Rakuten Trade Hong Kong Stock Trading Review: Affordable Way to Invest in HK!
Rakuten Trade is one of the best-regulated platforms in Malaysia that offers access to local and US stocks at an affordable fee.
In late 2022, they launched access to the Hong Kong Stock Exchange (HKEX), which makes it easy and affordable for Malaysians to gain exposure to reputable Chinese and Hong Kong companies listed in Hong Kong.
In this post, let's dive into Rakuten Tradeâs latest Hong Kong market offering, and see if this is something to try out!
Highlights of Rakuten Trade HK Stock Trading
- Affordable brokerage fee: Rakuten Trade offers access to the Hong Kong Stock Exchange (HKEX) at a highly competitive fee, from as low as RM1/trade (for MYR trading), or a min. of HKD35/trade (for HKD trading).
- Flexible: Invest in Hong Kong-listed stocks via Rakuten Trade in MYR or HKD, your choice.
Why invest in Hong Kong?
The HK stock market offers several distinct benefits compared to investing in the US stock market:
(i) 0% dividend withholding tax
A major benefit of investing in Hong Kong stocks is there is 0% dividend withholding tax.
Meanwhile, most non-US residents (eg. Malaysians, Singaporeans) will be charged a 30% dividend withholding tax while investing in US stocks.
In other words, if an HK stock in your portfolio pays HKD1.00 in Distribution Per Unit (DPU), you will get the full payout instead of having to deduct for withholding tax.
READ MORE: All you need to know about Dividend Withholding Tax
(ii) The easiest way to access prominent China-listed companies
Investing in HK is also the most direct and reliable way for investors to gain access to reputable Chinese companies, such as Xiaomi, Alibaba, Tencent, and more.
Compared to investing in Chinese American Depositary Receipts (ADRs) listed in the US that face constant threats of delisting, investing in HKEX equivalent stocks is a more reliable way to gain exposure to Chinese companies.
Competitive brokerage fees for the Hong Kong market
Unlike most local brokers that charge unbelievably high rates for their Hong Kong market, Rakuten Trade offers the HK market at a very competitive fee.
With Rakuten Trade, users are able to trade in Malaysian Ringgit (MYR) or Hong Kong Dollar (HKD).
[Note]: When you buy HK stocks in MYR, your MYR will be automatically converted to HKD as per Rakuten Trade's exchange rate.
Below is Rakuten Trade's Hong Kong market fee structure for MYR trading and HKD trading:
Rakuten Trade brokerage fee for trading HK stocks in MYR
| Trading Value (RM) | Brokerage (RM) | |
| Below | 699.99 | 1% or a min. of RM1 |
| Between | 700-9,999.99 | 9.00 |
| Between | 10,000.00-99,999.99 | 0.10% of trading value |
| Equal & Above | 100,000.00 | 100.00 |
Rakuten Trade brokerage fee for trading HK stocks in HKD
| Trading Value (HKD) | Brokerage (HKD) | |
| No Tier | 0.10% of trading value | Min. HKD35.00 |
Generally, given how Rakuten Trade structure their fees, I'd personally invest using MYR as it is cheaper compared to the min. HKD35 fee for HKD trading.
Other fees while investing in the HK market:
Aside from that, please take note that there are other fees charged by the HKEX while you trade HK stocks, as seen below:
- Clearing fee: 0.002% of gross amount with a minimum of HKD2.00 per order or a maximum HKD100.00 per order
- Stamp duty (Stocks): RM1.50 for every RM1,000.00 gross amount, with a maximum of MYR 1,000.00
- Exchange fee: 0.00565% of gross amount per order
- HKEX Stamp Duty: 0.13% of gross amount and round up to nearest integer
- SFC Transaction Levy: 0.0027% of gross amount with a minimum of HKD0.01 per order
- FRC Transaction Levy: 0.00015% of gross amount with a minimum of HKD0.01 per order
Rakuten Trade vs Competitors â Brokerage Fees by Trade Value
How do Rakuten Trade fees compare to locally regulated competitors?
Below, I compare the brokerage fee of Rakuten Trade to FSMOne, which both offer access to the Hong Kong market:
| Trade Value | Rakuten Trade (RM trading/HKD trading) | FSMOne (HKD) |
| <RM699.99 (~HKD1,244) | 1% of trading value, min. RM1 or HKD35.00 | HKD50.00 |
| RM5,000 (~HKD9,260) | RM9 or HKD35.00 | HKD50.00 |
| RM10,000 (~HKD18,520) | RM10 or HKD35.00 | HKD50.00 |
From this, it is clear that Rakuten Trade is making foreign market access more affordable for Malaysians.
Trading experience & features:
#1 User-friendly interface
Rakuten Trade built their Hong Kong 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, US, and Hong Kong markets easily.
#2 FREE live datafeed*
In addition, Rakuten Trade offers users access to live datafeed of HK stocks for FREE.
In other words, all HK stock prices are quoted live (ie. Real-Time). For many platforms, youâll usually have to pay for live data or youâll only get a delayed datafeed.
*Update 31/3/2023: End of free live datafeed for HK stock market
Starting April 2023, users that wish to get access to real-time datafeed will have to subscribe for it at Dashboard -> Setting -> 'Apply for real-time Hong Kong datafeed'. The price will be RM10/m.
#3 Buy HK stocks in MYR or HKD
As a Rakuten Trade user, you have the choice to store HKD in your account.
This allows for the flexibility to trade HK stocks in either MYR or HKD.
#4 Live Conversion + Tight HKD-MYR Exchange Rate
Rakuten Trade offers a relatively tight HKD-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 HKD (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 No charges for corporate action
Furthermore, just like trading Malaysia stocks, Rakuten Trade handles any corporate action for your HK stock investments for FREE.
In other words, you do not have to pay Rakuten Trade in order to receive dividends or execute a right issue (you may have to pay for these on some other platforms).
What u need to know about the HK market
- HKEX Market hours
The HKEX market hour is slightly different from the Malaysia's market, as you can see below:
| Session | Time |
| Pre-Open | 9am â 9:30am |
| Trading Session | 9:30am - 12pm |
| Break | 12pm â 1pm |
| Trading Session | 1pm - 4pm |
For the pre-open session, you can begin placing your limit orders but theyâll not be filled until the market opens at 9:30am.
2 areas of improvement
(a) Lack of basic order execution features
One thing that I found lacking while using Rakuten Trade to buy HK stocks is the missing of basic order execution features such as Market Order.
Unfortunately, the only trade 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 investors, a lack of Market Order execution may turn off some investors that prefer not to wait for their orders to be matched, or day-traders that require immediate market execution.
(b) Limited Hong Kong stocks and no HK ETFs (but itâs improving)
Secondly, Rakuten Trade does not actually offer all of the stocks listed in the HK market. In addition, HK ETFs are not currently available on Rakuten Trade.
That said, Rakuten Trade will be gradually adding new HK stocks with time.
As of July 2023, Rakuten Trade offers about 340+ stocks listed on the Hong Kong Stock Exchange (HKEX).
While you may trade the most well-known HK stocks (eg. Xiaomi, Alibaba, Tencent) on Rakuten Trade, there are some other HK stocks that you may not find on Rakuten Trade.
[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.
Who should use Rakuten Trade to buy HK stocks?
While not perfect, Rakuten Trade has offered something that all local brokers failed to do: Access to the HK 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 HK stock market.
- Looking to access the HK market at a truly affordable fee.
- Looking for a user-friendly platform to invest in the HK stock market.
At the same time, it may not suit people that are:
- Active day traders that require market execution (instead of limit order) or more advanced execution features.
- Investors or traders that want exposure to more exotic stocks which 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 HK market?
As a whole, I think Rakuten Trade has offered Malaysians a highly affordable choice to invest in the HK market via a locally-regulated broker.
A decent 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 Hong Kong stocks, I am certain youâll be happy with what Rakuten Trade has to offer.
How to sign up to trade HK 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!
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 + agree to the T&C of foreign stock trading
Since you are activating foreign trading on Rakuten Trade, you will also gain access to the US market alongside HK.
Hence, spend 1 minute to share some info required to trade the US stock market (W8BEN form).
Then, agree to the T&C and 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.
Rakuten Trade Long-Term Review: 5 Reasons Why it is my Go-To Stock Broker!
Rakuten Trade has been my go-to broker to invest in the stock market for more than 4 years now.
As a long-term user, I have both good and to-be-improved experiences with the platform.
In this Rakuten Trade review, letâs learn more about this platform and whether they are the stock investing platform for you!
Before you proceed, here are some related posts that you might find useful:
How I use Rakuten Trade
Personally, I use Rakuten Trade mainly for long-term investing. Meaning, I invest in stocks and hold them for years UNLESS there is a shift in business nature or fundamentals. This also means that:
- I do not actively trade in and out of the market.
- Also, I certainly do not need to be on the screen/app at 9am when the market opens in an attempt to get the âbestâ stock entry price
- Plus, I definitely do not participate when the market is crazy over any particular stock â I invest in what I know best instead of following the herd.
Putting this ahead is CRUCIAL because this review is purely based on my personal experience and usage.
Depending on your participation in the market, you may find your experience differs from mine.
That said, if you are in for investing in quality companies for the long-term, I think this review will give you solid insights on Rakuten Trade as a stock investing platform.
Rakuten Trade Feature Highlights
- Rakuten Trade is a joint venture between Malaysiaâs Kenanga Investment Bank Bhd. and Japanâs Rakuten Securities Inc. Established in 2017, Rakuten Trade is under the regulation of the Securities Commission (SC) of Malaysia and holds the Capital Markets Services License (CMSL) to deal with listed securities and provide investment advice
- Rakuten Trade offers a full online investing experience. From registration to funding/withdrawal, every process is done online at our convenience. Plus, get your account approved within 3 days (sometimes earlier). This is much more efficient compared to certain brokers that require weeks to approve an account.
- Rakuten Trade offers one of the most competitive commission rates in Malaysia. In other words, Rakuten Trade is a fee-friendly option, especially for new investors who are starting with a small capital â more below.
- Rakuten Trade offers users access to the US stock market and Hong Kong stock market at a highly affordable commission!
6 things I like about Rakuten Trade
#1 Competitive Fees for Malaysia & US Stock Market
Rakuten Trade offers one of the most competitive rates in the local brokerage scene, be it for Malaysia, the US, or Hong Kong stock market.
(a) Rakuten Trade Brokerage Fee for MYR trading (Bursa Malaysia, US, and HK stock market):
(b) Rakuten Trade Brokerage Fee for USD trading (US stock market):
(c) Rakuten Trade Brokerage Fee for HKD trading (HK stock market):
However, while looking for a broker, there are more things to consider than commissions alone. Letâs explore the additional value-added strengths that I like about Rakuten Trade in the next few points below.
RELATED READ: Rakuten US Stock Trading Review
#2 Nominee CDS Account = No Manual Paperwork Needed (+ FREE CDS Fee!)
Everyone has to open a Central Depository System (CDS) account while applying for a stock investing account. Most brokers make it part of the whole registration process already, so donât worry too much.
