Webull Malaysia Review: What's good and what's lacking
2024 has been an amazing year for Malaysian investors thanks to the introduction of new locally-regulated platforms that make stock investing and trading seamless and more affordable than ever.
Webull Malaysia is one of those platforms that I've been eagerly waiting to enter the Malaysian market.
So, what is it like to invest through Webull Malaysia? Whatâs their pricing/fees like compared to other local brokers?
Letâs find out!
Highlights
- Locally-regulated broker: Webull Malaysia is regulated by the Securities Commission Malaysia (SC). This ensures that Webull Malaysiaâs operation and business are conducted within the rules set by the authority to protect Malaysian investors.
- Access to the US, Malaysia stock markets, and Malaysia's futures market: Invest in the US and Malaysia stock markets, as well as the Malaysia futures market (FCPO, FKLI) within the Webull app.
- One of the best fee structures for Malaysia-regulated brokers: Webull Malaysia offers an attractive fee structure for the US and Malaysia stock markets among Malaysia-regulated brokers, with 0 commission trading for all Webull Malaysia users for the first 180 days.
- Powerful features: Investors of all levels and experience will come to enjoy a suite of useful features, such as 24-hour trading and fractional share trading for US stocks.
- Room for improvements: Lack of Singapore and Hong Kong market (for now), no FPX transfer for fund deposit (for now), and customer support takes longer to respond during US trading hours.
How is Webull Malaysia regulated + Safety of Funds
In terms of regulation, Webull Malaysia is regulated by the Securities Commission Malaysia (SC), with a Capital Markets Services License to operate a legal brokerage business:
This ensures that Webull Malaysia is operating under the best practices and guidelines set by the Malaysian authority.
In addition, clientsâ funds are kept separately from Webull Malaysiaâs finances through a custodian bank account. Webull Malaysia will not have access to your funds and assets, ensuring clear transparency to avoid fraud. This also ensures that if something happens to Webull Malaysia (eg. Bankruptcy), your funds & assets will not be affected.
Furthermore, Webull Malaysia clientsâ fund is protected by the Capital Market Compensation Fund (CMC Fund), where clients can claim up to RM100,000 on eligible Malaysia securities/assets in the unlikely event that Webull Malaysia is not able to pay clients due to bankruptcy.
Webull Malaysia fees & pricing for the US stock market and Malaysia stock & futures markets
For pricing, Webull Malaysia offers a competitive commission and zero platform fee. The great news is, new Webull Malaysia users will enjoy 0* commission for the first 180 days:
(a) Webull Malaysia pricing for Malaysia stocks, ETFs, REITs, and Warrant:
Webull Malaysia pricing for Malaysia stocks, ETFs, REITs, and Warrant | |
Commission | RM0* for the first 180 days to new users (*0.08% x Trade Amount thereafter, min. RM5/trade) |
Platform Fee | RM0 |
(b) Webull Malaysia pricing for US stocks, ETFs, ADRs, and fractional shares:
Webull Malaysia pricing for US stocks, ETFs, and ADRs, and fractional shares | |
Commission | USD0* for the first 180 days to new users (*0.05% x Trade Amount thereafter, min. USD0.99/trade) |
Platform Fee | USD0 |
(c) Webull Malaysia pricing for Malaysia futures market:
FKLI (Intraday & Overnight) | FCPO (Intraday) | FCPO (Overnight) | |
Commission | RM5 | RM6 | RM7 |
(d) Non-platform trading fees
Also, take note of other non-platform trading fees that are NOT charged by Webull Malaysia while you trade:
- Malaysia markets
Other Non-Platform Trading Fees | Webull Malaysia |
Stamp Duty charged by Malaysian Government (for stocks) | Yes |
Clearing Fee charged by Bursa Malaysia (for stocks & futures) | Yes |
Trading Fee charged by Bursa Malaysia (for futures) | Yes |
- US stock market
Other Non-Platform Trading Fees | Webull Malaysia |
Stamp Duty charged by Malaysian Government | Yes |
SEC Fees charged by SEC | Yes |
FINRA Fees charged by FINRA | Yes |
ADR Custodian Fees charged by DTC | Yes |
Webull Malaysia pricing vs other locally-regulated brokers (Moomoo MY, Rakuten Trade, M+ Global):
Webull Malaysia's pricing structure is certainly one of the most competitive among locally-regulated brokers.
Their zero-commission stock trades for the first 180 days for new users are a bang for the buck.
Even after 180 days, Webull Malaysia pricing structure for US stocks is one of the most affordable among locally-regulated platforms.
(a) Malaysia stock market (per order fee comparison)
(i) Webull Malaysia vs Moomoo MY vs Rakuten Trade fee comparison for the Malaysia stock market (Promo: First 180 days 0 commission trades for new users):
(ii) Webull Malaysia vs Moomoo MY vs Rakuten Trade fee comparison for the Malaysia stock market (after 180 days):
(b) US stock market (per order fee comparison)
(i) Webull Malaysia vs Moomoo MY vs Rakuten Trade vs M+ Global fee comparison for the US stock market (Promo: First 180 days 0 commission trades for new users):
(ii) Webull Malaysia vs Moomoo MY vs Rakuten Trade vs M+ Global fee comparison for the US stock market (After 180 days):
Even after 180 days, Webull Malaysia's pricing for the US stock market is also highly competitive:
(c) US fractional shares (per order fee comparison)
My experience with Webull Malaysia (Features):
Webull Malaysia trading app is a well-designed app and I have no issue finding the features I need within the app.
Here are several features in the Webull Malaysia app that I find interesting:
#1 Zero platform fee* is advantageous for active day traders in the Malaysia stock market
At the moment, Webull Malaysia and Moomoo MY are two of the most affordable stock investing platforms in Malaysia.
One advantage that Webull Malaysia has is zero platform fee charged for every trade order. In comparison, rival Moomoo MY charges RM3/order for the Malaysia market.
Unlike brokerage fees that are entitled to trade amalgamation for the Malaysian stock market, a platform fee is charged whenever a trade is taken.
- What is trade amalgamation?
Trade Amalgamation allows you to combine your orders to help you save on trading costs and is applicable for buy or sell trades.
- How to enjoy trade amalgamation?
Trade amalgamation is automatically performed if the following conditions are fulfilled:
- Trades are of the same stock or the same ETF.
- Trades are on the same side (e.g. Buy trades can only be amalgamated with another Buy trade)
- Trades are done on the same trading day.
- Trades are from the same account.
- Example of trade amalgamation
Say, as a day trader, I bought Maybank shares four times, each worth RM2,500 (RM10,000 in total), during the same trading day.
My brokerage fee for Webull Malaysia and Moomoo MY will be amalgamated. However, since Moomoo MY's platform fee is charged on a per-trade basis, it is not entitled to trade amalgamation.
Here is the cost if I've done my trade using Webull Malaysia and Moomoo MY. For demonstration purposes, let me show you this comparison in reference to the pricing for the Malaysia stock market after 180 days as a new user for each platform:
- What does it mean for you?
How much you benefit from Webull Malaysia's zero platform fee depends on your trading/investing style.
If you tend to actively trade the same stock on the same trading day for the Malaysia stock market, you are going to find Webull Malaysia more cost-effective.
*Note: The platform fee of 0 is subject to change at Webull Malaysia's discretion and is valid until updated.
#2 Trade stock & futures in one single app
Webull Malaysia is one of the few trading platforms that offers access to the stock market (US & Malaysia), as well as the Malaysia derivatives (or futures) market (FKLI, FCPO).
For traders who seek to express their trade ideas via different trading instruments, Webull Malaysia is certainly more versatile than most trading platforms.
#3 24-hour trading for the US stock market
Webull Malaysia also allows for 24-hour trading.
As a Webull Malaysia client, you can trade the US stock market anytime on a trading day. This means capitalizing on any breaking news, or taking action on earning announcements at odd hours.
p.s. US stocks that can be traded for 24 hours can be spotted with the '24' symbol on a stock:
#4 Fractional share trading for the US stock market
Webull Malaysia also offers fractional share trading, which allows users to invest in a fraction of a share from just $5.00 instead of buying the whole share.
In other words, fractional share trading makes investing with a small capital much more friendly and flexible.
i. Buy fractional share from just $5.00 and up to 3 decimal places (0.001).
With fractional share trading, I can buy 0.05 units of Apple shares instead of the entire share:
iii. Conditions for Fractional Trading on Webull Malaysia
- Not all US stocks and ETFs support fractional trading. To see if a stock or ETF is eligible for fractional share trading, look for the âFractional Shareâ diamond symbol:
- Only market order is supported, and short selling is not allowed.
- The minimum value and quantity of a Fractional Share trade is USD5 and up to 3 decimal places (0.001).
- US Fractional Shares are only tradable during US Regular Trading Hours
#5 Real-time US and Malaysia price quotes (or price feed)
New Webull Malaysia users will enjoy real-time level 2 US and Malaysia price data FREE for 30 days.
Thereafter, it will revert to real-time level 1 US price data and a 15-minute delayed price data for the Malaysia market.
#6 Complete trading features
Webull Malaysia also impressed me with a complete suite of in-app trading features:
- Basic to advanced trade order execution options
Having tried many locally-regulated brokerages, I come to appreciate the different trade order execution features that are available on the Webull Malaysia app.
Aside from the basic market and limit orders, I discovered various order execution features (eg. Stop order, Trailing stop, Group orders), which makes trade execution more versatile for investors and traders alike, regardless of style.
- Simple-to-understand stock & ETF information within the app
I also like that Webull Malaysia app puts stock information in simple-to-understand visuals & charts.
From company financials, analyst ratings & 24/7 news, charting & technical analysis and more, I can get a clear picture of a stock without having to visit other external websites:
#7 Earn interest on your idle cash
As a Webull Malaysia user, you can also earn interest on your idle cash:
3 aspects I wish could be improved
From my time exploring the Webull Malaysia app, there are a few things that I wish could be improved:
#1 Lack important features such as:
- No access to Singapore and Hong Kong stock market (for now).
- No FPX deposit (for now). Only bank transfer is available.
- No margin account. Only cash upfront account is available.
- Does not support request to attend AGM for MY stocks.
- Have to subscribe (ie. pay) for real-time price feed for the Malaysia stock market after the initial 30 days, where some competitors offer it for free.
- Lack of desktop trading app for users looking for a desktop trading experience. Only mobile app is available.
#2 Inconsistent customer support
I also tested Webull Malaysia's customer support thoroughly while preparing for this review.
Webull Malaysia offers 3 channels for users to reach out for help, namely: In-app chat, Phone support (03-9212 8192), and email ([email protected]).
What I appreciate about Webull Malaysia customer support:
- Multiple channels to reach out for help.
- 24/6 support on Monday - Saturday business days.
- Generally quick response time on in-app chat during daytime.
What I wish could be better with Webull Malaysia customer support: Less consistent nighttime support
In my personal experience, I find the response time for Webull Malaysia in-app chat to be less consistent at night compared to the daytime.
For instance, I'll usually get a reply from in-app chat within 10+ minutes during daytime, but in one instance it took more than 1 hour to hear from customer support at night.
As a platform that offers access to the US market, I think the response time should be improved upon:
#3 Gimmicky Voice Trading
A unique feature I found is that you could actually long-press the middle Webull-logo button to activate voice trading:
Personally, I've given it a try and find it to be less useful than intended. Words that are easy to detect like 'Apple' aside, I had a frustrating time getting the voice assistant to detect 'IGB REIT' (often taken as 'rate' /'rich' instead of 'REIT') and more complex names like 'Berjaya Corp' and 'Lockheed Martin' (taken as 'Regina' and 'Lockhead' respectively).
I think there is a huge potential for this voice assistant, such as handling more useful requests like 'What is Apple's latest news?', or 'What is SCHD's latest distribution?'.
As a whole, as an online trading platform, I wish to see more useful features being introduced to the Webull Malaysia app soon.
Regardless, since Webull Malaysia is still relatively new to the local market, I shall revisit this section in the coming months and update accordingly if I see any improvements.
đ Account Opening & Deposit Promotion (ending 18/11/2024, T&C applies)
Webull Malaysia is constantly running promotions for new users:
#1 Trading Perks
Register and successfully activate a Webull Malaysia trading account and get:
- 180 days 0 commission Malaysia stock trades
- 180 days 0 commission US stock trades
- 1 month of Level 2 real-time price quotes for Bursa Malaysia stocks and US market.
- Get +1 month of FREE access to either market by completing a matched MY or US trade respectively.
#2 1x Guaranteed fractional shares of NVDA/AAPL/GOOGL/PLTR/AMD worth $100
How to be eligible:
- (i) Deposit a cumulative amount of at least RM8,000 (and maintain for 30 days), and
- (ii) Make one buy trade for either US stocks/futures or MY stocks
Get guaranteed fractional shares worth $100, where you can choose from either Nvidia (NVDA), Apple (AAPL), Google (GOOGL), Palantir (PLTR), or AMD!
- Note: You are free to trade stocks during the 30-day lock-in period, and the value fluctuations of your holdings after depositing will not affect the unlocking of rewards â the key is to maintain a minimum net deposit of RM8,000 throughout the 30 days.
- Your reward will be issued to eligible participants within 7 business days after completing the requirement. Thereafter, you will need to claim your reward within 30 calendar days.
