Freedom Floor: This is when you know you've achieved Freedom of Choice in life
Is this how I want to spend the rest of my life doing?
Recently, a friend shared this thought with me over lunch.
Since graduating, he has been going with the flow. He joined the workforce, worked hard during the week (sometimes even on Saturdays), and felt burnt out while always looking forward to public holidays.
As he turns 30, the idea of continuing this intense burnout loop fills him with fear and anxiety. Can he maintain this lifestyle for another 20 or 30 years?
Can he afford to click the 'pause' button now to rethink life?
Freedom Floor: Rethinking and Simplifying Freedom
If my friend's story above rings a bell, I'd like to introduce you to the concept of 'Freedom Floor'.
I recently came across this term via Dean, the founder of Wolo Yoga - a venture he and his wife started after he got laid off from a high-paying job.
The idea of Freedom Floor is pretty straightforward: it's the point where you no longer need to work for money - at least, not for financial security.
The Freedom Floor is made up of two parts:
- A 12 - 24 month expenses buffer: This is your savings (cash or easily-accessible funds) that'll cover your daily expenses if you stop working today.
- CoastFI: A state of financial independence (FI) where your investments reach a point where, without further contributions, will grow to fund your retirement.
Combined, they will form the foundation of your finances - giving you the freedom of choice in life.
How to Calculate Your Freedom Floor
Step 1: Estimate your monthly living expenses (food, housing, transport, insurance, other family expenses). For instance, if it is $4000/month, that's $48,000/year.
Step 2: Multiply the figure ($4000) by 12 or 24 to get your expenses buffer. For this example, it'd be either $48,000 to $96,000 in savings (Cash or liquid assets).
Step 3: Then, find out how much you need to invest now so it can grow and fund your life at retirement. As an example:
- You are 30 today and plan to retire by 60. That means you have 30 years left before you retire.
- At 30, you have $100,000 invested.
- We use the following assumptions:
- A return of 8% per annum in our investments
- Every month, you continue to invest $3,000 in your portfolio
- An inflation rate of 3% per annum
- An annual expense of $48,000 after retirement
- A 4% Save Withdrawal Rule (SWR). Meaning, every year after you retire, you'll withdraw 4% from your portfolio to fund your expenses.
Keying the info above in this CoastFI calculator HERE, we'll learn that:
- You'll need $1.2M by 60 years old to sustain your retirement lifestyle of $48,000 per year.
- If you continue to invest for the next 6 years, by the time you turn 36, your portfolio would grow to $372,081.
- By then, even without further contribution, your investment portfolio will continue to grow and sustain your retirement expenses.
In other words, $372,081 is your CoastFI number.
Your Freedom Floor will be the combination of your:
- $48,000 to $96,000 in savings
- $372,081 investment portfolio
You are not financially free in the sense that you do not have to work again for life.
But you now have the space and choice to hit the pause button in life. To reflect. To experiment. And to rebuild.
You now have Freedom of Choice in life.
Why most people never come close to building their Freedom Floor?
The reason is simple: Constantly-moving goalposts in life.
People tend to upgrade their lifestyle as they earn more. Sometimes way too much.
Bigger house. Larger cars. Premium watches. Spotify Premium. You get my point.
When your lifestyle upgrades (and commitments) grow as fast as your income increment, you leave no space for Freedom Floor to exist.
What happens once you hit your Freedom Floor?
You'd probably still need to work.
But this time, you can make career decisions from the position of passion and curiosity instead of fear.
No more putting yourself at the mercy of your manager or bosses. No more uninspiring projects. No more intense schedule that makes you sick.
You now get to build your life on your own terms.
It's not going to happen overnight. But with a clear direction, it will happen. Slowly but surely.
Why Freedom Fund = Your Foundation to Freedom
I love freedom.
To be specific, Freedom of Choice:
- The choice to take a career break whenever I feel like it, without having to stress about cashflow.
- The ability to say 'No' to uninspiring work or projects that are not aligned with my values, without feeling FOMO.
- The freedom to spend time with the people that truly matter at any time I choose.
You see, my ideal form of freedom isn't about being able to go on expensive holidays (though that'd be nice, too).
Rather, it is about being able to pursue life on my own terms.
I set out to build my Freedom Fund around 2 important principles:
- To invest in assets that will generate consistent dividends while I sleep or am occupied with life.
- To design my Freedom Fund to be as low-maintenance as possible.
Simply put, I am designing my Freedom Fund to be the closest thing to a perfect passive income machine.
It may not be ideal for everyone, but for me, it is a practical investment style that takes into account of:
- My pursuit of freedom and peace of mind
- Uncertainties in life (eg. Consistent passive income if I lose my job/business)
How much my Freedom Fund (dividend portfolio) paid me in the past 5 years:
- 2020: RM316 (= my yearly phone bill)
- 2021: RM1397 (= 10 months of lunch covered)
- 2022: RM2079 (= a new phone)
- 2023: RM3924 (= a new laptop)
- 2024: RM7135 (= solo trip to Japan)
I'm sure you are here (reading my newsletter) because you are pursuing your own version of freedom in life, too.
My advice (as your friend in this journey):
Patience is the key. Slowly, but surely.
I wish you the very best!
p.s. How'd you describe your version of freedom? Feel free to share your thoughts with me by leaving a comment in the comment section below!
Intro to Covered Call ETFs: How I make >10% in dividend yield investing in the S&P500
The S&P500, which provides exposure to the largest 500 listed companies in the US, is arguably one of the best investments for long-term investors.
The problem?
The dividend yield that S&P500 pays is around 1.05% - 1.35% per annum. Not so ideal for dividend investing, my go-to investing style to build low-maintenance passive income.
What if I tell you that it is possible to get >10% in dividend yield by investing in the S&P500 (which is what I am doing with my Freedom Fund)?
With this, let me introduce you to the world of Covered Call Exchange-Traded Fund (ETF)!
YOU'LL LIKE THESE:
Highlights of Covered Call ETFs:
- Covered Call Exchange-Traded Funds (ETFs) are ETFs that sell 'Covered Calls' (explanation in the next section) to generate additional income (or 'premiums') on top of the usual dividends from the ETF.
