Rakuten Trade has reported an unusual amount of sign-ups and activations as a result of the Covid-19 epidemic.
Clients are able to register for and activate their accounts online, in part.
Frequently Asked Questions
With such a large number of sign-ups, I’ve got a lot of queries from both new and experienced investors. In Malaysia, a fully online brokerage is a very new concept.
I’ve compiled a list of frequently asked questions and forwarded them to Rakuten Trade for their official responses (highlighted in blue).
1. Is Rakuten Trade a secure trading platform?
Yes, Rakuten Trade is registered with the Securities Commission Malaysia and has been granted a restricted Capital Markets Services License (“CMSL”) to deal in listed securities and give investment advice.
This is the question I’m asked the most! And the answer is a resounding yes. The SC does not issue brokerage license at random.
2. How long would it take for me to withdraw my funds?
If you make a withdrawal before the cut-off time (3 p.m. on working days), it will appear in your account the next business day. We will process your withdrawal the following business day if it is received after 3 p.m.
So, to those who have questioned if there are withdrawal issues, the answer is no. Rakuten Trade is, in reality, one of the fastest at processing withdrawal requests.
3. I’ve heard that the shares owned will not be in my name.
Rakuten Trade accounts are nominee accounts, which means you will be the account’s beneficiary.
A nominee account is a securities account formed in conformity with Bursa Rules by an authorised nominee. Your CDS account with Rakuten Trade is maintained in the name of a firm. SDN BHD KENANGA NOMINEES (TEMPATAN/ASING) FOR [CLIENT NAME], RAKUTEN TRADE SDN BHD
4. When can I expect to get my dividend payments?
It may take an extra 3-5 trading days for the dividends to be credited to your RT trading account if you have a Nominees CDS account.
5. Will Rakuten Trade levy fees in the future for business actions?
Rakuten Trade does not presently charge a fee for corporate action-related activities and has no plans to do so in the future.
6. How can I transfer my existing shares to Rakuten Trade if I’m already trading with another broker?
All you have to do now is notify your present broker of your want to move. A physical share transfer paperwork will be presented, together with a RM10.00 transfer charge per counter. You will receive 500 RT Points after a successful transfer.
Rakuten Trade: My Opinion
Rakuten Trade is the #1 broker in Malaysia right now, because to their loyalty programme, minimal costs, and no handling costs for corporate actions.
1. Every time you trade, you get RT points.
When you trade or execute any trading exercise on Rakuten’s platform, you earn Rakuten Trade points, or RT Points. After then, the points can be redeemed.
2. Reasonably priced brokerage fees ranging from RM7 to RM100.
Go hERE to see a quick comparison of all Malaysian stockrokers. Rakuten Trade offers the lowest fee fee in Malaysia, at RM7 per trade for transactions under RM1,000. Rakuten Trade is one of the greatest brokerages to start with if you’re a newbie because of this.
3. There are no fees for corporate activities.
Instead of a Direct CDS account, you open a Nominee CDS account with Rakuten Trade. That implies you won’t have to do any more manual documentation for company actions.
Instead, Rakuten Trade handles these requests depending on consumer instructions from the website (online). Guys and gals, they even absorb the revenue stamp!
This is a significant one; for example, you no longer have to line at the post office to submit your DRP forms.
4. Application for a new account is simple and quick. 100% on the internet
Unlike all other brokers in Malaysia, Rakuten Trade allows you to apply for and activate your account online.
5. Dividend tax vouchers on the internet
Instead of receiving dividend coupons in the mail, you receive them in your inbox. Trees must be saved!
6. Users have a high level of digital engagement.
Rakuten Trade publishes news and research on their website and social media platforms on a daily basis.
7. A well-designed user interface
Rakuten Trade’s platform was recently updated, making it even more user-friendly. Rakuten Trade’s interface feels much more current after using other brokerages for so long. Give it a go!
The majority of these are due to the fact that Rakuten Trade is a nominee account rather than a direct CDS account. First and foremost, rest assured that your funds will be safe, but not in your name. Rakuten Trade is regulated by the Securities and Exchange Commission, and your funds are held by a Trustee. Your money is retained by a third-party trustee in the unlikely event that Rakuten Trade goes bankrupt. Your funds are secure.
The benefits of a nominee account include the fact that, as previously stated, they will manage any corporate acts on your behalf for free. There will be no more long lines or RM10 stem hasils at post offices. For me, this is a significant gain because it saves me time. The minor drawbacks are listed below.
1. Tax vouchers for late dividends.
Because the dividends must first be processed, you may receive your dividend vouchers a bit later than expected.
1.I feel compelled to mention this because I frequently receive letters from readers inquiring why they haven’t received their dividends while their friends have. Given that your RT account is a nominee CDS account, your dividend will be processed in 3-5 trading days.
2. You are not eligible to apply for an IPO.
You can’t apply for a company’s initial public offering if you have a nominee account.
For me, this isn’t a big deal. I’ve never invested in an initial public offering (IPO). Rakuten Trade, on the other hand, might not be for you if you’re a huge fan of initial public offerings.
3. Extra steps for attending AGMs and EGMs
Due to the fact that it is a nominee account, you must email your request to Customer Service ten (10) working days prior to the AGM/EGM.
If you’re considering about signing up for a Rakuten Trade account, as previously said, now is the time to register.