Here comes the new kid on the block.
It is known as Rakuten Trade, the first full-fledged online stockbroking firm in Malaysia. Leveraging on the cutting edge technology from Japan, Rakuten Trade aims to change the landscape of conventional trading activities in the Malaysian stock market today.
So, is this good news to us?
Firstly, I believe it is a good thing to retail customers like us. After all, heightened competition breeds competitiveness. Secondly, it depends on our personal reasons for buying and selling shares in the stock market. We would appreciate Rakuten Trade better if their products and services are compatible with our style of investing or trading in the stock market.
Here, I’ll share five things you need to know about Rakuten Trade before signing up with them. They include:
#1: Who is Rakuten Trade?
Rakuten Trade Sdn Bhd is a joint venture between Kenanga Investment Bank Bhd and Rakuten Securities Inc. Rakuten Securities Inc is Japan’s second largest online stockbroking firm with a clientele base of over two million people. Presently, Rakuten Trade Sdn Bhd holds a Capital Markets Services License (CMSL) from Securities Commission which enables Rakuten Trade to deal in listed securities and provide investment advices in Malaysia.
#2: Lowest Brokerage Fees in Malaysia
As I write, the brokerage fees offered by Rakuten Trade is competitive and is easily calculated. Details:
|Trading Value (TV)||Fee Structure||Amount|
Below RM 1,000
RM 1,000 – RM 9,999.99
|3||RM 10,000 – RM 99,999.99||Variable Fee|
0.10% of TV
|4||RM 100,000 and Above||Flat Fee|
For instance, I intend to buy 1,000 shares of Airasia Bhd at RM 3.24 a share. My trading value is RM 3,240. Thus, my brokerage fee is RM 8. This excludes:
– 6% GST on the Brokerage Fee
– 0.03% of Clearing Fee
– Stamp Duties of RM 1 per RM 1,000 in Trading Value
I believe, traders would appreciate low brokerage fees more than investors. This is because traders have higher volume of transactions than investors as they buy and sell shares more frequently. Thus, if you are a trader, you may consider this a plus point to Rakuten Trade especially if your current broker is charging a higher brokerage fee.
iSpeed.my is a mobile app developed by Rakuten Securities Inc. It provides free access to stock prices, research reports, and latest news headlines to all Malaysians, both clients and non-clients of Rakuten Trade.
However, if you are a Rakuten Trade customer, you will enjoy additional features of iSpeed.my. You can place orders to buy and sell shares, build a watch list of your favourite stocks, deposit and withdraw funds into and from your trading account. Essentially, it is quite handy as you can trade stocks with your smartphone anytime and anywhere at your convenience.
#4: Rakuten Trade Loyalty Programme
Rakuten Trade has forged alliances with three partners to form the Rakuten Trade Loyalty Programme. It is an initiative to reward you with Rakuten Trade Points (RT Points) for signing up as a new client, making trades, transfer shares from your previous broker, and refer friends to use Rakuten Trade as their trading platform. Suffice to say, RT Points can be exchanged for points under one of the three loyalty programmes. They include:
– AirAsia BIG
– B Infinite
#5: Online Account Application
Today, I need to take a drive to a stockbroker’s office to open a CDS account. It is not the case for Rakuten Trade. You can open a Rakuten Trade Account online. If you are up for it, you need to prepare the following documents:
– Photocopy of your Identity Card (NRIC Front & Back)
– Bank statement from a bank incorporated in Malaysia
– Proof of corresponding address (utility bill, telco bill)
These documents are uploaded to Rakuten Trade online. Your application is processed as quickly as in two hours. Then, you can deposit money into your account and start trading stocks. For more information, you may check out the followings:
Facebook: Rakuten Trade’s Facebook Page
Google Play: iSpeed.my