What you need to know though, is that there are 2 types of CDS accounts: Nominee and Direct CDS account. In this case, Rakuten Trade is a Nominee CDS. The good things that come with this are:
- No need to manage the paperwork on corporate actions like rights issue and dividend reinvestment program (DRP). Everything about corporate action is handled by Rakuten Trade on behalf of the users, which is awesome because my time is too precious for (more) paperwork.
- While other brokers that offer Nominee CDS account charges a fee to handle corporate action for users, BUT specifically for Rakuten Trade, there are no additional charges on handling corporate action â yes, FREE.
- FREE CDS account opening: Typically, there is an RM10 fee imposed on opening a CDS account. However, Rakuten Trade has been waiving this fee for users too!
All being said, many have the concern that under a Nominee CDS, their share ownership is placed under a trustee instead of directly under their own name (this is done to avoid fraud).
For me, I think this is not a matter to be concerned with because (1) Rakuten Trade is regulated heavily by the SC and (2) in the event that the company does go bankrupt, our capital is protected as it is placed with a trustee instead of with Rakuten Trade.
READ: Direct and Nominee CDS, whatâs the difference, and how to choose?
#3 Clean, Functional & User-Friendly Platform
Being a fully online broker, Rakuten Trade provides investors with a modern and clean trading experience. Personally, I have used several brokers in the past, and have seen the interface of other brokers.
There are 2 problems with many of these brokers:
- Obsolete design/complicated user interface like they are from the early 2000s. Beginners are overwhelmed with poor layouts and simply canât find what they want to do easily.
- Non-functional â certain platforms are barebone (different from minimalist) without value-added features like stock screeners and so on.
In this regard, Rakuten Trade struck a decent balance between user experience and functionality. Its web platform is simple to navigate with solid value-added features like stock screeners and price alerts.
Coming from using several brokers in the past, I am sure new users will appreciate and be able to familiarize themselves with Rakuten Trade with little to no issue.
READ:How to buy your first stock on Rakuten Trade
#4 Quick Response from Customer Service
Any company that tries to go digital today MUST have proper online customer service in place.
Generally, there are 3 ways a user can reach out for help: Facebook Chat, Email ([email protected]), and a Hotline.
With the exception of Hotline, I have reached out to Rakuten Trade with questions on several occasions in the past. Generally, the response from the Customer Service team is quick and I usually get my questions addressed.
#5 Solid Value-Adding Features (eg. Powerful Stock Screener, earn interest on idle cash)
There are several features in Rakuten Trade that make investing a fruitful process for users. Namely, Rakuten Tradeâs built-in stock screener is one of the most comprehensive FREE screeners around.
Powered by Thomson Reuters, there are many parameters that you can set up to filter for stocks. For new investors, this is certainly an awesome feature to have to reduce the time needed to research for stocks.
READ: How to build your own reliable Bursa stock screener.
And do you know with Rakuten Trade, you actually earn a 1.50% annual interest on the cash balance in your account?
I was not aware of this when I first used Rakuten Trade and was pleasantly surprised when I received interest on my cash balance.
READ: 4 Underrated Features on Rakuten Trade
#6 Fractional Trading for the US market
Starting May 2023, Rakuten Trade launched its Fractional Share Trading for US stocks and ETFs. This makes it more capital-friendly for Malaysians to own US stocks.
READ MORE: Rakuten Trade Fractional Share Trading review
Should You Open a Rakuten Trade Account? (+ How to open one?)
All in all, Rakuten Trade has been my go-to broker while investing in the stock market, and I have no problem recommending Rakuten Trade to:
- New investors with small capital that are looking to get started in the Malaysia & US stock market thanks to Rakuten Tradeâs beginner-friendly commission.
- Investors that are looking to save time on paperwork and skip the handling fees for corporate action such as dividends and rights issue.
- Investors who are looking to open an account and manage their stock portfolio fully online during this pandemic.
- Investors who are looking for a modern, user-friendly stock trading platform without compromising on features.
If you fall into any one (or more) of these categories, check out my step-by-step guide to open your Rakuten Trade account online!
Awesome Feature: Use your RT Points as Brokerage Fee Rebate!
Not too long ago, Rakuten Trade released an exciting new feature: now you can convert your RT points as a discount to your brokerage fee! Â
In my opinion, this is the most practical use of the RT points for Rakuten Trade users. This is how it works:
Step 1: 1 RT Point = RM0.01 (ie. 100 RT points = RM1 Brokerage Fee.)
Step 2: Opt-in for brokerage rebate when you buy or sell shares on Rakuten Trade.
Step 3: Your brokerage rebate will be credited to your account by the end of the trading day (subject to your RT Point balance).Â
So letâs say you have 700 RT points (RM7), and the brokerage fee that you paid for a transaction is RM9. By the end of the trading day, Rakuten Trade will deposit RM7 back into your account, essentially offsetting the brokerage fee to just RM2.
You can find the full T&C here.
No Money Lahâs Verdict
So here you go â my long-term user review of Rakuten Trade!
For me, Rakuten Trade is a solid choice as it has the most balanced offering between value, functionalities, and rewards.
As the platform develops, I foresee Rakuten Trade will become even more user-friendly with time.
If you find this article useful, and would like to open your Rakuten Trade stock trading account, do consider using my referral link below to register for your account (or select âNoMoneyLahâ under âEducatorâ when you register).
Open A Rakuten Trade Account Today!
Disclaimer:
This post contains affiliate links, which afford No Money Lah a small referral (and in return, support this blog) if you sign up for an account using my referral link. Rakuten Trade did not receive copy approval rights on this article â that means they are reading this article for the first time, right alongside you.
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.
Rakuten Trade: 4 Underrated Features that'll Help You Make Better Investment Decisions!
When it comes to investing in our local Malaysian stock market, I have been a fan of Rakuten Trade as my main go-to broker.
Its highly competitive fee structure is just nice for me to Dollar Cost Average (DCA) on my positions, especially its industry-lowest commission for trading.
Aside from that, I also like the fact that Rakuten Tradeâs platform interface is much more intuitive and user-friendly compared to some other local brokers that I have come across in the past.
However, we are just scratching the surface. In this post, I am going to share with you 4 underrated, yet very useful tools on Rakuten Tradeâs platform thatâll help you analyze stocks and make better investment decisions.
Before this, here are some related posts that you may want to read:
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#1 Comprehensive Rakuten Trade Stock Screener
Powered by Thomson Reuters, I think this is the most powerful, yet less talked-about feature on Rakuten Tradeâs platform.
Essentially, what this Stock Screener does is it allows you to shortlist for stocks that fulfill a certain set of criteria. Doing this will save you time from stock-searching over hundreds of listed companies in the market.
There are plenty of Fundamental Analysis filters that you can set in this stock screener, from Financials like Dividend Yield, Return of Equity (ROE), Interest Coverage Multiples, to Estimates like Estimated Price-Earning-to-Growth (PEG), Estimated Dividend Growth Rate, and more.
There are also filters for Technical Analysis (eg. Golden Cross, MACD, RSI) if you are into that.
If you are totally new with no specific set of criteria, or simply looking for some fresh investment ideas, Rakuten Trade also has a couple of presets in place for you to get started.
Some of these presets include filters for High Growth Companies and High Dividend Companies.
Features:
- 1. One of the most comprehensive stock screeners with different filtering criteria.
- 2. Existing screening presets for investors to get started.
- 3. Did I mention that it is free for all Rakuten Trade users?
Suitable for:
- 1. Investors looking to filter for companies/stocks that fulfill a certain set of criteria.
- 2. Investors looking for fresh and new investing ideas.
Read Also: In-depth guide on how to build your own powerful stock screener via Rakuten Trade
#2 Baked-In Stock Info
One thing that got me quite frustrated with the other broker platforms that Iâve used before is the lack of stock/company information on the platform.
While this may not be as significant as the Rakuten Trade stock screener, I find having information about a company readily available to me pretty handy.
Whenever I am in need of a quick glance, I can view the overall fundamental health of a company (eg. Beta, ROE, EPS) without having the need to go dig for them in the financial report.
Features:
- 1. Company info readily baked into the platform.
- 2. Quick fundamental ratios at a glance.
Suitable for:
- 1. Investors looking to do a quick research/initial filter on a company.
#3 Price Alerts on Multiple Channels
For price alerts, I have been using the alert function on KLSE Screener app for some time.
However, the downside to this is that I am only alerted via the app on my phone. While this may be fine for most people, for me, I keep my phone offline for most of the day while at work â resulting in me missing my alerts frequently.
The good thing with Rakuten Tradeâs baked-in Alerts, is I can choose to get notified by both the iSpeed app AND email when my alerts are triggered. With this, I can get notified while I am working in front of my laptop.
For most investors (myself included), this price alert function can be used alongside entry, take profit, and cutting losses. As an example, since there is no automatic cut loss function on most local brokers (including Rakuten Trade) in Malaysia, I can set a price alert for me to manually cut my losses when the price hits a certain level.
Feature:
Get alerted when the price of your chosen company hits a certain level.
Suitable for:
- 1. Investors looking to be notified first-hand on both their phone and via email.
- 2. Investors with specific entry, target profit, and stop-loss levels.
#4 News & Report on the Companies in my Portfolio
In the past, I find it hard to keep track of the news and updates of the companies that I invest in.
On Rakuten Tradeâs platform, there are news and updates on the companies that I invest in readily available for me to view. Aside from that, there are also daily research reports & market news available if you need extra resources and input.
Personally, as a long-term REIT investor, I do not follow the updates every hour and everyday. However, it is good to have them all baked into the platform for me to check out whenever needed.
Feature:
Get updates on news and announcements for the companies that you invest in.
Suitable for:
Investors looking to have updates and announcements for their investments all available in one platform.
Notable Mention: Watchlist up to 100 stocks
These days, having a watchlist function is fairly common across the board. However, Iâd still want to mention Rakuten Tradeâs watchlist function in this post:
While certain apps or platforms have a fairly small limit on the number of stocks that you can add to your watchlist, Rakuten Trade allows users to create 10 watchlists and fit up to 100 companies in each of them.
For me, thatâs definitely more than enough and I think this will work fine for most investors.
LATEST: Use your RT Points as Brokerage Fee Rebate!
Recently, Rakuten Trade has released an exciting new feature: now you can convert your RT points as a discount to your brokerage fee!
In my opinion, this is the most practical use of the RT points for Rakuten Trade users. This is how it works:
- 1 RT Point = RM0.01 (ie. 100 RT points = RM1 Brokerage Fee.)
- Opt-in for brokerage rebate when you buy or sell shares on Rakuten Trade.
Your brokerage rebate will be credited to your account by end of the trading day (subject to your RT Point balance).
So letâs say you have 700 RT points (RM7), and the brokerage fee that you paid for a transaction is RM9. By the end of the trading day, Rakuten Trade will deposit RM7 back into your account, essentially offsetting the brokerage fee to just RM2.
You can find the full T&C here.
No Money Lahâs Verdict
So here you go â the useful and underrated tools in Rakuten Trade thatâll help you analyze stocks and make better investment decisions!
Personally, I was not aware of all these little features until I took some time to explore the platform.
While the usefulness and practicality of each of these features/tools may be subjective according to each investor, I find having them baked right into the platform especially neat and handy.