- Examples of S&P500 Covered Call ETFs are USCC.U (Canadian-domiciled), ESPX.U (Canadian-domiciled), and XYLD (US-domiciled).
- Upsides: Good Covered Call ETFs provide a balance of growth and steady cashflow through dividends. Generally, a Covered Call selling strategy can outperform when the market drops, stays flat, or goes up moderately.
- Downsides: Covered Call ETFs charge a slightly higher fund expense ratio compared to a typical index ETF. Generally, some upside might be capped for a Covered Call ETF when the market goes up too much.
- Quick verdict: Covered Call ETFs, such as the S&P500 covered call ETF, play an important role in my Freedom Fund thanks to their balance of growth and consistent dividend income.
[Workshop Invitation] How to build low-maintenance dividend income via Covered Call ETFs
A quick announcement:
I am running a Covered Call ETF workshop in Sept/Oct 2025)!
In this workshop, I'll share the process I use to discover quality Covered Call ETFs that form the foundation of my low-maintenance Freedom Fund.
Keen to build your own Freedom Fund?
Click the 'Find out more' button below to learn more about the workshop, as well as the promotions and surprise perks you'll get when you sign up for the waitlist!
How does Covered Call work?
Let me show you (in a simple scenario) how selling Covered Calls could generate more income for investors:
Let's say there are 2 people in this scenario, you and I:
First of all, imagine yourself owning 1 unit of Apple share that you bought for $100.
At the same time, let's say I want to invest in Apple - but I am afraid that the price would go down.
Hence, I come to you with a deal:
Me: "Hey bro, I'd like to buy your Apple share for $120 IF the share price goes up to $120 or more next month. Whether this deal happens or not, I'll reward you with $5 now."
Let's say you agree to this deal:
Because you think that the chance of Apple share price rising above $120 by next month is slim.
Essentially, we struck a deal with the following conditions:
- Strike price (a.k.a. The price we agreed on): $120
- Deal will expire by: Next month
- Reward (or 'Premium') you'll receive regardless of the outcome: $5
What you did essentially with this deal, is a Covered Call strategy.
In other words, think of yourself selling an 'insurance' to me (someone who wants to buy an Apple share only if it goes up to $120 or more) - and you receive a reward ($5) in return.
What would happen after 1 month?
By now, you've received the $5 'Premium' from me.
Let's see what are the potential outcomes you can expect after 1 month:
Winning scenarios:
- Scenario #1: Share price drops to $98: You gain $3
- Despite losing $2 in share value, you'd still make a gain - why? Because you received the $5 premium from me previously!
- Also, you'll not need to sell me your shares since Apple's share price did not exceed our agreed price of $120 or more.
- Scenario #2: Share price remains at $100: You gain $5
- Despite the muted share price, you'd still made a gain because you received the $5 premium from me previously!
- Also, you'll not need to sell me your shares since Apple's share price did not exceed our agreed price of $120 or more.
- Scenario #3: Share price hit $122: You gain $23
- Since the share price exceeds $120, you'd have to fulfill the deal by selling your Apple share to me at $120. This makes you a gain of $20 (Selling price $120 - your buying price of $100).
- Also, you received the $5 premium from me previously.
- However, you lose a potential upside of $2 as you did not manage to sell your share at market price of $122 (you have to sell it to me at $120).
- All of the above combined would give you a total gain of $23 ($20 + $5 - $2)
Losing Scenario:
- Scenario #4: Share price drops to $150: You lose $5
- Since the share price exceeds $120, you'd have to fulfill the deal by selling your Apple share to me at $120. This makes you a gain of $20 (Selling price $120 - buying price $100).
- Also, you received the $5 premium from me previously.
- However, you lose a potential upside of $30 as you did not manage to sell your share at market price of $150 (you have to sell it to me at $120).
- All of the above combined would give you a total loss of -$5 ($20 + $5 - $30)
Pros and cons of Covered Call:
From the scenarios above, let me compile the benefits and downsides of selling Covered Calls:
Benefits of Covered Call
- Covered Call strategy can generate additional income for investors from 'Premium' received.
- A covered call strategy can outperform when the stock you sell a Covered Call on drops in price, stays flat, or goes up moderately by the expiration date.
Downsides of Covered Call
- A covered call strategy can underperform when the stocks you sell a Covered Call on rises too much in price by the expiration date.
- You'll have to sell your shares if the share price exceeds the Strike Price.
- You are still subject to drawdown during a market sell-off.
Introduction to S&P500 Covered Call ETFs (USCC.U, ESPX.U, XYLD)
Not sure how to execute a covered call strategy on your own?
With Covered Call ETFs, fund managers will manage and execute covered call strategy on your behalf.
Essentially, this makes generating consistent dividends from Covered Call ETFs low-maintenance by nature.
There are many Covered Call ETFs in the market that track different assets or markets, such as tech stocks, bitcoin, as well as classic indices like the S&P500 and NASDAQ-100.
In this section, allow me to show you some examples of S&P500 Covered Call ETFs in the market:
#1 Global X S&P500 Covered Call ETF (USCC.U) - Dividend Yield: 11.09%
First off, USCC.U is a S&P500 Covered Call ETF listed in Canada.
Aside from gaining exposure to the S&P500, fund managers will actively manage the covered call strategy by selling covered calls periodically to generate premiums for investors.
| USCC.U | |
| Listed in | Toronto Stock Exchange (Canada) |
| Listed year | 2011 |
| Traded Currency | USD |
| Expense Ratio | 0.49% |
| Covered Call Strategy | Actively-Managed |
| Div. Yield | 11.09% |
| Div. Frequency | Monthly |
#2 Evolve S&P500 Enhanced Yield Fund (ESPX.U) - Dividend Yield: 9.02%
Next, ESPX.U is another S&P500 Covered Call ETF listed in Canada.
That said, this is a relatively new ETF (listed in July 2023) compared to USCC.U (listed in 2011).