Verdict: Webull Malaysia is making stock market investing more affordable to Malaysians
I think Webull Malaysia has offered Malaysians something valuable: Access to the stock market at an affordable price, especially for the US stock market.
Despite lacking a few features (which I think could be improved with time), I think all these are not dealbreakers for me to recommend Malaysians to check out Webull Malaysia.
Step-by-step: How to open a Webull Malaysia account & make your deposit
Opening a Webull Malaysia account is one of the most straightforward experiences:
Step 1: Use my referral link HERE to open your Webull Malaysia account, where youâll get to enjoy various account-opening perks.
Step 2: Fill in your personal details
Step 3: Provide your employment and tax information, including your Tax Identification Number (TIN) (ie. LHDN number).
Alternatively, if you do not have a TIN number while opening a Webull Malaysia account, you can enter your reason accordingly (eg. I am a student).
Step 4: Enter your investment background
Step 5: Webull Malaysia offers one type of account, which is Cash Account at the moment. US market is optional so remember to tick it if you want to gain access to the US market!
Step 7: Declare if you have any domestic borrowing in Ringgit, and read through the agreements and proceed should there be no issue
Step 8: Youâll be required to scan your face and submit your documentation for verification purposes.
Step 9: If the application goes smoothly, your account should be approved within 1 â 3 business days. At the same time, youâll also receive an email once your account is approved.
Step 10: Select the Webull icon in the app and choose the account (Securities for stocks and/or Derivatives for futures) that you want to deposit in:
Essentially, the deposit process can be done through Bank transfer. Log in to your bank account and make the transfer to the Webull Malaysia bank details as shown to you:
Webull Malaysia FAQ
Ques: Can I attend AGM for the MY and US stocks that I invest in?
Answer: Webull Malaysia does not currently support US and MY Shareholders Meeting.
Ques: I am an existing Webull SG user, can I still use my Webull SG account after opening my Webull Malaysia account?
Answer: Webull Malaysia and Webull SG are two different independent brokerage, will not affect each other.
Ques: Is Webull Malaysia a nominee or direct CDS account for investing in Malaysia stocks?
Answer: Nominee CDS account
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Webull Malaysia. No content shall be considered financial advice or recommendation. Webull Malaysia links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Webull Malaysia for more information.
All You Need to Know about Dividend Withholding Tax for Malaysians (stocks & ETFs)
Did you know? Depending on where you invest, a tax may be charged on your dividends!
Dividend withholding tax is something that most investors are unaware of when investing.
In this post, let's learn about dividend withholding tax as a Malaysian, how it affects your investments, and what can you do about it!
Related Read:
Highlights of dividend withholding tax
- Dividend withholding tax is a tax that investors incur while receiving dividends from their investments.
- Depending on what you invest in (stocks or Exchange-Traded Funds (ETFs)), the withholding tax rate will apply to you differently.
- Dividend withholding tax impacts each investor differently. In particular, dividend investors should be mindful of the tax when making their investment decisions.
What is dividend withholding tax?
Withholding tax is a method that a country uses to collect taxes from non-residents who have derived income from the country.
As an example, when we invest in stocks in a foreign country (eg. the US), the dividends that we received from our investments are usually charged with a withholding tax. To be precise, thatâs what we call âdividend withholding taxâ.
So, how does dividend withholding tax work? How does it affect us as an everyday investor?
Letâs find out!
How does dividend withholding tax work?
Depending on what you invest in, the way a dividend withholding tax will apply to your investments will differ:
Scenario 1: You invest in stocks
If you invest in stocks, your dividend withholding tax rate is determined by your country of residence.
Most of the time, the rate is determined by whether Malaysia has a tax treaty with the other country.
So, if you invest in US stocks as a Malaysian, you are charged with a 30% dividend withholding tax. If you invest in Singapore stocks, you will enjoy a 0% rate as a Malaysian.
Scenario 2: You invest in funds such as Exchange Traded Funds (ETFs)
The dividend withholding tax rate of an ETF is determined by the country where the fund is domiciled in.
Simply put, âdomicileâ refers to the country where a fundâs holding company is legally incorporated.
Whatâs the difference though? Glad you asked.
Essentially, not every ETF listed in a country is necessarily domiciled in that country.
For instance, Singapore has its own S&P500 ETF (which tracks the top 500 listed companies in the US) listed on its exchange, namely the SPDR S&P 500 ETF Trust (SGX code: S27). However, if you dig into the fundâs prospectus, youâd notice that S27 is actually a US-domiciled fund.
Hence investors of S27 ETF, regardless of country of residence, are subjected to a 30% dividend withholding tax.
Meanwhile, S&P500 ETFs such as CSPX and VUAA are Ireland-domiciled ETFs listed on the London Stock Exchange (LSE). Since Ireland has a tax treaty with the US, Ireland-domiciled ETFs are only subjected to a 15% withholding tax.
As a result, instead of investing in US-domiciled funds, Ireland-domiciled ETFs are usually the go-to choice for investors outside of the US to gain exposure to the US market due to favourable tax conditions.
READ MORE: Guide: How to invest in S&P500 as a non-US resident
So, how do we pay our dividend withholding tax?
Essentially, there is no need for an investor to 'pay' dividend withholding tax directly, as it is deducted automatically from your dividends BEFORE it is distributed to you.
As an example, Apple decides to pay out $0.10 distribution per share to investors. Letâs say you own 1,000 shares, youâd receive:
- With dividend withholding tax deducted (30% for US-listed stocks): $70 in dividends ($0.10*70%*1000 shares)
Be mindful of the latest 2% dividend tax
That said, Malaysians should be aware of the latest 2% dividend tax (which is different from dividend WHT) under budget 2025, which targets Malaysians who generate more than RM100,000 in annual dividends from local companies.
Find out more about the latest 2% dividend tax for Malaysians HERE.
Dividend withholding tax rates for Malaysians
Below, you can find the dividend withholding tax rates relevant to most Malaysian investors:
p
Country | Dividend Withholding Tax Rate |
Malaysia | 0% (10% for REITs) |
Singapore | 0% |
Hong Kong | 0% |
UK | 0% |
China | 10% |
Canada | 15% |
Australia | 15% on unfranked dividends. 0% on franked dividends. |
Japan | 15% |
Ireland-Domiciled ETFs (London Stock Exchange) | 15% |
US | 30% |
How does it affect you?
Dividend withholding tax affects investors differently.
-
Growth investing - minimal impact
If you invest in growth-related stocks or ETFs like Tesla and ARKW, the impact of dividend withholding tax is minimal.
The reason is, growth stocks do not usually pay high dividends (or they do not pay dividends at all).
-
Dividend investing â significant impact
As for dividend investors, it is essential to be aware of dividend withholding tax while investing.
Since dividends make up a significant portion of the overall return of dividend-focused stocks/ETFs, it is crucial to take into account the impact of withholding tax.
For instance, assuming you invest $100,000 in a US dividend portfolio that generates a 6% dividend yield annually.
Below is the total dividend that you'd earn without dividend withholding tax (0%):
In this case, a 30% dividend withholding tax would cause you to end up with over 42% (~$93,000) less in dividend income over the span of 20 years!
In short, it is obvious that dividend withholding tax will impact the returns of dividend investors as a whole.
How to deal with dividend withholding tax as an investor
Usually, most investors would look to the US stock market while investing globally.
However, the 30% dividend withholding tax from the US can be very costly, especially to investors holding stocks where dividends form a significant portion of their returns.
Here are some of the things you can do to reduce the impact of dividend withholding tax on your long-term returns:
- Generally, avoid dividend stocks/ETFs that are listed or domiciled in the US. For ETFs, you can find out the domicile details on the official site or prospectus of the fund.
- Opt for stocks/ETFs that are listed or domiciled in markets with 0% withholding tax, such as Singapore and Hong Kong.
- Alternatively, you can also opt for Ireland-domiciled ETFs that are listed on the London Stock Exchange (LSE) or Canadian-listed stocks/ETFs, which are generally more tax efficient (15%).
Regardless of the market, Interactive Brokers (IBKR) has you covered with access to over 150 markets in 34 countries (US, Canada, Malaysia, Hong Kong, China, Japan, UK, Singapore, Europe, and more!).
Check out my review on Interactive Brokers HERE.
Side note:
With 0% withholding tax, the Singapore REIT market is one of the most established REIT markets in Asia, and it pays a decent dividend as well! Click HERE to learn more about Singapore REIT ETFs!
A word on tax on Foreign-Sourced Income (FSI) for Malaysians
As of the production of this post, Malaysians are not required to pay any further tax on dividends received from overseas investments, aside from the existing Dividend WHT explained in this article.
In Budget 2025, the Malaysian government has extended individual income tax exemption for Foreign-sourced Income (FSI) from 2026 to 2036.
In short, for your overseas dividends, you are not required to pay any tax aside from the Dividend WHT mentioned in this post - at least until 2036.
 Will any of these policies change (for the better or worse)?
Based on my understanding of the Malaysian governmentâs policy-making habits, I think it is hard to tell and I have zero control over this. So, I will focus on continuing to grow my dividend portfolio instead of worrying about the things that may or may not happen.
I will keep this section updated if thereâs any news!
No Money Lah Verdict
I hope this guide has been clear and helpful!
Iâve received many tax-related questions on dividends in the past and I think we may have overcomplicated things due to a lack proper of information.
If you have any questions, feel free to let me know in the comments section below!
FAQ on Dividend Withholding Tax
Q1: How do I pay for dividend withholding tax on my dividends?
You DO NOT need to pay for dividend withholding tax directly. Instead, they are deducted before your dividends are paid to you. In short, the dividends that you are receiving have been offset by withholding tax â there is nothing you have to do on your end.
Q2: Is dividend investing still a reliable approach with dividend withholding tax around?
Personally, I think dividend investing is still the most reliable way to build passive income. Meanwhile, dividend withholding tax is just part of the game, not a bug.
I will give additional thoughts into withholding tax while doing my research, but it will not deter me from building my dividend income portfolio!
Q3: What is the difference between âfrankedâ and âunfranked dividendsâ for Australia-listed stocks/ETFs?
A franked dividend is a system set by the Australian government to eliminate double taxation in dividends.
As such, franked dividend is paid with a tax credit attached, where shareholders submit the dividend income plus the franking credit as income but will only be taxed on the dividend portion.
Meanwhile, unfranked dividends carry no tax credit. Since the company has not paid tax on the dividends paid, you will have to pay income tax on the particular dividend that you received as an Australian.Â
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Disclaimers
Any of the information above is produced with my own best effort and research.
This post is produced purely for sharing purposes and should not be taken as a buy/sell recommendation. Past return is not indicative of future performance. Please seek advice from a licensed financial planner before making any financial decisions.
This post may contain promo code(s) that afford No Money Lah a small amount of commission (and help support the blog) should you sign up through my referral link
2% Dividend Tax in Malaysia - My thoughts as a serious dividend investor
As a dividend investor, the introduction of 2% dividend tax is certainly a key highlight of Budget 2025 for me.
In this post, I'd like to dive into more details of this new dividend tax, and share my 2 cents about how it might affect dividend investors like ourselves.
Meanwhile, check out my go-to broker that I use to build my Freedom Fund:
Context: What is this new 2% dividend tax all about?
Essentially, the new dividend tax is a 2% tax that will apply to people with annual dividend income exceeding RM100,000 starting 2025.
Based on my research, this tax will only apply to the amount above the RM100,000 threshold:
Example:
If your dividend income is RM120,000, the 2% dividend tax will be charged for RM20,000 - translating to a dividend tax of RM400 (RM20,000*2%).
Exemptions:
There are some exemptions to this new dividend tax, namely:
- Dividends from EPF.
- Dividends from unit trusts under Permodalan Nasional Berhad (PNB), such as Amanah Saham funds.
- Foreign-sourced dividend income
Dividend withholding tax (WHT) vs Malaysia 2% Dividend Tax: What are the differences?
A part where I think many dividend investors might be confused with are the differences between dividend withholding tax (WHT) and the newly introduced 2% dividend tax in Malaysia.
Essentially, the main difference between them is at which stage the dividend is being taxed.
Dividend withholding tax (WHT) | 2% Dividend Tax | |
When is the dividend is taxed? | Withheld and deducted at the company/fund level | Deducted at personal level. |
Action required from investors | No | Yes. Declare & pay while filing personal income tax. |
Tax % for Malaysians | 0% for Malaysian companies (10% for REIT) | 2% |
(i) Dividend Withholding Tax (WHT)
Dividend withholding tax (WHT) is withheld and deducted at the company/fund level. As such, when you receive your dividend from an investment charged with dividend WHT, the tax has already been deducted BEFORE it reaches you.
Simply put, there is no action required from the investor's side as dividend WHT is already settled by the company or fund that you invest in.
- Example: I invest in SCHD, a US-domiciled dividend ETF. As a foreigner, my dividend from SCHD is always deducted by 30% before reaching my brokerage account due to a 30% dividend WHT.
- Note: At the moment, the dividend WHT charged to Malaysians is 0% for dividends received from Malaysian companies (10% for REITs).
- Example: Let's say you invest in Maybank and Maybank declares RM0.30/share in dividends, you will get 100% of the RM0.30/share of dividends.
