Dividend Magic

Saving and Investing towards Financial Independence in Malaysia

Rakuten Trade

Rakuten Trade – Review and FAQ

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Filed Under: Dividends, Investment 57

Updated August 2023

Rakuten Trade Referral Code

First off, if you’re thinking of registering for a Rakuten Trade account, and looking for a referral code, please consider supporting me and the blog by using my referral link hERE or with the code: DIVMAGIC

Just make sure that this section is filled this way:

You will earn 1,000RT (RM10 equivalent) points upon successful activation of your account.

Thank you in advance for supporting me and the blog.

Latest News: Fractional Share Trading on NYSE

Rakuten just released fractional share trading!

My New Investing Strategy Starting 2022

Starting Match 2022, I’ll be using Rakuten Trade to invest in Vanguard’s S&P 500 ETF (US: VOO) every month. I’ll be putting in about RM1-2K a month depending on my income.

If markets do drop and if a big dip happens, I might be investing a larger amount that month. This will be a very passive investing strategy and I’d like to invite you guys to try and do the same. Instead of picking your stocks and timing the market, buy the whole US market. I think in 10-20 years, you’ll be thanking me.

I won’t go into details about the benefits of long-term passive investing, if this is unheard of to you, I’ll leave you with this write-up on Warren Buffet’s $1 million bet on passive investing vs hedge funds.

May 2023 Portfolio Update

Rakuten Trade: Foreign Trading

As of 27 January 2022, Rakuten Trade will have its foreign trading account go live. It is finally here!

After attending their live briefing, it seems that their fees will be one of the lowest among our local brokerages that offer foreign trading.

As of now, Rakuten Trade only offers US share trading, which includes over 900 1,100 tickers of popular stocks and ETFs. This will slowly increase as we go on and will eventually cover stocks from other countries.

Dividends. Dividends from the US will be subjected to a 30% withholding tax as I’ve mentioned several times. No extra nonsense charges, so you’ll be seeing money come in.

I’ll be updating this article as I continue to test the platform and maybe even write a longer stand-alone review.

I’ve been using it for the last six months and you can find my update(s) on my US Portfolio for 2023 hERE.

Rakuten Trade All Brokerage Fees

A few key highlights of their fee structure:

For a retail investor like me, it’ll be safe to say that Rakuten Trade offers the cheapest option right now.
With their new foreign trading fees, and the ability to trade in different currencies, I’ve done a bit of research with the Rakuten Trade team.

So, in short, if you’re planning to buy US stocks, assuming no currency exchange fluctuations of course

< Below RM700 trading value – trading in MYR wins

> Above RM700 trading value – trading in USD wins

Forex Rate

Conversion rates will be competitive as per the briefing I attended. This will have to be tried and tested when they eventually go live.

Registration and Activating Foreign Trading

With the fees out of the way, I urge you guys to go ahead and open and activate your Rakuten Trade Foreign account right now. It can be done 100% online. Go register, activate and test the platform out together with me.

Step 1: Open your Rakuten Trade Cash Upfront Account

If you’re new to Rakuten Trade, you’ll need to first open a basic Rakuten Trade Cash Upfront account. Please consider supporting me and the blog by using my referral link hERE with the code: DIVMAGIC. You’ll also receive 1,000 free RT points (updated for 2023) which can be used to offset your brokerage fees!

Step 2: Activate Foreign Trading

Then, you’ll have to log in to your Rakuten Trade account and activate Foreign Trading. This can be done via the website or through their app. If you’re already an existing Rakuten Trade user, skip Step 1 and just proceed with Step 2.

Rakuten Trade – One of Malaysia’s Best Brokerage

Moving on, this is not a Sponsored Post.

With the Covid-19 pandemic, Rakuten Trade has reported an unprecedented number of sign-ups and activations.

In part, due to clients being allowed to register for and activate their accounts online.

Rakuten Trade activates 11,000 new accounts in March, amid MCO period

As reported by The Edge Markets

How I Use Rakuten Trade

For all Malaysian retail brokers like myself, I think Rakuten Trade is the best brokerage we have available here. I’m a long-term investor and typically make about 10-20 trades a year, depending on the market’s performance.

