(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
Hi author, i followed your advice and started using Rakuten and it is really very smooth and easy! I’ve definitely start off trading with a nice tool. Just want to say thanks for all the help!
Author
Hi, Angel.
Thanks for letting me know. I am glad that I have helped you to find a good platform to trade.
[This comment is removed as this blog does not allow blatant advertising.]
Hi, am still new to trading and doing homework.
I’m planning on buying stocks and keeping it for years and years without touching it.
Does Rakuten Trade charge a maintenance fee or yearly fee if after buying, I don’t sell it?
And I buy some shares through Rakuten Trade, and God forbid Rakuten Trade shuts down, what happens to my shares?
I know these are really dumb questions but I hope you’ll take the time to help answer then.
Thank you very much.
[This comment is removed as this blog does not allow blatant advertising.]
Hi Leckas. I m new on trade. Where can i get guidance on how to choose stock. Any trade 101 guide available
Author
Hi, Indy.
It is a good question. I think the most important thing is to read more and/or try simulated trades before starting to trade on the real market.
I am assuming that you are going to be an investor and not a trader, so I am recommending you some books that I have reviewed on this blog.
The first one is One Hour Investor.
The second one is How The Stock Market Works.
The third book is The Intelligent Investor.
Besides that, you can also look for some financial blogs to improve your knowledge of selecting stocks. But I primarily study books to formulate my own strategy.
I am honoured that you ask me this question and I hope that my recommendations help.
Hi there.
I’m new to Rakuten Trade. I’d like to know what is ‘trade oustanding’? I’ve tried finding online but haven’t found anything at all.
Author
Hi, Gly.
Trade Outstanding is the trade that is not settled yet. For example, when you 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.
Hope this answers your question.
Hi! I read a post that said that the stock prices (price charts) are not market prices, is this true?
Thanks
Author
Hi, Tommi.
Yes, it is true. The stock chart uses adjusted price instead. You can refer to my updated Disadvantages of Rakuten Trade article – point no 6 (Link).
Their GTD order unlike others, refreshed everyday, meaning your order won’t be queued in bursa malaysia for 30 days They will send as a new order everyday for 30 days.
Author
Hi, Merina.
Thanks for enlightening on this issue. I have confirmed with Rakuten Trade about this issue. Although the order is refreshed on the platform daily, the queue in Bursa is not reset everyday. So the priority is still maintained in Bursa.
Hi your article was very helpful. I have a question can Rakuten trade be used to trade stocks from other exchanges such as nasdaq, etc
Author
Hi, Dinesh.
Rakuten Trade is only for trading in Bursa Malaysia. It does not allow trading on foreign exchanges.
Hello, I new to investment actually, I would like to apply an account to start. So, I heard from my friend that CIMB is a better choice for investment account. May I know how Rakuten fairs against CIMB? Thanks.
Author
Hi, Raymond.
I cannot answer your question as I have not used CIMB before. Do you mind to share with us the reasons that your friend provides regarding CIMB being better?
Hi, what about Hong Leong eBroker? Which one is better? Thanks.
Author
Hi, KC18.
I am not too sure about this too. But the minimum brokerage fee of HLeBroking is RM 8.48, which is quite low too. Maybe you can refer to this article on Dividend Magic (Link).