(ii) 2% Dividend Tax for Malaysians
On the other hand, the new 2% dividend tax is deducted at personal level. This means that Malaysians will need to track their dividend income from local companies, and pay for the 2% dividend tax should they exceed the RM100,000/year mark while filing for their income tax.
The pros & cons of implementing the 2% dividend tax instead of dividend withholding tax (WHT) in Malaysia:
- Pro: This 2% dividend tax is targeted only at Malaysians with an annual dividend of over RM100,000. Meanwhile, a dividend WHT would (generally) cover everyone regardless of the dividend amount.
- Cons: Malaysians will need to track their dividends and declare them for the 2% dividend tax while filing their personal income tax, which is additional work. Meanwhile, dividend WHT is deducted at company/fund level which requires no additional action from investors' side.
My thoughts on the 2% dividend tax
Initial thought: This 2% dividend tax is not going to affect most investors since it takes a sizable amount of capital to hit RM100,000 in annual dividend income.
Allow me to expand further:
- The capital you need to hit RM100,000 in annual dividend income depends on the dividend yield of your portfolio.
- Below, I share the capital required to hit RM100,000 in annual dividend income based on different dividend yield (%) of a portfolio:
Portfolio annual dividend yield | Capital required |
4% | RM2,500,000 |
5% | RM2,000,000 |
6% | RM1,666,667 |
7% | RM1,428,571 |
Simply put, the capital required to achieve RM100,00 in annual dividend income will take time for most people to achieve.
Even at a 7% dividend yield (which is a pretty high yield for an investment portfolio), it takes more than RM1.4m to achieve it.
As such, in my opinion, the 2% dividend tax is not going to affect most people.
However, it'd be too irresponsible for me to end our discussion here.
What if there are serious dividend investors who are looking to live off dividends someday? For these investors, with time, hitting RM100,000 in dividend income is certainly possible.
2 ways to navigate around the 2% dividend tax for Malaysian dividend investors
If you are a serious dividend investor in Malaysia, here are 4 ways I can think of - which could help navigate through this 2% dividend tax:
#1 Consider adding foreign-listed stocks and ETFs to your dividend portfolio
For serious dividend investors, diversifying into foreign-listed stocks or ETFs is one of the most direct ways to navigate around this 2% dividend tax.
Since this 2% dividend tax applies only to dividends received from local private and public listed companies, foreign-listed stocks and ETFs can be a good addition to our dividend portfolio.
Since tax exemption for Foreign-Sourced Income (FSI) is proposed to be extended until 2036 under Budget 2025, it is one way to prevent our dividend income derived from locally-listed stocks from going beyond RM100,000 annually.
Investing in foreign-listed stocks and ETFs: Be mindful of dividend withholding tax (WHT)
Despite that, please note that investing in certain overseas markets may come with dividend withholding tax (WHT).
For instance, there's a 30% dividend WHT on US-listed stocks and ETFs. However, some markets offer attractive dividend WHT, such as 0% for Singapore and Hong Kong-listed stocks.
Click HERE to check out my article on dividend WHT.
#2 Consider transitioning partially or completely to EPF or Amanah Saham funds
Another way Malaysian dividend investors can work around the 2% dividend tax is to diversify, or transition their dividend portfolio - be it partially or fully, to EPF (self-contribution) or Amanah Saham funds once the RM100,000 annual dividend is achieved on their dividend portfolio.
Both dividends from EPF and Amanah Saham funds are excluded from the 2% dividend tax.
- EPF has been paying decent dividends between 5.20% - 6.90% (2016 - 2023).
- Meanwhile, Amanah Saham fixed-price funds such as the Amanah Saham Malaysia (ASM) have been delivering returns between 4.00% - 6.30% (2016 - 2023).
2 minor downsides:
2 downsides I could foresee from this approach are:
- By investing your money for dividends on EPF or Amanah Saham funds, you'll have to give up potential capital gains from stocks, which could be an opportunity cost that would matter to some investors.
- EPF self-contribution has a limit of RM100,00 per year, while Amanah Saham fixed-price funds have limited units - so both EPF and ASNB funds have their respective limitations.
Arguments around the 2% dividend tax in Malaysia
From my research, I found 2 key arguments for the 2% dividend tax which is related to dividend investors:
#1 The argument for double taxation
Right now, Malaysian companies are paying 24% of corporate tax on their net profits before distributing dividends, while dividends are tax-free for shareholders.
However, under Budget 2025, an additional 2% dividend tax is charged on the shareholders' side. Hence, this is debated as an extra layer of tax on top of the 24% corporate tax paid on the companies' side.
#2 Tracking dividends can be complicated for investors with a diversified source of dividend income
For investors/shareholders that generate dividend income from various sources, such as dividends from private companies and those with investments with multiple stock brokers, tracking dividends accurately could be more difficult.
At the moment, there is no easy way for these groups of people to track their dividends except for doing it manually
Verdict: "Should I continue to invest for dividends?"
Despite the introduction of 2% dividend tax for Malaysians, I think it should not deter us from building our passive income from the stock market.
Personally, hitting a level of passive income in life where I have the freedom to:
- Prioritize my family over work when the time comes (eg. having kids, aging parents);
- Say 'No' to projects or work opportunities that do not resonate with me;
- Travel or take time off without having to stress about money or income.
Achieving this level of freedom in life is so important to me that this 2% dividend tax will not bother me too much.
I hope this makes sense! Feel free to leave your questions in the comment section below if you have any!
Disclaimers:
Any of the information above is produced with my own best effort and research.
This post is produced for general information purposes only. It is not intended to constitute professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances.
The inclusion of Interactive Brokersâ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.
Moomoo Malaysia (MY) Review: Almost perfect, with some room for improvements
The highly anticipated Moomoo MY is finally launched in Malaysia in late February 2024, allowing Malaysians to trade the US and Malaysia stock market at a highly competitive fee.
Personally, Iâve been looking forward for Moomoo MY to be launched in Malaysia as they have been offering great pricing for investors in their Singapore counterpart.
So, what is it like to invest through Moomoo MY? How's their pricing/fees like compared to other local brokers?
Letâs find out!
Highlights of Moomoo MY
- Locally-regulated broker: Moomoo MY is regulated by the Securities Commission Malaysia (SC). This ensures that Moomoo MY's operation and business are conducted within the rules set by the authority to protect Malaysian investors.
- Access to US, Singapore, Hong Kong, China, and Malaysia stock markets: Invest in the US, Singapore, Hong Kong, China, and Malaysia stock markets within the moomoo app.
- Best fee structure for Malaysia-regulated brokers: Moomoo MY offers the most competitive fees for the US and Malaysia stock markets among Malaysia-regulated brokers, with 0 commission trading for all moomoo users for the first 180 days.
- Powerful features: Investors of all levels and experience will appreciate the useful features that will alleviate their investing experiences, such as fractional share trading, a powerful stock screener, 24/7 news, Moo community, and more.
- Room for improvements: A rather lackluster Help section in the app, where you would not be able to find answers to many important questions.
How is Moomoo MY regulated + Safety of Funds
In terms of regulation, Moomoo MY (registered under the name Futu Malaysia Sdn. Bhd.) is regulated by the Securities Commission Malaysia (SC), with a Capital Markets Services License to operate a legal brokerage business:
This ensures Moomoo MY is operating under the best practices and guidelines set by the Malaysian authority.
In addition, clients' funds are kept separately from Moomoo MY's finances through a custodian bank account. Moomoo MY will not have access to your funds and assets, ensuring clear transparency to avoid fraud. This also ensures that if something happens to Moomoo MY (eg. Bankruptcy), your funds & assets will not be affected.
Furthermore, Moomoo MY clients' fund is protected by Capital Market Compensation Fund (CMC Fund), where clients can claim up to RM100,000 on eligible Malaysia securities/assets in the unlikely event that Moomoo MY is not able to pay clients due to bankruptcy.
Moomoo MY fees & pricing for the US, Malaysia, and Singapore stock markets
One of the reasons why Moomoo MY took the investing community by storm is its highly competitive pricing for the US, Malaysia, Singapore, Hong Kong, and China stock markets.
For pricing, Moomoo MY charges a commission and platform fee respectively. The great news is, new Moomoo MY users will enjoy 0* commission for the first 180 days:
(a) Moomoo MY pricing for Malaysia stocks, ETFs, REITs, and Warrant:
Moomoo MY pricing for Malaysia stocks, ETFs, REITs, and Warrant | |
Commission | RM0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
Platform Fee | RM3/trade |
(b) Moomoo MY pricing for US stocks, ETFs, and REITs:
Moomoo MY pricing for US stocks, ETFs, and REITs | |
Commission | USD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
Platform Fee | USD0.99/trade |
(c) Moomoo MY pricing for Singapore stocks, ETFs, REITs, Warrants, and DLCs:
Moomoo MY pricing for Singapore stocks, ETFs, REITs, Warrants, and DLCs | |
Commission | SGD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. SGD3/order) |
Platform Fee | 0.05% x Transaction Amount, min. SGD5/order |
(d) Moomoo MY pricing for Hong Kong Stocks & ETFs
Moomoo MY pricing for HK stocks & ETFs | |
Commission | HKD 0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. HKD 3/order) |
Platform Fee | HKD15/order |
(e) Moomoo MY pricing for China Stocks & ETFs
Moomoo MY pricing for China stocks & ETFs | |
Commission | CNH 0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. CNH 3/order) |
Platform Fee | CNH 15/order |
(f) NEW: Moomoo MY pricing for US fractional shares:
May 2024: Fractional share trading for the US market is a newly launched feature by Moomoo MY.
It allows investors to buy and sell shares in fractional units instead of 1 whole unit. Check out the next section ('My Experience' section) as I cover more about fractional trading on Moomoo MY.
Fractional: Trade Size <1 Share | Normal: Trade Size >= 1 Share(s) | |
Commission | Waived | USD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
Platform Fee | 0.99% x Transaction Amount (capped at USD 0.99/trade) | USD0.99/trade |
Moomoo MY pricing vs other locally-regulated brokers:
In my opinion, Moomoo MY pricing structure offers the best value for Malaysian investors compared to the likes of Rakuten Trade and M+ Global:
(i) Moomoo MY vs Rakuten Trade fee comparison for the Malaysia stock market (Promo: First 180 days 0 commission trades for new users):
(ii) Moomoo MY vs Rakuten Trade fee comparison for the Malaysia stock market (after 180 days):
(iii) Moomoo MY vs Rakuten Trade vs M+ Global fee comparison for the US stock market (Promo: First 180 days 0 commission trades for new users):
(iv) Moomoo MY vs Rakuten Trade vs M+ Global fee comparison for the US stock market (After 180 days):
Also, take note of other non-platform trading fees that are NOT charged by Moomoo MY while you trade the stock market:
- Malaysia stock market
- US stock market:
My experience investing via Moomoo MY (Features):
The moomoo app is one of the most well-designed investing apps that I've used, which managed to combine useful features without compromising much on ease of use.
Below are some of my personal favourites while using the moomoo app to invest in stocks:
#1 Real-time US and Malaysia price quotes (or price feed)
Moomoo users will be happy to learn that moomoo offers real-time level 2 US market data for FREE (where you usually have to pay on other trading platforms), as well as FREE level 1 MY market data.
What exactly is Level 2 market data?
Essentially, Level 2 market data allows you to see transaction details (ie. Buy & sell activities) across multiple price levels:
Having level 2 market data is equivalent to having an aerial view of the market. For instance, with Level 2 market data, you can detect in real-time if buyers are buying aggressively (or vice versa) and make better entry decisions.
In short, with level 2 market data, you can get a better gauge of market strength.
#2 NEW: Fractional share trading for the US market on Moomoo MY
Fractional share trading is a newly introduced feature by Moomoo MY. It allows users to invest in a fraction of a share from just $5.00 instead of buying the whole share.
Simply put, fractional share trading makes investing with a small capital much more friendly and flexible.
i. Example: Buy fractional share from just $5.00
1 unit of Apple share is worth $189.73/unit. With fractional share trading on Moomoo MY, I am able to buy 0.03 units of Apple share at $5.6919 ($189.73 x 0.03 units).
ii. Cost of Fractional Trading on Moomoo MY vs Rakuten Trade
At this point, Rakuten Trade is another locally-regulated broker that offers fractional share trading.
Let's compare which is better in terms of cost when it comes to fractional trading:
iii. Conditions for Fractional Trading on Moomoo MY
- Not all US stocks and ETFs support fractional trading. To see if a stock or ETF is eligible for fractional share trading, look for the 'Fractional Share' symbol:
- Only day orders are supported, and attached orders or short selling are not allowed
- The minimum order size for fractional trading is 0.0001 shares on Moomoo MY. For fractional trading buying, the minimum order amount is $5.00.
- Once submitted, the quantity of fractional shares orders is not allowed to be edited
- Whole share orders are not allowed to be changed to fractional shares orders
- Editing the price of a limit order for fractional shares is supported after submission and before the order is fully executed or closed.
#3 Visual information on stocks or ETFs within the app
In terms of app design, the moomoo app is also the best stock investing app I've tried so far which puts financial information into easily understandable visuals & charts.
