
Nuttoku Account Opening Course
Contact your nearest branch or inquire online. You can find a list of branches on the Kagawa Securities website. You can also inquire online using the contact form.
Schedule a meeting with an advisor. Once you have contacted us, we will schedule a meeting with an advisor who will guide you through the account opening process.
Meet with your advisor. At your meeting, your advisor will explain the features and benefits of the Nuttoku Account Opening Course and answer any questions you have. They will also help you complete the necessary paperwork.
Submit your application. Once you have completed the paperwork, you will need to submit your application to Kagawa Securities. Your application will be reviewed and you will be notified of the decision.
Open your account. Once your application has been approved, you will need to open your account. You will need to bring your passport or other government-issued ID to the branch.
Fund your account. Once your account is open, you will need to fund it with money. You can fund your account by bank transfer, check, or wire transfer.
Rakuraku Account Opening Course
Go to the Kagawa Securities website.
Click on the “Rakuraku Account Opening Course” link.
Enter your personal information. You will need to provide your name, address, phone number, and email address.
Choose a password. You will need to choose a password for your online account.
Review and submit your application. Once you have entered all of the required information, you will need to review your application and submit it.
Wait for approval. Your application will be reviewed and you will be notified of the decision.
Open your account. Once your application has been approved, you will need to open your account. You will need to bring your passport or other government-issued ID to the branch.
Fund your account. Once your account is open, you will need to fund it with money. You can fund your account by bank transfer, check, or wire transfer.
Leverage
The maximum leverage of Kagawa Securities' leveraged ETFs and ETNs is 2x for both long and short positions. This means that for a 1% change in the underlying index, the ETF or ETN will experience a 2% change in its price.
For example, if the underlying index rises by 1%, a long leveraged ETF or ETN with a leverage of 2x will experience a 2% increase in its price. Conversely, if the underlying index falls by 1%, a short leveraged ETF or ETN with a leverage of 2x will experience a 2% decrease in its price.
It is important to note that leveraged ETFs and ETNs are complex financial instruments that are not suitable for all investors. They can be volatile and risky, and investors could lose their entire investment. Investors should carefully consider their investment objectives and risk tolerance before investing in leveraged ETFs or ETNs.
Spreads & Commissions
Kagawa Securities charges a maximum commission of 1.166% (including tax) on the transaction amount (unit price x quantity) for stock trading. If the commission fee is less than 2,200 yen (including tax), it will be 2,200 yen (including tax). There is no commission for purchasing domestic stocks through public offerings. For overseas entrusted trading of foreign stocks, a maximum commission of 1.375% (including tax) is charged on the transaction amount.
Here is a summary of the commissions:
Deposit & Withdrawal
Kagawa Securities offers various payment methods for funding your account. You can transfer money via bank transfer or online banking, mail a check, or deposit cash at a branch office.
Kagawa Securities charges a variety of fees for its services, including commissions, margin fees, and account maintenance fees. Commissions are charged on the transaction amount for stock trades, and the rate varies depending on the transaction amount. Margin fees are charged on the margin balance for credit trades, and the rate is 0.12% per month. Account maintenance fees are charged annually for each account, and the fee is ¥2,200 for individual accounts and ¥1,100 for corporate accounts. In addition to these fees, there are also fees for other services such as account transfers, name changes, and stock lending.
Here is a summary of the fees that Kagawa Securities charges:
Customer Support
Kagawa Securities aims to provide customer support that satisfies all clients. They offer assistance through both phone and email. Phone inquiries are directed to the nearest Kagawa Securities branch (https://www.kagawa-sc.co.jp/store/), with calls recorded for quality assurance and record-keeping purposes. Email inquiries are handled through a structured process involving input, confirmation, and completion stages. Customers are encouraged to reach out with any questions or requests, ensuring a responsive and thorough support experience.
Educational Resources
Kagawa Securities offers a range of educational resources to support their clients.
They provide market information through reports from management companies and weekly stock reports. The company hosts corporate IR seminars where company leaders discuss growth visions directly with investors, and asset management seminars led by renowned speakers. Regular branch seminars also disseminate valuable information.
Their “Net de Rakuda” service allows clients to securely check their asset status online via PC or smartphone. Additionally, the “Sawayaka Radio” program broadcasts fresh updates from Kagawa Securities headquarters every weekday morning on Nishi Nippon Broadcasting (RNC). Furthermore, the company guides clients through various procedural steps to ensure smooth transactions.
Conclusion
Kagawa Securities offers a robust selection of investment products and educational resources, coupled with personalized service from financial advisors. This traditional approach might be ideal for those seeking guidance and in-person interaction.
However, the lack of an online trading platform and limited leverage options can be restrictive for tech-savvy investors or those seeking amplified returns and magnified risks. Carefully weigh the convenience of in-person service and educational resources against the potential drawbacks before deciding if Kagawa Securities aligns with your investment style.
FAQs
Question: What kind of investments can I make with Kagawa Securities？
Answer: Kagawa offers a diverse range of investment options, from traditional stocks and bonds to investment trusts and structured products. You can even get help with inheritance and gift planning.
Question: Do I need to be a tech whiz to invest with Kagawa？
Answer: Not at all! Unlike most brokers today, Kagawa doesn't have an online trading platform. All transactions are conducted in person at a branch office.
Question: Does Kagawa Securities educate its clients？
Answer: They take investor education seriously, offering market reports, weekly stock analyses, and informative seminars. You can gain valuable insights from industry experts and company leaders directly.
Question: Are there any fees involved with using Kagawa Securities？
Answer: Yes, there are commissions on stock trades, with a maximum rate of 1.166%. There's also a minimum commission to consider.
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