Last Updated on September 5, 2022 by Chin Yi Xuan

The best Malaysia-regulated broker to buy US stocks just got better!

Rakuten Trade has just launched its new USD trading feature recently. This is fantastic news as Rakuten Trade users now have the choice to hold USD in their account!

Simply put, Rakuten Trade users now have the option to invest in US stocks using USD or MYR!

In this post, let’s explore the features of Rakuten Trade’s new USD trading! Also, check out the end of this post for a special account-opening & trading promo! 

Related Posts:

p

3 Feature highlights of Rakuten Trade’s USD & MYR Trading:

#1 The choice to buy and sell US stocks & ETFs in USD or MYR

As a Rakuten Trade user, now you have a dedicated USD wallet to store USD within your account. This enables the flexibility to use either USD or MYR to buy US stocks and ETFs.

Furthermore, users also have the choice to receive USD or MYR when selling their US stocks.

Rakuten Trade USD Wallet
Rakuten Trade users now have access to USD and MYR trading.

#2 Live conversion + tight MYR-USD currency conversion spread

Rakuten Trade offers a relatively tight MYR-USD spread for users to easily convert between both currencies within the platform.

Furthermore, the conversion process happens real-time, enabling users to convert MYR to USD (and vice versa) with the latest rate and trade right away.

Lastly, unlike certain brokers, there are no extra fees involved in currency conversion (aside from the spread) so there are no worries about hidden fees.

Rakuten Trade MYR to USD currency conversion rate
Rakuten Trade MYR to USD currency conversion rate (as of August 2022)

#3 Receive dividends in USD instead of MYR

Prior to the release of the USD trading feature, Rakuten Trade users that invest in US stocks will receive dividends in MYR.

This is not ideal for investors looking to reinvest their dividends because they’ll have to reconvert the MYR back to USD in order to do so.

Now, we will receive dividends directly in USD. This makes dividend reinvesting much more convenient.


USD vs MYR Trading: Rakuten Trade US Stocks Brokerage fees comparison

Below is Rakuten Trade’s brokerage fee structure for MYR trading and USD trading in the US stock market.

  • MYR Trading

Trading Value MYR Trading
Below RM999.99 RM7
Between RM1,000 – 9999.99 RM9
Between RM10,000 – 99,999.99 0.1% of Trading Value
Equal of above RM100k RM100

 

  • USD Trading

USD Trading
0.1% of Trading Value, or a min. of USD1.88 – USD25

 


When to use USD, when to use MYR to trade US stocks?

In the section below, we will compare and explore when is best for you to use MYR or USD to trade US stocks on Rakuten Trade.

Firstly, let’s take a look at several common trading amounts and the respective brokerage fee in MYR and USD:

Trading Value MYR Trading Brokerage Fee USD Trading Brokerage Fee
RM900 (~USD201) RM7 USD1.88
RM2,000 (~USD448) RM9 USD1.88
RM5,000 (~USD1,118) RM9 USD1.88
RM10,000 (~USD2,236) RM10 USD2.24
RM50,000 (~USD11,176) RM50 USD11.18
RM100,000 (~USD22,352) RM100 USD22.35

When to use MYR to trade US stocks:

  1. Use MYR when your trading value is less than RM1,000 as the brokerage fee is cheaper (RM7 vs USD1.88).
  2. Keep your capital in MYR if you think MYR is going to strengthen against USD, and you want to get the most out of your conversion.
  3. Consider using MYR to buy/sell if you want to offset your brokerage fee using RT points (as of now, it is not possible to use RT points to offset brokerage fee while using USD to trade).

Rakuten Trade unable to reduce brokerage fee when trading in USDWhen to use USD to trade US stocks:

  1. Consider using USD when your trading value is over RM1,000.
  2. Convert your capital to USD if you think MYR is going to weaken further against USD, and you want to lock in the current conversion rate.
  3. Consider using USD if you make a lot of short to medium-term trades, so you do not have to go through currency conversion (from MYR to USD) everytime you make a trade. This reduces your exposure to the fluctuation in currency exchange.

How to convert your MYR to USD (or vice versa)

Step 1: There are 2 ways to convert your currency within Rakuten Trade’s iSpeed app, namely:

  • Under Rakuten Trade’s iSpeed app, go to Menu > Select ‘Currency Exchange’, OR

Convert MYR to USD in Rakuten Trade

  • Under ‘My Account’ Select the Currency Exchange icon ($).