From revenue breakdown, shareholders, dividends, and more, I can get a clear picture of a stock without having to visit other external websites:
#4 Complete trade order execution features, from basic to advanced executions
Having tried many locally-regulated brokerages, I come to appreciate the different trade order execution features that Moomoo MY is offering to users on the moomoo app.
Aside from the basic market and limit orders, I discovered various order execution features (eg. Stop order, Limit-if-Touched), which makes trade execution more versatile for investors and traders alike, regardless of style.
#5 Powerful screener & 24/7 news update
The stock screener within the moomoo app also impressed me. This screener can be super simple, or as sophisticated as you want.
From fundamental to technical filters, you can filter for stocks based on your preferred criteria:
It is also extremely convenient to get the latest financial news in the moomoo app.
Even better, the news is real-time and updated 24/7, making it easy for you to get in touch with the latest updates of the market and the companies that you are investing in.
#6 Moo community
Within the moomoo app, you'll find a vibrant Moo community, comprised of global moomoo users sharing their thoughts and insights on the market.
Not to mention various live webinars that allow you to keep up with the most happening events in the market:
#7 Earn up to 3.5%* per annum on your cash via Cash Plus (*T&C applies)
As a Moomoo MY client, you can also enjoy a low-risk, competitive return on idle cash when you sign up for moomoo's latest Cash Plus funds.
Benefits of Cash Plus:
- Daily returns: Up to 3.5%* p.a. daily returns even on weekends. (*Based on 1-year past returns on Maybank Retail Money Market-I Fund and United Money Market Fund-Class R as of May 2024).
- Low barrier of entry: Subscribe to Cash Plus from RM0.01. There is no maximum amount on how much you deposit in Cash Plus.
- Flexible: Your Cash Plus deposits can be redeemed for stock trading at any time.
- Zero Fees: All you earn is yours to keep
3 types of Cash Plus funds:
2 of the Cash Plus funds are MYR money market funds, while there is 1 USD cash fund:
This means you have the choice to earn interest/returns in either MYR or USD, neat!
Check out how to subscribe to Cash Plus below!
Explore many more exciting and useful features that moomoo has to offer!
Aside from the features that I mentioned above, there are MANY more useful gems waiting for you and me to discover on moomoo!
Some other useful features include Market Position Overview, 'Concepts', and Short Sale Analysis, which I covered in my Moomoo MY feature review.
Personally, I am always discovering new features as I explore the moomoo app, and I will update this review as I come across features that I really like!
What I wish could be improved
From my time using the moomoo app, there are a few things that I wish could be improved:
#1 Lackluster 'Help section'
As an online stock investing platform, I find the 'Help' section of moomoo's app to be lacking in important information compared to other competitors.
Simply put, I couldn't find answers to many commonly asked questions, such as:
Are there fees to corporate action, such as Dividend Reinvestment Plan (DRIP) and rights issue? What to do if I want to subscribe to corporate action?
How is Moomoo MY regulated? Who/which bank is the custodian bank that Moomoo MY has appointed to hold customers' funds?
Is Moomoo MY a nominee or direct CDS account for investing in the Malaysia stock market?
Can I apply for an IPO? If yes, how?
Can I apply to join an AGM? If yes, how?
As such, from my time using moomoo, I find myself reaching out to Moomoo MY's customer support for help - which is a mixed-bag experience on its own - more in the next point.
#2 My experience with Moomoo MY's customer support is rather hit-or-miss
Thanks to a half-baked 'Help' section, I spent a fair amount of time reaching out to Moomoo MY's 24/5 customer support for help and clarification.
Moomoo MY offers 3 channels for users to reach out for help, namely: Livechat, Phone support (03-9212 0708), and email ([email protected]).
What I appreciate about Moomoo MY customer support:
- Multiple channels to reach out for help.
- 24-hour support for live chat and phone support on working days.
- Simple questions that require standard answers are addressed quickly.
What I wish could be better with Moomoo MY customer support:
- As an existing Moomoo SG and Moomoo MY user, I am always directed to Moomoo SG chat agent before I am redirected to Moomoo MY support, where I'll need to readdress my questions. I wish Moomoo could streamline the system for both Moomoo MY and Moomoo SG users so it is easier for us to get help.
- I also faced a difficult time trying to get answers to certain questions, such as which exact custody bank/trust is Moomoo MY using to store clients' assets (eg. funds, stocks).
As a whole, as an online investing/trading platform, I wish to see more improvements in Moomoo MY's Help section and customer support, as they are the only way users can seek assistance when they need help.
Regardless, since Moomoo MY is still relatively new to the local market, I shall revisit their Help section and customer support in the coming months and see if there are any improvements.
Verdict: Moomoo MY is providing the best value for money for Malaysia investors
The launch of Moomoo MY in Malaysia has certainly disrupted the brokerage industry with its attractive pricing & fee offering, coupled with a featureful investing platform.
Now, it is even more affordable for Malaysians to get access to the US, Singapore, and Malaysia stock markets thanks to Moomoo MY.
Despite missing a few features and a slightly lackluster customer support (which I think could be improved with time), I think all these are not dealbreakers for me to recommend Malaysians to give Moomoo MY a try.
Step-by-step: How to open a Moomoo MY universal account & make your deposit
Opening a Moomoo MY universal account is one of the smoothest I've experienced among all the other investing platforms I've tried.
Step 1: Use my referral link HERE to open your Moomoo MY universal account, where you'll get to enjoy various account-opening perks.
Step 2: Fill in your personal details
Step 3: Verify your identity through your IC
Step 4: Provide your tax information, including your Tax Identification Number (TIN) (ie. LHDN number).
Alternatively, if you do not have a TIN number (eg. you are a student), you can enter your IC accordingly.
Step 5: Enter your employment details and financial information:
Step 6: You'll be required to scan your face for verification purposes.
Step 7: Read through the Customer's Declaration and proceed should there be no issue
Step 8: If the application goes smoothly, your account should be approved within 1 - 3 business days. At the same time, you'll also receive an email once your account is approved.
Step 9: Head over to 'Account' > 'More' > 'Deposit' to get instructions on how to make your deposit.
Essentially, the deposit process can be done through (i) FPX transfer (recommended, as deposit is usually done within 5 minutes) or (ii) Bank transfer.
As for deposit via (ii) Bank transfer, log in to your bank account and make the transfer to the Moomoo MY bank details as shown to you.
[Reminder] Remember to claim your account-opening perks! (Under 'Me' > 'Promotion' > Click to redeem your account opening and deposit reward)
Moomoo MY FAQ (Answers extracted directly from customer support)
Ques: Can I attend AGM for the MY and US stocks that I invest in?
Answer: AGM for US stocks: Moomoo MY does not currently support US Shareholders Meeting
AGM for MY stocks: If you want to attend the MY Shareholders Meeting, kindly drop Moomoo MY an email at least 10 business days before the Shareholders Meeting date at [email protected], the email needs to include: 1. A description of the content: Live voting or E-voting. 2. Your Name, Moomoo ID, Contact Number, and Stock code for the meeting. 3. The address of current status quo residence. (in English) Upon receiving your email, Moomoo MY will reply to you with any details.
Ques: I am an existing Moomoo SG user, can I still use my Moomoo SG universal account after opening my Moomoo MY universal account?
Answer: Moomoo MY and Moomoo SG are two different independent brokerage, will not affect each others
Ques: Any fees for corporate actions like DRIP, and rights issue?
Answer: Moomoo MY does not charge any processing fees for corporate actions of stocks (except for handling General Meeting matters). However, any third-party/exchange charges are still applicable to client.
Ques: Is Moomoo MY a nominee or direct CDS account for investing in Malaysia stocks?
Answer: Nominee CDS account
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Futu Malaysia Sdn. Bhd. ("Moomoo MY"). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
How to research for quality Malaysia REITs? My top 5 steps, revealed! (via moomoo app)
Real Estate Investment Trusts (REITs) are companies that own income-producing real estates, such as shopping malls, offices, warehouses, and hospitals.
In Malaysia, publicly-listed REITs have been well-received among dividend investors thanks to REITs' tendency to pay a competitive dividend yield:
As a dividend investor, Malaysia-listed Real Estate Investment Trusts (REITs), such as IGB REIT and Axis REIT make up an important portion of my Freedom Fund portfolio:
In this post, let me walk you through 5 key steps on how I use the handy features within the moomoo app to research for REIT!
RELATED POSTS:
[đ p.s. Exclusive 2x RM20 cash coupons for No Money Lah readers! Use promo code 'NML01' when depositing to claim your exclusive reward. Refer to 'Account Opening & Deposit Promotion' section of this article to find out more!]
My 5-step approach to REIT research (via moomoo app)
Personally, if I were to start from zero, I'd generally start my research from a top-down approach with a few key questions:
- Entire sector: How is the REIT sector doing compared to other sectors?
- Within the sector: Which REIT is the top-performing Malaysia REIT?
- REIT vs REIT: How is a particular REIT doing compared to another?
- Individual REIT study: How good/bad are the fundamentals of the REIT?
- Is a REIT overvalued/fairly valued/undervalued?
For that, I find the suite of features within the moomoo app very handy in my research.
Moomoo MY offers beginner-friendly stock research tools
The features & tools on the moomoo app are also very beginner-friendly, as there are easy-to-understand explanations for the financial terms & indicators in the app:
Step 1: How is the REIT sector doing compared to other sectors?
**Before we start, it is important to note that the tools & features that I show below can be used for stocks from other sectors as well.**
To begin, open the moomoo app, select 'Markets' and select 'MY' which indicates the Malaysia stock market:
Feature #1: Heat Map
With the Heat Map feature in the moomoo app, I can see how, as a whole, the REIT sector performs relative to stocks from other sectors in Malaysia.
- Step i: Select Heat Map, and change the view to list view.
- Step ii: Under 'Filter', select 'YTD' which will show us the Year-to-Date performances of each sector:
- Step iii: Sort the performance from highest to lowest:
From this, we can see that the entire REIT sector has been showing a positive Year-to-Date (YTD) performance of 11.62% in 2024:
Step 2: Which REIT is the top-performing REIT?
Next, I'd also like to find out which REIT is the top-performing REIT Year-to-Date.
Feature #2: Compilation of stocks within the same sector
To do so, select 'Real Estate Investment Trusts' from the Heat Map:
- Sort 'YTD' from largest to lowest to view the best-performing REIT year-to-date (YTD).
As of the time of writing this article (Sept 2024), REITs like Pavilion REIT (+26.58%), and IGB REIT (+24.64%) have been outperforming the return of the entire REIT sector (11.62%) year-to-date.
- Sort 'Market Cap' from largest to lowest to view the largest REIT by market capitalization.
Generally, companies with a larger market cap tend to be more established relative to companies with a smaller market cap.
Step 3: REIT vs REIT: How is a particular REIT compared to another?
Want to compare which REIT is better in terms of their dividend yield, and other fundamentals like Earnings Per Share (EPS) and Net Margin?
'Compare' is a powerful feature in the moomoo app that allows me to compare up to 7 stocks side-by-side.
Under 'Compare', I can have all important insights of multiple companies at a glance, such as Dividend Yield, financial indicators, and valuation indicators.
Feature #3: Side-by-side stock comparison
- Step i: Start by selecting a REIT that you'd like to compare. For this demonstration, I'll be selecting IGB REIT.
- Step ii: Select the 3-dot button at the bottom right to activate the expanded menu. Next, select 'Compare'.
- Step iii: Use the '+' icon to add up to 6 other REITs for comparison. For this example, I'll add Pavilion REIT (PAVREIT) and Atrium REIT.
We can get many important insights from the 'Compare' feature. Some key insights that I look for include:
- Price trend comparison over different timeframe (1/3/6-month, 1 & 3-year, and YTD performances)
With this, I can compare the performance of all 3 REITs from a shorter time frame, or even for the past few years.
From a 3-year price trend timeframe, IGB REIT is the top performer among all 3 REITs.
- Dividend yield TTM (Trailing 12-month)
Dividend yield TTM indicates the dividend yield (%) after taking into account of the distribution for the past 12 months.
Atrium REIT comes out top in terms of yield (5.76%), follow by IGB REIT (5.17%) and PAVREIT (3.78%).
- Valuation indicators like Earning-Per-Share (EPS)
EPS measures a company's profitability per unit of the company's outstanding shares.
Generally, a high EPS indicates greater value because investors tend to pay more for a company's shares if they think the company has higher profits relative to its share price.
IGB REIT comes top with the highest EPS among 3 REITs.
- Financial indicators like Return of Equity (ROE), Net Margin, Debt to Asset, Current Ratio
On it's own, financial indicators may not mean much, but there are many insights that we can gather by comparing companies side-by-side.
- To start with, among 3 REITs, IGB REIT has the highest Return on Equity (ROE), which signals that IGB REIT uses its shareholder's equity more efficiently to generate income.
- Next, IGB REIT also has the highest Net Margin, which means it is making the most in terms of net profit per dollar of revenue gained.
- IGB REIT also has lowest Debt to Asset, which indicates that only 26.66% of the assets own by IGB REIT is financed by debt, with the rest owned by shareholders.
- Finally, IGB REIT has the highest Current Ratio of 1.16. A current ratio 1.16 means that IGB REIT has 1.16x more in current assets (eg. cash, short-term receivables), which is enough (>1.0) to cover its short term liabilities (short-term debt).