Low Brokerage

Rakuten Trade is perfect for me due to its competitive and low brokerage fees. As of 2021, most brokerages have lowered their fees to similar levels. Rakuten Trade is among the lowest.

And you know me, I always go for low fees. Fees add up. In my few years of stock investing, my fees add up to RM3.6K. And that is me being a long-term, slow investor. Remember to always keep your fees low.

RT Points

Apart from its low and competitive brokerage fees, Rakuten Trade is the only Malaysian brokerage that offers a form of cashback/reward for every trade made. You get RT points for trades and they have regular events that earn you even more points throughout your stock investing journey. And these points can add up. I usually cash in for AirAsia BIG points. You can also cash in your RT points for Bonuslink and Boost.

100% Online Registration

Another huge advantage of Rakuten Trade is its fully online registration. This has been a big hit, especially among younger retail investors. It can be a hindrance for the older generation but if you find it tough to sign up online, you can always walk into their premises and get help there.

FAQ

With this huge amount of sign-ups, I’ve also received plenty of questions from first-time investors as well as veteran ones. With a fully online brokerage being something totally new in Malaysia.

I’ve taken the time to compile a list of frequently asked questions below and sent them to Rakuten Trade for their official answers (highlighted in blue).

1.            Is it safe to trade with Rakuten Trade?

Yes, Rakuten Trade is licensed by Securities Commission Malaysia and holds a restricted Capital Markets Services License (“CMSL”) to deal in listed securities and to provide investment advice.

I get asked this question the most! And the answer is 100% yes. The SC does not willy nilly hand out brokerage licenses.

2.            How long does it take for me to withdraw my money?

If you perform a withdrawal before the cut off time (3pm on working days), the withdrawal will be reflected in your account the same day. After 3PM, we will process your withdrawal in the next working day.

So, for those that have asked me if there are problems with withdrawal, the answer is no. In fact, Rakuten Trade is one of the fastest in processing your withdrawal requests.

3.            I hear the shares held won’t be under my name.

Rakuten Trade accounts are nominee accounts and you will be the beneficiary of the account.

A nominee account is a securities account opened by an authorised nominee in accordance with Bursa Rules. With Rakuten Trade, your CDS account is held under a company’s name KENANGA NOMINEES (TEMPATAN/ASING) SDN BHD RAKUTEN TRADE SDN BHD FOR [CLIENT NAME]

4.            When do I receive my dividend payments?

As a Nominees CDS account holder, it may take an additional 3-5 trading days from the dividends payments date before it gets credited into your RT trading account

5.            Will Rakuten Trade charge for corporate actions in the future?

Rakuten Trade currently doesn’t charge a fee for corporate action related activities and has yet to have plans to change this.

6.            I’m already trading with another broker, how can I transfer my existing shares to Rakuten Trade?

You just need to inform your current broker of your intention to switch. A physical share transfer form with a transfer fee of RM10.00 per counter will be submitted. Upon successful transfer, you will receive 1000 RT Points.  

My Full Review of Rakuten Trade

With their, rewards program, low fees, and no handling fees for corporate actions, Rakuten Trade is the top broker currently in Malaysia.

Rakuten Trade Advantages

1. You earn RT points whenever you trade.
As mentioned earlier, Rakuten Trade points or RT Points are what you earn when you trade or execute any trading exercise via their platform. The points can then be redeemed.

No other broker offers this!

2. Low brokerage fees starting from RM1 up to RM100.
Of all the brokers in Malaysia, Rakuten Trade offers the lowest commission rate at RM1 per trade for transactions below RM700. This is why Rakuten Trade is one of the best brokerages to start with when you’re a beginner.

3. No handling fees on corporate actions.
You open a Nominee CDS Account instead of a Direct CDS account with Rakuten Trade. This means no more manual paperwork to be done on your end for corporate actions.

Instead, these requests are handled by Rakuten Trade based on customers’ instructions from the website (online). They even absorb that revenue stamp guys and girls!

Now, this is a huge one, you no longer have to queue up at the post office to hand in your DRP forms for example.

4. Simple and fast account application. 100% online
Unlike all other brokers in Malaysia, you can apply for and activate your Rakuten Trade account online.

