Recently I've been using Rakuten Trade more than my Hong Leong share trading account as I noticed Rakuten Trade has got much more features in the app.
RakutenTrade is the newest stock broker in town in Malaysia. The company is a joint venture company between Japanese conglomerate firm Rakuten and Kenanga Investment Bank. It is considered the 1st fully online broker where all registration and withdrawals can be done via their web app. There is no need for any physical form submission or physically going to Rakuten Trade offices.
There was a recent report that a lot of millennial do not buy individual stocks anymore. Rakuten Trade intends to change this perception by being more millennial friendly.
📈 Rakuten Trade targets millennial using the following 3 methods :
Gamification
Rakuten Trade makes trading stocks like playing a game. Users earn Rakuten points (RT points) during each trades and these Rakuten points can be used to redeem points at loyalty systems like BonusLink, B-Infinity and Airasia Big.
Engaged Social media presence
Rakuten Trade posts a lot of infographics on stock trading tips to social media platforms like Facebook and Instagram while other stock broking companies are still using Whatsapp messaging and traditional email to disseminate information.
Strong Community
Rakuten Trade has got a strong community following on the telegram group and Facebook group. This is the place where people help each other and learn from each other.
Low Fees
It only requires RM7 as minimum amount to trade. This is considered lowest minimum amount amount all the stock brokers.
Low Fees
It only requires RM7 as minimum amount to trade. This is considered lowest minimum amount amount all the stock brokers.
Tools for Technical Analysis and Fundamental Analysis
Rakuten Trade has got a lot of tools for both technical traders and fundamental traders. Technical traders are people who just based on the trend and charts while fundamental traders are people who buy based on whether the company is overvalued or undervalued.
With the joint venture between Rakuten and Kenanga Investment, Kenanga research reports are all made available at Rakuten Trade site. Fundamental Analyst investors would find this useful.
https://www.rakutentrade.my/device/accountopening?referralcode=4ffdWBHYBI&mode=web
Do prepare these 2 items prior to registration :
- NRIC or Passport
- Utility phone bill tied to your name
You need to take photo of these documents and then upload it during the Rakuten Trade registration process. Registration will take a few days because Rakuten has to open a CDS (Central Depository System) with Bursa Malaysia. CDS account is basically an account that states how much of the stocks you own. In the event you want to switch to another stock broking company like Hong Long from Rakuten Trade, you can opt to transfer the shares.
For Rakuten Trade there are a few types of account, cash upfront and contra account. For beginners and the majority of the users, just select cash upfront account. This is the most straightforward and safest Rakuten Trade account. Basically for this account (cash upfront) type, if you want to buy X amount of shares at RM Y, you just need to make sure your account has got sufficient cash and you will be permitted to buy. It's like buying an apple, if it cost RM1 for 1 apple and you want to buy 5 apples, just make sure your account has RM5 inside to buy.
Rakuten Trade has another account type called margin account where you can buy shares with money borrowed from Rakuten Trade. While it might sound like a 0 money down kind of plan the risks are also high. Margin account trading are for intermediate level investors.
Deposits are done via Bank FPX payments. However, deposit account holder name MUST match Rakuten Trade account holder name. This most likely due to anti money laundering protection practices.
I did a YouTube video on to show the Rakuten Trade interface. It's just a walk through of the interface of the Rakuten Trade web interface where you can see how the app works.
One interesting feature I like about the Rakuten Trade website is upon login, it pops up messages on trading tips and sometimes market report.
The web version of Rakuten Trade has got a stock screener feature for users to assist in their stock selection search. You can screen for stocks based on various criteria or just use the existing preset criteria. Personally I feel the web version is way better than their mobile version.
Some of the preset filters are "High growth companies", "Growing companies", "High dividend companies", "Growth and sound fundamental companies".
The Rakuten Trade web version also has a price alert feature where you can put in target price of stocks you want to buy and you will be informed when the particular stock hits your target.