Step 4: Individual REIT study
In Step 3, we've compared REITs side-by-side. Let's look at how we can use features within the moomoo app to conduct research on an individual REIT.
For this study, let's use IGB REIT, which has displayed an overall competitive dividend yield and decent financial health in Step 3.
Feature #4: Stock insights within the moomoo app
Start by searching for IGB REIT in the moomoo app. Then, select 'Company'
A few key insights that I'll normally look at are:
- ďź1) Dividend payout consistency or Dividend growth
As a dividend investor, I prefer REITs with a consistent dividend payout, even better are those with a track record of growing their dividends.
With IGB REIT, it has raised its dividend per share (DPS) for the past 2 years since recovering from the pandemic in 2021:
- (2) Company overview
It is also important to know what does a company do while doing a research.
IGB REIT manages 2 retail malls in Klang Valley, namely Mid Valley Megamall and The Gardens Mall.
- (3) Financial strength
Finally, I like to dive into the financials of a REIT. For this, I sort the financials on an 'Annual' basis:
(i) EPS: IGB REIT has been showing strong earnings recovery after the pandemic, which is encouraging for a REIT managing retail malls.
(ii) Net margin: IGB REIT has also shown an increase in net margin post-pandemic, indicating rising profitability.
Step 5: Is a REIT overvalued or undervalued?
To find out if a REIT is overvalued, fairly valued, or undervalued, I usually like to compare its share price to Net Asset Value (NAV) Per Unit:
- NAV Per Unit= (Total Asset - Total Liabilities)/Shares outstanding
In general:
- REIT share price > 3x NAV Per Unit = Overvalued
- REIT share price > NAV Per Unit, but <3x NAV Per Unit = Fairly valued
- REIT share price < NAV Per Unit = Undervalued
How to get NAV on moomoo app?
Let's find out if IGB REIT is over or undervalued:
- Step (i): Find out the total shares for a REIT.
- Step (ii): Deduct Total Assets and Total Liabilities to get Net Asset
Using the latest quarter (Q2 2024) available as reference, IGB REIT has a total assets of RM5.5B and total liabilities of RM1.47B.
Hence, the latest Net Asset Value (NAV) of IGB REIT is RM4.03B.
- Step (iii): Calculate Net Asset Value (NAV) per unit
NAV Per Unit of IGB REIT = NAV/Shares outstanding = RM4.03B/3.61B = RM1.11/unit
As of 10/9/2024, IGB REIT's share price is RM2.04. This makes the share price larger than IGB REIT's NAV per unit of RM1.11 (Price > NAV Per Unit), BUT lower than 3x NAV Per Unit of RM3.33 (Price < 3x NAV Per Unit).
Hence, we can conclude that IGB REIT is currently fairly valued and we can make our investing decision accordingly.
Quick Guide: How to buy your first stock via moomoo app
Looking to place your first stock, REIT, or ETF trade on the moomoo app?
Here's a quick guide on how to place your trade:
- Step (i): Search for the stock that you'd like to buy, and select 'Trade'.
- Step (ii): Choose the order type for your trade. The moomoo app has a suite of basic to advanced order types, alongside the explanation of how each works.
- Step (iii): Select your trade quantity.
- Step (iv): Review the amount needed for the trade. Ensure you have enough cash to place your trade under 'Max Qty to Buy (Cash)', or enough buying power if you trade on margin under 'Max Qty to Buy (Margin)'.
- Step (v): Proceed to place your trade by clicking the 'Buy' button.
Verdict: Make stock research a breeze with the powerful tools & features in the moomoo app!
Having used Moomoo MY since its launch in early 2024, I find the moomoo app to be one of the most feature-packed, yet user-friendly investing platform that I've used so far.
I hope this walkthrough of my REIT research showcase inspires you to explore the features in the moomoo app to improve your investment research process!
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (âMoomoo MYâ). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
Moomoo MY Cash Plus Review: How I earn competitive interest on my idle cash!
Since the launch of Moomoo MY in Malaysia in early 2024, they have grown to be one of the top stock investing platforms in Malaysia.
In my initial review during the launch, the lack of ability to earn interest on idle cash was one of my criticisms towards Moomoo MY.
However, with the launch of Cash Plus, things have now changed. As a Moomoo MY client, you can now enjoy a low-risk, competitive return on your idle cash when you sign up for moomooâs Cash Plus funds!
In this post, let's dive deeper into Cash Plus and look at what Cash Plus has to offer!
RELATED POST:
What is Cash Plus?
Cash Plus is a suite of money market and cash funds offered to Moomoo MY users which invest in high-security monetary instruments, such as government short-term bonds and banks' fixed deposits (FD).
Thanks to this, the funds offered by Cash Plus are low-risk options for investors looking to:
- Earn interest on their idle cash while waiting for the next investment opportunity, or;
- Simply saving towards a financial goal in life.
For me, Cash Plus is also a flexible alternative to traditional Fixed Deposits (FDs), where my deposits are locked in for a fixed period with a penalty usually imposed for early withdrawal.
Moomoo MY Cash Plus Benefits
Having used Cash Plus for a period of time, these are what I like about Cash Plus:
#1 Earn daily returns:
By using Cash Plus, you get to enjoy up to 3.5% p.a.* in daily returns. This daily return is applicable even during the weekends.
This is competitive compared to traditional Fixed Deposit rates from banks, especially considering that they come with lock-in period.
*Based on 1-year past returns on Maybank Retail Money Market-I Fund and United Money Market Fund-Class R as of May 2024.
#2 Low barrier of entry:
It is also easy to get started with Cash Plus. All funds in Cash Plus can be subscribed from RM0.01 for MYR money market funds or USD0.01 for USD cash fund.
There is no maximum amount on how much you deposit in Cash Plus.
#3 Swift deposit & withdrawal
With Cash Plus, you are able to make your deposit and withdrawal swiftly, without the typical lock-in period compared to traditional banks' FD:
Deposit time for Cash Plus funds:
United Money Market Fund - Class R | Maybank Retail Money Market I-Fund | United USD Cash Fund - Class R | |
Subscription Cut-off time | 12:00pm | 12:00pm | 9:00am |
Unit confirmed | Within the same trading day (T+0) | Within the same trading day (T+0) | Within the next 2 trading day (T+2) |
Return posted | The next trading day (T+1) | The next trading day (T+1) | The next 3 trading days (T+3) |
Redemption time for Cash Plus funds:
United Money Market Fund - Class R | Maybank Retail Money Market I-Fund | United USD Cash Fund - Class R | |
Redemption Cut-off time | 12:00pm | 12:00pm | 9:00am |
Unit confirmed | - | T+0 | T+2 |
Redeemed amount | T+1 (Before 8pm) | T+1 | T+3 |
#4 Flexibility to redeem MYR money market funds for trading anytime
Even better, with Cash Plus, you can redeem your deposits on MYR money market funds for stock trading at any time, without having to wait for the withdrawal to be completed.
This makes it easy to keep your idle cash in the moomoo app working to generate returns for you at all times until you need it for trading purposes.
Meanwhile, deposits in USD Cash Plus fund can only be traded after redemption is completed.
#5 Zero fees + Shariah-compliant fund
In addition, there is also zero fees charged by Moomoo MY for Cash Plus. In other words, all you earn is yours to keep.
For Muslim investors, there is also a shariah compliant MYR money market fund, namely the Maybank Retail Money Market-I Fund that is available to be subscribed by Malaysian Muslims.
3 types of Cash Plus funds
There are 3 funds under Cash Plus. 2 of them are MYR money market funds, and one of them is a USD cash fund:
(A) Cash Plus MYR Money Market Funds
There are 2 MYR money market funds, namely United Money Market Fund-Class R, and Maybank Retail Money Market I-Fund.
United Money Market Fund-Class R | Maybank Retail Money Market I-Fund | |
Currency | MYR | MYR |
Asset Manager | UOB | Maybank |
1-Year Return (as of 5/9/2024) | 3.61% | 3.59% |
Shariah-Compliant | No | Yes |
Subscription & Redemption fee | No | No |
As a whole, the 1-year return from both MYR money market funds is almost similar. The biggest differentiator for most users would be the Shariah compliance of the funds.
For Muslim investors who seek to invest in Shariah-compliant funds, the Maybank Retail Money Market I-Fund would be the go-to choice.
A major benefit of using Cash Plus MYR Money Market Funds over the USD Cash Fund is the ability to redeem the funds anytime, and even if the funds have not yet arrived, they can be used for trading within the moomoo app.
(B) USD Cash Fund
Aside from MYR money market funds, there is also a USD cash fund to choose from, namely the United USD Cash Fund - Class R:
United USD Cash Fund - Class R | |
Currency | USD |
Asset Manager | UOB |
7-day Yield (as of 5/9/2024) | 5.0765% |
Shariah-Compliant | No |
Subscription & Redemption fee | No |
United USD Cash Fund - Class R allows investors to gain exposure and earn interest in USD.
The only thing is that unlike MYR money market funds above, I can only use my USD funds for trading once the redemption is complete.
Is Cash Plus safe to use?
- Regulated by Securities Commission Malaysia (SC)
When it comes to regulation, Moomoo MY (registered under the name Moomoo Securities Malaysia Sdn. Bhd.) is regulated by the Securities Commission Malaysia (SC). This ensures that Moomoo MY is always operating in Malaysia as per the guidelines from the local authority.
- CMC Fund Protection
If Moomoo Securities Malaysia Sdn. Bhd. goes bankrupt and you are unable to withdraw your funds, you are eligible to claim up to RM100,000 in compensation from the Capital Market Compensation Fund ("CMC Fund").
Market Risk of Investing in Cash Plus
While being a relatively stable investment, investing in money market fund via Cash Plus still presents exposure to market risk.
One such risk is the fluctuation in interest rates. As an example, if Bank Negara Malaysia (BNM) increases interest rates, MYR money market funds are likely going to generate higher returns. On the flip side, if BNM reduces interest rates, itâll also affect the returns of money market funds as a result.
Is Cash Plus for you?
Personally, I like the fact that there are both MYR and USD versions of funds available in Cash Plus.
Quick deposit & withdrawal, alongside the ability to access the money in my MYR money market funds for trading purposes, make Cash Plus one of the most versatile cash management solutions that I've used so far.
That said, is Cash Plus for you?
To answer this question, it is best to first know what Cash Plus is NOT:
- Cash Plus does not invest in stocks/equities (ie. Higher risk assets). Hence, do not expect stocks/mutual fund/robo-advisors-like returns.
- Cash Plus does not guarantee returns. Even though it invests in low-risk instruments, returns are still subjected to market fluctuation.
Hence, in my opinion, Cash Plus is great for:
- People with extra cash looking for the next investment opportunity, but wish to earn a stable return in the meantime.
- People looking for a flexible alternative to FD & typical savings account for general savings.
- People looking to save for a specific goal (eg. house, car, wedding).
- People with extra cash and want to save it for the short-term.
đ Limited-Time Cash Plus Reward (ending 31/12/2024)
Enjoy the 5% p.a. guaranteed return on Moomoo Cash Plus - applicable to the first subscribed fund, limited to RM10,000 in fund holding.
- Minimum subscription of RM0.01, up to RM10,000.
- 5% p.a. guaranteed return is valid for 30 days.
The subsidy (i.e., the difference between the 5% p.a. and the fund's base return) will be issued in the form of cash coupons to your Moomoo MY Universal Account within 7 working days after the 30-day period ends.
Check out how to subscribe to Cash Plus below!
How to subscribe to Cash Plus?
Step 1: Before subscribing to Cash Plus, you will need to first have a Moomoo MY universal account. Click on the button below to open your account:
Step 2: Within the moomoo app, select 'Account', then choose 'Cash Plus'.
Step 3: Select the specific money market fund in Cash Plus that you'd like to invest in, and click 'Subscribe' at the bottom of the fund details page.
Next, insert the amount that you'd like to invest, read and agree to the relevant agreement documents, and click 'Confirm'.
Step 4: After confirming the purchase information, enter your transaction password to complete the subscription to Cash Plus.
Verdict: Use Cash Plus to earn competitive interest on your idle cash!
Moomoo MY is one of the most complete trading platform in Malaysia and the introduction of Cash Plus certainly makes it more versatile and complete.
Are you going to subscribe to Cash Plus? Which funds will be you choosing? Feel free to share with me in the comment section below!
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (âMoomoo MYâ). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
Rakuten Trade US Stock Trading Review: Great for investors, NOPE for traders
In the past, investing in the US stock market via Malaysia-regulated brokers has always been complex and expensive.
This caused many investors to opt for overseas brokers to invest in the US market. However, all this changed when Rakuten Trade launched their much-anticipated US stock trading service.
So, is it good?
Right off the bat, I'd say Rakuten Trade is one of the best local brokers for Malaysian investors to invest in the US market. HOWEVER, I do not recommend it for active traders.
Intrigued to know why? Wonder if you should use Rakuten Trade to access the US stock market? Letâs find out in this full review!
RELATED POST:
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Highlights of Rakuten Trade US Stock Trading
- Affordable fees: Rakuten Trade now allows users to invest in the US market in either MYR or USD, with commissions from as low as RM1 (MYR trading) or USD1.88 â USD25 (USD trading). This is one of the lowest among Malaysia-regulated platforms.
