Rakuten Trade is my main stockbroker when it comes to investing in local stocks due to it being one of the lowest-priced commission brokers in town.

For quite some time now, I have been receiving emails and various questions under my stockbroker and Rakuten Trade articles about the platform. Since the questions are quite commonly seen, I thought why not compile them in one article to address them.

Please note that this is not an exhaustive list. Hence, if you do not find the answer to your questions in this article, feel free to leave a comment at the end of this article and I will update the list of questions accordingly!

Anyways, have a good read!


“What to do if I forgot my Trading Pin?”

Please login to the members’ page via www.rakutentrade.my/login and then click “Settings”, select “change trading pin” and proceed accordingly.


‘Order amount exceeded trade limit’ issue

To address extraordinary market volatility in the equity market, Rakuten Trade has implemented a market order mechanism (price band) that will prevent trades to exceed customer’s available trading limits. The cost of trading will be calculated at 30% higher than the current market price.

Source: Rakuten Trade

*Price band percentages will be 30% above the market price, as such customer trading limit should have a minimum of RM138.50 in order to purchase 1 board lot of 100 units of shares.


“Can I transfer my shares from other brokerage accounts to Rakuten Trade?”

Yes, you can.

To initiate a share transfer from another broker to Rakuten Trade, you will have to reach out to the broker where your shares are currently deposited in to fill up the shares transfer form. The shares will be reflected in your Rakuten Trade account upon successful transfer from the previous broker.

What are the Charges?

It’ll be RM10.00 per stock charged by Bursa Malaysia Depository regardless of quantity.

How long will the transfer take?

If the instruction is received before 10:00am, the transfer will be done on the same business day. If the instruction is received after 10:00am, the transfer will be done by the next business day.

Note: This is subject to when the transfer is accepted and acknowledged by Bursa Malaysia Depository.


“Can buy foreign-listed shares with my Rakuten Trade account?”

No


Potential RT Platform issue/System Down Issue

Since MCO started, the market condition as attracted a huge influx of retail investors into the marketplace. This resulted in an increase in brokerage account activations across the board regardless of brokers.

Indeed, I have heard feedback from people about system down issues on various brokers including Rakuten Trade. Hence, I have reached out to Rakuten Trade in hope to get some clarification on their approach to resolve the sudden influx of investors.

As per my knowledge, Rakuten Trade acknowledges and is mindful of the issue. In return, they are currently pushing updates to the platform in phase in order to improve the overall user experience.

Source: Rakuten Trade


“Do I have to open an extra CDS account in order to use my Rakuten Trade account?”

First of all, if you are not a Rakuten Trade user prior to this, you will need to open a CDS account specifically for Rakuten Trade (just like when you open a new brokerage account with anyone else as well). 

But worry not, as your CDS account will be opened for you when you apply for a Rakuten Trade account.


“What are the differences between Cash Upfront, Contra & RakuMargin accounts?”

Cash Upfront:

Works like a debit card. The limit of how much you can invest is based on the amount you have in your account.

I would suggest most people, especially new investors to stick with a Cash Upfront account unless you have extensive knowledge and understanding of how a Contra or Margin account works and the risks involved.

Contra:

Works like a charge card. You can have a trading limit of up to 5x the money and existing share value that you have in your Contra account (limit differs from the type of shares and warrant expiry period we plan to buy).

That said, you will have to fully settle your transaction within 2 days. Failure to fulfill the settlement will cause force selling to an account from the 3rd day onwards.

Suitable for experienced active investors & day-traders.

RakuMargin Account:

Works like a credit card. Essentially, you are given a credit facility to invest in shares.

The margin of financing of a RakuMargin account is 180%. Simply put, this means that in order to secure an RM10,000 credit facility, you will need to have collateral (ie. existing cash and shares value) of RM18,000 in your RakuMargin account.

The main difference between a RakuMargin and a Contra account:

 RakuMargin: There’s no fixed settlement period for RakuMargin account, but there’s an interest of 6.8%/annum on your outstanding balance (ie. Shares financed by margin, Losses from shares financed by margin).

Contra Account: Fixed settlement date of T+2. Meaning, you will have to settle your transaction within 2 days.


Market Transaction Hour

1st Session

Pre-opening: 8:30am

Opening and continuous trading: 9:00am

Closing: 12:30pm

2nd Session

Pre-Opening: 2:00pm

Opening and continuous trading: 2:30pm

Pre-closing: 4:45pm

Trading at last: 4:50pm

Closing: 5:00pm


“Does Rakuten Trade has an automatic Stop Loss Function?”

There is no automatic Stop Loss function in Rakuten Trade.

(Correction 16/7/2020: Initially, I mentioned the use of Sell Limit as an alternative SL order. The statement is invalid and I clearly made a clumsy mistake there. As such, I’ve removed the sentence to avoid causing any confusion. Thanks to my friend Ing Hong for pointing it out!)


“Why I can’t view my Rakuten Trade CDS account on Bursa Anywhere?”

Bursa Anywhere is an app launched by Bursa to allow users to consolidate and facilitate their CDS accounts.

That said, this is only applicable to direct CDS accounts. Since Rakuten Trade is a nominee CDS account, it is not viewable on Bursa Anywhere.


“What to do if I want to attend the AGM of the company that I invest in?”

To attend AGM/EGM, simply email your request to Customer Service (customerservice@rakutentrade.my) ten (10) working days before the AGM/EGM


“How long will it take for me to receive my dividends?”

   Your dividend(s) will be credited into your Rakuten Trade account in at least five (5) working days after the official payment date.


Have more questions about Rakuten Trade?

This article is not an exhaustive list, but it comprises of the commons questions that are asked by my readers for the past few months. 

That said, if you have any other questions that are not in this article, feel free to leave a comment below and I will do my best to help you out! 🙂

Disclaimer: The content of this article is written purely based on my personal research and experience, and is NOT an official document from Rakuten Trade. I’ll do my best to keep the content of this article relevant but for the most updated support and solution, please reach out to Rakuten Trade’s official support team.


Open a Rakuten Trade Account Today!

If you find this article useful, and would like to open your Rakuten Trade stock trading account, do consider using my referral link HERE to register for your account (or enter ‘NoMoneyLah’ under ‘Educator’ when you register). For that, you will gain 500 RT points from this registration. Otherwise, you can always google for Rakuten Trade and open your account too.


Related Posts:

(1) Check this out before opening your stock trading account!

(2) How to make your first trade on Rakuten Trade?

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