In this article, I will list down some common questions on Rakuten Trade (RT). These are the questions that were asked and answered before in the blog. To make things easy, I am compiling them here.
1. Safety:
Is RT safe? What will happen to my shares if it winds down?
First, our cash is kept in a separate trust account which is totally different from the company’s account. In the case of dissolution of the company, the money will be credited into our registered bank account.
Second, our purchased shares are parked under Central Depository System (CDS) account maintained by Bursa Malaysia. Thus, if the company winds down, the shares can be transferred to other brokerage. Actually, our CDS account is held under a company’s name KENANGA NOMINEES (TEMPATAN/ASING) SDN BHD RAKUTEN TRADE SDN BHD FOR [CLIENT NAME]. So, Bursa is still able to identify the owner of the shares.
Basically, Rakuten Trade is safe for trading.
2. Dividend:
How long does it take to receive my dividend?
According to the platform, it will take three to five business days after the official dividend payment date. And the dividend is going into the cash account on Rakuten Trade, instead of our bank account. However, from my experience, it is much faster than that sometimes. But I am going to stick with the official period of three to five business days.
3. Fund withdrawal:
How long does it take to receive the money in my bank account if I withdraw from RT?
It takes one business day for the money to appear in our bank account.
4. Trade Outstanding:
How long does it take for the Trade Outstanding to clear?
Trade Outstanding is the trade that is not settled yet. For example, when we make a purchase, it will take some time for Rakuten Trade to clear it. So, till it is cleared, the transaction will show as Trade Outstanding. During this time, the trading limit and withdrawal availability could be different. The platform takes two to three business days for the settlement of transaction. After the settlement, the trading limit and withdrawal availability should be the same again.
5. Deposit limit:
How do I deposit large amount of money into RT?
The transfer limit of online banking is RM 30,000.00. You need to employ other methods such as personal cheque or over the counter for amount larger than that. Other than the inconvenience of going to the bank, it will also involve extra steps to prove the transfer. Furthermore, unlike online deposits which are processed in real time, it will take some time for the fund to appear in our cash advance account.
The fastest way may be IBG over the counter transfer which can be processed within one hour. Thus, this transfer limit will definitely be an issue if you are transacting large amount.
The alternative is to deposit the money in a few sessions instead of a big lump sum. But this might take a few days to complete the transfer.
6. Corporate actions:
How do I subscribe to rights issue/dividend reinvestment plan?
We have to go to the CORPORATE ACTION SUBSCRIPTION tab in MY ACCOUNT and proceed from there. Do keep in mind that the deadline of Rakuten Trade is earlier than the official date.
For more information, you can go to this link.
7. Good-till-date (GTD) order:
What is a GTD order? Is its queue on Bursa Malaysia being reset everyday?
A GTD order is valid until the specified date. The maximum duration is 30 days from the order entry date.
Although the order is refreshed on the platform daily, the queue on Bursa is not reset everyday. So the priority still remains the same on Bursa.
8. Realized profit/loss (P/L):
Can I check my realized P/L for certain period?
In MY PORTFOLIO of the platform, there is a tab known as “REALIZED PROFIT/LOSS” just beside “HOLDING STOCKS”. We can get a list of our realized P/L in this tab by selecting the option there. The realized P/L are calculated using the net cost price and net sell price (the fees are taken into account already). Thus, the amount shown here is our true P/L.
9. Inactivity fee:
Is there any inactivity fee if I do not trade frequently?
Currently, RT does not charge inactivity fee. However, the account will become dormant after three years of inactivity (no matched trade within the period). If the account has shares in it, the account holder needs to contact customer service for account reactivation without any fee involved. Nonetheless, if there is no share in the account, RT charges a reactivation fee of RM 5.00
10. Price chart:
Why is the stock price chart dissimilar to historical market prices?
The difference in the prices is due to the fact that RT has adjusted the stock price by taking into account all the dividend payout. The price that we see on the platform is the adjusted price averaged together with the dividend payout. But I do not know the exact calculation being employed.
RT suggests us to use i3investor (Link) if we want to check the exact traded prices.
11. Interest rate:
Will I earn any interest for cash parked in RT?
Yes. The interest rate is 1.75% per annum (subject to change) calculated on daily rest and credited into our account on a monthly basis. It is not high but is better than nothing.
The interest rate may change based on the overnight policy rate dictated Bank Negara Malaysia.
12. Foreign exchange:
Can I buy foreign stocks (such as Singapore or US) with RT?
No. RT only allows trading on Bursa Malaysia.
13. Foreigners:
Can a foreigner open an account on RT?
Yes. But a foreigner will need a local bank account in order to open an account on RT.
Referral link
Below is the referral link to Rakuten Trade. As I am involved in Rakuten Trade Educator Program, by clicking on this link, I may gain referral rewards from your registration with the platform once certain condition is met. (2022: I am not longer involved in the Educator Program).
If you think I have done a good service in explaining the topic, please click on the link below if you are interested to register. Otherwise, you can always search Rakuten Trade Malaysia with Google and register yourself.
Rakuten Trade: Link here
*You may earn 500 RT points when you open an account or other account opening rewards being offered by Rakuten Trade. You may choose only one of them.
Comments
Hello there Leckas!
I was just wondering – that means i do not have to own a CDS account prior to trading with Rakuten?