- RM1/USD0.20 flat brokerage: For newly-activated foreign trading accounts, Rakuten Trade is now offering a RM1/USD0.20 flat brokerage for up to 3 months - making it more affordable to trade the US market!
- Powerful features: Rakuten Trade users get perks such as Fractional share trading, FREE live datafeed, and a transparent conversion rate while investing in the US market.
- Access to 3 major markets: Trade the Bursa Malaysia, US, and Hong Kong stock market with Rakuten Trade!
- Room for improvements: No short-selling, no margin trading, and a lack of order execution feature (eg. Market order) means there is room for improvements for Rakuten Trade.
- In short, Rakuten Trade is a great option for investors looking to access the US market at an affordable price. That said, active traders may find the lack of certain features restrictive.
Rakuten Trade US stock trading fees
Letâs start by addressing the elephant in the room: Is Rakuten Tradeâs fee affordable?
For this, it is helpful to know that there are 3 kinds of regulated brokers in Malaysia offering access to overseas market, namely:
- Traditional investment banks that offer expensive brokerage fees, usually too shy to display their fees transparently on their website. (eg. Maybank)
- Dedicated brokers trying to disrupt the local brokerage scene with âaffordableâ fees. Unfortunately, they are still far from affordable, especially for investors with small capital. (eg. FSMOne)
- Lastly, we have Rakuten Trade which offers a fee structure that is actually sensible for Malaysian investors to access the US stock market.
NEW: RM1/USD0.20* flat brokerage fee for newly-activated accounts (5/8/2024 - 31/12/2025)
In August 2024, Rakuten Trade introduced an RM1/USD0.20 flat brokerage fee promotion for up to 3 months for users who activate their new foreign trading accounts. (*T&C applies)
This makes trading the US market on Rakuten Trade one of the lowest among locally-regulated brokers:
Trade Value (USD) | Rakuten Trade (MYR Trading) | Rakuten Trade (USD Trading) |
$100 | RM1.00 | $0.20 |
$1000 | RM1.00 | $0.20 |
$10,000 | RM1.00 | $0.20 |
$100,000 | RM1.00 | $0.20 |
Rakuten Trade Brokerage for US market
Even without any promotion, Rakuten Trade offers a brokerage fee from as low as RM1/trade. This makes it very fee-friendly to trade with a small amount on Rakuten Trade.
Well, just check out the comparison table below between Rakuten Trade, M+ Global, FSMOne, and Maybank - and decide for yourself:
Rakuten Trade (Trading with MYR) | M+ Global | FSMOne | Maybank |
1% of Trade Value (min. RM1): <RM699.99 | 0.1% of Trade Value, or Min. USD3.00 | 0.08% of Trade Value or Min. USD3.80 |
Flat USD 25 (Transaction < USD6,250) |
RM9: RM700 - RM9999.99 | 0.4% (Transaction > USD6,250) | ||
0.10%: RM10k - RM99,999.99 | |||
RM100: RM100k & above | |||
Rakuten Trade (Trading with USD) | |||
0.1% of Trading value, or min. of USD1.88 - USD25 |
Comparing in trading value (RM) side-by-side, this is how much platform fee youâll be paying using each Malaysia-regulated platform to buy US shares:
Trade Value | Rakuten Trade (MYR trading/USD trading) |
M+ Global | FSMOne | Maybank |
RM200 | RM2/USD1.88 | USD3.00 | USD3.80 | USD25 |
RM1,000 | RM9/USD1.88 | USD3.00 | USD3.80 | USD25 |
RM5,000 | RM9/USD1.88 | USD3.00 | USD3.80 | USD25 |
RM10,000 | RM10/~USD2.25 | USD3.00 | USD3.80 | USD25 |
As you can see, for most scenarios, Rakuten Trade offers a more flexible and affordable fee structure for investors without incurring heavy commissions.
Personally, I think Rakuten Tradeâs fee structure is game-changing among local brokers.
Now, investors can access the US stock market via a Malaysia-regulated broker at a fraction of the cost, especially for beginner investors with small capital.
Trading experience (Features)
#1 User-friendly interface
Rakuten Trade built their US stock trading service on top of their existing trading platform. As a long-time user, I think this is good news because Rakuten Tradeâs platform is really simple to use.
Either from Rakuten Tradeâs website or iSpeed app, you can switch between Malaysia and US markets easily.
#2 FREE Live Datafeed (*scroll down further for an important update)
Another plus point with Rakuten Trade is all US stock prices are quoted live (ie. Real-Time) on Rakuten Trade.
For many platforms, youâll usually have to pay for live data, else youâll only receive a 15-mins delayed datafeed. This is the case for MIDF Invest, another Malaysia-regulated broker that offers US stock trading.
Hence, itâs great to see Rakuten Trade offering free live datafeed for users. This means that the price displayed for a stock will always be at-the-moment stock price.
*Update 31/3/2023: Subscribe to continue to get FREE live datafeed for US stock market!
Starting April 2023, users that wish to get access to FREE real-time US stocks datafeed will have to subscribe for it at Dashboard -> Setting -> 'Apply for real-time US datafeed'.
Thereafter, you will continue to enjoy FREE real-time US stocks datafeed - just remember to resubscribe every year!
#3: Buy US stocks in MYR or USD â your choice!
Newly launched in August 2022, Rakuten Trade users can now store USD in their Rakuten Trade account.
This allows users the flexibility to trade US stocks and ETFs with either MYR or USD.
Furthermore, users also have the choice to receive USD or MYR when selling their US stocks.
Related Post: When to buy US stocks in MYR, and when to buy in USD?
#4 Live Conversion + Tight MYR-USD Exchange Rate
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.
#5 NEW: Fractional Trading for US market
Starting May 2023, Rakuten Trade launched its Fractional Share Trading for US stocks and ETFs.
With fractional trading, Malaysians can buy US shares from 0.01 units instead of the full unit, while selling shares at 0.0001 units. This is a much-awaited feature and itâs great to see it landed on Rakuten Trade.
READ MORE: How to buy fractional shares with Rakuten Trade
3 Areas of Improvement & why this might not be for active traders
With the launch of US stock trading service, Rakuten Trade is set to disrupt the Malaysia brokerage scene.
That said, I think there are some areas of improvement for Rakuten Trade. Below are 5 key areas that I think Rakuten Trade should strive to improve on to serve users better:
(a) Lack of basic order execution features
One thing that I found lacking while using Rakuten Trade to trade US stocks is the missing of (basic) order execution features such as Market Order.
Unfortunately, the only execution option on Rakuten Trade is Limit Order.
- Market Order is an execution feature that allows investors to buy or sell shares at the immediate best price. As such, it is available in most stock trading platforms that Iâve used in the past (even Rakuten Tradeâs own Bursa trading)
- Limit Order allows investors to line up their orders to buy or sell shares at a specific price or better.
While this may not be a huge issue for most long-term investors, a lack of Market Order execution may turn off some investors who prefer not to wait for their orders to be matched, or day-traders that require immediate market execution.
Iâve reached out to Rakuten Tradeâs team on this matter, and it seems like there is no plan to add execution features like Market Order on their US stock trading service for the time being.
(b) Limited stocks to trade (but itâs improving!)
Secondly, despite offering access to the US market, Rakuten Trade does not actually offer all of the stocks listed in the US market.
That said, Rakuten Trade has been gradually adding new US stocks and ETFs since their launch. As of July 2023, Rakuten Trade offers about 920+ stocks, 25+ ADRs & 240+ ETFs listed on the NYSE and Nasdaq exchanges.
While you may trade the most well-known US stocks (eg. Apple, Tesla, Microsoft) and ETFs (eg. VOO, VTI) tradable on Rakuten Trade, there are some other US stocks that you may not find on Rakuten Trade.
As an example, as a REIT enthusiast, I have no access to stocks like Innovative Industrial Properties Inc (IIPR), which is a bummer.
[Note]: If you have a stock that you want to trade on Rakuten Trade, you can email your request to Rakuten Trade on the matter.
(c) No short selling and margin trading
Short selling and trading with margin are not available on Rakuten Trade too.
Essentially, this means that the only direction that you can execute on Rakuten Trade is for a stock to go up in price.
Also, you are only able to trade US stocks with the cash that you have in your Rakuten Trade account without access to margin facilities.
While this may turn off some stock traders, it shouldnât be an issue for most long-term investors.
Regardless, having all these features will certainly help Rakuten Trade serve the needs of different retail participants in the market.
Who should use Rakuten Trade to trade US stocks?
While imperfect, Rakuten Trade has offered something that all local brokers failed to do: Access to the US stock market at a truly affordable fee via a Malaysia-regulated platform.
In my opinion, Rakuten Trade is a great option if you are:
- Seeking for a Malaysia-regulated broker to invest in the US stock market.
- Looking to access the US market at a truly affordable fee.
- Looking for a user-friendly platform to invest in the US stock market.
At the same time, it may not suit people who are:
- Active day traders that require market execution (instead of limit order) or more advanced execution features.
- Traders that need access to margin and the ability to short-sell stocks.
- Investors or traders that want exposure to more exotic stocks that are not within Rakuten Tradeâs list of tradable stocks.
In short, unless you are an active trader, chances are youâll like what Rakuten Trade has to offer.
Summary: Is Rakuten Trade a good platform to invest in the US market?
As a whole, Rakuten Trade has offered Malaysians a game-changing manner to invest in the US stock market via a locally-regulated broker.
An affordable fee structure, user-friendly interface, and transparent conversion rate should convince many investors to forgo the need to open a foreign brokerage account (and experience all the hassle of funding & withdrawals).
Unless you are an active day trader or you require access to less familiar stocks, I am sure youâll be happy with what Rakuten Trade has to offer.
If you are keen to open a Rakuten Trade account, consider using my referral link by clicking on the button below!
Open A Rakuten Trade Account Today!
How to sign up to trade US stocks via Rakuten Trade
(A) How to sign up for US stock trading if you are new to Rakuten Trade:
Step 1: Sign up for Cash upfront account
If you are new, youâll have to sign up for a Rakuten Trade Cash Upfront account.
Consider using my Rakuten Trade referral link by clicking the button below, and youâll get 1000 RT points (RM10) which can be used to offset your brokerage fee!
Open A Rakuten Trade Account Today!
If you need help, click HERE for my step-by-step guide to open a Rakuten Trade account.
Step 2: Get your Rakuten Trade account within 2 working hours
Your Rakuten Trade account will be activated within 2 working hours.
Step 3: Log in to your Rakuten Trade account and apply for Foreign Stock Trading
Log in to your Rakuten Trade account either via the website or Rakuten Tradeâs iSpeed app. You can locate the Foreign Trading activation button easily within the Rakuten Trade platform.
Step 4: Submit your application for US stock trading
Spend 1 minute to share some info required to trade the US stock market. Then, submit your application.
Step 5: Your Foreign Trading account will be enabled within 2-3 working days
(B) How to sign up for foreign trading if you are an existing Rakuten Trade user:
If you are an existing Rakuten Trade user, just follow Step 3 to Step 5 above and youâll be good to go!
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. 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.
Guide: How to make your first trade on Interactive Brokers (IBKR)
Interactive Brokers (IBKR) is my go-to platform to invest in the US stock market, as well as accessing other markets such as the London and Canadian stock market.
In this guide, letâs go through 2 of my favourite ways on how to make your first trade on IBKR, either via IBKR's Client Portal or IBKR Mobile!
USEFUL IBKR TIPS & GUIDE:
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p.s. A word to fellow readers:
Dear friends, if you find this post helpful, I'd appreciate it if you can click on the button below to learn about IBKR via IBKR's official site.
Doing so will help the earn the blog a small fee at no extra cost to you.
This will help supporting the blog in creating more useful content - thanks in advance my friends!
Before you start: Fund your IBKR account
Make sure you have funded your Interactive Brokers (IBKR) account before placing your trades.
Check out my IBKR funding guide HERE.
#1 Placing trades via IBKR Client Portal
IBKR Client Portal is my favorite way to buy stocks/ETFs on IBKR as it is the most straightforward approach in my opinion.
Step 1: Log in to your IBKR Client Portal
Click HERE to log in to your IBKR Client Portal.
Step 2: Search for your stock/ETF
At the search bar, search for the stocks or ETFs that you want to invest in:
As an example, let's say I am looking to invest in the share of Apple.
Step 3: Next, click on the 'Buy' button.
Step 4: Determine your order type
Within IBKR, there are a few order types available for investors to choose from while executing trades. Check out the bottom section of this post where I explain more about the different order types on IBKR.
For this example, let's say I want to set a buy limit order for Apple shares at $180.00. Meaning, instead of trying to buy Apple shares at its market price, I am lining up to buy the share when the price drops to $180.00.
Buying via limit order indicates that I may miss my entry IF the price goes up and never pulls back to $180.00, but I will get a better price if it does pull back to my desired price level.
Step 5: Determine the number of units of shares to buy, OR simply key in the amount to invest in:
- 5a: Determine the number of shares you want to buy, and you'll be shown the amount required for you to buy the shares. In this case, buying 100 Apple shares at my limit price of $180.00 will require about $18,000 on my end (before commission).
