(Updated: 3 January 2020)
I first opened a trading account with Rakuten Trade (Link) in August 2018. After using it for a while, I feel it is a good platform to share with others.
Main Benefit
The main selling point for this brokerage is its low brokerage fee. If the transaction involves less than RM 1000.00, the fee will be RM 7.00 only. If the value is between RM 1000.00 – 9999.99, the fee will be RM 8.00 RM 9.00 (effective since 1 January 2020). If the value is between RM 10000.00 – 99999.99, the fee will be 0.10% of trading value. The maximum brokerage fee is capped at RM 100.00. Nonetheless, we will still need to pay for the other fees of trading.
Types of account
There are two types of account: contra account and cash upfront account. In this article, I will only talk about cash upfront account as this is the account that I have been using.
Cash upfront account requires us to transfer money into the account before we can trade. The transaction can be made using FPX.
Registration
Registration process is fairly easy. We just need to fill in the details and upload some documents. The documents include identity card, bank statement and utility/phone bill.
After that, we just need to wait for a confirmation email.
Rakuten Trade Interface
Once we log in, we will reach the DASHBOARD. Here we can see our cash balance and share value. To top up, we just have to click the blue down arrow for cash deposit. Then just follow the steps. To withdraw, click the red up arrow for cash withdrawal. The amount will be deposited into the registered bank within one business day.
How to buy shares
First, find the stock we want to buy using the search box at the top. Click on the green BUY button. Keep the Order Type as Limit Order. Key in the Limit Price (MYR) instead of using the plus/minus button. Then key in the Quantity (X 100). Keep in mind this is in order of 100 units. Next, select the Validty, either Day or GTD. In the end, key in Trading Pin and click on the blue Confirm Order button. Then follow the ensuing steps to complete the order placement.
How to sell shares
First, go to MY PORTFOLIO tab. In this page, we can see all our holdings. Click on the red SELL button of the stock that we want to sell. Repeat the same process as How to buy shares.
Useful features
One feature that I find useful is the STOCK INFO. Just search for a stock in the search box. Then there will be a summary page giving basic information regarding the stock. What interest me are the price charts and the fundamental ratio. The charts allow us to see the historical prices of up to 5 years. In the fundamental ratio page, there are a lot of useful ratios, including price-related ratios, valuation ratios, financial strength ratios and profitability ratios.
The other useful feature is its STOCK SCREENER. The filters include Stock Type (Ordinary Shrs, ETF and REIT), Scale (Large Cap, Mid Cap and Small Cap), Investment Amount, Sectors, Consensus Rating and Selected Criteria (up to five criteria can be chosen). The filter that I often use is the Selected Criteria where I can mix and match different criteria to get a stock pick.
Rakuten Trade Points (RT Points)
This is a reward system for this platform. The brokerage fee paid will automatically be converted into this point. For every RM 2.00 brokerage fee, we will get one Rakuten Trade point. The important question is what can we do with RT Points?
The RT Points can be converted on one to one basis into AirAsia BIG points, B infinite points or BonusLink points. The redemption can be done online through the platform itself.
Verdict
Overall, I think Rakuten Trade platform is a great stock trading platform. It might take some time to figure out the way to use it without a guide. The stock information is very handy. Thus, if you do not have a brokerage account yet or are looking for a cheaper platform, I recommend you to use Rakuten Trade.
(I have discussed about its disadvantages in another article.)
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
Is it norm that rakuten trade to only process the trade order submitted before 10am? Order submitted after 10am will be process on the next bussiness day. Isn’t that abit too late?
Author
Hi, Lee.
As far as I know, the transaction is happening in real time.
The following statement is taken from Rakuten Trade FAQ site:
“You can submit your orders from 8:30am until 5:00pm for the day’s orders, Monday to Friday.
After trading hours – You can key-in orders after business hours and your orders will be in a pending queue status, the orders will take effect the next business day. On trading days, 5:00pm-6:00pm, no orders will be accepted due to system maintenance.”
However, I normally key in order after business hours. Thus, I do not really know about the 10am cut-off time.
Could you share the source of your information? Thanks.
It was stated in the replying email from Rakuten after i did the email verification
**update:Just place my first order after 10am, the order was proceeded on the same day, so i guess no more issue here, just a weird and misleading statement from rakuten i think
Author
Thanks for the feedback. It is good to know that you do not have a problem with Rakuten Trade.
By the way, I just posted an article about its disadvantages (click here). Maybe you can have a look. Hopefully they are not off-putting to you.
Hi Lee,
Is there is a way for me to find out or list my realised P/L in one trading day, one week, one month or within a specific period?
Thank you.
Regards,
Vince
Author
Hi, Vince.