What are some of the useful features in your broker that you are using yourself? Feel free to share with me in the comment section below!
p.s. If you find this article useful, and would like to open your Rakuten Trade stock trading account, do consider using my referral link below to register for your account (or enter âNoMoneyLahâ under âEducatorâ when you register)!
Open A Rakuten Trade Account Today!
Disclaimer:
The information stated above is based on my personal experience and for purpose of sharing such experience only. It is not intended as professional investment advice. Please contact Rakuten Trade for more information.
How to Make Your First Trade on Rakuten Trade? (MY stocks)
Rakuten Trade is my go-to broker when it comes to investing in the Malaysia stock market. In addition, it has also introduced US stock trading for Malaysians in January 2022.
In this article, I am going to share a simple step-by-step guide on how to execute a transaction on Rakuten Trade, and explain some key terminologies along the way (Donât worry it is very straightforward once you get it!).
Before this, here are some posts that you might find useful:
Step-by-Step Guide to Buy a Stock on Rakuten Trade
Upon logging in to your Rakuten Trade account for the first time, you will have to first fund your trading account using the funding methods available.
In short, the easiest method is to fund your account using your savings/current account.
Step 1: Search for the stock that you want to buy at the search bar.
Step 2: Click âBuyâ
On the order page, there are a few key sections that you have to familiarize yourself with:
1 â Trading Limit: How much capital you have to invest.
2 â Market Price: The price where a share is traded most actively between buyers & sellers.
3 â Best Buy & Best Sell Table (Market Depth): This table shows us what is the price that the people are lining up to buy/sell and the volume.
The more volume it is for a price, it means that the faster you will be getting it once you execute an order. (eg. You will be able to buy at RM1.28 immediately compared to trying to buy at a lower price of RM1.27)
4a â Board Lot & Odd Lot:
â˘Board lot means you buy in a minimum multiple of 100 units. (1 Board Lot=100 units of shares, RM1.28*100=RM128)
â˘Odd Lot means you can buy in a multiple of 1 unit.
â˘Since more people will buy in Board Lot, your order will usually be filled more easily compared to buying in odd lots.
4b â Quantity:
â˘If you buy in Board Lot, your quantity will be in the multiple of 100. (eg. Put 2 if you want to buy 200 units of shares)
â˘Odd lot means you are free to key in any number of units that you want. (eg. Key in 88 if you want to buy shares in 88 units)
5a â Order Type:
- Limit Order: Queuing to Buy LOWER than market price. (if you are selling means you are queuing to Sell HIGHER than market price)
- Market Order: Buying or selling at MARKET PRICE. (order will be fulfilled almost instantly)
5b â Limit Price (not available if ordering at market price):
- The price you want to buy below the market price. (eg. Queuing to buy cheaper at RM1.26 instead of the market price of RM1.28)
- Note that buying below market price may not 100% guarantee that your order will be fulfilled.
6 - Validity (only available if buying/selling via Limit Order):
-
Day: Your order will be canceled if it is not fulfilled by day end (5pm). (eg. If you queued at RM1.26 but did not get fulfilled, then your order will be canceled by 5pm the same day)
-
Good-Till-Date (GTD): You can decide the validity of your order. (eg. You queue for the price of RM1.26 until X date)
7 â Trading Pin: Your numbered pin to approve your trade. (Set when you open your account.)
Step 3: Fill in the details of your trade, your Trading Pin and click Confirm Order.
Note:
1. Decide if you are buying Board Lot or Odd Lot.
2. Decide your Quantity.
3. Decide your Order Type.
4. Key in your trading pin.
5. Confirm Order.
6. Wait for your order to be filled.
And we are done! This is how exactly you can buy your first stock via Rakuten Trade.
KLSE Market Operating Hours
The market is open from Monday to Friday, except for public holidays. Details on active market hours are as stated below:
No Money Lah Verdict
With a good understanding of the terminologies and functions, hopefully, you will not be so overwhelmed with these stock trading platforms!
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!
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.
ProsperUs: Deposit & Withdrawal Guide
ProsperUs is one of the most flexible brokers around that offers investors access to different markets and instruments.
In this guide, weâll see how you can fund and withdraw from your ProsperUs account:
Before this, here are some related posts that you may want to read:
- ProsperUs Review: One account is all you need to invest globally!
- How to open a Singapore bank account online
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Funding your ProsperUs account (foreign currencies)
As a whole, there are 2 ways for you to fund your ProsperUs account if you are investing or trading the foreign markets:
Method 1: Foreign Telegraphic Transfer (FTT) through a local bank account (Not Recommended)
The first method is to fund your ProsperUs account via FTT through local banks. That said, I do not recommend this method due to expensive intermediary banking fees (~SGD20/USD30, or more) per transfer.
Step 1: Log in to your ProsperUs account > Select âManage Fundsâ > Select âDepositâ
Step 2: Select (i) the currency that you wish to deposit in & (ii) âTelegraphic Transfer (TT)â as Payment Type.
At the same time, key in the amount that you want to deposit.
Youâll also get the bank details on where to transfer your deposits.
Step 3: Do the remittance from your bank via FTT.
Using details from Step 2, log in to your local bank account and initiate a Foreign Telegraphic Transfer (FTT). Please note that you have to transfer the funds using a bank account under your own name.
Upon successful FTT transfer, download the transfer receipt. In this receipt, youâll get a reference number from your bank for the transfer. Keep the receipt and reference number for Step 4.
Step 4: Input the last 5 characters of your transaction reference number, and upload the screenshot/receipt of your transfer.
Then, Click âNextâ
Thatâs it! If your deposit is successful, youâll receive an email within 12 working hours and you can start investing/trading.
--
Note: For all FTT transfers, ProsperUs does not charge for the whole funding process. However, our local bankâs appointed intermediary will be charging a clearance fee (varies according to banks).
- As an example, the total cost for an FTT transfer via Maybank is (1) Standard FTT fee of RM10 + (2) Clearance fee of ~SGD20 (SGD transfer)/~$30 (USD transfer). Again, this is NOT a fee from ProsperUs but a clearance fee charged by the banks.
- As you can see, this is the reason why I do not recommend funding your ProsperUs account (or any legit foreign brokers, in this case) via local FTT.
Instead, Iâd recommend for you to consider using a Singapore bank account to fund your ProsperUs account (Method 2).
Method 2: Fund your ProsperUs account via a Singapore bank account (CIMB SG)
READ: Guide - How to open a Singapore bank account online!
Funding your ProsperUs account via a Singapore bank account would be my recommended funding method. Reason being, it is faster and there are no clearance charges involved for SGD transfers.
If you are serious about investing in the global market, Iâd strongly suggest you to open an SG bank account. For Malaysians, we can open an SG bank account 100% online via CIMB SG.
Step 1: Log in to your ProsperUs account > Select âManage Fundsâ > Select âDepositâ
Step 2: Select SGD as your funding currency, and âFASTâ as payment type.
Youâll get the bank details and instructions to make the transfer.
Step 3: Log in to your CIMB SG account > âLocal Transferâ > âTo Other Bankâ > âVia FASTâ
Under âTransfer Toâ, select The Hongkong and Shanghai Banking Corp. Please note that you have to transfer the funds using a Singapore bank account under your own name.
Step 4: Key in details of the transfer.
Remember to mention your account number under âMessage to Recipientâ or in the âRemarksâ section.
Thatâs it! If your deposit is successful, itâll be reflected in your ProsperUs account within the same business day (for transactions done before 5pm), or the next business day for transactions after 5pm.
Funding your ProsperUs account (MYR)
As a global broker, ProsperUs also provides users access to the Malaysian market. As such, you can also fund and withdraw MYR easily on ProsperUs.
The limitation is, MYR can only be used to trade Bursa Malaysia, but not other markets. As a restricted currency, we will not be able to exchange MYR to other currencies (eg. SGD/USD/HKD/EUR) within ProsperUs as well.
Step 1: If this is your first deposit in MYR, request for an MYR currency account by writing to ProsperUs (âHelpâ > âContact Usâ > âSubmit an enquiryâ).
Itâll usually be activated within 1 business day.
Email Template to ProsperUs: âCan you activate my MYR currency account?â
Step 2: Log in to your ProsperUs account > Select âManage Fundsâ > Select âDepositâ
Step 3a: Select MYR as your funding currency, and âTelegraphic Transfer/Bank Transferâ as payment type.
Step 3b: Youâll get the bank details and instructions to make your MYR transfer.
Use the details to make a normal bank transfer to ProsperUs via your local bank account. Since this is a normal bank transfer and not a Foreign Telegraphic Transfer (FTT), there are no fees or charges involved to deposit MYR.
Step 4: Remember to key in the last 5 characters of your reference number + upload a screenshot of the transfer to complete the process. Â
Withdrawal from your ProsperUs accountÂ
There are 3 main ways to withdraw from your ProsperUs account:
Method 1: Direct withdrawal to a local bank account via Telegraphic Transfer (TT)
The first withdrawal method is via Telegraphic Transfer (TT) from ProsperUs to your local bank account.
I do not recommend this method as itâll usually take longer. Moreover, there will be a handling fee of SGD30 for withdrawal to non-SG banks, as well clearance charges from our local bank:
- Handling fee: SGD30
- FX spread + Intermediary clearance fee from our local bank
As you can see, this is an expensive withdrawal method and I highly recommend you to use a Singapore bank account (Method 2) for withdrawal instead.
Method 2: Withdrawal of SGD from ProsperUs to a Singapore bank account (CIMB SG)
Withdrawal from ProsperUs is best done through a Singapore bank account as it is faster (within the same day). Furthermore, there are no charges on withdrawal in SGD.
Step 1: Log in to ProsperUs > Select âAdd bank accountâ if this is your first withdrawal attempt.
Otherwise, you can skip to Step 4.
Step 2a: Key in the details of your CIMB SG account
Step 2b: As proof that you are withdrawing to your own account, you are required to upload your CIMB SG bank statement as well.
Log in to your CIMB SG account > 'E-Statement' > 'Deposits' > 'View Online Statements' > Download the latest statement and upload it on ProsperUs
Step 3: Wait for ProsperUs to verify your bank account.
Itâll take about 1 to 2 business days for verification.
Step 4: Under âManage Fundsâ, Select âWithdrawâ
Key in the amount of withdrawal and select the bank account to withdraw to. Then, submit your withdrawal.
Step 5: Thatâs it! Your withdrawal should be processed within 1 to 2 business days.
Method 3: Withdrawal of MYR from ProsperUs to a Malaysia bank account
The way to withdraw MYR back to your local bank account is similar to Method 2 above.Â
The difference here is you'd have to add your Malaysia bank account in Step 1-3 so you can withdraw your MYR to that account.
There are no fees involved for MYR withdrawal to your local bank account.
Exchanging SGD to other currencies in ProsperUs (and vice versa)
Letâs say you deposit your funds in SGD. Now, you want to use USD to invest in the US market, or EUR to invest in the European markets.
There are 2 ways you can go around this:
#1 Easiest way: ProsperUs will automatically exchange your SGD to USD when you execute your transaction.
As such, FX rates of the day will be taken during the exchange.