- 5b: Alternatively, you can key in the amount you want to invest in, and you'll be shown the number of shares that you can buy. In this scenario, for $1000, I would be able to buy about 5.56 units of Apple shares.
Step 6: Determine Time-In-Force of your trade order
Next, decide the Time-In-Force of your order. Time-In-Force determines how long your trade order will stay valid.
There are 4 types of Time-In-Force mechanisms in IBKR Client Portal, but I will go through 2 most common ones, namely:
- Day: A 'Day' order will stay valid until the end of the trading session and cancel itself should the order is not filled. For instance, if my buy limit order of $180.00 for Apple share is not filled by the end of the trading session where I execute my order, my order will be canceled automatically.
- Good till Cancel (GTC): A GTC order will stay valid until it is filled, or you cancel the order yourself.
Step 7: Fill outside Regular Trading Hours (RTH)?
Some markets tend to allow orders to be filled outside of RTH, such as pre-market open hours and after the market is closed.
Depending on your preference, you can allow your trade order to be filled outside RTH.
Step 8: Preview and submit your trade order
Clicking preview before submitting your order allows you to see the commission that'll incur for the trade. Once all details are good on your end, submit your trade.
Step 9: Check your order and Modify the order if needed
Once you placed your trade, you can head over to 'Trade' and select 'Orders & Trades' to check the status of your trade.
Should you want to modify your trades while it is not filled, you can do so by clicking the 3 dots on the far right, and select 'Modify':
#2 Placing trades via IBKR Mobile
If you are investing on the go, installing the IBKR Mobile app is a must for you.
In this section, let's look at how you can place your trade via the IBKR Mobile app:
Step 1: Install IBKR Mobile app
Next log in to your IBKR account HERE.
Step 2: At the search bar, search for the stocks or ETFs that you want to invest in:
Step 3: Next, click on the 'Buy' button.
Step 4: Determine your order type
Within the IBKR Mobile app, the default order types are 'Market' and 'Limit' order.
That said, users who need more advanced order types can select 'Show More Options' to access the different order types within the app. Refer to the next section to learn about the meaning of different order types.
Similar to the example in the prior section, let's say I want to set a buy limit order for Apple shares at $180.00.
Step 5: Determine the number of units of shares you want to buy:
You'll be shown the amount required for you to buy the shares.
In this case, buying 5 Apple shares at my limit price of $180.00 will require about $900 on my end (before commission).
Step 6: Determine Time-In-Force of your trade order
Next, decide the Time-In-Force of your order. Time-In-Force determines how long your trade order will stay valid.
The 2 most common Time-In-Force mechanisms are:
- Day: A 'Day' order will stay valid until the end of the trading session and cancel itself should the order is not filled. For instance, if my buy limit order of $180.00 for Apple share is not filled by the end of the trading session where I execute my order, my order will be canceled automatically.
- Good till Cancel (GTC): A GTC order will stay valid until it is filled, or you cancel the order yourself.
Step 7: Preview and submit your trade order
Clicking preview before submitting your order allows you to see the commission that'll incur for the trade. Once all details are good on your end, slide to submit your trade.
Note: What is IBKR Mandatory Cap Price?
Upon placing your trade, you might come across a pop-up to seek your acknowledgment on IBKR Mandatory Cap Price.
IBKR Mandatory Cap Price refers to IBKR's initiative to avoid traders placing trades at price levels at are way outside the normal level capped by IBKR.
One key benefit of IBKR Mandatory Cap Price is it helps traders avoid typo (by denying the order), such as me mistakenly typing my buy limit price of Apple shares at $18,000 instead of $180.
For me, I'll just go ahead and select 'Accept and Continue' when I get this pop-up while placing my trades.
Step 8: Cancel or Modify the order if needed
Once you placed your trade, you can adjust or cancel your trade if needed:
A beginner's Guide to Different Order Types on Interactive Brokers (IBKR)
While trying to place your trades on IBKR, you'll come across a variety of order types on the platform.
In this section, let's go through the 3 common order types that you may use while placing your buy trades on IBKR:
#1 Limit Order
A Buy Limit Order allows investors to line up their orders to buy shares at a specific price or better.
- Example: As shown in the screenshot below, Appleâs share price is $184.70.
- If you want to buy Apple shares at a lower price, say $180.00, then set your limit price to $180.00. Essentially, what you are doing is telling the system that âExecute Buy Order ONLY if the price drops to $180.00 or less.
#2 Market Order
A Buy Market Order allows investors to enter immediately at market price. In other words, to enter the market immediately, you as a buyer will need to accept whatever the Ask Price that the most immediate sellers are asking for.
- Example: In the screenshot below Apple's share price is $184.70, with Ask Price at $184.79.
- If you want to buy Apple shares immediately at market price, you will find yourself entering at the Ask price of $184.79, which is the price that the most immediate sellers are asking for.
#3 Stop Order
A Buy Stop Order is an order that is triggered when the price hits a specific level defined by the investor.
- For instance, Apple share price is priced at $184.70. I'd only like to buy the share once there is a bullish momentum that pushes the price above $190.00.
- To do this, I'll set a Buy Stop order at $190.00. Once Apple's share price reaches $190.00, my Buy Stop order will be triggered and my order will be filled at the most immediate available price at that moment.
- The downside of using a Stop Order is the execution price is NOT guaranteed. In a scenario where Apple's share price breaches above $190.00 in an aggressive market move where there are no sellers at $190.00, then I'd find my Buy Stop order being filled at a higher immediate price where there are sellers to meet my buy order (eg. $191, 192).
Verdict â Use IBKR to access the global stock market!
So there you have it - a detailed step-by-step guide on how to buy your first stock or make your first trade via Interactive Brokers (IBKR) Client Portal or the IBKR Mobile app!
I hope this is helpful and if you have any questions just leave them in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Wise or Instarem? - IBKR Funding Methods Compared!
Interactive Brokers (IBKR) is one of the most complete global brokers that I've used in my investing journey.
It offers users access to over 150 markets in 33 countries at a highly competitive commission. Moreover, IBKR users gain access to a huge variety of products/instruments such as stocks, bonds, ETFs, FX, futures.
As an IBKR user, I find Wise and Instarem to be 2 of the best methods to deposit funds to my IBKR account.
However, which one should you choose?
In this post, let me compare Wise and Instarem deposit methods, and see which is a more ideal IBKR deposit method!
RELATED:
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p.s. A word to fellow readers:
Dear friends, if you find this post helpful, Iâd appreciate it if you can click on the button below to learn about IBKR via IBKRâs official site.
Doing so will help the earn the blog a small fee at no extra cost to you.
This will help supporting the blog in creating more useful content â thanks in advance my friends!
#1 Fees & Exchange Rate Comparison
Firstly, let's compare the fees and exchange rate if we were to use Wise and Instarem to fund our IBKR account.
Scenario #1: RM1,000 MYR-USD transfer
For this, I take similar RM1,000 MYR-USD transfers and see how much we have to pay in fees, as well as the exchange rate for both platforms:
Putting the info side-by-side, we can see that:
Wise | Instarem | |
Fee for RM1,000 MYR-USD transfer | RM8.90 | RM5.50 |
Exchange Rate (as of 3/5/2023) | 0.224593 | 0.2243 |
Final amount in USD | USD 222.59 | USD 223.07 |
- Instarem offers a cheaper fee of RM5.50 for my RM1,000 MYR-USD transfer.
- Wise offers a more competitive exchange rate of 0.224593 compared to 0.2243 from Instarem. (Rate as of 3/5/2023)
- That said, taking into account of fee + exchange rate, I'd still get slightly more USD from Instarem for my transfer.
Scenario #2: RM10,000 MYR-USD transfer
Let's see if a larger transfer amount of RM10,000 MYR-USD transfer would make any difference:
Does a larger transfer amount make any difference for the fees?
Putting the info side-by-side, we can see that:
Wise | Instarem | |
Fee for RM10,000 MYR-USD transfer | RM69.69 | RM60 |
Exchange Rate (as of 11/5/2023) | 0.224090 | 0.2238 |
Final amount in USD | USD 2225.28 | USD 2224.57 |
- Instarem still offers a cheaper fee of RM60 for my RM10,000 MYR-USD transfer.
- Wise still offers a more competitive exchange rate of 0.224090 compared to 0.2238 from Instarem. (Rate as of 11/5/2023)
- However, this time around, Wise is able to transfer slightly more USD in my RM10,000 MYR-USD transfer.
Summary: Use Instarem for smaller amount transfer, Wise for larger amount transfer
In essence, when you make a transfer in a small amount, Instarem's lower fee structure makes it up to a slightly high exchange rate.
On the other hand, in a bigger transfer, Wise's lower exchange rate is a better deal despite a higher fee.
#2 Deposit Process Comparison
There is a slight difference between Wise and Instarem when it comes to the deposit process to IBKR:
Wise | Instarem | |
Deposit Process | Transfer directly from Wise balance (easier) | ACH funding via Instarem |
Essentially, the biggest difference is when it comes to setting up the initial transfer.
- It is easier to set up a Wise transfer as IBKR users can make a transfer directly from their Wise account. Read about my full Wise-IBKR transfer guide HERE.
- As for Instarem, IBKR users will need to key in some additional details in order to set up an initial transfer. (though it is pretty simple as well) Read about my full Instarem-IBKR transfer guide HERE.
Summary: Wise provides an easier initial setup
Once the setup is done, all future transfers are very simple for both methods.
RELATED: Guide - How to fund your IBKR using Wise, Instarem, and SG bank account
#3 Deposit Speed Comparison
Fees aside, it is also important that my funds reach my IBKR account ASAP whenever I make my deposit.
So, how long does it take for my funds to reach my IBKR account with Wise and Instarem?
For this example, I did a transfer on both Wise and Instarem on the same day (3/5/2023), first with Wise, then Instarem a few hours later.
Let's look at the result:
(i) Wise-IBKR transfer: About 13 hours (<1 day)
I initiated my Wise transfer on 3/5/2023 after lunch and I receive my successful deposit notification from IBKR at 1:11am the next day (4/5/2023).
(ii) Instarem-IBKR transfer: About 14 hours (<1 day)
Meanwhile, I initiated my Instarem-IBKR transfer at late noon (4:38pm) on 3/5/2023. I received my successful deposit notification from IBKR at 6:33am the next day (4/5/2023).
Summary: Deposit speed is pretty much the same for Wise and Instarem
In essence, from my experience, there is no significant difference between the deposit speed of Wise and Instarem transfers.
I find both transfer experiences smooth and reliable.
Promotions for new Wise & Instarem users
(i) Wise: Get a free transfer on your first 500 GBP (~RM2600) transfer!
Use my Wise referral link below and get a free transfer on your first 500 GBP (~RM2600) transfer!
(ii) Instarem: Get 200 InstaPoints (worth RM12) for your money transfer!
Open an Instarem account via my referral link by clicking on the button below, and get 200 InstaPoints (worth RM12) which can be redeemed for your money transfer (no min. transaction amount required)!
Verdict: Use Wise and Instarem to save on your IBKR deposit fee!
To summarize, for small amount transfers, Instarem-IBKR makes up for better value thanks to its lower fee structure. For bigger amount transfers, Wise-IBKR is better thanks to Wise's more competitive exchange rates.
Be it Wise or Instarem, both IBKR deposit methods allow users to save massively on fees & exchange rates compared to traditional foreign bank telegraphic transfer.
For new users of Wise and Instarem, I recommend taking advantage of the promotions so you can get more value out of your IBKR transfers!
Do you have any other tips on how to fund your IBKR account? Feel free to leave your tips and thoughts in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Interactive Brokers (IBKR) Long-Term Review: The BEST broker in the world?
Interactive Brokers (IBKR) is a global broker that offers users access to different asset classes across 150 markets.
I've been an IBKR user for some time and in this review, letâs learn about IBKR, and if it is for you!
RELATED:
Highlights of Interactive Brokers (IBKR)
- Strong regulation background: IBKR is a global broker regulated in 10 countries including the US, Canada, the UK, Ireland, Europe, Australia, Hong Kong, and Singapore.
- Global market access at highly affordable commission: IBKR offers access to over 150 markets in 34 countries, such as the US, UK, HK, Singapore, Australia, Canada, Europe, Singapore, Japan, and more at a highly competitive commission.
- Trade multi-assets with just one account: In addition, IBKR users also gain access to a huge variety of products/instruments such as stocks, bonds, ETFs, FX, futures, and options at a highly competitive commission.
- For who: IBKR is a no-brainer for investors looking to gain access to global markets at a low commission. However, IBKR's downside (in my opinion) is a platform design and user experience that is not as beginner-friendly as other investing platforms around.
Regulation and Safety
With financial scams on the rise globally, it is crucial to choose a broker that is well-regulated and reliable.
IBKR is one of the most reliable global brokers in the world as it is regulated by financial authorities in over 10 countries. Regulation by the major financial authorities in the world ensures that IBKR usersâ interests are always protected.
Some of the key regulations that IBKR has obtained include:
- US: Securities Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)
- UK: The Financial Conduct Authority (FCA)
- Australia: Australian Securities and Investments Commission (ASIC)
- Hong Kong: Hong Kong Securities and Futures Commission
- Singapore: Monetary Authority of Singapore (MAS)
In addition, IBKR is a publicly-listed company in the US (NASDAQ: IBKR) with a strong presence globally. It handles over 2M client accounts worldwide.
