NISA Credit Card Accumulation vs. Orkan – A Comparison of Point Redemption Rates Reveals the Most Cost-Effective Online Securities Firm

Is AU Kabucom Securities poised to surpass Monex Securities?

The second-tier group following SBI Securities and Rakuten Securities, dubbed the two leading companies, surpasses the top two in terms of point redemption rates. Particularly, Monex Securities stands out with the highest combined rate of redemption and accumulated points, but after the limit increase, AU Kabucom Securities has become advantageous.

This is because Monex Securities’ 1.1% rate applies to accumulation amounts below 50,000 yen, decreases to 0.6% for amounts exceeding 50,000 yen up to 70,000 yen, and further decreases to 0.2% for amounts exceeding 70,000 yen up to 100,000 yen. AU Kabucom Securities applies a flat 1% rate up to 100,000 yen.

Taking these conditions into account, the points received from credit card accumulation are equivalent for Monex Securities and AU Kabucom Securities when the accumulation amount is 62,500 yen. Below 62,500 yen, Monex Securities is more advantageous, while above 62,500 yen, AU Kabucom Securities is more advantageous. It’s worth noting that both the Monex Card and AU PAY Card have an annual fee, but they become effectively fee-free with one usage per year, including credit card accumulation.

Additionally, PayPay Securities offers a redemption rate of 0.7%, but points are only applicable for accumulation amounts up to 50,000 yen. Compared to Monex Securities and AU Kabucom Securities, PayPay Securities falls short.

 

The revenue of investment trusts from securities firms is typically one-third of the trust fee.

Here’s a clarification regarding accumulated points. The fact that both SBI Securities and Monex Securities have the same granting rate of 0.0175% is not a coincidence. This is the limit for the “eMAXIS Slim Global Stocks” fund.

The trust fee of an investment trust is the cost borne by the holding balance and represents the fees investors pay to financial institutions as long as they hold the investment trust. On the other hand, it constitutes revenue for the financial institutions. For the “Orkan” fund, the trust fee is 0.0525% excluding taxes. This fee is divided equally among three financial institutions: the selling company (i.e., securities firm), the operating company, and the trustee company (i.e., trust bank) that holds the investors’ funds. Therefore, the “share” of the securities firm amounts to 0.0525% ÷ 3 = 0.0175%.

In other words, SBI Securities and Monex, Inc. are giving away all of their earnings from Orcaans sales to investors as points for holding Orcaans. (For more information on why they are still continuing the service, please refer to our previous article, “Can DOCOMO, which was late to the game, turn things around… ‘New NISA’ accounts wanted even if they are prepared to lose money. (For more information on why DOCOMO is still continuing the service, please refer to our previous article, “ Will DOCOMO be able to catch up?)