Similar to USCC.U, fund managers of ESPX.U will periodically sell covered calls to generate premiums for investors.
| ESPX.U | |
| Listed in | Toronto Stock Exchange (Canada) |
| Listed year | July 2023 |
| Traded Currency | USD |
| Expense Ratio | 0.45% |
| Covered Call Strategy | Actively managed |
| Div. Yield | 9.02% (as of 30/4/2025) |
| Div. Frequency | Monthly |
#3 Global X (US) S&P500 Covered Call ETF (XYLD) - Dividend Yield: 13.32%
Not to be confused with USCC.U, which is listed in Canada, XYLD is a S&P500 Covered Call ETF listed in the US stock market.
| XYLD | |
| Listed in | US stock market |
| Listed year | 2013 |
| Traded Currency | USD |
| Expense Ratio | 0.60% |
| Covered Call Strategy | Passively-managed |
| Div. Yield | 13.32% (as of 9/5/2025) |
| Div. Frequency | Monthly |
XYLD tracks the Cboe S&P 500 BuyWrite Index - an index that tracks the performance of the S&P500 with a layer of pre-set Covered Call execution rule on top.
In other words, unlike the previous ETFs, XYLD's covered call strategy is passively managed - which means fund managers will not adjust their covered call strategies regardless of market conditions.
Generally, I do not like covered call ETFs with a rigid covered call execution, as they are not able to adapt to different market conditions:
Where to buy covered call ETFs?
Just like stocks, Covered Call ETFs are listed in the stock market and can be bought via brokerages that offer access to the market you want.
Generally, I'd think twice before investing in Covered Call ETFs listed (or domiciled) in the US due to the 30% Dividend Withholding Tax (WHT) charged to non-US residents (like Malaysians and Singaporeans).
Rather, I'd look at Canadian-domiciled Covered Call ETFs as the Dividend Withholding Tax (WHT) is half the US' rate at 15%.
Check out the guides below to learn about Dividend Withholding Tax (WHT) and how to invest in the Canadian stock market.
READ MORE:
Verdict: Propel your dividend journey with Covered Call ETFs
To wrap things up, Covered Call ETFs are investment vehicles that layer a Covered Call strategy on top of an asset or market like the S&P500.
For certain dividend investors like myself, Covered Call ETFs can be a great tool to gain exposure to otherwise low-dividend-yield assets like the S&P500, while still earning attractive dividend income.
Like what you read and have questions? Feel free to leave a comment in the comment section below and I'll be sure to come back to you!
[Workshop Invitation] How to build low-maintenance dividend income via Covered Call ETFs
A quick announcement:
I am running a Covered Call ETF workshop in Sept/Oct 2025!
In this workshop, I'll share the process I use to discover quality Covered Call ETFs that form the foundation of my low-maintenance Freedom Fund.
Keen to build your own Freedom Fund?
Click the 'Find out more' button below to learn more about the workshop, as well as the promotions and surprise perks you'll get when you sign up!
Disclaimers
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions.
Any discussion or mention of an stocks or ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
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 Trade’s 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) | |
| From | 0 - 100.00 | 1.00 |
| Between | 100.01-9,999.99 | 2.88 |
| Between | 10,000.00-99,999.99 | 0.1% 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 | 0.1% 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 – 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) |
| RM100 (~HKD185) | RM1 or HKD35.00 | HKD50.00 |
| RM5,000 (~HKD9,260) | RM2.88 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 Trade’s platform is really simple to use.
Either from Rakuten Trade’s 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, you’ll usually have to pay for live data or you’ll 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 – 9:30am |
| Trading Session | 9:30am - 12pm |
| Break | 12pm – 1pm |
| Trading Session | 1pm - 4pm |
For the pre-open session, you can begin placing your limit orders but they’ll 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 I’ve used in the past (even Rakuten Trade’s 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 it’s 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 Trade’s list of tradable stocks.
In short, unless you are an active trader, chances are you’ll 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 you’ll 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, you’ll have to sign up for a Rakuten Trade Cash Upfront account.
Consider using my Rakuten Trade referral link by clicking the button below, and you’ll 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 Trade’s 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 you’ll 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 Fractional Shares Trading Overview + FAQ: Buy a slice of your favorite US stocks!
Have you ever looked at a US stock (eg. Apple, Microsoft), and found it too expensive to buy for your budget?
Fred not, as Rakuten Trade is the FIRST Malaysia-regulated broker that released the much-awaited fractional share trading for US stocks! This is a rare feature even among global stock brokers these days.
This is a major news for investors as fractional share trading makes investing in US stocks more capital-friendly and flexible.
So, what is fractional trading all about? Should you consider buying fractional shares? Let’s find out!
RELATED POSTS:
What is Fractional Share Trading?
Essentially, fractional shares allow investors to own a portion of a whole share of a stock. (imagine getting a slice of pizza, instead of the whole piece)
As an example, 1 full unit of Apple share may cost $170. With fractional trading on Rakuten Trade, you can buy Apple shares for as small as 0.01 unit for just $1.70 (0.01 units * $170).
When you invest in fractional shares, you receive the same benefits as the other investors with full shares.
In other words, you’ll make gains when the stock price rises, as well as dividends should the stock you own pay them.
Why should you consider fractional share trading?
#1 Own popular stocks regardless of your investing budget
When I first started investing, I was not able to buy the shares of US-listed companies like Apple and Microsoft as their share price were simply too high for me to afford.
With fractional shares, investors can now buy a portion of the full share regardless of their capital.
From as small as 0.01 units of fractional shares, owning the shares of big companies is easier than ever on Rakuten Trade!
#2 Build a diversified portfolio regardless of your capital
With fractional trading on Rakuten Trade, it is also possible to build a diversified portfolio even with small capital.
For instance, let's say you have RM200/month (~USD 44.45)** to invest, you can easily build an Apple-Tesla-Microsoft portfolio with fractional trading:
| Stocks | Fractional Units | Share Price (USD)* | Capital (USD) |
| Apple | 0.08 | 175.05 | 14 |
| Tesla | 0.08 | 176.89 | 14.15 |
| Microsoft | 0.05 | 318.52 | 15.93 |
| Total (USD) | 44.08 |
As you can see, the sky is the limit when it comes to how you can use fractional share trading to form your ultimate portfolio!
