Rakuten Trade Feature Guide: How to trade US stocks via USD or MYR
The best Malaysia-regulated broker to buy US stocks just got better!
Rakuten Trade has just launched its new USD trading feature recently. This is fantastic news as Rakuten Trade users now have the choice to hold USD in their account.
Simply put, Rakuten Trade users now have the option to invest in US stocks using USD or MYR.
In this post, let’s explore the features of Rakuten Trade’s new USD trading. Also, check out the end of this post for a special account-opening & trading promo!
Related Posts:
3 Feature highlights of Rakuten Trade’s USD & MYR Trading:
#1 The choice to buy and sell US stocks & ETFs in USD or MYR
As a Rakuten Trade user, now you have a dedicated USD wallet to store USD within your account.
This enables the flexibility to use either USD or MYR to buy US stocks and ETFs. Furthermore, users also have the choice to receive USD or MYR when selling their US stocks.
#2 Live conversion + tight MYR-USD currency conversion spread
Rakuten Trade offers a relatively tight MYR-USD spread for users to easily convert between both currencies within the platform.
Furthermore, the conversion process happens real-time, enabling users to convert MYR to USD (and vice versa) with the latest rate and trade right away.
Lastly, unlike certain brokers, there are no extra fees involved in currency conversion (aside from the spread) so there are no worries about hidden fees.
#3 Receive dividends in USD instead of MYR
Prior to the release of the USD trading feature, Rakuten Trade users who invest in US stocks will receive dividends in MYR.
This is not ideal for investors looking to reinvest their dividends because they’ll have to reconvert the MYR back to USD in order to do so.
Now, we will receive dividends directly in USD. This makes dividend reinvesting much more convenient.
USD vs MYR Trading: Rakuten Trade US Stocks Brokerage fees comparison
Below is Rakuten Trade’s brokerage fee structure for MYR trading and USD trading in the US stock market.
- MYR Trading
| Trading Value | MYR Trading |
| Below RM699.99 | 1% of Trading Value (min. RM1) |
| Between RM700 – 9999.99 | RM9 |
| Between RM10,000 – 99,999.99 | 0.1% of Trading Value |
| Equal of above RM100k | RM100 |
- USD Trading
| USD Trading |
| 0.1% of Trading Value, or a min. of USD1.88 – USD25 |
When to use USD, when to use MYR to trade US stocks?
In the section below, we will compare and explore when is best for you to use MYR or USD to trade US stocks on Rakuten Trade.
Firstly, let's take a look at several common trading amounts and the respective brokerage fee in MYR and USD:
| Trading Value | MYR Trading Brokerage Fee | USD Trading Brokerage Fee |
| RM500 (~USD113) | RM5 | USD1.88 |
| RM2,000 (~USD448) | RM9 | USD1.88 |
| RM5,000 (~USD1,118) | RM9 | USD1.88 |
| RM10,000 (~USD2,236) | RM10 | USD2.24 |
| RM50,000 (~USD11,176) | RM50 | USD11.18 |
| RM100,000 (~USD22,352) | RM100 | USD22.35 |
When to use MYR to trade US stocks:
- Use MYR when your trading value is below RM700 as the brokerage fee is cheaper (1% of trading value or min. of RM1 vs USD1.88).
- Keep your capital in MYR if you think MYR is going to strengthen against USD, and you want to get the most out of your conversion.
- Consider using MYR to buy/sell if you want to offset your brokerage fee using RT points (as of now, it is not possible to use RT points to offset brokerage fee while using USD to trade).
When to use USD to trade US stocks:
- Consider using USD when your trading value is over RM700.
- Convert your capital to USD if you think MYR is going to weaken further against USD, and you want to lock in the current conversion rate.
- Consider using USD if you make a lot of short to medium-term trades, so you do not have to go through currency conversion (from MYR to USD) everytime you make a trade. This reduces your exposure to the fluctuation in currency exchange.
How to convert your MYR to USD (or vice versa)
Step 1: There are 2 ways to convert your currency within Rakuten Trade's iSpeed app, namely:
- Under Rakuten Trade’s iSpeed app, go to Menu > Select ‘Currency Exchange’, OR
- Under ‘My Account’ Select the Currency Exchange icon ($).
Step 2:
- Under ‘Convert From’, select MYR.
- Decide the conversion amount
- Under ‘Convert To’, select USD
- Enter your trading pin and click ‘Confirm’
How to buy US stocks via USD
Step 1: Search for the stock that you want to invest in, and click ‘Buy’
Step 2: Under ‘Currency’, select ‘USD’. You’ll be shown your trading limit – make sure you have enough to execute your buy order!
Step 3: Decide the price of your limit order and quantity of shares to buy, key in your trading pin, and click ‘Proceed to Confirmation’ to confirm your buy order.
How to sell US stocks in USD
Step 1: Select a currency that you wish to receive upon selling your stocks (MYR/USD):
- MYR: Your holdings will be converted to MYR after being sold.
- USD: Your holdings will remain in USD after being sold.
Step 2: Decide the price of your limit order and the quantity of shares to sell. The ‘Est. Amount’ section displays how much you can expect to receive after you sell your holdings.
Step 3: Key in your trading pin and click ‘Proceed to Confirmation’ to confirm your sell order.
Rakuten Trade USD trading: What I wish could be better
Rakuten Trade’s move to introduce USD trading is a welcomed move as it allows greater flexibility and choice for users while investing in the US stock market.
That said, one aspect that I think Rakuten Trade could improve on is the streamlined implementation of its reward system – ie. Using RT points to offset brokerage fee.
As of now, we are not able to use RT points to offset brokerage fee if we were to trade using USD. However, it is possible to do so if we were to trade using MYR.
As a user, I’d like to see Rakuten Trade streamlining this reward system, as it would make the trading experience more complete for us as a user.