“Second, our purchased shares are parked under Central Depository System (CDS) account maintained by Bursa Malaysia. Thus, if the company winds down, the shares can be transferred to other brokerage. Actually, our CDS account is held under a company’s name KENANGA NOMINEES (TEMPATAN/ASING) SDN BHD RAKUTEN TRADE SDN BHD FOR [CLIENT NAME].”
How come Kenanga doesn’t charge us the brokerage fees? Let’s say Rakuten does dissolve in some unfortunate event, will we be bound to the fees and T&C set by Kenanga then?
Looking forward to your reply!=) Thanks in advance!
Author
Hi, Irwinder.
Rakuten Trade is a joint venture between Kenanga and Rakuten. And normally we pay fee to a brokerage only. Maybe there is a profit sharing scheme between the two companies but I am not sure about it.
Iin case of dissolution of Rakuten Trade, we should have the option to choose the brokerage that we want to transfer the shares. Thus, I think we would not be bound by Kenanga. However, I am waiting for a response from Rakuten Trade. So I would update you again once I have the answer. Sorry that I could not give you a definite answer now.
Author
Hi, Irwinder.
I have received feedback from Rakuten Trade. The first part is almost like what I replied previously.
As for the second part, if Rakuten Trade goes into insolvency, it will instruct the clients to transfer out the shares to another brokerage. Transfer fee will have to be paid to Rakuten Trade which will later be paid to Bursa CDS Sdn Bhd. So, we will not be bound to the fees and T&C by Kenanga.
Hope the answers are clear.
Hi there, just read that you use hlbroker and right now is rakuten. How would you compare this two aside from what you have mentioned in this post?
Author
Hi, Bryan.
Actually, it is RHB TradeSmart, not HLeBroking. I will roughly compare RHB TradeSmart with Rakuten Trade.
First, the cost of transaction is lower with Rakuten Trade. Second, the interface of Rakuten Trade is more user-friendly in my opinion. Third, the fund withdrawal process is easier with Rakuten Trade as it can be done on the platform.
As for the RHB TradeSmart, since it is not a nominee account, the dividends are deposited directly into our bank account without delay. Furthermore, it is relatively to attend the annual general meeting, instead of going through the process on Rakuten Trade.
This is my personal opinion. But I have never tried HLeBroking. Hence, I could not give you a clear comparison between HLeBroking and Rakuten Trade. Sorry about this.
Hi. The proceeds from shares sold in my Cash Upfront account are shown as Trading Limit instead of Cash. How do I withdraw the money?
Author
Hi, Akmal.
Did you just sell your shares? Then you will have to wait for a few days for the proceeds to show in your cash account. After that, you are free to withdraw the money. But if it has been more than 3 business days since you sold the shares, I will suggest you to contact Rakuten Trade customer service to settle this issue.
Hi Author,
Example i online transferred 30k to RT and spent 29k for share purchased. The money balance can i withdraw immediately on d same day?
Thx.
Author
Hi, Stanley.
I think you should able to do that as long as your cash account shows the balance.
Hi Author,
Thank you for your good information regarding RT.
I have one question which is other than brokerage fee, stamp duty, clearing fee, & ST,
I found that RT still charge me hidden fees. May I know, if there is hidden fees other than stated above? TQ in advance.
Author
Hi, Aiman.
I am not aware of any hidden fee that RT charges. The brokerage fee, stamp duty, clearing fee, and service tax that you mentioned are the fees that I incurred when I traded. Do you mind to let us know what is the hidden fee that you were charged?
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How to make offline deposit? What details should we provide to our bank? ESP the bank details etc
Author
Hi, Jer.
You can get the details when you go to MY ACCOUNT on Rakuten Trade. For the Deposit Method, select Offline. The account detail of Rakuten Trade is as follows:
RAKUTEN TRADE SDN BHD
Bank Account Number: 8008522195
Bank Name: CIMB Bank Berhad
After you have transferred the money, you will need to go to the same place and key in the Bank Reference Number and Date of Deposit. You also have to upload the receipt.
However, I have never done an offline transfer before, so the steps might be slightly different but the process should be the same. Have your Rakuten Trade Trading Account Number on hand in case you have to put in recipient reference during the transfer.
I will recommend online deposit if possible as it is easier.
Hope this helps.
hai, i would like to ask regarding my trading account. as i have open up rt account can i also open and login into bursa malaysia or use their app for trading as well. As i understood the account can be only opened at bank negara as CDS account. Does RT account considered to be CDS account, if it is can i know what can i do to open up the registration on bursa malaysia app.
Author
Hi, Neerein.
If I am not wrong, the CDS account is actually managed by Bursa Malaysia and not Bank Negara. But back to your question, the Bursa Anywhere app does not allow trading. It only consolidates all the CDS accounts that we might have on one platform. So, you still have to go to your broker for stock trading.
I believe Bursa Anywhere does not allow nominee account holder to register yet, which unfortunately is the account type that RT provides. So, I do not think you are able to register for Bursa Anywhere.
Hi… what is the meaning of the Trade settlement?
Author
Hi, Kamelia.
When we buy or sell a stock, the process does not happen straightaway, meaning the money will not change hand immediately. It will take at least 2 days for the trade to be finalized. So, this is known as trade settlement.
Hope this helps to explain the concept.
Hi i have cash upfront account . My current cash balance is , let say RM1k . But why my amount available for withdraw is RM0 ?
Author
Hi, west280.
Have you recently trade some shares? Then you will have to wait for 2 – 3 days for the trade to settle first before you can withdraw the money. Otherwise, you may need to contact the customer service to query about this issue.