(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, 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
– accidentally replied someone above –
Author
Hi, Jenevis.
So far, Rakuten Trade does not charge a maintenance fee. So, you could keep the shares without worrying about extra fee.
And if Rakuten Trade shuts down, we are still protected. The purchased shares are parked under CDS account maintained by Bursa Malaysia. Thus, if the company closes 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.
Hope my answers are clear to you. It is always good to clarify about the things that you are not sure and I think this is a smart move. This will help us to avoid mistakes.
Thank you so much for the answers!
Been reading your blog and am learning a lot.
Keep up the great work for us all newbies!!
Author
Sure, no problem. Thanks for reading this blog!
May I know whether I can trade ETF thru Rakuten Trade?
Author
Hi, Wong.
Yes but there are some exceptions such as MyETF-US50 and leveraged and inverse ETFs which cannot be traded on Rakuten Trade.
Besides that, GOLDETF also requires special handling which you can refer to the FAQ (Link).
Hi, I ‘m new in stock market. And looking a platform to open stock account.
As I know Rakuten offers only Nominee CDS. What is the disadvantages of Nominee CDS?
Did Rakuten apply any charge when companies give us dividend?
Author
Hi, Stam.
You can refer to my other article about Rakuten Trade (Link) for the disadvantages.
There is no handling charge for receiving dividend. However, the dividend will go to the cash account on Rakuten Trade instead of your own bank account.
Hope my answer helps. Maybe you can try to find out more on other brokerages too. Compare their fees and also trading interface before making your decision.
How to apply online trading account? Pls advise
Author
Hi, Calvin.
You mean you want to open an account with Rakuten Trade?
You can click on my referral link (Link here) or use Google to go to Rakuten Trade page and register. You just have to select the account that you want and fill in the details as required. You need to prepare the soft copy of your identification card to upload.
Hope this makes it clear for you.
Rakuten sometimes can crash, all orders suspended suddenly.
Some GTD orders can be gone missing without you realising.
Author
Hi, Soh.
Thanks for your feedback. I will convey this message to Rakuten Trade. I will update again if I get the reply.
Hi Leckas,
Does Rakuten allows buying international stocks e.g. AAPL, SBUX?
Author
Hi, Syed.
No, Rakuten Trade does not allow trading of foreign stocks.
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Hi Leckas,
I have a question about the different stocks created by the company. Why different class of stocks under the same company would have different growth and price? Any disadvantage of trading this kind of stock other than the voting rights? Because I find these cheap stocks more profitable but afraid of something I miscalculated.
Example:
Top-Glove main stock: TOPGLOV (7113)
Others: TOPGLOV – C81, TOPGLOV – C82
I would appreciate hearing from you, thanks.
Author
Hi, Victor.
Actually those are not shares of the company but its call warrants. Warrant is a different instrument from the stock. For example, warrants have an exercise price and a maturity date (expiry). To simplify, call warrants give you the right to buy TOPGLOV shares at the specified price before the specified date. Generally, warrants do not pay dividends or come with voting rights.
I do not trade warrants so I cannot really tell you about all the differences between stock and warrant. Hopefully my simple answer helps.
Hi Leckas,
Why Rakuten dont have the features of Stop Loss or Stop Limit?
Thanks
Author
Hi, JD.
Unfortunately, I don’t know the answer to your question. Perhaps if enough people raise this issue up to them, it will be added in the future?
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Hi Leckas.
I received some shares as dividend recently. The total share I have now is 5312 shares. May I know how to sell all the shares as the Quantity (X100)? Do I enter the quantity as 53.12? Or do I use Odd Lot and key in 5312 in quantity? I would appreciate your advise. Thank you.
Author
Hi, Ray.
It is a tough question as I do not have experience doing this maneuver yet. What I know is that the prices for odd lot (generally lower) and board lot could be different. I do not think that you can enter 53.12 in the Quantity box. Perhaps you would have to make two transactions: one with 53 board lots and one with 12 odd lots. However, you might have to pay the brokerage fee for both transactions. Otherwise, I think you would have to use odd lot.
Sorry that I could not provide you with more helpful advice.
Hi Leckas,
You are right. The customer service told me to put in 2 orders, 53 lots for board lot and 12 units for odd lot with 2 charges. Thank you very much for your reply!
Author
Hi, Ray.
No problem. I hope that you managed to sell your shares at your desired price.