3 things about fractional share trading on Rakuten Trade
#1 Fractional shares are offered for selected US stocks & ETFs
Users of Rakuten Trade can now buy fractional shares of selected US stocks and ETFs on Rakuten Trade.
This means fractional units of major names like Apple, Microsoft, Tesla, and ETFs like the S&P500 (VOO) and Nasdaq-100 (QQQ) are all available.
The slight limitation though, is that the list of fractional tradable share list is subject to change tentatively every quarter. Users can't buy a particular share in fractions once it is removed from the list.
Note: US shares priced below USD 1/unit are only tradeable in a whole unit.
#2 Buy and sell in small units
Buy US stocks or ETFs from as small as 0.01 units and sell them at 0.0001 units.
#3 Tips: Earn & Use RT Points to offset your brokerage fees
While buying fractional shares on Rakuten Trade, it is also possible for you to offset your brokerage fee via RT points when you trade in MYR.
Meanwhile, for every RM1 brokerage fee spent, you will earn 1 RT Point (equivalent to RM0.01 brokerage fee)!
Fees while buying fractional shares on Rakuten Trade
In line with the launch of fractional shares, Rakuten Trade has adjusted its fee structure to make it more flexible and fee-friendly for users.
Rakuten Trade users have the flexibility to use either MYR or USD to trade US stocks:
Whether to use MYR or USD to buy US stocks depends on your trading value.
I have compiled the different scenarios of trading value and which is a better currency to use to trade:
| Trading Value (RM/USD) | Fee (RM) | Fee (USD)* | Use |
| RM100 ($22.2) | 1.00 | 0.88 (RM3.96) | RM |
| RM500 ($111.1) | 2.88 | 0.88 (RM3.96) | RM |
| RM700 ($155.6) | 2.88 | 0.88 (RM3.96) | RM |
| RM1,000 ($222.2) | 2.88 | 0.88 (RM3.96) | RM |
| RM5,000 ($1111.1) | 2.88 | 1.11 (RM5.00) | RM |
| RM10,000 ($2222.2) | 10.00 | 2.22 (RM10) | RM or USD |
| RM20,000 ($4444.4) | 20.00 | 4.44 (RM20) | RM or USD |
How to buy fractional shares on Rakuten Trade
For new Rakuten Trade users OR users that HAVE NOT activated foreign share trading, proceed to Step 1.
For existing Rakuten Trade users, please proceed to Step 2.
Step 1: Register for a Rakuten Trade account & activate foreign stock trading
If you are new, you’ll have to sign up for a Rakuten Trade Cash Upfront account.
Consider using my Rakuten Trade referral link by clicking the button below, and you’ll 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 1b: Activate foreign share trading on Rakuten Trade:
Once your account is activated, log in to your Rakuten Trade account either via the website or Rakuten Trade’s iSpeed app.
You can locate the Foreign Trading activation button easily within the Rakuten Trade platform.
If you need help, click HERE for my step-by-step guide to activate foreign share trading on Rakuten Trade.
Step 2: Search for the US-listed stocks you want to buy
Step 3: Fill in the details of your trade
To know whether the stock you want to trade is eligible for fractional trading, just look at the 'Quantity' row - you will spot the lowest minimum unit is 0.01.
For a full guide (eg. what is 'limit order' and 'validity') on how to buy your first US share on Rakuten Trade, click HERE.
Step 4: Once done, confirm and execute your trade
You can check the status of your order and/or amend them under the 'Order' section:
Summary: Build your portfolio with fractional trading on Rakuten Trade!
With the launch of fractional share trading, Rakuten Trade makes US stock investing more accessible, especially for Malaysians with small capital.
This is an amazing feature that I foresee more Malaysian investors will take advantage of in their investing journey!
Will you give fractional trading a try? Let me know in the comment section below!
Rakuten Trade Fractional Shares FAQ
Q1: Why invest in fractional shares?
Fractional shares make it possible for investors like you and me to own a fraction of popular US stocks that are usually too expensive to buy in full units.
Q2: Is fractional trading applicable to Exchange-Traded Funds (ETFs) on Rakuten Trade?
Yes. It is possible to invest in fractional units of popular ETFs available on Rakuten Trade such as VOO (S&P500) and QQQ (Nasdaq-100).
Q3: Can I receive dividends on my fractional shares?
Yes.
Q4: Can I sell my fractional shares?
Yes. The selling process is similar to the selling of a full unit of share.
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, let’s 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 ‘best’ stock entry price
- Plus, I definitely do not participate when the market is crazy over any particular stock – 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 Malaysia’s Kenanga Investment Bank Bhd. and Japan’s 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 – 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. Let’s 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 don’t 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 – 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, what’s 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 can’t find what they want to do easily.
- Non-functional – 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 Trade’s 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 Trade’s 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!
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).
So let’s 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 Lah’s Verdict
So here you go – 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 ‘NoMoneyLah’ under ‘Educator’ 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 – 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.
How much can the stock market drop before it recovers?
The stock market has been WILD over the past few days!
As of this writing (9/4/2025), the US stock market (S&P500) has dropped by 19% from its high in February 2025.
The question is, how much more can the stock market drop?
Let's find out:
READ MORE:
Q1: How much can the US stock market (S&P500) drop in a year?
Short Answer: Historically (1980 - 2024), between 3% to 49%, with an average of 14.1%.
The red figures in the following photo show how much the S&P500 declined every year for the past 45 years (1980 - 2024).
This shows us that...
- A 10+% market drop in a year is very normal (Occurred 16 times in the past 45 years)
- 20 - 30% declines are also more common than you think (Happened 8 times in the past 45 years)
Q2: Where are we now?
Currently, the S&P500 has declined by about 19% from its highest point in February 2025:
A bear market is defined by a >20% drop from its high.
Given the escalating uncertainties, I'd not be surprised to see the S&P500 enter a bear market soon.
Q3: The challenge of buying the dip in a S&P500 bear market:
Despite the past crises, the US stock market tends to go up in the long run:
This makes buying the dip as the stock market falls attractive, but it is not without its challenges.
The tricky part here is:
- We do not know when exactly the bear market will hit bottom. It could be as short as 1 month, or even multiple years. As such, we need to endure the road to the bottom and along with its slow recovery.
