Answered: Your Most-Asked Questions About Rakuten Trade!

Last Updated on May 19, 2023 by Chin Yi Xuan

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!

READ: Rakuten Trade Long-Term User Review: 5 Reasons Why it is My Preferred Stock Broker!

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Table of Contents

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“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.

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‘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.

*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.

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“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.

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

No

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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.

Update October 2020: As per October 2020, Rakuten Trade has completed the deployment of updates to their platform which includes login and execution speed during peak hours. This means that there should be lesser glitches moving forward and a generally smoother experience. Personally, I’ve tried executing orders during peak hours and it has worked well for me. That said, should you face any issues feel free to share with me in the comment section below!

Source: Rakuten Trade

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“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.

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“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 3^rd 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.

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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

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

Yes, it is possible to set a stop loss on Rakuten Trade. After you bought a stock, you can add a sell stop or sell limit order which will act as your stop loss if price were to drop below the set price level. 

Click HERE for more info on Rakuten Trade’s Stop orders.

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“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.

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“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 ([email protected]) ten (10) working days before the AGM/EGM

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“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.

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“My cash balance is not immediately updated for withdrawal upon selling my shares, why ah?”

As per Rakuten Trade’s explanation:

“Your sales proceeds will be automatically credited into your Trading Account two days after the transaction (T+2). Only then will it be reflected as available cash.“

However, your cash withdrawal available still need T+2 to reflect.

Do note that, if you keep trading (buy & sell) after that, it will take your previous order T+2 trading limit which means it will lower your withdrawal limit.

Below is the scenario to provide a better explanation to you:

• 3 Aug Sold Stock A RM1,000: Should be reflected on 5 Aug (T+2)
• 4 Aug Purchase Stock B RM600, Sell Stock B on 4 Aug RM800. Should be reflected on 6 Aug (T+2)

On 5 Aug, your cash withdrawal for stock A will be RM400 (after minus stock B RM600).

On 6 Aug, your cash withdrawal for stock B will be RM800.

All of these scenarios are based on RM0.00 withdrawal limit as default.

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Have more questions about Rakuten Trade?

This article is not an exhaustive list, but it comprises of the common 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.

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Rakuten Trade Referral Link for New Users

 

If you are keen to open a Rakuten Trade account, consider using my referral link below! For that, you’ll get:

• 1000 Rakuten Trade (RT) points worth RM10 to offset your brokerage fee.
• + 150 RT points when you deposit a min. of RM1,000 within 5 days.
• + 1000 RT points when you transfer your shares from other brokers to Rakuten Trade.
• + 1x brokerage fee rebate when you place your 1^st trade within 30 days after your account is activated.

Aside from that, Rakuten Trade users get +1 RT point for every RM1 brokerage paid! Click HERE for the full T&C on RT points. 

Open a Rakuten Trade Account Today!

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Related Posts:

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

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

(3) 4 Powerful Features on Rakuten Trade that’ll help you invest better!

(4) How to Build a Reliable Bursa Stock Screener via Rakuten Trade?

(5) NEW: Rakuten Trade Long-Term User Review: 5 Reasons Why it is My Preferred Stock Broker! 

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Disclaimer

The information stated above is based on my personal experience and for purpose of sharing such experience only. It is not intended as professional investment advice. Please contact Rakuten Trade for more information.