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.