One important thing to take note is that Rakuten Trade accounts are nominee accounts, this means that the stocks are not bought under your name but bought by Rakuten Trade's nominee. This nominee method is also used by other stock broking firms, just need to take note on this especially if you want to attend AGM. When you want to attend AGM (annual general meeting), you need to write into Rakuten Trade to nominate you for the AGM 5 working days before the AGM.
Bonus Tips
The more you trade on Rakuten Trade, the more points you earn. Each trade earns you RT points (Rakuten Points).
Some occasions during 11/11 or 12/12, the points can be 12x (times).
This are the following ways you can get RT points (Rakuten Trade Points) :
- Trade shares/Day trade
- Transfer shares from other brokerage into Rakuten Trade
- Refer friends using your referral code
- Deposit cash into Rakuten Trade account (minimum RM 5K for 1st time users only)
- Buy stocks on listing days
Rakuten Points (RT points) can be converted into Bonuslink, Airasia Big or BInfinity point, Bonuslink points can be used to exchange productsa and petrol at Shell petrol stations while Airasia Big points an be used to exchange for free flight tickets from Airasia. BInfinity points can be used to redeem goods from Berjaya related businesses like Starbucks, Kenny Rogers Roasters.
If you yet to have a Bonus Link card, you need to go to the nearest Shell petrol station and filled in the Bonus Link application form to apply for a new Bonus Link card.
An example how I can use RT points is I will transfer RT points into Airasia Big points, then from Airasia Big website I can use my increased Airasia Big points to exchange for plane tickets or use it to buy products from the online retailers on Airasia Big.
The KLCI index is at a 5 year low at the moment and what better time than to start investing from the bottom. I do know a lot of young millennials have been piling up cash into the stock market and signing up in big numbers for the CDS (Central Depository System) accounts and making a killing in the market, however my advice is do be aware that this euphoria will not last forever, what goes up will come down eventually, so always set a target and take profit when your target level has been reached.
Stock Trading/Investing Tips for Beginners/Millennials
You only make money when you buy low and sell high and you only make money when you sell. These 2 statements might sound like common sense but it is very not common in the stock market when emotions are involved.
Statement 1 : You only make money when you buy low and sell high
You need to buy during times when people are really pessimistic and then sell when people are really optimistic. In between, you got to remind yourself doing nothing (eg trading investing) is perfectly ok, just focus on other things in your life.
Statement 2 : You only make money when you sell
Holding on to a risen stock and not selling does not mean you are making money, hence the term paper profits. You only can consider yourself making money when you sell the stock can cash in on the profits.
📈 Rakuten Trade has got a Telegram group (a kind of chat app like whatsapp) which can be joined by Rakuten customers to get support and interact with the Rakuten Trade community here :
❓Frequency Asked Questions
Where is the button to deposit money into Rakuten Trade account ?
Ans : There's a button that loads like an upload symbol at the cash status in the Rakuten Trade dashboard. Do note the maximum amount for a single transaction to Rakuten Trade is RM30,000.
🔗Links
🔗Updates 20200622
Stock market seems to be moving ahead of the economy. Advice caution. While the stock market is rushing ahead, the economy is being pull ahead but there will be reversal when the economy cannot power ahead as expected by the public. The economy and the stock market is like a person pulling leash on a dog, when the dog (stock market) moves too fast ahead, the person (economy) will pull back the dog.
🔗Updates 20200714
There's no logic why Gloves counters can have market capitalization (total stocks in circulation x share price) almost the size of banks. These glove counters are all up merely on speculation. A lot of young people signing up to buy stocks and having their 1st taste of success in the stock market just buying glove counters. In addition a lot of people are taking money from fixed deposit to play/gamble in the stock market, that is why there is such volatility.
If you feel my article has given some value to you, you can sign up for Rakuten trade using my referral code 4ffdWBHYBI.