4 reasons why IBKR is the best global broker
If you have been investing for a while, you should be familiar with Interactive Brokers (IBKR) among all other brokerages.
What exactly makes IBKR so well-known compared to other brokers in the market?
#1 IBKR offers a huge selection of markets + asset classes for new & seasoned investors
IBKR is truly a platform that accommodates the needs of beginners and experienced investors alike.
- Multi-assets: Aside from the usual stocks, ETFs, and bonds, IBKR users will get access to instruments such as futures, forex, mutual funds, and options. With an IBKR account, you are almost certainly going to find an investment vehicle that suits your need.
- Global market access: IBKR offers access to over 150 markets in 34 countries. Aside from the usual US market, you get access to markets in the UK, Europe, Canada, Hong Kong, Singapore, Japan, and more with just one account.
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A personal note as an IBKR user:
The global access that IBKR brings to the table for everyday investors like myself is truly valuable. It brings a lot of flexibility to investors with investing options outside of the US.
Example: As a non-US citizen that wants to invest in the S&P500, in order to avoid the 30% withholding tax that the US government charges on dividends, I have to opt for Ireland-domiciled S&P500 ETF listed in the London Stock Exchange (eg. CSPX, VUAA) instead of US-listed S&P500 ETFs (eg. VOO, SPY).
Since most brokers do not offer access to the UK stock market, IBKR comes in as a solid choice.
#2 Highly competitive commission plans
On top of global market access, IBKR offers these markets at a highly competitive commission.
In my opinion, IBKR is the platform to go for investors looking for affordable access to the global market.
Refer to the next commission section of this article for more detailed elaboration.
#3 Fractional Trading
IBKR offers access to fractional shares in the US and European stock market, which is a rare feature among brokers.
Fractional trading allows investors to buy stocks at a fraction of the price via smaller units. Hence, it makes owning expensive stocks much easier for everyday investors.
#4 Beginner + advanced trading platforms
To accommodate different investors, IBKR offers several trading platforms for users to select from. 3 of the more commonly used IBKR platforms are:
- Client Portal (web)
Client Portal is the desktop interface that all IBKR users will come across when they log in to their IBKR account.
Client Portal offers a straightforward and featureful interface for users to view their portfolios and execute simple buy and sell orders.
Investors who prefer a simple investing interface would find the Client Portal the most convenient way to navigate around IBKR.
- IBKR Mobile
IBKR Mobile is the simplified mobile version of IBKR's Client Portal. It makes it easy for users to trade on the go via their mobile devices.
- IBKR Trader Workstation (TWS)
TWS is IBKRâs dedicated trading platform for a more in-depth customization and trading experience.
Traders that require more in-depth charting and a platform that is highly customizable could opt for TWS as their go-to platform.
IBKR Commission/Pricing for Stocks & ETFs
When it comes to commission, IBKR offers several commission plans - mainly Tiered or Fixed fees for non-US residents.
In other words, the commission you pay when you trade will differ based on the plans that you choose.
Letâs look at the commission plans for some of the familiar stock markets below:
US market:
Monthly Volume (shares) | IBKR Pro - Tiered | IBKR Pro - Fixed | IBKR Lite (only for US residents) |
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⤠300,000 | USD 0.0035 | USD 0.005 | USD 0.00 |
300,001 - 3,000,000 | USD 0.0020 | USD 0.005 | USD 0.00 |
3,000,001 - 20,000,000 | USD 0.0015 | USD 0.005 | USD 0.00 |
20,000,001 - 100,000,000 | USD 0.0010 | USD 0.005 | USD 0.00 |
> 100,000,000 | USD 0.0005 | USD 0.005 | USD 0.00 |
Min. per order | USD 0.35 | USD 1.00 | USD 0.00 |
Maximum per order | 1% of trade value | 1% of trade value | USD 0.00 |
Additional 3rd party fees | Regulatory fees, exchange fees, clearing fees, pass-through fees | Regulatory fees | Regulatory fees |
Canada market (for CAD-denominated stocks/ETFs):
Monthly Volume (shares) | Tiered | Fixed |
---|---|---|
⤠300,000 | CAD 0.008 | CAD 0.01 |
300,001 - 3,000,000 | CAD 0.005 | CAD 0.01 |
3,000,001 - 20,000,000 | CAD 0.004 | CAD 0.01 |
20,000,000 | CAD 0.003 | CAD 0.01 |
Min. per order | CAD 1.00 | CAD 1.00 |
Maximum per order | 0.5% of trade value | 0.5% of trade value |
Additional 3rd party fees | Regulatory fees, exchange fees, clearing fees | None |
p.s. Click HERE for IBKR's commission on USD-denominated CAD stocks/ETFs.
UK (GBP-denominated stocks/ETFs):
Monthly Trade Value (EUR) | Tiered | Fixed â IB SmartRoutine | Fixed - Direct Routing |
---|---|---|---|
⤠40,000,000 | 0.05% of trade value | 0.05% of trade value | 0.10% of trade value |
40,000,000.01 - 80,000,000 | 0.03% of trade value | 0.05% of trade value | 0.10% of trade value |
80,000,000.01 - 400,000,000 | 0.02% of trade value | 0.05% of trade value | 0.10% of trade value |
> 400,000,000 | 0.015% of trade value | 0.05% of trade value | 0.10% of trade value |
Min. per order | GBP 1.00 | GBP 3.00 | GBP 4.00 |
Additional 3rd party fees | Regulatory, Exchange & clearing fee | None | None |
UK (for USD-denominated stocks/ETFs):
Monthly Trade Value (EUR) | Tiered | Fixed â IB SmartRouting | Fixed - Direct Routing |
---|---|---|---|
⤠50,000,000 | 0.05% of trade value | 0.05% of trade value | 0.10% of trade value |
50,000,000.01 - 100,000,000 | 0.03% of trade value | 0.05% of trade value | 0.10% of trade value |
100,000,000.01 - 500,000,000 | 0.02% of trade value | 0.05% of trade value | 0.10% of trade value |
> 500,000,000 | 0.015% of trade value | 0.05% of trade value | 0.10% of trade value |
Min. per order | USD 1.70 | USD 4.00 | USD 6.00 |
Additional 3rd party fees | Exchange & clearing fee | None | None |
Hong Kong (HKD-denominated stocks/ETFs):
Monthly Trade Value (HKD) | Tiered | Fixed |
---|---|---|
⤠15,000,000 | Tier I - 0.05% of Trade Value | 0.08% of Trade Value |
15,000,000.01 - 300,000,000 | Tier II - 0.05% of Trade Value | 0.08% of Trade Value |
300,000,000.01 - 900,000,000 | Tier III - 0.03% of Trade Value | 0.08% of Trade Value |
900,000,000.01 - 2,000,000,000 | Tier IV - 0.02% of Trade Value | 0.08% of Trade Value |
> 2,000,000,000 | Tier V - 0.015% of Trade Value | 0.08% of Trade Value |
Min. per order | Tier I - HKD 18.00 Tier II - HKD 12.00 Tier III - HKD 8.00 Tier IV - HKD 6.00 Tier V - HKD 4.00 |
HKD 18.00 |
Maximum per order | 0.5% of trade value | 0.5% of trade value |
Additional 3rd party fees | Regulatory fees, exchange fees, clearing fees | Regulatory Fees |
p.s. Refer HERE for IBKR's commission on China RMB-denominated stocks/ETFs listed in Hong Kong.
Singapore (SGD-denominated stocks/ETFs):
Monthly Trade Value (SGD) | Tiered | Fixed |
---|---|---|
⤠2,500,000 | Tier I - 0.08% of Trade Value | 0.08% of Trade Value |
2,500,000.01 - 50,000,000 | Tier II - 0.05% of Trade Value | 0.08% of Trade Value |
50,000,000.01 - 150,000,000 | Tier III - 0.03% of Trade Value | 0.08% of Trade Value |
> 150,000,000 | Tier IV - 0.02% of Trade Value | 0.08% of Trade Value |
Min. per order | Tier I - SGD 2.50 Tier II - SGD 1.60 Tier III - SGD 1.20 Tier IV - SGD 0.90 |
SGD 2.50 |
Additional 3rd party fees | Exchange fees | None |
p.s. Refer HERE for IBKR's commission on USD, GBP, HKD, and EUR-denominated stocks/ETFs listed in Singapore.
IBKR Commission for Futures, Options, Forex, CFD, Mutual Funds, and more
Aside from stocks, IBKR also offers access to instruments such as Futures, Options, Forex, CFD, Bonds, Mutual Funds, and more.
Feel free to view IBKR's full list of commission below:
Which IBKR commission plan to choose?
As you can see, IBKR offers access to a lot of markets, alongside different plans, mainly Tiered and Fixed.
The question is, which IBKR fee structure should you choose?
In my opinion, IBKRâs Tiered plan makes the most sense for most investors. This is because it has a lower minimum commission per trade, and it gets cheaper as your trade value or trade volume increases.
While opening your IBKR account, you will be asked to select the kind of account (Tiered/Fixed) you are planning to open. But donât worry, you can always change your account types once you open an account.
What I donât like about IBKR
Despite all the good things about IBKR, it is not a perfect platform.
The irony is, IBKR's biggest downside stems from its pursuit of offering every market and feature available in the investing world to the users.
As a result, it makes IBKR rather not beginner-friendly to navigate around. As a new IBKR user, it is easy to feel overwhelmed to use IBKR.
You will most likely need to google for guides on most things relating to IBKR (in order to do it right) - from account opening, funding & withdrawals, how to make a trade, and more.
The bright side?
Resources and guides around IBKR are plentiful on the internet so it is not the end of the world.
However, the fact that I have to google around for guides just to navigate around the IBKR platform is still annoying at times.
Is Interactive Brokers (IBKR) for you?
In my opinion. IBKR is the most featured-packed investing platform that the investing world can offer so far.
As such, it is more than fair to say that IBKR is created for all investors and traders â beginners to seasoned alike.
If I need to be more specific, here are 3 reasons why you should consider IBKR over other brokers:
- You want to have affordable access to global markets aside from the usual US market offered by all other brokers. (eg. I get access to Ireland-domiciled ETFs on the London Stock Exchange via IBKR)
- You want to invest in a reliable platform that has gone through the test of time.
- You want to trade different instruments (eg. Forex, futures, options) aside from the usual stocks and ETFs offered by most of the other brokers.
How to open an Interactive Brokers (IBKR) account: A step-by-step guide
Before you open an account, you will need to create a username & password on IBKR.
Click the button below to start creating your username and password. Once done, you will need to verify your email address.
Once done, login to IBKR and begin your application.
Step 1: Personal Information
Select your account type (Individual) and key in your personal information.
You will also be required to key in your Tax Identification Number (TIN) [LHDN number if you are from Malaysia].
Tips: Do not have a TIN?
If you are a student or do not have a TIN for some reason (eg. Housewife), click 'Not Applicable' and justify why you donât have a TIN under âOtherâ (eg. I am still a student).
Next, select the base currency (USD) for your account.
This streamlines all the figures displayed in your IBKR account in USD. Donât worry too much about this, as your IBKR account can hold other currencies and you can still trade in different currencies.
Step 2: Configure your trading account.
Account type: Cash or Margin
In this step, you will be asked if you want to open a Cash or Margin account.
- IBKR cash account: You will only be using your existing funds in IBKR to trade. Hence, you have to ensure that your funds cover the cost of the stocks and commission. A key downside is:
- Trading limitation: You cannot trade products that require margin, such as futures. You also cannot day-trade US stocks.
- IBKR margin account: You get access to margin and hence, can trade in margin (ie. loaned money). But it is not necessary to trade in margin even though you have a margin account. Upsides include access to more instruments and products and the ability to day-trade US stocks.
Personally, I opened a Margin account myself (even though I do not trade with margin) as there are certain product/service limitations with a Cash account. (eg. You need a margin account to day-trade US stocks)
Income & Worth, Investment Objectives, Trading Experience:
Your answer to these questions determines the kind of products/markets you will gain access to. Donât worry this can still be updated once you open your trading account.
Select the assets/instruments that youâd like to invest in or trade. Whether you are eligible to trade these assets depends on your income, investment objectives, and experience:
Step 3: Regulation and Tax
Confirm that you are not a public figure with any conflict of interest.
Then, decide if you want to opt-in for IBKRâs Stock Yield Enhancement Program which will pay you interest by loaning your shares to IBKR. This is optional.
Then, confirm your tax residence and whether you qualify for treaty benefits with other countries based on the country of your residence.
Step 4: Review and sign agreements
Step 5: Upload documents & fund your IBKR account
Funding your IBKR account
Refer HERE to a full guide on how to fund your IBKR account.
Step 6: You will receive an email once your account is approved.
For me, my IBKR account is approved within 1 working day.
Verdict - IBKR is the only global broker you need (to get used to)
As an investor and reviewer, I have tried and used many brokers in my investing journey.
Of all, it is not exaggerating to say that IBKR is the most complete global broker that the investing world has to offer to everyday investors right now.
With just one account, IBKR allows me access to almost all tradable instruments in the financial market at an affordable price.
If you can get used to its overwhelming features, IBKR is THE account you must have as an investor in the global market.
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.