Terada started playing football at the junior youth setup of Japan Soccer League side Nissan Motors (current Yokohama F. Marinos).

After the graduation, he nearly signed with Yokohama Marinos but the club pulled out when a problem was found in his neck at the medical check.

After spending a year unattached, he signed with J2 League side Kawasaki Frontale in 1999 as an anchoring midfielder.

[1] On 13 December 2023, Terada was announce official appointment first manager of J3 club, Fukushima United from 2024 season.

[2] On 18 November 2024, Terada was announce extend contract in one year with Fukushima United as manager from 2025 season.