#2 You can also exchange your SGD to USD (or other currencies) ahead of taking a trade:
- Step 1: Request for a USD currency account by writing to ProsperUs (âHelpâ > âContact Usâ > âSubmit an enquiryâ). Itâll usually be activated within 1 business day.
Email Template to ProsperUs: "Can you activate my USD currency account?â
- Step 2: Go to Boost > âAccountâ > âDeposit & transfersâ > âSub-account Transferâ and perform the currency exchange.
As such, FX rates of the day will be taken during the exchange.
Exclusive ProsperUs Referral Code â MONEY20
Hereâs a reward exclusive to No Money Lah readers â you will not find this anywhere else!
From today till 30/9/2024, key in my exclusive promo code âMONEY20â while you register, and get FREE cash credit up to SGD100Â when you open a ProsperUs account:
Tier Initial funding within 30 days of account set up Trades Executed Cash Credits
1 Minimum SGD500 â SGD2,999 Minimum 3 trades executed SGD10
2 Minimum SGD3,000 â SGD14,999 Minimum 3 trades executed SGD20 (Deposit SGD3000 or more), OR
SGD20 + SGD30 (Deposit SGD3000 or more + Min. trades fulfilled)
3 SGD15,000 or more
Minimum 3 trades executed SGD20 (Deposit SGD3000 or more), OR
SGD20 + SGD100 (Deposit SGD15,000 or more + Min. trades fulfilled)
Click HERE to view the full T&C of this referral reward. Personally, I think this is a great deal if you are planning to open an account to start investing globally!
Open a ProsperUs Account Today!
Disclaimers:
Past return is not indicative of future performance.
This post may contain affiliate links/codes that afford No Money Lah a small amount of referral (and help support the blog) should you sign up through my referral code.
Fresh-grad to working adult: How my financial planner helped transform my finances!
Time flies and it has been 5 years since I graduated from university and went into the workforce officially.
A lot has changed in the past 5 years, especially when it comes to my finances. Of all, working with my financial planner, Stev, since 2020 has been a major decision in my journey.
In this post, Iâd like to look back at my progress over the past 5 years, the lessons I learned along the way, and how my financial planner, Stev, has helped me in this journey!
Progress in my finances (2018 - 2023): Dividends, Net-worth, Expenses
(i) Dividend Income
While not much, I am happy to share that the annual dividend income from my dividend portfolio has grown from nothing to a little bit more than RM2.5k in 2023.
In other words, my dividend portfolio has been paying me an average of RM250/m in passive income this year (not too bad!).
The idea of building a dividend portfolio is so that in 15 â 20 yearsâ time, the dividends could supplement my cashflow to prepare for things like aging parents, family commitments, or on a lighter note, traveling whenever I feel like it (fingers crossed!).
(ii) Net-worth
Thanks to the guidance of my financial planner, Stev, I have been fortunate enough to grow my net worth steadily in the past few years.
In 2023, as I saved and invested more as my income increased, my net worth grew about 45% compared to the previous year (2022).
(iii) Personal Expenses
Being in my late 20s, single, with no expensive hobbies, and minimal commitments, I do not have many large personal expenses.
That said, I was sick for 4 months earlier this year so I spent a lot on Traditional Chinese Medicine (TCM) treatments. I also got more conscious of my health in 2023 so Iâve been getting chiropractic sessions, as well as personal trainers to help me with my fitness.
All in all, my key expenses are:
- Family expenses (eg. money to parents, miscellaneous family expenses): 24%
- Traveling: 11%
- Personal Care & Sports (TCM, Chiro, Personal Trainer): 10% & 9% respectively
How my financial planner helped transform my finances since 2020
Long-time readers would know that Iâve been working with my financial planner, Stev, since 2020.
For newer readers, Stev is a licensed financial planner from WealthVantage, as well as the person behind personal finance blog, My Personal Finances (MyPF). With Stevâs help, my finances have never been more organized and this allows me to focus on important priorities in my life (eg. family and career).
You can follow my financial planning journey below:
Stevâs guidance is one of the crucial reasons why I managed to improve my finances to the way it is today.
Since engaging Stev as my financial planner, my overall financial health (cashflow, net worth, protection) has made a major improvement in 2023 compared to late 2019, when I first started working with Stev.
Check out my Wealth Vantage Score â a visual of how Stev measures my overall financial wealth in 2019 vs 2023:
Several key aspects Stev has helped me massively are:
(i) Unbiased insurance planning
Unlike insurance agents that represent a specific insurance company, Stev is a financial planner which means he can source insurance products from different insurance companies.
In other words, Stev can be unbiased when it comes to customizing the best insurance solutions (life, medical, and critical illness coverage) for his clients.
Check out the key differences between a financial planner and insurance agent HERE.
(ii) Optimizing my taxes
Stev has also been helping me in optimizing my taxes. For instance, Stev will filter for specific tax rebates that I can benefit from whenever a new Budget is announced each year.
In addition, I will always send my tax draft to Stev to go through before submitting it for payment every year, just to make sure I am benefitting from all the tax rebates that I am qualified for.
(iii) Retirement planning via savings and investment
Through working with Stev for the past few years, Stev has guided me in how to best allocate my savings and investments towards my retirement and other financial goals.
Some key things that Stev has guided me over the years include:
- Which PRS funds are the best for my risk appetite?
- How much should I contribute to EPF as a self-employed?
- How to improve my credit score, given my personal circumstances?
Whenever I felt discouraged or impatience about my wealth-building journey, Stev always made sure I saw what was possible if I stayed consistent in my journey.
(iv) Will-writing
As the value and variety of my assets increase, Stev has also guided me on writing my own will in 2022, so my assets will be distributed accordingly to my loved ones should something happen to me.
To find out why it is crucial to create a will + my experience, check out my will-writing experience HERE!
FIND OUT MORE: Why I write my will at 28, and my experience!
Top 4 most important financial decisions I made since I started working:
#1: Working with a financial planner
The decision to work with Stev has helped me improve every aspect of my finances, from insurance & will-writing, to investments, and retirement planning. I couldnât have done it by myself without the help of licensed professionals like Stev.
Learn about how is it like to engage a financial planner in the next section!
I'd also like to thank Catherine and Gabriel, who both are currently financial planners for WealthVantage for assisting me in my financial planning journey as well for the past 4 years!
#2: Increasing and diversifying my income sources:
As someone running my own business, the idea of me losing everything I built still bugs me every now and then (though much less intense these days).
As such, Iâve been working on improving and diversifying my income sources over the past few years to ensure that my income remains relatively stable regardless of what happens to one specific revenue stream.
#3: Learning about the financial condition of my family:
I also took the initiative to find out about my familyâs financial condition, such as existing mortgages, insurance coverages, and savings.
This helps me identify any potential financial risks in the family so I can take action earlier instead of being caught off guard.
For instance, just like myself, I convinced my mom to engage a financial planner to help organize her finances to live a more fulfilling retirement life.
#4: Saving for different purposes
With age, I noticed that there will be expenses that are best planned ahead.
Some expenses that I prepare ahead of time are travel/holiday, parents' old-age expenses, and wedding angpau funds (I attended 9 weddings in 2023 lol, luckily, I saved for them).
Should you engage a financial planner in Malaysia?
Having Stev as my mentor and guide for the past 4 years has been massively fruitful.
With my finances in place, I can go on to pursue different life goals without worries â as there is always someone looking over my shoulder when it comes to my finances.
So, hereâs a question for you:
Do you have important priorities in life that you want to pursue or dedicate time to without having to always worry about your financial status:
âDo I have enough insurance coverage?â
âAm I investing right?â
âCan I retire with what I am earning now?â
If yes, engaging a financial planner can bring massive benefits to your life.
Specifically, I am confident that a financial planner will add massive value to you if:
- You have tried to DIY your finances but still feel overwhelmed.
- You want to prepare your finances for the next phase in life (eg. marriage, retirement), but not sure how.
- You need help to organize your finances in place but you are unsure how or too busy to begin (investments, insurance, estate planning etc).
Yes, there are charges to engage a financial planner. But trust me, this will be an investment thatâll give you returns and peace of mind in multiple folds.
[EXCLUSIVE] Get Your First Financial Consultation Session â FREE OF CHARGE!
If you are keen to explore how a licensed financial planner can help with your finances, this is for you:
I am working together with WealthVantage to bring a FREE Financial Consultation Session to all No Money Lahâs readers!
- When you sign up for this FREE consultation session, you will learn more about your overall financial state.
- Not only that, you can gauge if a Financial Planner is going to add value in the pursuit of your financial goals.
Regardless, it is 100% FREE and you have zero obligations to take up the service if it is not suitable for you. Plus, you are doing your finances a favor for the year to come!
You can sign up for your FREE financial consultation session by clicking on the button below.
No Money Lah's Verdict
So there is it - how my finances have evolved for the past 5 years since I started working!
An important lesson that I've learned is that wealth-building is a long process that requires patience and proper planning.
With Stev's guidance, I've managed to improve my overall finances steadily - and I hope this convinced you to consider getting proper guidance if you feel overwhelmed or miserable about your finances!
Remember, you can always sign up for a FREE consultation session to see if it is a good fit for you before making a decision!
Disclaimer
This article is made possible through a collaboration with WealthVantage. Special thanks to Stev and the team for making this collaboration such an impactful one.
WealthVantage did not receive copy approval rights on this article â that means they are reading this article for the first time, right alongside you.
p.s. This post contains affiliate links, which afford No Money Lah a small referral if you sign up for any paid services.
StashAway Flexible Portfolios Review: Customize your favourite portfolios in 4 steps!
Life only gets busier as we grow up.
In the final year of my 20s in 2023, I am occupied with work, family, and health matters (yeap, Iâve been sick for 4 months now) â not to mention A LOT of weddings to attend (8 for the year, so far).
Realizing that life only gets busier has changed how I approach investing compared to when life was more carefree in my early 20s:
Is there a way to build my own portfolio that I like, and automate my investments on a consistent basis (eg. monthly) â all while I focus on more important things in life?
In this post, Iâd like to walk you through StashAway Flexible Portfolios, and why it makes much sense for busy investors!
Highlights:
- StashAway Flexible Portfolio allows you to customize your own portfolios based on the large selection of Exchange-Traded Funds (ETFs) available on StashAway.
- Investors that value customization and making investment a regular routine will find Flexible Portfolios highly convenient.
- Compared to buying your own ETFs via stock brokers, Flexible Portfolios are more capital-friendly as there is no minimum investment amount required.
What is a StashAway Flexible Portfolio?
StashAway Flexible Portfolios is a feature by StashAway that allows you to customize your own portfolios based on the large selection of Exchange-Traded Funds (ETFs) available on StashAway.
StashAwayâs ETF selection consists of more than 55 different asset classes ranging from US stocks, bonds, real estate, developed and emerging market stocks, and more.
In addition, there is no limit on the portfolios that can be created. As such, you can customize as many Flexible Portfolios as you wish.
In essence, with Flexible Portfolios, you can build one or more portfolios that belong entirely to you.