5. Online dividend tax vouchers
You receive your dividend vouchers in your inbox instead of in the mail. Save the trees!

6. High digital engagement with users
Rakuten Trade regularly posts updates and research on their website and social media accounts.

7. Clean User Interface
Rakuten Trade recently revamped their platform and it is now, even more, user-friendly. After using other brokerages for so long, Rakuten Trade’s feel much more modern. Try it!

Rakuten Trade Disadvantages

Most of these are due to Rakuten Trade being a nominee account instead of a direct CDS account. First off, let me assure you that your money will be safe albeit not directly under your name. Rakuten Trade is regulated by SC and your money is placed with a Trustee. In the unlikely case that Rakuten Trade goes bust, your money is held by a third-party trustee. Your money is safe.

The pros of a nominee account are that they will handle all the corporate actions on your behalf for free as mentioned above. No more long queues and RM10 setem hasils at post offices. This is a huge win for me as it saves time. The small disadvantages are listed below.

1. Late dividend tax vouchers.
You may receive your dividend vouchers a little late as the dividends will first need to be processed.

I do feel obliged to mention this as I get messages from readers asking me why they have yet to receive their dividends when their friends have. Your dividend will take around 3-5 trading days to process given your RT account is a nominee CDS account.

2. You cannot apply for an IPO.
Being a nominee account, you’re unable to apply for a company’s initial public offering.

This isn’t a big deal for me. To date, I’ve never subscribed to an IPO. If you, however, are big on IPOs, Rakuten Trade might not be for you.

3. Additional steps for attending AGM/EGMs
Due to it being a nominee account, to attend AGM/EGMs, you’ll have to email your request to Customer Service ten (10) working days before the AGM/EGM.

Register Now

As mentioned above, if you’re thinking of registering for a Rakuten Trade account, please consider supporting me and the blog by using my referral link hERE with the code: DIVMAGIC

Just make sure that this section is filled this way:

This image has an empty alt attribute; its file name is rakuten-registration.png


You will earn 1000RT points upon successful activation of your account.

Thank you in advance for the support!

End.

If you’re new to investing, you can start reading my Guide to Stock Investment.

To end this, I’d like to emphasize that this is not a Sponsored Post.

I am 100% backing one of Malaysia’s modern brokerages and recommend it to all new investors.

As always, I am on Facebook and Instagram. Follow, keep up to date.

DIVIDEND MAGIC Recommends: Stuff I Use

I’ve never once when asked the question ”What should I invest in?” told anyone to invest in a specific stock or a security.

Instead, I provide you with the tools and the means to do that through my own trials and experiences. For example, if you’re looking to venture into stock investing, I give you a comparison of Malaysia’s brokers.

If like me, you want to head to and invest in the US, I give you a comparison of that too. Of course, there may be other better options out there but these are what I’ve personally tried and used.

Whatever you choose, onwards and upwards!

You are done with the Investing Series, check out article 001 of the FI/RE and Savings Series – Is the First RM100K the Hardest?

As always, Facebook, Instagram, and now YouTube! Follow, keep up to date.

Investments

1. Rakuten

Rakuten Trade Malaysia

Link: hERE

Code: DIVMAGIC

Rakuten is the first brokerage in Malaysia that offers points for stock trading. You can redeem you RT points for AirAsia flight tickets, a Starbucks drink or fuel from Shell.

How I Use This:
Rakuten Trade offers Nominee Accounts instead of the traditional Direct CDS accounts.

Other brokerages generally charge a fee for corporate actions such as signing up for Dividend Reinvestment Plans but I’ve gotten confirmation from Rakuten that they will continue to provide the services free of charge.

On top of that, you get points for every trade you make. 

Read more on Rakuten Trade hERE.

2. eToro

eToro Malaysia Review

Link: hERE

My US Portfolio has been generating pretty good returns ever since I started investing in 2020.

I switched from using Hong Leong as a broker to eToro. I went from getting zero dividends due to fees and taxes to paying zero fees on eToro. My eToro review can be found hERE.

3. Luno

Luno Malaysia Review

Link: hERE

Code: HFCCY

Sign up to get RM75 worth of Bitcoin when you buy RM250 or more. That’s an instant 30% return on your investment.

