Overview of Buko
Founded in Japan in 1949, Buko operates as a regulated brokerage under the oversight of the Financial Services Agency (FSA). Offering a wide range of trading assets, including Japanese stocks, ETFs, REITs, and more, Buko provides a comprehensive investment landscape.
While its structured account opening process and transparent fee presentation stand as advantages, the absence of an online trading platform and limited educational resources may pose challenges. Operating primarily in Saitama Prefecture, the location-dependent branch services contribute to the distinct features of Buko, suitable for traders seeking a traditional and regulated trading experience.
Is Buko legit or a scam？
Buko operates under the regulation of the FSA (Financial Services Agency) in Japan, holding a Retail Forex License with license number 東財務局長（金商）第154号.
The platform's current status is categorized as “Regulated,” indicating adherence to regulatory standards and oversight by a recognized authority. The regulation by the FSA plays a crucial role in shaping the trading environment on Buko for users. Traders on the platform benefit from the assurance that Buko complies with the regulatory guidelines set forth by the Japanese financial regulatory authority.
This oversight contributes to a more transparent and secure trading environment, fostering trust among users and ensuring that the platform operates with integrity and in accordance with established industry standards.
Pros and Cons
Pros:
Regulated by FSA:
2. Wide Range of Trading Assets:
Buko offers a comprehensive selection of trading assets, including Japanese stocks, ETFs, REITs, CBs, investment trusts, and more.
3. Structured Account Opening Process:
The account opening process with Buko follows a structured approach, ensuring a systematic and smooth experience for traders. This includes steps such as initiating contact, preparing necessary documents, branch or home visits, and an account opening interview.
4. Transparent Fee Presentation:
Buko provides a transparent presentation of fees, especially for Japanese stocks. The fee structure is clearly outlined based on the contract value, allowing users to understand the costs associated with their transactions.
5. Customer Support Availability:
Buko offers accessible customer support through an Internal Management Supervisor during specified operating hours. This direct contact point enables users to seek assistance, address inquiries, or resolve issues efficiently.
Cons:
Deposit Fee Starting from 770 Yen:
2. Complex Fee Structure for Japanese Stocks:
3. No Online Trading Platform:
Buko does not provide an online trading platform. This distinctive feature might be considered a limitation for traders who are accustomed to real-time data, quick order execution, and comprehensive market analysis available through online tools.
4. Limited Educational Resources:
5. Location-Dependent Branch Services:
Market Instruments
Buko offers a wide range of trading assets, encompassing various financial instruments to meet the investment preferences of its users.
Japanese listed stocks are available for spot trading, providing access to a wide array of Japanese stocks. Additionally, the platform facilitates margin trading for Japanese listed stocks, utilizing a system credit approach. Users can participate in Initial Public Offerings (IPOs) through the platform, contributing to a dynamic investment landscape.
The inclusion of Exchange Traded Funds (ETFs) allows users to diversify their portfolios by trading funds that track various indices.
For those interested in real estate exposure, Buko provides access to Real Estate Investment Trusts (REITs). The platform extends its offerings to convertible bonds with stock acquisition rights (CBs) and investment trusts.
Moreover, Buko accommodate users interested in global markets by providing opportunities to trade foreign stocks, foreign bonds, and engage in Foreign Currency MMF (Money Market Fund). The platform also supports trading in market derivatives, including Futures/Options.
Account Types
Buko Securities offers a variety of account types to accommodate the various needs of its user base.
The primary account type is the general securities account, which serves as the foundational option for traders. This account type is suitable for individuals seeking standard trading functionalities without additional leverage. The general securities account provides access to a range of financial instruments, including Japanese stocks, ETFs, REITs, CBs, and investment trusts. It services users who prefer a straightforward trading experience without the complexities of margin or credit trading.
For those looking to engage in margin trading, Buko Securities requires users to open a general securities account first. The margin trading account offers enhanced features, allowing traders to leverage their positions. This account type is suitable for more experienced investors who are comfortable with the risks associated with margin trading and seek potential higher returns. Opening a margin trading account involves an additional layer of scrutiny and is subject to examination results, ensuring that users fully understand and acknowledge the risks involved in leveraged trading.
How to Open an Account？
Opening an account with Buko Securities involves a structured process to ensure a smooth experience for potential traders. Here's a step-by-step guide:
1. Initiate Contact:
If you wish to visit their branch, you can directly approach them.
Alternatively, if you prefer a home visit, you can contact Buko Securities, and they may arrange to visit your home, depending on your location.