Here is a tip of the iceberg of ETFs that you can choose from to build your Flexible Portfolios:
| US Equities |
| S&P500: iShares Core S&P500 ETF (ticker: IVV) |
| Nasdaq 100: Invesco QQQ Trust Series 1 (ticker: QQQ) |
| Dow Jones: SPDR Dow Jones Industrial Average ETF Trust (ticker DIA) |
| Real Estate |
| US REITs & Real Estate: Vanguard REIT ETF (ticker: VNQ) |
| Global Equities |
| Total World Market: Vanguard Total World Stock ETF (ticker: VTI) |
| Asia excluding Japan: iShares MSCI All Country Asia ex Japan ETF (ticker: AAXJ) |
| China Tech: iShares Hang Seng Tech ETF (ticker: 09067) |
| Thematic |
| AI & Robotics: Global X Robotics & AI ETF (ticker: BOTZ) |
| Blockchain: Amplify Transformational Data Sharing ETF (ticker: BLOK) |
| Healthcare: iShares Global Healthcare ETF (ticker: IXJ) |
| Bonds |
| US aggregate bond: iShares Core US Aggregate Bond ETF (ticker: AGG US) |
| Investment grade bonds outside of US: Vanguard Total International Bond ETF (ticker: BNDX) |
| Commodity |
| Gold: SPDR Gold Trust (ticker: GLD) |
Check out the StashAway app or website for the full list of available ETFs.
3 Key Benefits of StashAway Flexible Portfolios
For investors, Flexible Portfolios offer the best of both worlds: Customization and Automation.
#1 Customize your portfolios â from scratch, or from readily available templates
With Flexible Portfolios, you are free to build an ETF portfolio that is entirely yours.
This means you have 100% control over what is invested, as well as the portfolioâs allocation.
Even better, you can tweak the asset allocation and even change the ETFs in your portfolio whenever you want, not just during the setup - that's flexibility at its best!
Not quite sure how to start?
StashAway has prepared multiple readily made templates, such as a Passive Income template for passive income investors, a World Index Tracking template for global markets, as well as a Risk-Focused template for globally diversified exposure:
#2 Automate your investment
Personal or work life can be overwhelming at times, and many people tend to forget their investing routine.
Not anymore when you invest via StashAway.
With StashAway, you can plan for a regular investment schedule via direct debit from your bank account.
In other words, you can plan for your investment to be done automatically every month or quarter, all while you focus on important things in life.
#3 Invest with any amount. No minimum balance is required.
Another convenient feature of Flexible Portfolios is thereâs no minimum amount required for you to invest and maintain.
So, be it RM50, RM500, or RM5,000 you can build an investment portfolio of your choice regardless of your capital.
4 steps to set up & automate your investment in Flexible Portfolios:
Step 1: Sign up for a StashAway account via my referral link below:
Existing StashAway users can proceed to Step 2.
Step 2: Select âCreateâ > âCustomize a portfolioâ
Step 3: Build your Flexible Portfolios from ready-made templates, or from scratch.
As a note, you can create multiple Flexible Portfolios as there is no limit on how many portfolios you can create.
(a) Ready-Made Templates:
There are 4 templates for you to get started with. You have absolute freedom to make adjustments to the templates.
(b) Build your Flexible Portfolio from scratch:
- Start customizing your Flexible Portfolio from an ETF collection of over 55+ asset classes.
Note: 1% of your portfolio will be allocated to cash to handle portfolio rebalancing and platform fees.
- Adjust the allocations of each ETF in your portfolio:
- Preview and confirm your Flexible Portfolio:
Check the risk, past performance, as well as sector & region exposure of your portfolio combination.
Note: You will get a reminder if the risk profile of your Flexible Portfolio exceeds the recommended risk level for you. Click âI Understandâ to proceed if you are okay with this, or go back to readjust your portfolio as you see fit.
Step 4: Schedule a one-time or recurring deposit plan
You can set up a one-time deposit, or schedule a recurring deposit to your Flexible Portfolios via Direct Debit from your bank account.
If you want to automate your Flexible Portfolios' investment, select âSchedule a Recurring Depositâ and link your bank account accordingly.
You can schedule a monthly or quarterly automatic deposit plan at any amount you like.
StashAway fees + Flexible Portfolios fee waiver promotion
There are 3 fees that you need to take note of while investing with Flexible Portfolios.
These fees are deducted automatically from your portfolio value so there is no extra hassle on your end.
- Expense ratio charged by the fund manager (not StashAway) of the underlying Exchange-Traded Fund (ETF) that you invest in. (Approx. 0.2% per annum).
- Currency conversion fee of about 0.1% on the spot exchange rate for USD & GBP portfolios.
- StashAway management fees of 0.2% - 0.8% per year based on your total investment amount.
Flexible Portfolios Promotion: Free investing till 30 June 2023
StashAway is currently running a Free Investing promotion for Flexible Portfolios, where all StashAway management fees on all funds deposited are waived until 30/6/2023!
Invest on your own vs Flexible Portfolios
At this point, some investors may wonder:
âWhy use Flexible Portfolios when I can invest in these ETFs myself through a stock broker?â
I think this is certainly a valid question. In my opinion, both approaches are meant for different types of investors.
Flexible Portfolio is meant for investors who value customization and the convenience of automation.
#1 Flexible Portfolios make it capital-friendly to invest in a custom ETF portfolio
There is no minimum investment requirement to invest via Flexible Portfolio.
So, letâs say I have RM200/m to invest, and I want to build a portfolio consisting of the S&P500 (IVV) and Nasdaq-100 index (QQQ).
With RM200/m, I can absolutely build and invest in an S&P500 + Nasdaq-100 portfolio on a Flexible Portfolio.
Meanwhile, investing via most stock brokers will require you to invest in 1 full unit for each ETF:
| ETF | Price/unit (USD) |
| iShares Core S&P500 ETF (IVV) | $414 (as of 21/4) |
| Invesco QQQ Trust (QQQ) | $317 (as of 21/4) |
| Total Required | $731 |
#2 You can automate your investment on Flexible Portfolios
It is easy to forget about investing regularly when life gets busy.
With Flexible Portfolios, you can automate your investment on a monthly or quarterly basis so your investment is done regularly â all while you focus on more important things in life (family, career etc).
In fact, Iâve been recommending Flexible Portfolios to many close friends that are busy with life, and I think they love the convenience!
#3 Flexible Portfolios reinvest your dividends automatically
With Flexible Portfolios, your dividends are reinvested automatically on your behalf. In comparison, with a stock broker, youâll have to do so yourself.
In addition, you have the flexibility to cash out your dividends when they reach a monthly amount of RM25 or more â so you have access to your dividends anytime!
#4 Flexible Portfolios maintain your portfolio allocation according to your preference
Letâs say you have set up a Flexible Portfolio to be 50% - 50% allocation between S&P500 (IVV) and Nasdaq-100 (QQQ), it will be maintained in that way while you invest.
Meanwhile, it is a hassle to maintain such a specific allocation on our own as market swings can lead to changes in the value of each ETF, which can cause the percentage allocation to go off our initial allocation.
#5 Fees: Brokerage vs StashAway management fee
When it comes to fee differences, you pay a brokerage fee while investing with a stock broker, while you are charged an annual management fee while investing through StashAway.
| Fee | StashAway Flexible Portfolio | Stock Broker |
| Annual management fee based on your total investment (0.2% - 0.8%) | Brokerage fee for each trade |
In addition, StashAway's currency conversion fee (to USD or GBP) of about 0.1% on the spot exchange rate is more competitive compared to banks that may charge expensive fx spreads to transfer to overseas stock brokers.
To summarize, I think Flexible Portfolio is a good fit if:
- You are looking to customize your investment portfolios with a flexible investment amount.
- You want to automate your investment routine so you can invest regularly while being occupied in life.
Bonus - Flexible Portfolios Ideas:
Below, I list down a few practical ideas to use Flexible Portfolios:
Idea #1: Automate your investment in the S&P500 and/or Nasdaq-100 ETF via Flexible Portfolios
I am often asked by friends and readers how to invest in the S&P500.
One way that Iâd usually recommend is to set up a pure S&P500 ETF (IVV) portfolio on a Flexible Portfolio, and automate their investment through recurring deposits.
In my opinion, this is the most convenient way to invest in the S&P500 regularly.
Idea #2: Build dividend income with Flexible Portfolios
Use Flexible Portfoliosâ existing passive income templates, or tweak it to your liking:
StashAway Referral Link & Code: P-NOMONEYLAH-MY
No Money Lah is working with StashAway to bring new users an exclusive 50% off your fees for the first RM100,000 invested for 6 months.
To be eligible for this deal, sign up for your StashAway account through my referral link HERE (or apply code 'P-NOMONEYLAH-MY'). (or HERE if you are from Singapore)
Verdict â Build and automate your investment with StashAway Flexible Portfolios!
The beauty of StashAway Flexible Portfolios is it makes customizing an investment portfolio very simple regardless of your capital.
Even better, building a regular investment routine is also very convenient on StashAway via recurring debit.
Are you on Flexible Portfolios? If not, are you going to give it a try? Let me know your thoughts in the comment section below!
Disclaimers
This post is sponsored by StashAway. Past performance is not indicative of future performance.
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.
Best FD Alternatives: StashAway Simple vs Versa Cash & Cash-i vs KDI Save vs TNG GOinvest
Fixed Deposit (FD) has always been the go-to place for many Malaysians to save their cash.
However, most FDs require a high deposit, and they lock in your money for a long time (+charges a penalty on early withdrawal).
That said, over the past year, we are seeing the emergence of more money market funds, which is a flexible alternative to FD over the past year.
In this article, let's compare my top 5 Fixed Deposit (FD) killers: StashAway Simple, Versa Cash (and Versa Cash-i), KDI Save, and TNG GOinvest!
p.s. This is a comprehensive comparison, so feel free to use the menu below to skip to the part you are interested in reading, enjoy!
Overview:
- StashAway Simple is a cash management offering from well-known robo-advisor, StashAway. It is part of the offering within the StashAway app. Check out my in-depth review of StashAway Simple.
- Versa Cash was launched in 2021 and it offers a return on-par with FDs. In April 2023, Versa Cash-i, the Shariah-compliant version of Versa Cash is launched. Check out my detailed review of Versa Cash HERE.
- KDI Save is a cash management offering. It is part of the offering within the latest Kenanga Digital Investing (KDI) robo-advisor app.
- GOinvest is a newly introduced cash management feature within the Touch 'n Go e-Wallet in 2022. GOinvest allows users to save and get attractive returns easily within the app.
What is a Money Market Fund?
All the products we are comparing today achieve returns on-par or higher than FD by investing in Money Market Fund (MMF).
Money market funds (MMF) are funds that invest in a mix of (i) Fixed Deposits, (ii) bonds, and highly liquid, short-term cash equivalent instruments called (iii) Money Market Instruments.
Quick Intro: Money Market Instruments
Essentially, Money Market Instruments are short-term debts issued by banks in order to accumulate short-term cash-pile to make up for the shortfall in their daily deposit reserve.
- Simply put, MMFs are lending money to banks when they buy these Money Market Instruments.
- These instruments are relatively low-risk as they are backed by banks. Moreover, they are highly liquid with short maturity periods.
- Through regular redemption of matured Money Market Instruments, it allows MMF to provide a similar rate to FDs without having to lock up usersâ capital.