- We need to have the mental conviction to stick to our investment as a long-term investor throughout the noise and fear during the bear market.
Q4: How long does the S&P500 take to bottom & recover from a bear market? (1980 - 2024)
If the S&P500 does go into a bear market in 2025, it is helpful to know the info below:
A quick glance at the bear markets from 1980 to 2024 shows that:
- The time taken for a bear market to bottom can range from 1 month (Covid-19 crash) to 30 months (Dot-com bubble).
- The time taken for a bear market to recover can range from 6 months (Covid-19 crash) to 7 years (Dot-com bubble).
The table above teaches us a few things:
- It is very difficult to predict the bottom. Ranging from 1 month to 30 months, it could be anything.
- All bottoms are reached FASTER than they took to recover. It shows that patience is required on the road to recovery - it will test your conviction!
Either way, you can get a better visual for how stocks 'bottom fast and recover slow' from the chart below. It highlights every 20%+ decline (bear market) in S&P500 (in orange) and its subsequent recovery (in green):
Q5a: What not to do during a bear market?
4 things, namely:
- Don't panic-sell your long-term investments.
- Never use the money you need for your expenses and commitments to invest.
- Never borrow money to buy the dip!
- Don't give in to Fear Of Missing Out (FOMO) and invest in things you don't understand
Q5b: What to do during a bear market?
- Follow your investment plans. If Dollar Cost Average (DCA) is your routine, stick to your plan.
- If you have extra money to invest during the dip, do it within your means. Understand that a dip and dip further.
- Make sure your emergency funds and savings are sufficient. In the past, some bear markets happened alongside a global recession (eg. Global Financial Crisis, Covid-19), which led to layoffs. You've got to prepare for this.
- Journal your feelings as you go through this bear market. Recording and acknowledging my emotions and sticking to my investment routine anyhow was my biggest learning and growth when I went through the 2022 bear market.
Verdict: There's light at the end of every tunnel
The stock market tends to go up in the long run despite the volatility and crises.
While the stock market is and will continue to be bumpy, it is one of the best instruments that everyday people can access to grow their wealth.
Now that you've finished this post, I'm sure you are much more informed than your peers in investing.
Hope you find this insightful and thanks for reading!
Disclaimers:
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions.
Any discussion or mention of an stocks or ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Trump & Tariffs: How to manage uncertainties in the world
What a week!
By now, you should've heard the news - where Malaysia and Singapore have been hit with a 24% and 10% reciprocal tariff by Trump (the almighty US president).
In this newsletter, I want to discuss this topic from a more personal lens:
- How will all of these affect you?
- Is your job and income safe?
Quick recap: What happened?
- Trump introduced a 'reciprocal' tariff on multiple countries, including MY and SG, to reduce US' trade deficit and encourage jobs to flow back to the US.
- Basically, Trump is saying:
"MY & SG, you guys have been charging us tariffs, now it's time for us to charge you back."
Ultimately, he is forcing the world to go to the negotiation table so he can negotiate a 'fairer' trade deal for the US.
To learn more about tariffs, I posted my quick thoughts on IG HERE, or check out these amazing videos HERE and HERE.
Now that's out of the way, here's my thoughts on how it'll affect you and potentially, your career:
How will all these affect you?
Above all, the broad-based tariff that Trump introduced has one key impact: It is more expensive to do business with the US.
- Loss of job opportunities: Some US companies may need to relocate their business facilities/resources back to the US.
- Things may become more expensive: Some companies may have to rebuild their supply chain, which will disrupt the business in the short to medium term. Things will (generally) become more expensive as consumers bear the cost of all these rebuildings.
- Weaker currency: Currencies like MYR could become weaker relative to the USD in the long run.
"Am I at risk here?"
At the time of writing, our leaders are probably seeking to negotiate with the US - so from now to 9th April (the day Trump's tariff becomes effective), anything is possible.
Regardless, under Trump's rule, I think some people's livelihoods might be at more risk than others:
- If you work for a US company that is located outside the US. (Risk: Company reducing workforce or relocating back to the US)
- If the company you work for has a lot of clients from the US. (Risk: Potential slowdown in business, cost-cutting, or layoffs)
- If you run a business with a lot of clients from the US. (Risk: Higher cost of doing business)
Is a Recession coming?
A recession is generally defined by at least 2 consecutive quarters of shrinkage in economic growth (GDP).
Here's how I think it could happen:
- Tariffs cause abnormal inflation in the US
- The US Federal Reserve (FED) might be forced to raise its already high interest rate to slow inflation.
- High interest rate makes borrowing more expensive, leading to a slowdown in US economy.
- The world economy is dragged along as the US is the world's largest consumer market.
Simply put, if the US caught fire, we'd also get into trouble.
Let's hope I am wrong, though many institutions are now looking at potential recession should the tariff go as planned (note: These institutions always get their predictions wrong though, haha!).
What can we do?
On the brighter side, I think we still have time to prepare for all these potential uncertainties:
- Career prep: It's a good time to reflect on our strengths and skillsets. Are my existing skills transferable to other companies or industries? Should I consider upgrading my skillsets?
- Emergency funds: Do I have 3 -6 months of life expenses saved up? If not, it is a good time to replenish my emergency fund (cut spending, save up).
- Investment: The stock market tends to be bullish in the long run. Avoid disturbing your long-term investment routine regardless of market conditions and news.
Final thoughts: Never put yourself in the mercy of others
Regardless of how this tariff situation would turn out in the end, this incident taught me a great lesson:
- Never overrely on one source of income - be it as a country or a person.
When countries rely too much on the US (or even China) for trade, they are at the mercy of these big powers at the negotiation table.
When we rely only on a single source of income, we are at the mercy of our superiors/clients without the freedom of choice.
That's why I built the Freedom Fund, my dividend portfolio, so one day I can achieve 100% freedom to pursue meaningful projects in life without having to worry about money.
I hope this post has been helpful, stay tuned as I will be sharing more dividend investing insights in the coming weeks!
- Yi Xuan
Disclaimers:
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions.