Read more on Luno hERE.

4. Stashaway

Link: hERE

Sign up with me and get a deduction on 50% fees for the first RM100,000 invested for 6 months.

More on Stashaway can be found in my article hERE.

5. Funding Societies

Funding Societies Malaysia

Link: hERE

Code: j1mwa37p

You’ll receive RM50 when you invest your first RM1,000. That’s an instant 5% return.

How I Use This:
Funding Societies is a P2P loan financing platform. I’ve been earning annualized returns of up to 13% with them. 

Read more on it hERE.

Travel

1. Airbnb

Link: hERE

Using the above link, you’ll receive RM165 off. Even if you’ve got an inactive account currently, it’s worth opening a new one for that RM165.

How I Use This:
I always use my American Express or BigPay cards when booking through Airbnb

Ever since Airbnb launched, I’ve all but stopped booking with other sites. Even for my hotel stays, I book through Airbnb. I’ve found tons of good deals on the site as I’m sure you will too.

Credit Cards

1. American Express (AMEX)

Dividend magic amex

My Amex credit card is issued by Maybank. They offer a 5% cashback for weekend spending. I use it mainly for petrol and food as well as online purchases.

Amex by Maybank also rewards me with 5x Treatpoints whenever I spend. I use this religiously to accumulate and convert it for air miles.

Link to register and sign up hERE.

E-Wallets

1. Big Pay

Dividend Magic - Big Pay

Link: hERE

Code: SPUXOYWAI5

You’ll get free RM10 once you activate your card. Thereafter, you earn AirAsia BIG points from topping up as well as for each transaction.

How I Use This:
I use Big Pay in tandem with a Maybank credit card and Boost.

First, I top up my Big Pay with my Maybank Mastercard. Earning me Maybank’s Treat Points as well as BIG points from Big Pay.

And if a merchant accepts Boost as payment, I reload my Boost with Big Pay. I get additional cashback from Boost.

2. Boost

Dividend Magic - Boost

Link: hERE

Code: leeo0lg

You’ll get up to RM5 cashback when you top up Boost for the first time. Thereafter, you earn cashback after each transaction by Shaking your phone.

How I Use This:
I use this together with Big Pay whenever possible. See above for the steps to maximum efficiency.

3. Grab Pay

Dividend Magic - Grab Pay

Link: hERE

Code: Nil

How I Use This:
Grab Pay is the only e-wallet I know of that allows payment with Amex cards. And I love Amex.

I top up with my Maybank American Express card on the weekend, earning me a 5% cashback as well as 5x TreatPoints. Boom!

I now have to pay directly using my Maybank American Express card instead of topping up GrabPay credits to earn my points.

Books

Booklist as recommended by me and some of our readers.

“The more that you read, the more things you will know. The more that you learn, the more places you’ll go.” – Dr. Seuss

These are all books that I’ve read and found extremely useful and motivating in my path to Financial Independence.

I’ve posted the links as e-book and Kindle versions. If you’ve not got a kindle, I highly suggest getting one because getting your reading materials there is way cheaper compared to conventional books.

If you have any other suggestions do leave a comment here. Your contributions are highly appreciated.

Frugality and Philosophy

Investing

Others

End.

You are done with the Investing Series, check out article 001 of the FI/RE and Savings Series – Is the First RM100K the Hardest?

Malaysia Stock Brokers Comparison

Finding Malaysia’s Best Stock Brokerage

This is how your typical trading screen would look like when buying and/or selling stocks online via any Malaysia stock brokers.

Opening Your Brokerage Account

After making your choice, familiarize yourself with the fee structure of your broker. Determine what is the optimal amount to invest every time and see if you can achieve that every transaction. Do not be daunted by the account opening process. Just visit your broker’s office and you’ll be surprised how easy it is. The usual account opening fee is RM10.

The required documents are:

  • NRIC
  • Bank statements (be sure to show all your accounts and personal details)

Minor update: Rakuten Trade now allows you to open your account online. Hassle-free.

Malaysia Stock Broker Comparison

As requested by many of you, Malaysia’s top stock brokers for your choosing. They’ve all been ranked accordingly, with the top few being my favourite brokers.