In short, through StashAwaySimple, Versa Cash & Cash-i, KDI Save, and GOinvest, you can earn a similar rate to FD through low-risk MMF without having to lock up your funds, unlike typical FDs.
They are great options if you are looking for a competitive and flexible alternative to FDs.
Similarities: StashAway Simple, Versa Cash & Versa Cash-i, KDI Save & GOinvest
What are the similarities or common traits when you place your money with these apps?
1. Regulated
All StashAway, Versa, KDI, and GOinvest are regulated by the Securities Commission (SC) of Malaysia. This ensures that these services are always operating in Malaysia as per the guideline from the local authority.
2. Flexible & Low barrier of entry
Generally, most FDs require a high minimum deposit to get started. Moreover, FDs lock in our funds for a period of time and charge a penalty for early withdrawal.
In contrast, every app in this article has a low minimum deposit of RM0 (Simple) and RM10 (Versa, KDI Save, GOinvest).
Furthermore, they do not lock in your funds as FD does. Meaning, you are free to deposit and withdraw anytime without penalty.
In short, with a small capital, anyone can start saving flexibly and enjoy rates that are on par with FD.
3. Competitive returns to FD
As a whole, all apps provide returns that are similar and/or competitive to traditional Fixed Deposits (FDs).
I will go through a detailed comparison in the next section, but safe to say they are all great alternatives to FDs.
One thing to be aware of, is none of them guarantee returns. Even though they invest in low-risk MMF, returns are still subjected to market fluctuation.
4. Not protected by PIDM
Another thing to note is that none of the apps are protected under Perbadanan Insurans Deposit Malaysia (PIDM).
PIDM is an organization that protects deposits kept in banks and financial institutions that are a member of PIDM. Conventional FDs are usually protected by PIDM.
Comparison Part 1: Returns & Fees
In this section, letâs compare the returns and fees of these apps. I will assign a winner at the end of each section:
Each app has an underlying money market fund, namely:
- Eastspring Investment Islamic Income Fund for StashAway Simple
- Affin Hwang Enhanced Deposit Fund for Versa Cash
- Affin Hwang Aiiman Enhanced i-Profit Fund for Versa Cash-i
- Proprietary Money Market Instruments from Kenanga for KDI Save
- Principal Islamic Money Market Fund for TNG GOinvest
Below, letâs compare the returns of these funds:
| StashAway Simple | Versa Cash | Versa Cash-i | KDI Save | TNG GOinvest | |
|---|---|---|---|---|---|
| Return | 3.8% p.a. Projected Return (AFTER fees) | 4.3% (AFTER fees) |
4.3% (AFTER fees) | 4% Effective Annual Rate (NO fees) | 3.28%** p.a. Projected Return (AFTER fees) |
| Total Annual Fees* | 0.115% | 0.35% | 0.52% | FREE | 0.42% |
(**GOinvest markets its projected return to be 3.7% p.a. BEFORE fees, so I took 3.7% - 0.42% fee to get 3.28% of projected annual return AFTER fee)
From this comparison above, I think the difference in returns between each app is minimal.
However, some of these apps have their own ongoing promo:
| Promo | Versa Cash & Cash-i | KDI Save | TNG GOinvest |
| Returns | 4.3% p.a. promotional rate for the first RM30k + maintain RM1,000 in Versa Cash and/or Cash-i | 4% Effective Annual Rate is for the first RM50k only. Then, 3.5% thereafter until RM200k and 3% thereafter. | - |
Winner: Versa Cash & Cash-i
In my opinion, Versa's 4.3% projected annual return still makes it the best offering among the others.
In the next sections, weâll explore an equally important aspect of these apps: User Experience.
Comparison Part 2: User Experience
In this section, weâll explore the overall user experience of these apps, from fees, how long it takes to deposit and withdraw, and so on:
(A) Interest Payout Frequency, Minimum Deposit
As for interest payout, KDI Save pays out usersâ interest on a daily basis. Meaning, youâll receive your interest payout daily from KDI Save.
This is followed by StashAway Simple, Versa Cash & Cash-i, and TNG GOinvest (monthly).
| StashAway Simple | Versa Cash & Cash-i | KDI Save | TNG GOinvest | |
| Interest Payout Frequency | Monthly | Monthly | Daily (W) | Monthly |
(B) Deposits & Withdrawals
All 4 apps do not charge any fees on deposits and withdrawals. In addition, all of them have a low barrier for deposits, of which I think the differences are negligible.
As such, an important discussion here would be how fast we can receive our money in our bank account during a withdrawal.
Of course, the earlier we can receive our funds, the better:
| StashAway Simple | Versa Cash | Versa Cash-i | KDI Save | TNG GOinvest | |
| Min. Deposit | No min. deposit | RM10 | RM10 | RM100 initial deposit (RM10 thereafter) | RM10 |
| Deposit Speed | 2-3 business days | 2-3 business days | 2-3 business days | 1-2 business days | 2 business days |
| Withdrawal fee & Speed | No. 3-4 business days | No. 1-2 business days | No. 0-1 business day | No. 1-2 business days | No. 2 business days |
| Min. Withdrawal Amount | No. | RM50 | RM50 | RM10 | RM10 |
When it comes to speed, Versa Cash-i leads with same-day withdrawal if it is done before 10:30am.
Another less-talked-about comparison would be the minimum withdrawal amount. Versa has the highest minimum withdrawal amount of RM50, followed by KDI Save and GOinvest (RM10). Meanwhile, Simple does not have such restrictions in place.
In my opinion, there is no clear edge for either app in this comparison. That said, if you prefer that have access to your cash faster, Versa Cash-i is the way to go.
2d. User-Friendliness
I enjoy using well-designed apps. For me, I genuinely enjoy using Versa and StashAway Simple as their navigation is straightforward and works as intended.
In particular, for cash management & saving purposes, Versa nailed it in terms of simplicity as it is a pure cash management app.
2e. Others (Shariah-Compliance)
In this comparison, StashAway Simple, Versa Cash-i, and TNG GOinvest are shariah-compliant while KDI Save and Versa Cash do not come with such compliance.
Winner: Versa Cash-i
Versa Cash-i wins in its fast withdrawal speed, shariah-compliancy, and superior user experience.
Comparison Part 3: Special features/promo
- Limited-Time Promo: Get up to 4% on your savings (KDI Save)
For a limited time only, get 4% Effective Annual Rate (EAR) when you save with KDI Save!
Do note that the promotional rate of 4% EAR is tiered, as of below:
| Deposit amount | Rate |
| First RM50,000 | 4% EAR |
| > RM50k â 200k | 3.5% EAR |
| > RM200k |
3% EAR |
- Limited-Time Promo: Get up to 4.3% on your savings! (Versa Cash & Versa Cash-i)
Looking to get more out of your cash? For a limited time, all Versa users are eligible for a promotional rate of 4.3% on their cash!
How it works:
- Versa Cash and Cash-i's 4.3% promotional rate is applicable to all new & existing Versa users.
- Maintain RM1,000 in your Versa Cash or Cash-i account, and the promotional rate is automatically applied to the first RM30,000 in your Versa Cash & Cash-i account. Any subsequent balance above RM30,000 will continue to earn Versa Cashâs base net return rate of 3.95% p.a., and Versa Cash-i's base net return of 3.08% respectively.
- Promotional period: Ongoing until further notice
- Refer to the full T&C for more info.
I think this is GREAT news if you are looking for a higher rate for your savings! Remember, there is no lock-in period for Versa Cash and you are free to withdraw your funds anytime!
Use my dedicated Versa referral code â VERSANML4, and you will get RM10 credited into your account* when you successfully make a minimum deposit of RM100 or more. Thatâs an instant 10% return on your investment.
- Investment integration (StashAway)
One thing I love with StashAway is its seamless savings (StashAway Simple) and investment (StashAway) integration.
So, letâs say you have RM50,000 in cash and would like to invest them. However, you do not want to invest the whole RM50,000 at once and would like to spread it over time (dollar-cost average).
Through the StashAway app, you can place your funds in Simple (low-risk + earn stable interest), then automate a weekly or monthly transfer from Simple to your main StashAway investment portfolio.
I think this is a brilliant feature from StashAway, which is one of the reasons why it is my favorite go-to robo-advisor at the moment.
Verdict: Which FD alternative should you choose?
Personally, Iâve been using all Versa Cash & Cash-i, Simple, KDI Save, and GOinvest. All platforms are unique in their own way. Question is, which one should you use?
#1 Versa Cash & Versa Cash-i: For pure savings purposes
Versa as a pure cash management app offers a straightforward user experience. Its underlying low-risk money market fund is also a fantastic alternative to FD.
As a whole, if you are looking for a low-risk way to save your cash, I highly recommend Versa.
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#2 KDI Save & StashAway Simple: For savings & investing
StashAway and KDI are robo-advisors that offer both cash management (Simple & KDI Save) and investment services (StashAway & KDI Invest).
Within both app, users can easily transfer money from their savings to investments, which is really convenient.
Furthermore, I think both KDI Save and StashAway Simple are equally capable alternatives to FD for savings purposes.
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#4 StashAway Simple & Versa Cash-i : If you need shariah-compliancy
Muslim friends looking for alternatives to FD can consider StashAway Simple and Versa Cash- i as they are shariah-compliant.
EXCLUSIVE Promo codes/referral link (KDI Save, Versa Cash & Cash-i, StashAway)
If you find this post useful, do consider using my promo codes/referral links to open your account(s)!
This will greatly help me in sustaining my blog and keep on working on quality content like this one:
- KDI Referral Code: 101183
Use my dedicated KDI referral code â 101183, and you will get RM10 credited into your KDI Invest portfolio* when you successfully make a minimum deposit of RM250 on KDI Invest!
*Note: RM10 credit will be made within 60 days upon successful verification & deposit.
Open Your KDI Account HERE.
- Versa Referral Code: VERSANML4
In collaboration with Versa, No Money Lah is bringing an exclusive deal for new users that are keen to start saving or investing with Versa!
Use my dedicated Versa referral code â VERSANML4, and you will get RM10 credited into your account* when you successfully make a minimum deposit of RM100 or more. Thatâs an instant 10% return on your investment.
Open Your Versa Account HERE.
- StashAway Referral Link & Code: P-NOMONEYLAH-MY
No Money Lah is working with StashAway to bring new users an exclusive 50% off your fees for the first RM100,000 invested for 6 months.
To be eligible for this deal, sign up for your account through my StashAway referral link HERE (or apply code 'P-NOMONEYLAH-MY'). (or HERE if you are from Singapore)
Disclaimers:
Investment in a money market fund is not the same as placement in a deposit with a financial institution. There are risks involved and investors should consult a financial planner before making any investment decisions.
This post contains affiliate links/codes that afford No Money Lah a small amount of commission (and help support the blog) should you sign up through my affiliate link/code.
StashAway Simple Review: The Fixed Deposit (FD) Killer?
Fixed Deposit, or FD, has always been peopleâs go-to way to save or deposit extra cash. The problem is, it locks your money in for a long period of time, or requires a high initial deposit to start with.
In this article, letâs look into StashAway Simple, a great alternative to FD. Personally, Iâve been using StashAway Simple since mid-2020, and in this post, letâs explore if StashAway Simple is for you!
