I have been using Rakuten Trade since its launch in May 2017 & it is definitely the best trading platform for local stocks. They are the first completely online equities broker & have disrupted the market by offering the most competitive brokerage fee. Over the years, they have added more services to their platforms such as Contra Trading, and Margin Financing Trading & they have even introduced 2 more countries in which you can invest which are Hong Kong & US Market.
In the past, I have tried trading accounts with other competitors but nothing beats Rakuten Trade’s user-friendly platform. Trading foreign stocks such as the US can be really expensive especially when it comes to brokerage fees. Those platforms that are approved by the Securities Commissions of Malaysia usually charge really high brokerage fees which start as low as USD8.80 & above. There are other online trading platforms that offer something lower but they are not approved by SC Malaysia, therefore, there is some risk especially when you deposit your money with them.
You can look at their latest pricing structure below:
Compare to their past pricing structure, you can see some of the differences below:
The most obvious benefit for smaller investors is their minimum trading amount if you are looking to trade a smaller amount of less than RM500 as they are calculating based on 1%. So if you are buying stocks worth RM500, you are only paying RM5 (1% Trading Value). You can definitely obtain more savings when you purchase stocks at a minimum price & avoid all the high brokerage fees. Investing in Hong Kong & US stocks at cheaper fees is possible too with the new fees structure by Rakuten Trade.
My exposure to foreign investment comes directly from investing in foreign REIT funds & Robo-advisors but I have never invested in foreign stocks or foreign ETFs directly until when FSMOne introduced their ETF investment. I have invested in US ETF since its introduction but I only purchase 5-6 units every few months due to higher brokerage fees by FSMOne. It is not worth paying USD8.80 just to buy 1 unit that costs me USD50. With the lower fees offered by Rakuten Trade, I will be switching to them so I can invest in the ETF regularly. Similarly, for local Bursa stocks, the minimum buy is 1 lot (100 units) but with the minimum fees of RM7 in the past, any investment less than RM150 does not make sense as I need to pay RM7 (4.6% of RM150) worth of brokerage fee. It is not worth it if I calculate it that way. But with the introduction of a brokerage fee of RM1 or 1% of the trading value below RM699.99, I can invest with as low as RM100 for a minimum of 1 lot.
You can use my referral link to earn 1,000 RT points. Those points can be used for your brokerage fee rebate for all your trading.
OSS!
You can also check out my latest YouTube video on Why Do You Need Financial Planning?
