For more than two years, Rakuten Trade has been my go-to broker for investing in the Malaysian stock market.
As a seasoned user, I’ve had both positive and negative encounters with the platform. Let’s discover more about Rakuten Trade in this review and see if it’s the right stock investment platform for you!
How do I make use of Rakuten Trade?
Rakuten Trade is primarily used by me for long-term investments. That is, I invest in equities and keep them for years unless there is a significant change in the nature of the business or the fundamentals.
This also implies:
- I don’t trade in and out of the market on a regular basis.
- Also, I don’t need to be on the screen/app when the market opens at 9 a.m. in order to receive the “best” stock entry price.
- Plus, I don’t get involved when the market goes crazy for a certain stock — instead of following the herd, I invest in what I know best.
It’s critical to state this up front because this evaluation is solely based on my personal experience and usage. You may find that your experience differs from mine depending on how actively you participate in the market.
So, if you’re looking to make long-term investments in excellent firms, I believe this study will provide you with valuable information on Rakuten Trade as a stock investing platform.
Highlights from Rakuten’s Trade Features
- Rakuten Trade is a partnership between Kenanga Investment Bank Bhd. in Malaysia and Rakuten Securities Inc. in Japan. Rakuten Trade was founded in 2017 and is regulated by Malaysia’s Securities Commission (SC), holding a Capital Markets Services License (CMSL) to deal with listed securities and give investment advice.
- As of this writing, Rakuten Trade is the only broker in Malaysia that provides a complete online investing experience. Every step of the process, from registration to funding and withdrawal, is completed online at our leisure. Stay at home and remain safe! No physical forms, no branch visits (it’s now 2021, not 2000) — stay at home and stay safe!
In addition, your account will be approved within three days (sometimes earlier). When compared to some brokers, who take weeks to approve an account, this is far more efficient.
- Rakuten Trade has one of Malaysia’s most competitive commission prices. To put it another way, Rakuten Trade is a fee-friendly choice, especially for new investors beginning off with a little amount of money — more on that later.
Rakuten Trade has 5 features that I enjoy.
#1 Competitive Fees
Rakuten Trade has some of the best rates in the local brokerage industry.
For stock transactions under RM1,000, Rakuten Trade has the lowest commission fee (RM7). This, in my opinion, is fantastic, particularly for rookie investors who are getting their feet wet in the stock market.
Personally, I think this is a good value, even if I rarely add more than RM1,000 to my stock account on a monthly basis.
However, if you go beyond the RM1,000 transaction value, M+ has a better total commission structure.
However, commissions aren’t the only factor to consider while shopping for a broker. In the following sections, I’ll go through the additional value-added strengths that I admire about Rakuten Trade.
#2 Nominated CDS Account = No Paperwork Required + No CDS Fee!
When applying for a stock investment account, everyone must first open a Central Depository System (CDS) account. Most brokers include it as part of the entire registration process, so don’t be concerned.
However, you should be aware that there are two sorts of CDS accounts: nominee and direct. (Learn more about the distinction HERE.)
Rakuten Trade is a Nominee CDS in this scenario. The following are some of the advantages:
- There’s no need to keep track of papers for company actions such as rights issues and dividend reinvestment plans (DRP). Rakuten Trade handles all corporate action on behalf of its users, which is fantastic because I don’t have time for (more) paperwork.
- While other brokers who offer Nominee CDS accounts charge a price to manage corporate action for users, Rakuten Trade does not charge a fee to manage corporate action – it is completely free.
- Opening a CDS account usually costs RM10. Rakuten Trade, on the other hand, has been waiving this price for its users!
Having said that, many people are concerned that under a Nominee CDS, their shares are held by a trustee rather than in their own name (this is done to avoid fraud).
For me, this is not a cause for concern because (1) Rakuten Trade is extensively regulated by the SC, and (2) if the company should go bankrupt, our capital is secured because it is held by a trustee rather than Rakuten Trade.
#3 User-Friendly, Functional, and Clean Platform
Rakuten Trade, as a fully online broker, offers investors a modern and hassle-free trading experience.
Personally, I’ve used various brokers in the past and am familiar with their user interfaces. Many of these brokers have two major flaws:
1.They have an out-of-date design and a difficult user interface, similar to those from the early 2000s. Beginners are overwhelmed by inadequate layouts and can’t seem to find what they’re looking for.
2.Non-functional — certain platforms are barebones (as opposed to minimalist) and lack value-added functionality such as stock screeners.
Rakuten Trade managed to strike a good mix between user experience and functionality in this area. Its web platform is easy to use and includes useful features such as stock screeners and price notifications.
Having used numerous brokers in the past, I am confident that new users will appreciate and be able to quickly become acquainted with Rakuten Trade.
#4 Customer Service Provides Quick Response
Any business that wants to go digital nowadays needs to have a good online customer support system in place.
A user can get assistance in one of three ways: Facebook Chat, Email ([email protected]), or a Hotline. I’ve contacted Rakuten Trade with questions on multiple occasions in the past, with the exception of Hotline.
In general, the Customer Service personnel responds quickly, and my questions are usually answered.