Maybe I can help to answer this question. In MY PORTFOLIO of the platform, there is a tab known as “REALIZED PROFIT/LOSS” just beside “HOLDING STOCKS”. You can get a list of your realized P/L in this tab according to your preference by changing the option there.
Hi, I wanted to ask about the registration part – I don’t pay the utility/phone bills for my house so the bills are not under my name. Are there any other documents which could be accepted as mailing address evidence? Thankyouu!!
Author
Hi, Zhi Yi Faun.
Actually, the utility/phone bills are only required if your current address is different from permanent address, as mentioned in Cash Upfront Account Opening Checklist.
So, I think it should not be a problem if you do not have these bills.
You could try to contact Rakuten Trade customer service if you encounter trouble during the registration process. They will be very happy to help and the response is quick.
as a beginner of doing investment in rakuten trade, what should I be careful with ?
any good suggestion or guidance ?
sincerely,
Jerry
Author
Hi, Jerry.
As Rakuten Trade is a safe platform, I personally do not worry about its security.
Only the normal investment advice applies. Do research before buying any share. Do not trade based on the price of the stock alone, but based on the underlying fundamentals.
This is my point of view. Nonetheless, you would have to find a style that suits you the most. There are a lot of ways to make a profit in the stock market, but you will have to find one that fits your character and risk appetite.
Hope this answer helps.
Hi,
I’ve sold my shares yesterday. Do you know how long does it take for the net proceeds from sales to be added to my cash upfront accounts? or it will never be there, if so, how can I transfer the amount out to my own bank?
I am so confused.
Thank you in advance!
Author
Hi, Xin.
You will receive the money 3 working days after the transaction (T+3) in your Cash Upfront Account. I think this is the same for other brokerages too. So you will have to wait patiently now till the money is in. Do not worry as I did receive the money after selling my shares.
As for withdrawal, you can go to MY ACCOUNT, then CASH WITHDRAWAL and proceed accordingly. It normally takes a day for the money to appear in your bank account.
Hope this will alleviate your confusion.
Hi, i am a new trader in rakuten, i am quite confused that how do i withdraw money from it? As shown in trading limit nor current cash balance, but the problem arises is “amount available for withdraw” is 0 . I do need a reply, thanks in advance !
Author
Hi, Jason.
Do you mean that you have cash balance in the account but cannot withdraw it? Do you still have any outstanding trade? I personally have not encountered this problem. My withdrawal availability is always the same as my current cash balance. Can you give more detail about your problem?
If you require immediate assistance, I will suggest you to email the help desk (customerservice@rakutentrade.my) or call 1800 88 6001 to inquire about this problem.
Hi Leckas, Thanks for your reply. Yes, i do have amount in “Trade outstanding” and also “Current cash balance”. By the way i can also trade in market as my “Trading Limit” does have amount. But just that the “Amount available for withdrawal” is zero, that means i can’t withdraw any money from it, is it that it needs some time to process transaction and reach the trader account ?
Author
Hi, Jason.
After deducting your trade outstanding, does it still have any balance left? If I am not wrong, if there is still balance after the deduction, you should be able to withdraw it. If you have proceeds from sales of shares, it will take a few days to show in your cash account.
I honestly have no idea about your problem unless I have the access to your account summary. Thus, I suggest you to contact Rakuten Trade help desk to get help. Maybe you can let us know what is the actual problem once you have the feedback.
Hi Leckas,
I have asked customer service , they mentioned to me that every transaction will need 3 working days to process it. Within this period, to make sure that the full amount can be transferred to that particular account , no purchase should be done. This is the answer i got . Anyway, your effort is much appreciated 🙂
Author
Hi, Jason.
Actually I did not help much. Thanks for clarifying this issue.
Good day.
May I know what does it mean no purchase should be done? That means I cant buy any other shares before I received my withdrawal from the previous transaction? Thank you.
Author
Hi, Tang.
I think it means that you will have to wait till the transaction is settled before the next purchase if you do not have any money available in your account. Nonetheless, if your account still has free balance, you would not encounter this problem.
Hi Leckas,
What is the interest rate for balance for both type of account in Rakutan?
Author
Hi, Yeoh.
For the cash upfront account, the interest rate for available cash balance is 2.5% per annum, calculated on daily rest and credited monthly.
I am not too sure about the contra account as I do not use it. But according to this page (Link), it seems that the interest rate is the same as above.
Hi,
Anyone do withdraw the money to their bank account, and how long does it takes to receive the transaction? thanks.
Author
Hi, Albert.
I did. It normally takes one business day to receive the money.
Hi Leckas, can I trade foreign shares on Rakuten Trade? Thank!
Author
Hi, Samuel.
Nope. There is no foreign share trading on this platform as far as I know.
Hi Leckas, thank you for your reply. I do hope they will have foreign share trading later because of the low brokerage fee!
Author
No problem. Yeah, hopefully they will have this service in the future.