Can I transfer my NISA account from one securities company to another?

Okay, no problem. Many people have questions about NISA account transfers, let me clarify it for you.

Of course, you can change brokers for your NISA account! But there are a few "traps" you need to be aware of.

Let's get straight to the point: Yes, absolutely no problem.

Just like you can port your number if you're unhappy with your mobile carrier, you can also "transfer" your NISA account from Brokerage A to Brokerage B.

However! There are a few crucial points here that, if misunderstood, can easily lead to pitfalls. It's not like we imagine, where you pack everything up and it arrives at your new home the next day.

Key Point: What you transfer is the "eligibility," not the "assets."

This is the most, most, most important point!

What you are actually transferring is the eligibility to use the NISA investment allowance for the upcoming year (e.g., the 2.4 million JPY Growth Investment Allowance and 1.2 million JPY Tsumitate Investment Allowance for the new NISA).

The stocks and funds you've already purchased in your old account cannot "move" with you to the new brokerage.

To illustrate with an example: It's like you bought a year-long membership at Gym A and have already used it. Later, you find Gym B has better equipment and want to switch. You cannot transfer the remaining membership time from Gym A to Gym B for this year. You can only apply to have your membership eligibility transferred to Gym B starting from January 1st of next year. And the items in your locker at Gym A (the stocks/funds you've already bought) must remain at Gym A until you retrieve them yourself (sell them).

Key Points to Note During Transfer

1. If you've made purchases in the current year, you cannot transfer in the same year. If, in 2024, you have already purchased even 100 JPY worth of investment trusts in your current NISA account, then your 2024 NISA account is locked with that brokerage and cannot be transferred within the same year. You can only apply to switch your NISA account to a new brokerage starting from 2025.

2. What happens to existing assets? They will remain in your original brokerage account, continuing to enjoy NISA's tax exemption benefits until you sell them or the tax-exempt period ends. You simply won't be able to use your NISA allowance to buy new things at the old brokerage anymore.

3. The process takes time, plan ahead. The transfer process isn't immediate; it usually takes several weeks. Generally, the best time to apply for a NISA account transfer for the next year is between October and December of the current year. If you wish to switch, it's best to confirm the deadlines with both your old and new brokerages in advance.

What's the general process?

While the details might vary slightly among brokerages, the general logic is as follows:

1. Submit an application to your current brokerage, informing them, "I want to transfer my NISA account away."
2. Your current brokerage will process your application and then send you a document called 「勘定廃止通知書」 (Account Closure Notice) or 「非課税口座廃止通知書」 (Tax-Exempt Account Closure Notice). This is your "transfer certificate."
3. Open a regular securities account with the new brokerage you wish to join (if you don't have one already).
4. Submit your "transfer certificate" along with your account opening application materials to the new brokerage, informing them, "I want to transfer my NISA account here."
5. Wait for the new company and the tax office to review your application. Once approved, your NISA account will be established at its new home.

In summary, changing brokerages is entirely feasible and not overly complicated. The key is to understand the core rule of "transferring eligibility, not assets" and to grasp the correct timing for applications. If you're dissatisfied with your current brokerage's fees, app experience, or product selection, feel free to explore a new platform that suits you better!