#5 Excellent Value Added Features (eg. Powerful Stock Screener, earn interest on idle cash)
Rakuten Trade has a number of features that make investing a rewarding experience for users.
Rakuten Trade’s built-in stock screener, for example, is one of the most comprehensive FREE stock screeners available. There are various factors you may put up to filter for stocks in this tool, which is powered by Thomson Reuters.
This is an excellent tool for beginning investors to have in order to reduce the amount of time they spend researching stocks.
1 thing that Rakuten Trade needs to improve on:
Platform Consistency is one area where Rakuten Trade can improve (p.s. gotten much better since late 2020)
In 2020, several Rakuten Trade users reported issues such as being unable to log in, platform freezes, and being unable to complete orders during busy hours.
The majority of these problems coincided with a surge in retail investor engagement in the market following the pandemic.
To be fair, this isn’t just a problem with Rakuten Trade. In the year 2020, other local brokers had the same issue. The reason for this is that many local brokers’ backend technology was not prepared to handle the unexpected increase in transaction volume in the stock market.
Knowing this, Rakuten Trade released many improvements around the end of 2020, which considerably improved the platform’s dependability.
Platform errors have been rare since the October 2020 update from Rakuten Trade, and I am able to execute my orders smoothly even during peak hours.
Having said that, I beg Rakuten Trade and all other brokers to continue to strive to enhance their platforms, since there is always space for development.
Should You Sign Up for Rakuten Trade? How do you open one?
Overall, Rakuten Trade has been my go-to broker when it comes to investing in the Malaysian stock market, and I have no reservations in recommending it to:
- Rakuten Trade’s beginner-friendly commission is ideal for new investors with less funds who want to get started in the stock market.
- Investors that want to save handling fees and save time on paperwork for company actions such as dividends and rights issues.
- Investors that are eager to register an account and manage their stock portfolio totally online during this pandemic.
- Investors seeking for a cutting-edge, user-friendly stock trading platform that doesn’t skimp on features.
Check out my step-by-step guide to opening a Rakuten Trade account online if you fall into one (or more) of these categories!
Rakuten Trade’s Awesome Account-Opening Reward for New Users!
Rakuten Trade offers their consumers the most comprehensive account-opening bonus:
When you open an account using my referral link HERE, you will receive the following benefits:
- 500 Rakuten Trade (RT) referral points + 150 Rakuten Trade (RT) points when you deposit a minimum of RM5,000 within 5 days + 150 Rakuten Trade points when you transfer your shares from other brokers to Rakuten Trade + 800 Rakuten Trade (RT) points and a brokerage fee rebate when you place your first trade within 10 days after your account is activated
- Aside from that, Rakuten Trade members receive one RT point for every RM2 they pay in brokerage.
How can you put these RT points to good use?
These RT points are fantastic since they can be converted into BIG Points or Boost Coins, both of which can be used for prizes. Rakuten Trade also frequently runs campaigns with firms like HelloGold and Tokenize, allowing you to exchange your RT points for gold or cryptocurrency!
NEW: Use your RT Points to get a Brokerage Fee Refund!
Rakuten Trade just introduced an interesting new feature: you can now use your RT points to get a discount on your brokerage charge!
This is, in my opinion, the most practical application of RT points for Rakuten Trade members. The following is how it works:
- 1 RT point = RM0.01 (i.e. 100 RT points = RM1 Brokerage Fee).
- When you purchase or sell stocks on Rakuten Trade, opt in for a brokerage refund.
- By the end of the trading day, your brokerage refund will be deposited to your account (subject to your RT Point balance). Assume you have 700 RT points (RM7) and an RM9 brokerage fee on a transaction. Rakuten Trade will deposit RM7 back into your account at the end of the trading day, effectively cutting the brokerage fee to just RM2.
What are the best ways to earn more RT Points?
(1) First Time Users: When you open an account using my referral link HERE, you will receive the following benefits:
- 500 Rakuten Trade (RT) referral points (worth RM5) + 150 RT points (worth RM1.50) when you deposit a minimum of RM5000 within 5 days + 150 RT points (worth RM1.50) when you transfer your shares from other brokers to Rakuten Trade + 800 RT points and a brokerage fee rebate when you place your first trade within 10 days after your account is activated (worth RM8.00)
- (2) New & Existing Users: For every RM2 in brokerage paid, Rakuten Trade users receive one RT point.
The Verdict of No Money Lah
So there you have it: my long-term Rakuten Trade user evaluation!
Rakuten Trade is a good choice for me because it provides the best blend of value, functionality, and rewards. Rakuten Trade, as the platform evolves, will, in my opinion, become even more user-friendly over time.
If you found this post helpful and want to start a Rakuten Trade stock trading account, please use my referral link HERE to sign up (or pick ‘NoMoneyLah’ under ‘Educator’ when registering).
This post contains affiliate links, which provide No Money Lah with a little commission (and so help sustain this blog) if you join up for an account through my referral link.
This article was not given copy approval rights by Rakuten Trade, which means they are reading it for the first time, right with you. 🙂