2. Prepare Necessary Documents:
Have a personal seal ready.
Ensure you have My Number confirmation documents, such as the My Number card or notification card.
Prepare identity verification documents, which may include one official document with a face photo or two official documents without a face photo.
3. Branch Visit:
4. Home Visit (If Applicable):
5. Account Opening Interview:
6. Margin Trading Account (If Needed):
7. Credit Trading Account Examination:
8. Location Consideration:
Spreads & Trading Fees
Buko Securities imposes various trading fees for Japanese stocks, including standard commission charges based on the contract value.
For contract values up to 3,000 yen, a fee of 770 yen is applied, while values exceeding 3,000 yen up to 220,000 yen incur a fee of 2,750 yen. The fee structure becomes more complex for higher contract values, ranging from 1.265% for values over 22,000 yen up to 0.264% for values exceeding 50,000,000 yen with a maximum fee of 245,520 yen.
Additionally, there are miscellaneous fees such as account management fees for protected accounts, foreign securities trading account fees, and fees for specific procedures like stock transfer, unit-share purchase requests, and handling of expired dividends. These fees contribute to the overall cost structure for users engaging in various transactions and services offered by Buko Securities.
Regarding bond-related expenses, clients involved in bond transactions through issuance, sale, or negotiated trading with Buko Securities are only required to pay the purchase price (transaction price × quantity). For over-the-counter transactions involving purchase and sale, the company determines transaction prices based on market conditions, creating a price differential known as the “spread.”
Trading Platform
Buko limits its services exclusively to offline trading and abstaining from providing a dedicated trading software platform.
In contrast to the prevalent trend among brokerage firms to offer online platforms for instant market access, Buko's model relies on transactions facilitated through direct interactions with their representatives, either in-person at their branch or through scheduled home visits.
The decision to forgo online trading platforms may pose challenges for traders accustomed to real-time data, quick order execution, and comprehensive market analysis available through online tools. Prospective users should carefully consider the implications of Buko's offline-only approach, weighing potential inconveniences against the benefits, and evaluating whether this distinctive model aligns with their trading preferences and expectations.
Deposit & Withdrawal
Buko's payment options are limited, with wire transfer being the primary method for depositing funds. This could potentially inconvenience users who prefer a broader range of payment channels.
Clients must deposit funds in advance, encompassing the estimated amount, which includes the contract price along with associated fees. The emphasis on wire transfer as the main avenue for transactions might deter those accustomed to more versatile payment options offered by other platforms.
The exclusivity of wire transfer could be perceived as a drawback for users seeking greater flexibility and convenience in managing their financial transactions on the platform.
Customer Support
Buko's customer support is accessible through their Internal Management Supervisor at 0494-24-1511 during operating hours from 8:00 to 18:00, excluding Saturdays, Sundays, and holidays. Clients can reach out to this contact point for assistance, inquiries, or issue resolution.
The provided phone number ensures direct communication with the internal management team, allowing clients to address their concerns efficiently within the specified time frame.
Conclusion
In conclusion, Buko Securities presents itself as a well-regulated brokerage founded in Japan in 1949, offering a variety of trading assets. The platform's transparency in fee presentation and a structured account opening process enhance the overall user experience. The advantage of being regulated by the Financial Services Agency (FSA) adds a layer of credibility and security to the trading environment, aligning with industry standards.
However, potential drawbacks include a complex fee structure for Japanese stocks, which could pose challenges for users in understanding the cost implications of their transactions. The absence of an online trading platform may limit the accessibility and convenience for traders who are accustomed to real-time data and quick order execution. Additionally, the dependence on location for branch services may create disparities in accessibility for users residing outside the main operating areas.
FAQs
Q: What types of accounts does Buko offer？
A: Buko provides general securities accounts for trading various financial instruments.
Q: How can I open an account with Buko？
A: To open an account, visit their branch or arrange a home visit, prepare necessary documents, and go through an interview process.
Q: What trading assets are available on Buko？
A: Buko offers a wide range, including Japanese stocks, IPOs, ETFs, REITs, CBs, investment trusts, foreign stocks, bonds, and market derivatives.
Q: What are the fees for trading on Buko？
A: Fees vary, starting from 770 yen for contracts up to 3,000 yen and increasing based on contract values.
Q: Does Buko have an online trading platform？
A: No, Buko exclusively supports offline trading and does not provide a dedicated online platform.
Q: How can I contact Buko's customer support？
A: Reach out to the Internal Management Supervisor at 0494-24-1511 during operating hours for assistance.