Convert MYR to USD in Rakuten Trade

Step 2:

  1. Under ‘Convert From’, select MYR.
  2. Decide the conversion amount
  3. Under ‘Convert To’, select USD
  4. Enter your trading pin and click ‘Confirm’

Convert MYR to USD in Rakuten Trade


How to buy US stocks via USD

Step 1: Search for the stock that you want to invest in, and click ‘Buy’

Step 2: Under ‘Currency’, select ‘USD’. You’ll be shown your trading limit – make sure you have enough to execute your buy order!

Rakuten Trade Buy US stocks in USD

Step 3: Decide the price of your limit order and quantity of shares to buy, key in your trading pin, and click ‘Proceed to Confirmation’ to confirm your buy order.

Rakuten Trade Buy US stocks in USD


How to sell US stocks in USD

Step 1: Select a currency that you wish to receive upon selling your stocks (MYR/USD):

  • MYR: Your holdings will be converted to MYR after being sold.
  • USD: Your holdings will remain in USD after being sold.

Rakuten Trade sell US stocks in MYR or USD

Step 2: Decide the price of your limit order and the quantity of shares to sell. The ‘Est. Amount’ section displays how much you can expect to receive after you sold your holdings.

Step 3: Key in your trading pin and click ‘Proceed to Confirmation’ to confirm your sell order.

Rakuten Trade sell US stocks in MYR or USD


Rakuten Trade USD trading: What I wish could be better

Rakuten Trade’s move to introduce USD trading is a welcomed move as it allows greater flexibility and choice for users while investing in the US stock market.

That said, one aspect that I think Rakuten Trade could improve on is the streamlined implementation of its reward system – ie. Using RT points to offset brokerage fee.

As of now, we are not able to use RT points to offset brokerage fee if we were to trade using USD. However, it is possible to do so if we were to trade using MYR.

As a user, I’d like to see Rakuten Trade streamlining this reward system, as it would make the trading experience more complete for us as a user.

Rakuten Trade unable to reduce brokerage fee when trading in USD


🎁 Win yourself a Google share – Trade in USD Campaign (22/8/2022 – 31/12/2022)

In line with the launch of USD trading, Rakuten Trade is giving out some amazing perks!

Rakuten Trade Google share promo

Perk #1: Enable Foreign Trading Service and get 2000 RT points (worth RM20)

Have a Rakuten Trade account but have not activated US trading?

Activate foreign trading service today and receive 2000 RT points (worth RM20 of brokerage fee rebate) within 15 business days of the following month.

The RT Points credited shall expire within 1 month and can be used to offset brokerage fee only.

Related Post: Guide – How to activate US stock trading on Rakuten Trade

 

Perk #2: Perform your 1st US trade and get 3000 RT points (worth RM30)

Perform your first US trade on Rakuten Trade and get 3000 RT points (worth RM30 of brokerage fee rebate) within 15 business days of the following month.

The RT Points credited shall expire within 1 month and can be used to offset brokerage fee only.

 

Perk #3: Trade in USD & maintain USD in your USD wallet = Win 1x GOOGLE share

  • Step 1: Successfully perform at least 1x US trade during the Campaign period (22/8 – 31/12/2022).
  • Step 2: Maintain USD in your Rakuten Trade USD wallet at the end of the month,
  • Step 3: Stand the chance of winning 1x Google (GOOGL) share. Available for 50 lucky Rakuten Trade users.
Rakuten Trade Trade US stocks and get Google share reward
Source: Rakuten Trade

Refer to T&C for more info on this campaign.

Open a Rakuten Trade Account Today!


No Money Lah Verdict

So there you have it – a walkthrough of Rakuten Trade’s latest USD trading feature!

I hope this guide has been useful, and if you are looking for a Malaysia-regulated broker to trade US stocks, Rakuten Trade is certainly the way to go!

Open a Rakuten Trade Account Today!


Rakuten Trade Referral Link for New Users

Rakuten Trade Referral Link

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 RM5,000 within 5 days.
  • + 150 RT points when you transfer your shares from other brokers to Rakuten Trade.
  • + 1x brokerage fee rebate when you place your 1st trade within 30 days after your account is activated.

Aside from that, Rakuten Trade users get +1 RT point for every RM2 brokerage paid! Click HERE for the full T&C on RT points

Open a Rakuten Trade Account Today!


Disclaimer:

This post contains affiliate links, which afford No Money Lah a small referral (and in return, support this blog) if you sign up for an account using my referral link.