Any discussion or mention of an stocks or ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Guide: How to open a CIMB Singapore account for Malaysians
In this guide, I want to share how you can open a Singapore bank account online, without visiting physical branches in Malaysia or Singapore. In particular, this guide is about opening a CIMB Singapore FastSaver account online.
So, let’s get straight into the topic!
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Highlights of CIMB SG FastSaver Account:
- The only way for Malaysians to open a Singapore bank account through fully online application. A Shariah-compliant version to the conventional FastSaver account is also available.
p - Minimum initial deposit of SGD1,000
p - No minimum balance needed
p - No monthly fees
Why open a Singapore Bank Account?
There are many reasons why one would have access to a Singapore bank account:
- It could be that your work requires you to receive or transact via SGD.
p - Most international stock brokers accept deposits/funding via SGD, and not Malaysian Ringgit (MYR). While you can still fund your broker via foreign telegraphic transfer (FTT) on your local bank account, it incurs expensive FX conversion and intermediary banking fees.
Documents Needed & Expectation
To start, it is best for you to have the following details with you:
- Your Malaysia IC
- Your Tax Identification Number (TIN)
- A CIMB Malaysia account
- SGD1,000 worth of MYR
If everything is smooth, the whole registration process will take about 2 weeks. Hence, be patient and please note that this is not something you can settle in a day.
Opening a CIMB Malaysia Account
To open a CIMB SG FastSaver account, you will first need an existing CIMB Malaysia account.
If you already have a CIMB Malaysia account, skip this part and move on to the next section.
Otherwise, you can open a CIMB Savings account easily online. Check out my step-by-step guide to register for a CIMB Savings Account below.
READ: Step-by-step guide to open a CIMB Savings Account (without going to bank!)
Opening a CIMB SG FastSaver Account
Step #1: Register for your account online
i. Check out the details of CIMB FastSaver account HERE. Once you are done, proceed to complete the application form online HERE.
You will first have to complete a “Single Citizenship Declaration Form” where you will need to make a declaration regarding your citizenship status.
Once done, you will be auto-directed to the registration page below:
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ii. During the registration process, you are required to:
- Upload a copy of your IC.
- Provide your Tax Identification Number (TIN) if you are a taxpayer (ie. You pay tax to LHDN).
- Upload your e-signature.
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iii. Once you are done, you’ll receive an email containing (1) a password-protected PDF, and (2) the next action steps.
At the same time, you’ll also receive an SMS from CIMB SG containing the password to unlock the PDF file. Once you open the PDF, you’ll find details of your account number.
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Step #2: Link your Singapore account
i. Proceed to link your CIMB SG FastSaver account to your CIMB Clicks Malaysia. Once you log in to CIMB Clicks, under ‘Services’, select ‘Singapore Account’ under the Account Linking section.
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ii. Next, key in your IC number. (Note: Please remove the dash '-' while keying in your IC)
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iii. Upon submission of your account linking request, it’ll take about 1-2 working days to get approved. To check the approval status, click ‘Singapore Account’.
Note: If you check your linking request it shows you the input screen again (like what you saw in Step 2ii), this means your application has been rejected.
In this case, contact the customer service of CIMB Malaysia and let them know that you need to have this account linked in order to perform an ASEAN Transfer for e-KYC verification requested by CIMB SG.
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Step #3: Perform an initial transfer
Once your account linking is approved in Step 2, move on to perform an initial transfer of SGD1,000 via your CIMB Malaysia account.
Once you are done, you can view your CIMB SG account balance by clicking the Singapore flag icon.
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Step #4: Application verification
Once you have done your initial deposit in Step #3, the next thing to do is to wait for verification on CIMB SG's end. Meaning, you'll have to:
- Expect an email from CIMB SG within 3-5 working days after Step #3, where they will require you to make a video appointment via CIMB SG's official WhatsApp contact to verify your identity and the purpose of opening an account. They'll ask questions like your IC number and how are you planning to use the CIMB SG account.
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Closer to the appointment, you will receive an email containing a Microsoft Teams link and meeting ID, while the passcode will be sent to your WhatsApp.
p - After the call, you'll have to wait for CIMB SG's end to process your verification. This wait is longer as it took about 7 business days for me to receive my (a) account activation email & (b) SMS for my CIMB SG activation code (more on this in Step #5).
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All in all, be prepared that Step #4 will take about 10 business days of waiting. During this period, I got several email reminders from CIMB SG that I have not completed my CIMB SG application, claiming that (1) I have yet to transfer my initial deposit (I have done so), or (2) I did not provide valid documents for account opening (I did).
If you have done everything mentioned in the email, just ignore the email and wait for the verification call from CIMB SG. If the wait is too long be sure to call or email CIMB SG for help.
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Step #5: CIMB SG First-time login
Finally, now that your CIMB FastSaver account is activated, it is time to log in to CIMB SG to initiate your first-time login. In Step #4, you should have received an SMS containing an activation code for CIMB Clicks (SG). Now:
- Go to CIMB Clicks SG. Click 'First Time Login'.
p - Create your username & password for CIMB Clicks SG, and key in the activation code that you got from Step #4 here.
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CIMB Clicks SG - Create username & password p
- Once you are done, download the CIMB Clicks SG app to activate your Digital Token. Setting this up is important so you can proceed with future transactions.
OKAY, now you have a fully functional Singapore bank account! The CIMB SG Clicks interface has a really outdated design but it gets the job done for any simple transfers and transactions.
Withdrawing funds from CIMB SG to CIMB Malaysia
Withdrawing funds from CIMB SG back to your CIMB Malaysia account is easy.
Step 1: Link your CIMB Malaysia account with CIMB SG
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Step 2: Wait about 3 working days for the linking to be approved.
Step 3: Head over to 'CIMB Malaysia Transfer' > 'To My CIMB A/C' and proceed with your withdrawal.
Wise: A cheaper way to add funds to your CIMB SG Account (+ Referral Link!)
Now that you have opened your CIMB SG account, it is likely you'll need to keep transferring funds to this account in the future.
For all future fundings, you can go through platforms like Wise to get a cheaper FX rate. I was hoping you could support this blog by using my Wise referral link today!