Highlights of StashAway Simple
StashAway Simple (or 'Simple') is a cash management offering from robo-advisor StashAway. It provides users competitive returns like FD, but without the troublesome restrictions:
- Regulated: StashAway Simple is regulated by the Securities Commission (SC) of Malaysia.
- Competitive Return: Through Simple, users can earn up to 3.8% interest per annum, which is comparable to the rates of Fixed Deposit (FD).
- Low Risk: The underlying fund of Simple is the Eastspring Investment Islamic Income Fund. It is a Shariah-compliant fund that invests in very low-risk money market funds.
- Flexible & Low Barrier of Entry: Malaysians aged 18 and above can start saving or investing via Simple. There is no minimum on how much you need to save with Simple. Withdraw anytime without being charged penalty fees.
How does StashAway Simple work?
So, how exactly is Simple able to deliver returns that are on-par with FD?
All of this is possible because Simple invests usersâ cash into money market funds (MMF).
MMFs are funds that invest in Fixed Deposits and highly liquid, short-term cash equivalent instruments called Money Market Instruments.
Essentially, Money Market Instruments are short-term debts issued by banks in order to accumulate short-term cash-pile to make up for the shortfall in their daily deposit reserve.
Simply put, MMFs are lending money to banks when they buy these Money Market Instruments. These instruments are relatively low-risk as they are backed by banks. Moreover, they are highly liquid with short maturity periods.
Through regular redemption of matured Money Market Instruments, it allows MMF to provide a similar rate to FDs without having to lock up usersâ capital.
For Simple, the underlying MMF that they invest in is the Eastspring Investment Islamic Income Fund, which is a Shariah-compliant money market fund.
In short, through Simple, you can earn a similar rate to FD through low-risk MMF without having to lock up your funds, unlike conventional FDs.
It is a great choice if you are looking for a competitive and flexible alternative to FDs.
Is StashAway Simple safe to use?
When it comes to regulation, Simple is regulated by the Securities Commission (SC) of Malaysia. This ensures that Simple is always operating in Malaysia as per the guideline from the local authority.
As for the safety of funds, your funds in Simple are held by a third party (trustee), which is Deutsche Trustees Malaysia Bhd.
In other words, your deposits to Simple are separate from StashAwayâs company finances. As such, this ensures no deposits can be used for fraudulent purposes and you will always have full access and claim to them no matter what happens to StashAway.
StashAway Simple Performance, Fees & Charges
StashAway Simple does not charge any platform or service fee to users. That said, the underlying MMF, Eastspring Investment Islamic Income Fund, does charge reasonable annual fees, as shown below:
- Annual Management Fee: -0.25%
- Annual Trustee Fee: -0.04%
- Annual Projected Return AFTER fees & rebate: 3.8%
A thing worth noting is that StashAway does get fee rebate from Eastspring, likely due to the size of capital that StashAway Simple can channel to the fund (p.s. just my opinion).
As such, when Eastspring rebates StashAway, theyâll re-distribute this full rebate to users.
Next question: Are there any fees when you withdraw your funds from StashAway Simple?
Unlike FDs, there are no charges when you withdraw your funds from StashAway. Withdrawals are expected to be reflected within 3-4 business days.
4 things I like about StashAway Simple
#1 Returns on par with conventional Fixed Deposits (FDs)
Through Simple, returns are compounded daily and interest payout is made every month, which is re-invested into userâs fund.
All of this combined, through its underlying Eastspring Investment Islamic Income Fund, Simple projects about 3.8% return per annum (after fees) for users.
#2 Flexible & low barrier of entry
There are 2 things that I absolutely love with Simple:
- Low barrier of entry: There is no minimum amount to start using Simple. Meaning, you can start investing or saving with Simple with any amount you want.
- Flexible: There are no charges to open a StashAway Simple account. In addition, you can withdraw your funds anytime and there are no fees on withdrawal.
Combined, both these features make a compelling edge against typical FDs.
Reason being, FDs usually have higher minimum deposits & they tend to lock in users for a period of time (and charge a penalty for early withdrawals).
#3 Integration with StashAway main investment ecosystem
Another reason why I enjoy using StashAway is its seamless savings (StashAway Simple) and investment (StashAway) integration.
So, letâs say you have RM50,000 in cash and would like to invest them. However, you do not want to invest the whole RM50,000 at once and would like to spread it over time (dollar-cost average).
Through StashAway app, you can place your funds in Simple (low-risk + earn stable interest), then automate a weekly or monthly transfer from Simple to your main StashAway investment portfolio.
I think this is a brilliant feature from StashAway, which makes it the most versatile robo-advisor at the moment.
#4 Intuitive user experience
As an app catered for the general public, StashAway is really simple to use.
Even if you need any help, StashAwayâs customer support is one of the best Iâve ever experienced when it comes to financial products.
Risks + What you need to know before investing in StashAway Simple
In this part, letâs explore 3 things that you need to be aware of while investing your money with Simple:
1. Market risk
While being a relatively stable instrument, investing in Money Market Fund (MMF) via Simple still presents exposure to market risk.
One such risk is the fluctuation in interest rate. For instance, if Bank Negara Malaysia (BNM) increases interest rate, MMF is likely going to generate higher returns. On the other hand, if BNM reduces interest rate, itâll also affect the returns of MMF as a result.
2. Not protected by PIDM
While investing in Simple, it is important to remember that your funds deposited on StashAway are not protected by Perbadanan Insurans Deposit Malaysia (PIDM).
PIDM is an organization that protects deposits kept in banks and financial institutions that are a member of PIDM. Conventional bank FDs are usually protected by PIDM.
Improvement: 2 Improvements Needed for StashAway Simple
Having been a Simple user since its launch, I think there are 2 improvements needed for Simple to compete with competitors like Versa:
1. Automatic scheduled transfer
One thing that puzzled me with StashAway is, I can schedule a routine transfer to my normal StashAway investment portfolio from my bank account, but I cannot do so for Simple.
I think having the convenience for users to automate their deposits every week/month into Simple should be a fundamental feature.
While I enjoy using Simple, I think this improvement will make StashAway a more solid financial app.
2. Withdrawal speed
StashAway Simple has a 3-4 business days withdrawal speed. While this is reasonable, it falls behind competitors like Versa that has a 1-2 business days withdrawal.
I think this is a space that StashAway can improve on as well.
READ: Versa Review: A Great Alternative to Fixed Deposits (FD)!
Eligibility + is StashAway Simple for you?
The minimum age required to open an account with StashAway is 18 years old. Meaning, even young Malaysian adults can start building good financial habits by saving/investing from their phones â neat!
That said, is StashAway Simple for you?
To answer this question, it is best to first know what Simple is NOT:
- Simple does not invest in stocks/equities (ie. Higher risk assets). Hence, do not expect mutual fund-like returns.
- Simple does not guarantee returns. Even though it invests in low-risk MMF, returns are still subjected to market fluctuation.
Hence, in my opinion, Simple is great for:
- People looking for a flexible alternative to FD & typical savings account.
- People looking to save for a specific goal (eg. house, car, wedding)
- People with additional cash and want to save it for the short-term
- People with a stash of cash looking to invest, but would like to spread the investment across time. (StashAway & StashAway Simple is perfect for this)
StashAway Simple or Versa or KDI save?
In terms of offering, StashAway Simpleâs closest competitor is certainly KDI Save and Versa. Both offer users flexible and low barrier access to MMF that pays competitive FD-like rates.
I think this comparison deserves a full article on its own so Iâll attach a link here (it's up!) when I come out with a comparison article real soon!
Personally, I use StashAway Simple, Versa, and KDI Save to save for different purposes and I am happy with them as an alternative to FD (I think you will, too!).
READ: The Ultimate FD-Killer Showdown: StashAway Simple vs Versa vs KDI Save vs TNG GOinvest!
StashAway Referral Link & Code: P-NOMONEYLAH-MY
No Money Lah is working with StashAway to bring new users an exclusive 50% off your fees for the first RM100,000 invested for 6 months.
Since it is Simple is free to use, this deal is applicable if you eventually use StashAway robo-advisor portfolio to invest.
To be eligible for this deal, sign up for your StashAway account through my referral link HERE (or apply code 'P-NOMONEYLAH-MY'). (or HERE if you are from Singapore)
No Money Lahâs Verdict: Simple is the New Breakthrough
With the rise of innovations in the financial solution space, it is refreshing to keep seeing new, innovative products from robo-advisor platforms like StashAway.
In many ways, in the financial services industry, Simple is indeed the new breakthrough that consumers need. With Simple, everyday consumers can enjoy returns on par with FD without the typical restrictions.
Personally, I have always enjoyed using StashAway, and I highly suggest you to check it out too!
Panduan: Cara buka akaun CDS & akaun saham secara online
Anda nak mula melabur dalam pasaran saham di Malaysia?
Aspek yang paling penting sebelum anda bermula melabur saham di Malaysia adalah untuk membuka akaun CDS dan akaun perdagangan saham anda.
Sebenarnya, pembukaan akaun CDS dan akaun saham di Malaysia adalah senang & ringkas.
Dalam artikel ini, fahami perkara penting yang anda kena tahu sebelum membuka akaun perdagangan saham di Malaysia seperti pemilihan Akaun CDS and Broker Saham, dan panduan âstep-by-stepâ dalam proses pembukaan akaun!
TERKINI: Beli saham US melalui Rakuten Trade sekarang - klik sini untuk info lanjut
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Langkah 1: Putuskan sama ada anda hendak membuka akaun âDirect CDSâ atau âNominee CDSâ
Akaun âCentral Depository Systemâ (CDS) adalah akaun yang merekodkan hak milik saham dan sejarah transaksi anda dalam pembelian and penjualan saham. Secara ringkasnya, anda boleh kaitkan akaun CDS seperti âsecurity boxâ yang menjaga keselamatan saham anda.
Sebelum membuka akaun CDS, ada 3 perkara yang anda perlu tahu:
- Anda perlu berumur 18 tahun ke atas untuk membuka akaun CDS.
p - Caj RM10 dikenakan untuk pembukaan akaun CDS. Namun, broker saham seperti Rakuten Trade menampung caj tersebut untuk pengguna.Â
p - Broker saham akan membuka akaun CDS secara serentak untuk anda semasa anda mendaftar untuk akaun perdagangan saham. Dalam ayat lain, anda tidak perlu membuka akaun CDS secara berasingan.
Terdapat 2 jenis akaun CDS, iaitu Direct CDS dan Nominee CDS. Bezanya adalah seperti berikut:
p
| Direct CDS | Nominee CDS | |
|---|---|---|
| Nama pemegang akaun | Pemegang Saham (Mr./Ms.) | Broker (eg. Rakuten Trade Nominees for Mr./Ms.) |
| Pendaftaran untuk melabur dalam IPO | Boleh | Tidak Boleh |
| Pembayaran Dividen | Kredit ke akaun bank anda | Kredit ke akaun perdagangan saham anda |
| Kertas kerja untuk corporate action (eg. Rights Issue, Dividen) | Diuruskan oleh pemegang saham | Diuruskan oleh broker bagi pihak pemegang saham. Biasanya caj servis dikenakan*. [*Percuma di Rakuten Trade] |
| Laporan tahunan & Koupon Dividen | Akan dikirim oleh Registrar | Tidak akan dikirim oleh Registrar [Laporan tahunan boleh dimuat turun dengan senang dari laman web Bursa Malaysia] |
| Kelayakan untuk menghadiri AGM | Boleh | Boleh, dengan surat dari broker |
| Shares Transfer | Saham boleh dipindahkan ke akaun keluarga anda | Saham hanya boleh dipindahkan ke akaun sendiri |
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Akaun CDS mana yang lebih baik? Direct CDS atau Nominee CDS?
