Rakuten Trade Review and FAQ

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

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 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 500 RT Points.  

My Review of Rakuten Trade

The Good

1. Low brokerage fees starting from RM7 up to RM100.
For a quick comparison of all Malaysian stockbrokers, go hERE.
2. You earn RT points whenever you trade.
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.

3. No handling fees on corporate actions.These requests are handled by Rakuten Trade based on customers’ instructions from the website (online).

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% onlineUnlike all other brokers in Malaysia, you can apply for and activate your Rakuten Trade account online.
5. Online dividend tax vouchersYou receive your dividend vouchers in your inbox instead of in the mail. Save the trees!
5. High digital engagement with users
Rakuten Trade regularly posts updates and research on their website and social media accounts.

The Bad

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

Your dividend will take around 3-5 trading days to process given your RT account is a nominees 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/EGMsTo attend AGM/EGM, you’ll have to email your request to Customer Service ten (10) working days before the AGM/EGM.

Register Now

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: 6ebFMSSTQU

You will earn 500RT 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 brokerage and recommend it to all new investors.
As always, I am on Facebook and Instagram. Follow, keep up to date.

https://dividendmagic.com.my/2020/04/22/rakuten-trade-review-and-faq/