FX Rate Comparison: CIMB RM3,148.50 = SGD1,000 vs Wise RM3122.14 = SGD1,000
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Rate Comparison: Check out the rates between Wise and our local banks below (RM3,000 to SGD):
How to use your Singapore bank account to fund your foreign stock broker/accounts
One major benefit of having a Singapore bank account is many foreign brokers accept the SGD currency compared to MYR. In other words, you can save on the expensive FX and intermediary banking fees by funding your broker via a Singapore bank account.
Check out this guide on how I fund (and withdraw) my go-to foreign stock broker, Tiger Brokers and Singapore robo-advisor Syfe with my CIMB SG account!
ALSO READ: Tiger Brokers review
ALSO READ: Syfe Robo-Advisor Review
No Money Lah's Verdict
So here you have it - a detailed guide on how to open a Singapore bank account for Malaysians!
CIMB FastSaver is the easiest way for you to open a Singapore bank account at the moment, and I highly recommend opening an account especially if you look to fund your overseas stock brokerage account.
Before you go, remember to support this blog by using my Wise referral link! As a disclaimer, No Money Lah will get a small referral reward if you use my referral link, which will help the blog and keep producing useful content like this one!
If you find this guide useful, please share it with your friends & family too!
Disclaimer:
This article is accurate as of the time of writing. Please let me know if you notice any changes to the process and I'll update this guide accordingly.
This article also contains referral link that will reward No Money Lah on every successful referral. This will help sustain the blog so I can keep producing quality guides and content like this.
How I manage my finances at 30 (with the help from a licensed financial planner in Malaysia)
What's your biggest achievement at 30?
It sounds small, but learning how to manage my finances has been my core achievement at 30.
Since I started working with my financial planner, Stev (from WealthVantage), I've been writing about my financial progress and growth every year.
This year, aside from sharing my progress, I'd also like to share how I manage my finances.
Let this article show that it is possible to grow your wealth with proper habits, discipline, and guidance from a licensed professional!
READ MORE:
Progress in my finances (2018 – 2024): Net worth, Dividends, Expenses
(i) Net worth
In 2024, I've been lucky enough to make meaningful progress in my net worth, mainly due to a slight increase in earning power and an encouraging stock market.
Relative to last year, my net worth has risen by 78% in 2024.
Read on as I'll share the principles and lessons that helped me grow my wealth in the next section.
(ii) Dividend Income (ft. my Freedom Fund)
Long-time readers of No Money Lah would know that I invest for dividends via my Freedom Fund.
Why? Because I think dividend is the closest thing to true passive income in life. (p.s. HERE is what I use to build my Freedom Fund)
A family incident in 2024 got me thinking:
When the time comes when your loved ones need your care & attention, are you able to put everything aside for them (yes, including work) for a prolonged period of time -
without having to worry about cashflow/money?
Long story short: 2024 is a year that reinforced my commitment to build my dividend income as a reliable form of passive income.
As of 2024, I am happy to share that my Freedom Fund has generated about RM7135.77 in dividend income. This translates to RM594/month in dividends - which is halfway to my short-term goal of RM1,000/month!
You can find out more about my Freedom Fund HERE.
(iii) Personal expenses
Well... I have certainly spent a lot more this year.
Top 3 expenses in 2024:
- To start, I've spent much more traveling in 2024. Among all, hiking Mt. Kinabalu, holidaying with my parents in China, visiting Mt. Bromo, and trekking the Annapurna Base Camp. (no regrets!)
- Family expenses come second, including monthly contributions to the family.
- Personal care continues to be my top expense as I hit the gym more frequently for my fitness routine, as well as monthly visits to my chiropractor.
My thoughts on increasing cost of living:
In 2024, I also noticed that most insurance companies had increased the premium for their medical cards in conjunction with rising medical inflation.
Personally, the monthly payment for my medical card has risen by 37.6%.
The lesson here is always to be prepared for little increases in expenses in life.
My 4 wealth principles at 30:
Before sharing how I manage my finances, allow me to share a few key principles that I've learned about wealth:
#1 Don't disturb the compounding process
One key reason for the growth in my net worth this year can be attributed to the encouraging stock market growth in 2024.
Since I am clear that I am investing for the long term, I did not panic sell during the stock market sell-off in August (-9.75%), or the March-August Bitcoin drawdown (-33%).
Rather, I followed my investing routine by investing consistently (a.k.a Dollar Cost Average) each month.
This allowed my investments to enjoy the overall growth of 2024:
#2 Solid defense allows for a stronger offense
Building a solid financial defense line has also become a money principle that served me well.
A 'solid' defense line in finances refers to things like:
- Having adequate insurance coverage (life, medical, and critical insurance)
- Having an emergency fund
- Savings for different goals in life such as a house/car purchase, wedding and family matters.
When you have a strong defense line in place, it allows you to take more risks in life (eg. starting a business), and not have to sell your investments for cash during an emergency.
#3 True wealth = Freedom of choice
True wealth in life is having the choice to pursue what you want and spend time on what matters most to you.
As Morgon Housel, the author of 'The Psychology of Money' says:
"The ability to do what you want, when you want, with who you want, for as long as you want to, pays the highest dividend money pays."
#4 When in doubt, get professional help from a licensed financial planner
An important juncture in my personal finance journey was when I started engaging my current financial planner, Stev, to guide my finances in late 2019.
Since then, Stev has guided me with all aspects of my finances, namely:
- Investments: Advised me on an ideal asset allocation for my age and risk appetite.
- Insurance: Guided me on the best insurance plans for my age & lifestyle - and kept me updated if my coverage is enough every year.
- p.s. Unlike insurance agents, a licensed financial planner can offer insurance plans from every insurance company - hence minimizing conflict of interest.
- Tax planning: Informed me of the latest tax rebates that I am entitled to for every new Budget.
- Estate planning: Stev has also helped me set up my will so my assets could be distributed smoothly in my demise. (Read my will-writing experience HERE)
p.s. Click on the button below to get your first financial consultation session - FOC!
How I manage my finances at 30 (with help from my financial planner)
My current money routine at 30 is an incremental refinement of my personal needs and goals over the years.