I’m sure there are a few other brokers out there not listed in the table. I doubt they’re for the average investors anyway. I’m keeping the table super simple as I understand that most of us are only concerned with the fees charged.

Table updated as at October 2020

Some of the fees may change from time to time, so for those of you who managed to get the latest figures, please drop me a message or comment and I’ll update it accordingly. Also, if your current broker isn’t on the list and you think they should be, give me them figures!

I want to keep this table up to date so as to help everyone pick the correct brokers to invest with. Remember, when choosing your broker, don’t just pick the ones with the lowest brokerage fees. Go for the ones that match your needs.

The Differences Between Malaysia Stock Brokers

Apart from fees and their fee structures, I’d say brokers are all similar provided you are trading online yourself. If you’re thinking of using a remisier, think again because you’ll be charged much higher fees and those fees add up and eat into your returns.

Although, one big advantage Rakuten Trade has over other brokers is that they offer rewards when you trade and take certain actions on their platform. No one else in Malaysia offers this. Which is why I am recommending them below.

My Recommendation

Right now, for beginners – I’d suggest going for RAKUTEN TRADE.
Use my Rakuten Trade referral code: DIVMAGIC for an extra 500RT points as a reward when you sign up.

They’ve got one of the easiest account registration processes and you get Rakuten Points every time you trade which I convert into AirAsia points to redeem free flights!

A full review and FAQ of Rakuten Trade can be found hERE.

Malaysia’s Best Brokers and Share Trading Account

Rakuten Trade

I’m gradually switching over to Rakuten Trade from my first stock broker – Hong Leong.

Rakuten Trade is now my number one pick.

You get rewards in the form of RT points for trading. No other brokers offer this.

I’ve also come to appreciate the fact that they’re offering a nominee account that doesn’t charge fees for corporate actions.  I no longer have to go to the post office and handle my own subscription of dividend reinvestment plans and whatnot. This is one of the biggest wins for me.

Also, their fees are relatively cheaper. RM7 when you trade below RM1,000 and an RM100 flat fee for trades above RM100,000. For transactions in between the RM1,000 and RM100,000 range, they’re at competitive market rates. Similar to Hong Leong and Maybank etc.

Account registration and opening can now be done 100% online!

Click hERE to register for Rakuten Trade. Use code: DIVMAGIC

Hong Leong Bank

I’m currently using Hong Leong Bank and based on my experiences, the services offered are top-notch. Yes even with their slightly higher fee, I’ve had zero problems with trading and customer service has been excellent. They also grant users complimentary access to charts and research. The main one I use for my research is Equities Tracker.

Although, recently there has been complaints from readers stating that HLe is taking a very long time with their account opening process. So take note!

Other Brokers

I have personally tried one other broker apart from the aforementioned two. Jupiter Securities. Unfortunately, I found them to be subpar in comparison. Jupiter is now known as CGS-CIMB iTrade.

Also, I should mention that I’ve been hearing great stuff about M+ online. They have one of the lowest fees among Malaysia stock brokers.

If you’re going for convenience and you like the majority of Malaysians bank with Maybank, I’d say just go ahead and open an account with them. You can access your stock trading account via M2U directly.

My US Stocks Investments

I’ve recently taken the Freedom Fund international – specifically to the USA.

If you are keen on investing in other assets other than Malaysia, I’ve compiled an article comparing the various international brokers available to us as Malaysians hERE. The off-shore broker I’ve chosen and picked to go with US stocks after some deliberation is eToro.

End.

Now you’ve got your brokerage account set up and you’re ready to invest, it’s time to determine the companies you’d like to invest in. You’ve got to know the company and industry like the back of your hand before you invest. If you’re a total newbie when it comes to investing, here’s a Guide to Stock Investment.

Have a look at my philosophy of Dividend Income Investing as well as The Complete Guide to REITs in Malaysia to get you started.

For the next article of the Investing Series, check out article 004 – US and International Stock Broker Comparison.

As always, Facebook, Instagram, and now YouTube! Follow, keep up to date.

Leave Your Comments!

Lastly, if you’ve got anything to say about any Malaysia Stock Brokers, drop a comment so everyone will know. If you’re planning to change from one broker to another, tell us why! Tell everyone. Let’s keep it civil.

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