Secara amnya, pilihan sama ada untuk membuka akaun Direct CDS atau Nominee CDS tiada beza dan impak besar dalam proses pelaburan anda.
Namun, jika anda baru nak bermula untuk melabur saham, cadangan saya adalah untuk membuka akaun Nominee CDS, khususnya Rakuten Trade, kerana:
- Kemudahan Nominee CDS: Broker saham anda akan menguruskan semua âpaperworkâ bagi pihak anda dalam âcorporate actionâ seperti pembayaran dividen dan rights issue.Bagi saya, ini adalah kemudahan yang besar sebab paperwork boleh merupakan sesuatu yang lebih rumit untuk pelabur yang baru atau kurang pengalaman.
p - Biasanya, sesetengah broker saham yang menawarkan akaun CDS Nominee mengenakan caj pengurusan. Tapi, ianya percuma di Rakuten Trade (betul tiada caj!).
Tapi, satu perkara yang anda kena tahu mengenai akaun Nominee CDS ialah pelabur yang menggunakan akaun Nominee CDS tidak boleh mendaftar untuk Initial Public Offering (IPO), iaitu syarikat yang bakal disenaraikan di Bursa Malaysia.
Walaupun demikian, saya tidak rasa ini perkara yang membawa impak besar sebab kebanyakan pelabur seharusnya fokus pada syarikat yang mempunyai âtrack recordâ yang lebih panjang.p
Rakuten Trade Nominee CDS vs Akaun Nominee CDS Biasa
Penting: Bukan semua akaun Nominee CDS direka sama antara satu sama lain! Bagi saya, daripada Nominee CDS yang ditawarkan oleh broker-broker saham di Malaysia, saya menggunakan akaun Nominee CDS dari Rakuten Trade kerana:
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| Akaun Nominee CDS Rakuten Trade | Akaun Nominee CDS Biasa | |
|---|---|---|
| Caj Pengurusan Corporate Action (eg. Rights Issue, Dividen) | Percuma | Dikenakan |
| Shares Transfer | Saham juga boleh dipindahkan ke akaun keluarga anda selain daripada akaun sendiri | Saham hanya boleh dipindahkan ke akaun sendiri |
| Kelayakan untuk menghadiri AGM | Boleh. Prosesnya ringkas, iaitu hanya dengan email-kan permintaan anda ke customer service Rakuten Trade 10 hari sebelum tarikh AGM. | Boleh, dengan surat dari broker saham. |
| Caj Pembukaan Akaun CDS | Percuma | RM10 |
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BACA: Review Pengguna Jangka Panjang Rakuten Trade: 5 Sebab Kenapa ia merupakan broker saham pilihan saya
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Langkah 2: Pilih Broker Saham anda
Setakat ini, saya rasa anda dah faham apa tu akaun CDS. Sekarang, kita kena tentukan broker saham yang kita ingin guna untuk membuka akaun perdagangan saham.
Secara ringkasnya, broker saham menyediakan platfom untuk memudahkan para pelabur membeli dan menjual saham.
Ingat: Bila anda mendaftar untuk akaun perdagangan anda, broker saham akan membuka akaun CDS secara serentak bagi pihak anda. Jadi, apa yang penting ialah untuk memilih broker saham yang dipercayai.
Dalam pemilihan broker saham, terdapat 2 pertimbangan yang anda kena lakukan, iaitu (1) caj brokerage (atau komisen), dan (2) sama ada anda hendak membuka akaun Cash Upfront atau akaun Margin/Contra.
(1) Perbandingan Komisen Broker Saham di Malaysia
Komisen yang dicaj oleh broker saham merupakan pertimbangan yang penting, terutamanya untuk para pelabur yang mempunyai saiz kapital yang kecil:
| Nilai transaksi & Komisen | < RM700 | RM700 â 10,000 | RM10,000 â 50,000 | RM50,000 â 100,000 |
| Rakuten Trade | 1%/RM1, yang mana lebih tinggi | RM9 | 0.10% | 0.10% |
| M+ Silver Cash Upfront Account | 0.08%/RM8, yang mana lebih tinggi | 0.05% | ||
| Hong Leong HLE Value Trade Account | 0.10%/RM8, yang mana lebih tinggi | |||
| Maybank | 0.42%/RM12, yang mana lebih tinggi | |||
| UOB UTrade | 0.42%/RM28, yang mana lebih tinggi | |||
| CIMB Clicks Trader |
0.0388%/RM8.88, yang mana lebih tinggi |
|||
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Dari perbandingan di atas, adalah jelas bahawa broker-broker saham mempunyai komisen yang berbeza. Sebagai contoh, katakan saya membeli 100 unit saham pada RM1.00/unit:
- Maybank Investment Account (0.42% or RM12, yang mana lebih tinggi): Jumlah Komisen = RM100 + RM12 = RM112
p - Rakuten Trade (0.1% or RM7): Jumlah Komisen = RM100 + RM1 = RM101
Selain itu, apa yang anda kena faham ialah komisen ini dicaj 2 kali dalam proses transaksi saham: sewaktu pembelian DAN penjualan saham. Jelasnya, adalah penting bagi pelabur untuk memilih broker saham yang menawarkan komisen yang berpatutan!
TERKINI: Dapatkan rebat untuk komisen di Rakuten Trade! Klik SINI untuk maklumat lanjut.
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(2) Akaun Cash Upfront atau Akaun Margin/Contra
Seterusnya, timbangkan sama ada anda hendak membuka akaun âCash Upfrontâ atau akaun âMargin/Contraâ.
Ringkasnya, akaun Cash Upfront adalah akaun di mana anda hanya melabur dengan kapital yang dideposit dalam akaun anda. (macam kad prepaid)
Sebagai perbandingan, akaun Margin membolehkan pelabur untuk membeli saham dengan nilai lebih daripada jumlah kapital dalam akaun. Dalam kata lain, broker saham anda meminjam wang kepada anda untuk melabur melebihi saiz kapital anda. (ie. Invest in Margin)
Dengan membeli saham melalui akaun Margin, keuntungan pelabur akan berganda sewaktu harga saham menaik. Akan tetapi, kerugian juga akan berganda sewaktu harga saham jatuh.
Cadangan saya: Elakkan melabur melalui akaun Margin, terutamanya pelabur yang baru atau kekurangan pengalaman.
BACA: Apakah perbezaan antara akaun Cash Upfront dan akaun Margin?
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Panduan Pembukaan Akan Perdagangan Saham dengan Rakuten Trade secara Online
Rakuten Trade merupakan âjoint ventureâ antara Kenanga Investment Bank (Malaysia) dan Rakuten Securities (Jepun) dan dikawal selia oleh Suruhanjaya Securiti Malaysia. Ia merupakan broker saham pilihan saya sebagai seorang pelabur di pasaran saham Malaysia.
Jom fahami Rakuten Trade dengan lebih lanjut:
#1 Salah satu broker saham yang menawarkan komisen yang paling rendah
Rakuten Trade menawarkan komisen yang amat berpatutan apabila dibanding dengan kebanyakan broker saham di Malaysia. Oleh sebab itu, Rakuten Trade merupakan pilihan yang rasional untuk pelabur baru dan berpengalaman.
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| Nilai Transaksi | Komisen |
|---|---|
| < RM699.99 | 1% atau RM1, yang mana lebih tinggi |
| RM700 hingga RM9,999 | RM9 bayaran tetap |
| RM10,000 hingga RM99,999 | 0.10% |
| > RM100,000 | RM100 bayaran tetap |
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#2 Proses Pembukaan Akaun yang Ringkas & Senang
Rakuten Trade adalah broker saham pertama di Malaysia yang menawarkan pembukaan akaun secara online.
Ia hanya mengambil 15 minit untuk mendaftar akaun baru melalui Rakuten Trade. Yang best sekali, pendaftaran anda diproses dengan cepat dan anda boleh mula melabur lepas tu.
Ingat: Rakuten Trade merupakan akaun Nominee CDS. Maksudnya, pelabur tidak perlu menangani âpaperworkâ dalam seluruh proses pelaburan.
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Panduan âStep-by-Stepâ untuk membuka akaun Rakuten Trade (Cash Upfront Account)
Langkah 1: Klik link di bawah untuk membuka page pendaftaran Rakuten Trade. Dalam âAccount Typeâ, pilih âCash Upfrontâ.Â
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Langkah 2: Masukkan Nama, IC dan maklumat Warganegara.
Langkah 3: Muat naik foto IC anda (depan & belakang)
Ingat: Pilih âNoMoneyLahâ di bawah âEducatorâ, dan anda akan mendapat 1000 Rakuten Trade (RT) Points PERCUMA (bernilai RM10), di mana ia boleh diggunakan sebagai rebat komisen, atau ditukar kepada Big Points atau Boost Coins!
Langkah 4: Masukkan Contact, Email, Username dan Security Question.
Langkah 5: Sebagai langkah keselamatan, anda kena mencipta âtrading pinâ 6-angka untuk meluluskan sebarang transaksi saham. Pin ini PENTING sebab anda perlu masukkan pin untuk semua transaksi saham di Rakuten Trade!
Langkah 6: Masukkan maklumat persendirian untuk seksyen seterusnya.
Langkah 7: Masukkan maklumat perbankan anda dan upload penyata bank sebagai bukti.
Langkah 8: Bayar RM10 sebagai caj pembukaan akaun CDS. (Percuma untuk pengguna Rakuten Trade pada masa ini)
Langkah 9: Anda akan menerima email dan anda diperlukan untuk membuat verifikasi untuk email anda.
Langkah 10: Siap! Anda akan menerima notifikasi apabila akaun Rakuten Trade anda diluluskan. Seterusnya, anda boleh mula menambah dana dalam akaun Rakuten Trade dan mula belabur!
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KesimpulannyaâŚ
Pilihan platfom broker saham yang dipercayai adalah penting sekali untuk setiap pelabur. Sebagai pengguna Rakuten Trade, saya boleh mengesyorkan Rakuten Trade dengan yakin disebabkan applikasi yang mudah dan platfom pelaburan yang âuser-friendlyâ.
Suka artikel ini dan nak buka akaun Rakuten Trade? Gunakan âreferral linkâ saya (atau masukkan âNoMoneyLahâ di bawah âEducatorâ sewaktu anda mendaftar)! Dapatkan 1000 Rakuten Trade (RT) Points (bernilai RM10) yang anda boleh gunakan sebagai rebat untuk caj broker semasa melabur!  Â
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ANDA MUNGKIN BERMINAT:
(1) How to Make Your First Trade Using Rakuten Trade?
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