Generally, I split my finances into 2 spectrums - defense and offense:
#1 Defense
(a) Getting professional help for my will and insurance coverage
Often, the most overlooked aspects of finances are also the most important ones.
As you start owning assets like stocks, unit trusts, and properties, it is crucial to have a will in place so the assets can be legally transferred to your loved ones when you pass away.
I created my will at 28 with the guidance of my financial planner, Stev.
READ MORE: Why I wrote my will at 28
Meanwhile, I relied on Stev's expertise to find the best insurance combination for my age and lifestyle.
At 30, I spend close to RM470 every month on insurance payments.
To get the most value for money out of the insurance policies, my policies are picked strategically as below:
- Life insurance (Payout on death & total permanent disability): We opted specifically for Term-Life Insurance, in other words - insurance coverage without the investment nature. Term-life insurance is cheaper than investment-linked products but will incrementally become more expensive with age.
- Medical card (Covers hospitalization expenses): We've also decided to go with a medical card that covers things like surgery and room & board with an annual limit of RM10m.
- Critical illness (Income replacement while recovering from illnesses like cancer): For this, we opted for protection that could cover my daily expenses for 3 years should I am not able to work due to illnesses like cancer.
What I appreciate about working with a financial planner like Stev, is he can find the best coverage from any insurance company, instead of being tied to a single company like typical insurance agents.
Here's a glimpse of how Stev proposed a few combinations of insurance solutions for me in 2020:
(b) Automating my emergency fund, sinking fund, PRS, and EPF
The next layer of my defense line include things like my emergency fund, sinking funds, Private Retirement Scheme (PRS) fund, and EPF.
Generally, with the exception of EPF, I automate my monthly contribution to my emergency fund, sinking funds, and PRS fund. This can be easily done via apps like StashAway and Versa.
(i) Emergency fund (6 months to 1 year of daily expenses):
My preferred go-to place for emergency fund are low-risk money market funds like Stashway Simple, Versa Cash, or Moomoo Cash Plus as they offer competitive returns on par with FD, with the flexibility to withdraw anytime without penalty.
(ii) Sinking funds: In my late 20s, I've started to plan for many different short and long-term expenses in life and save for them accordingly:
- Short-term expenses: For expenses that I'd likely pay for in less than 2 -3 years, I usually automate my contribution on low-risk money market funds like StashAway Simple. Example:
- Tax payment fund
- Car maintenance fund
- Business fund
- Holiday fund
- Part of my big purchase fund (eg. car, property, future wedding)
- Longer-term expenses: For expenses likely to occur in more than 3 years, I usually automate my contribution on assets with slightly higher risk such as equities and commodities like gold:
- Family fund for family matters and emergency matters
- Part of my big purchase fund (eg. car, property, future wedding)
My favourite way to automate the whole process is through StashAway's low to medium-risk SRI portfolios, or customize my own Flexible Portfolio on StashAway:
(iii) Private Retirement Scheme (PRS):
For PRS, I only deposit the amount just enough to qualify for tax relief, which is RM3000/year (or RM250/m). I rely on my financial planner, Stev, to recommend the best PRS fund for me.
READ MORE: Guide to choose a PRS fund
(iv) EPF: As a self-employed, I contribute to my own EPF via self-contribution every month.
Tips for self-employed:
Aside from enjoying the relevant tax relief (max RM4,000 per year) and incentives, contributing to EPF regularly is a helpful record while applying for things like a credit card or loan.
A few words about the defense side of my finances:
As a whole, 3 main themes of this section are guidance, automation, and foresight:
- Guidance: Get help from a licensed financial planner, especially for insurance and estate planning.
- Automation: Automate your savings wherever possible with platforms that allow you to do so, such as StashAway and Versa.
- Foresight: At 30, it is important to consider big expenses ahead in life. Are you planning to organize a wedding? Are you planning to buy a house? Will your parents financially rely on you when they get old? Thinking ahead gives you the time to save for these events and avoid you from being caught off guard.
#2 Offense
Every money invested in offense is meant to grow my wealth. There are 3 key sections to my offense:
(a) Building my Freedom Fund (Dividend Portfolio)
One way to achieve freedom in life is to have a consistent, low-maintenance passive income from dividends.
As such, growing my Freedom Fund has become my primary goal, especially in recent years.
As a routine, I'll reinvest my dividends at the beginning/end of the month, and invest new capital manually through key trend or support & resistance areas.
(b) Growing my growth portfolio
My growth portfolio, on the other hand, consists mainly of ETFs that track the S&P500 (CSPX, VUAA), and NASDAQ-100 index (QQQ, QQQM) in addition to cryptocurrencies like Bitcoin and Ethereum.
I shared more details on my investment approach and style at 30 HERE.
(c) Trading
Aside from investing for the long term, I also allocate some capital for shorter-term trading in the futures market.
A few words about the offensive side of my finances:
After a few years of investing, I've come to prefer Exchange-Traded Funds (ETFs) over picking individual stocks. Reason being, ETFs have their selection system in place that removes unqualified stocks regularly.
Essentially, this makes investing in ETFs relatively low maintenance (or passive) for me over picking individual stocks.
The lesson here is simple: Investing is about discovering a style that suits you. For me, I've come to learn that investing passively works best for my personality and lifestyle.
What is it like engaging a licensed financial planner in Malaysia?
Working with my financial planner, Stev, has been a major turning point in my financial journey.
Since we started working in late 2019, Stev has guided me in the aspects that I am not familiar with, such as tax planning, insurance, and the creation of my will.
In addition, hearing Stev's perspective & wisdom about investing, money, and life have been very helpful in my financial journey.
Should you engage a financial planner in Malaysia?
If you are still uncertain, here are some questions 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:
“Do I have enough insurance coverage?”
“Am I investing right?”
“Can I retire with what I am earning now?”
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 that’ll give you returns and peace of mind in multiple folds.
Check out the next section on how to get your first financial consultation - FREE OF CHARGE!
[EXCLUSIVE] Get Your First Financial Consultation Session – 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 Lah’s 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.
Disclaimers
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 – 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.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions.
Any discussion or mention of an ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.