Brokers differ in how many listings they handle and in how they run their lotteries. The same listing can give you very different odds depending on where you apply from, which is why holding accounts at several brokers is the basic strategy rather than an advanced one.
More fundamentally, you can only apply through a broker that is underwriting that listing. Without the right account you are not at the starting line at all, however good the company looks.
How many listings it handles. A broker underwriting most of the year's listings gives you far more chances to apply than one handling a handful. Start with the high-volume brokers.
How the lottery works. Some run a fully equal draw where everyone gets one ticket. Others weight the draw by how many shares you applied for, which favours larger balances. If your capital is limited, the equal ones are where you can actually compete.
Fees. Applying for an IPO costs nothing anywhere, but the cost of holding the account and of selling the shares differs. You will be using this account for years, so it is worth a look.
This matters more than beginners expect. Most brokers require the purchase money to be in your account at the moment you apply. A few do not — you fund the account only after winning.
With those, a small balance is not a barrier, and applying at several brokers in the same week does not mean splitting your cash between them. For a first account, that is a genuinely easier place to start.
People often hesitate at the idea of opening multiple brokerage accounts. Opening and holding them is free, and there is no downside to having more than one.
Applying for the same listing through several brokers simply means being in several draws. It is the simplest and most effective thing you can do to improve your chances.
If you cannot decide, start with one of the three brokers this site recommends: Matsui (no deposit needed to enter, and at least 70% of the allocation drawn equally), Monex (100% of the retail allocation drawn equally) or DMM.com Securities (no deposit and a fully equal draw). All three are free to open. Add a broker that handles a large number of listings once you are comfortable. The comparison page on this site sets out what each one does.
Open one account. If in doubt, start with Matsui. The comparison page also lets you filter by whether a deposit is required and by how many listings each broker handles.
Nothing here is investment advice. Shares can and do open below their offer price.
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