No Money Lah Verdict
So there you have it – a walkthrough of Rakuten Trade’s latest USD trading feature!
I hope this guide has been useful, and if you are looking for a Malaysia-regulated broker to trade US stocks, Rakuten Trade is certainly the way to go!
Open a Rakuten Trade Account Today!
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: 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 Trade’s 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 Trade’s platform that’ll 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 Trade’s 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 I’ve 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 – resulting in me missing my alerts frequently.
The good thing with Rakuten Trade’s 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 Trade’s 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, I’d still want to mention Rakuten Trade’s 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, that’s 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 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 – the useful and underrated tools in Rakuten Trade that’ll 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 ‘NoMoneyLah’ under ‘Educator’ 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 (Don’t 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 ‘Buy’
On the order page, there are a few key sections that you have to familiarize yourself with:
1 – Trading Limit: How much capital you have to invest.
2 – Market Price: The price where a share is traded most actively between buyers & sellers.
3 – 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 – Board Lot & Odd Lot:
•Board lot means you buy in a minimum multiple of 100 units. (1 Board Lot=100 units of shares, RM1.28*100=RM128)
•Odd Lot means you can buy in a multiple of 1 unit.
•Since more people will buy in Board Lot, your order will usually be filled more easily compared to buying in odd lots.
4b – Quantity:
•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)
•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 – 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 – 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 – 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, we’ll 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 ‘Manage Funds’ > Select ‘Deposit’
Step 2: Select (i) the currency that you wish to deposit in & (ii) ‘Telegraphic Transfer (TT)’ as Payment Type.
At the same time, key in the amount that you want to deposit.
You’ll 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, you’ll 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 ‘Next’
That’s it! If your deposit is successful, you’ll receive an email within 12 working hours and you can start investing/trading.
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Note: For all FTT transfers, ProsperUs does not charge for the whole funding process. However, our local bank’s 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, I’d 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, I’d 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 ‘Manage Funds’ > Select ‘Deposit’
Step 2: Select SGD as your funding currency, and ‘FAST’ as payment type.
You’ll get the bank details and instructions to make the transfer.
Step 3: Log in to your CIMB SG account > ‘Local Transfer’ > ‘To Other Bank’ > ‘Via FAST’
Under ‘Transfer To’, 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 ‘Message to Recipient’ or in the ‘Remarks’ section.
That’s it! If your deposit is successful, it’ll 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 (‘Help’ > ‘Contact Us’ > ‘Submit an enquiry’).
It’ll usually be activated within 1 business day.
Email Template to ProsperUs: “Can you activate my MYR currency account?”
Step 2: Log in to your ProsperUs account > Select ‘Manage Funds’ > Select ‘Deposit’
Step 3a: Select MYR as your funding currency, and ‘Telegraphic Transfer/Bank Transfer’ as payment type.
Step 3b: You’ll 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.
Withdrawal from your ProsperUs account
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 it’ll 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 ‘Add bank account’ 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.
It’ll take about 1 to 2 business days for verification.
Step 4: Under ‘Manage Funds’, Select ‘Withdraw’
Key in the amount of withdrawal and select the bank account to withdraw to. Then, submit your withdrawal.
Step 5: That’s 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.
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)
Let’s 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 (‘Help’ > ‘Contact Us’ > ‘Submit an enquiry’). It’ll usually be activated within 1 business day.
Email Template to ProsperUs: "Can you activate my USD currency account?”
- Step 2: Go to Boost > ‘Account’ > ‘Deposit & transfers’ > ‘Sub-account Transfer’ and perform the currency exchange.
As such, FX rates of the day will be taken during the exchange.
Exclusive ProsperUs Referral Code – MONEY20
Here’s a reward exclusive to No Money Lah readers – you will not find this anywhere else!
From today till 30/9/2024, key in my exclusive promo code ‘MONEY20’ while you register, and get FREE cash credit up to SGD100 when you open a ProsperUs account:
Tier Initial funding within 30 days of account set up Trades Executed Cash Credits
1 Minimum SGD500 – SGD2,999 Minimum 3 trades executed SGD10
2 Minimum SGD3,000 – 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.
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, I’ve been sick for 4 months now) – 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) – all while I focus on more important things in life?
In this post, I’d 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.
StashAway’s 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 – 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 portfolio’s 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 there’s 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 ‘Create’ > ‘Customize a portfolio’
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 ‘I Understand’ 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 ‘Schedule a Recurring Deposit’ 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:
“Why use Flexible Portfolios when I can invest in these ETFs myself through a stock broker?”
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, let’s 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 – all while you focus on more important things in life (family, career etc).
In fact, I’ve 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, you’ll 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 – so you have access to your dividends anytime!
#4 Flexible Portfolios maintain your portfolio allocation according to your preference
Let’s 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 I’d 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 Portfolios’ 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 – 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 users’ 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, let’s 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, let’s 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, we’ll explore an equally important aspect of these apps: User Experience.
Comparison Part 2: User Experience
In this section, we’ll 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 users’ interest on a daily basis. Meaning, you’ll 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 – 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 Cash’s 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 – VERSANML4, and you will get RM10 credited into your account* when you successfully make a minimum deposit of RM100 or more. That’s 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, let’s 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, I’ve 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 – 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 – VERSANML4, and you will get RM10 credited into your account* when you successfully make a minimum deposit of RM100 or more. That’s 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 people’s 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, let’s look into StashAway Simple, a great alternative to FD. Personally, I’ve been using StashAway Simple since mid-2020, and in this post, let’s 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 users’ 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 users’ 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 StashAway’s 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, they’ll 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 user’s 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, let’s 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, StashAway’s customer support is one of the best I’ve ever experienced when it comes to financial products.
Risks + What you need to know before investing in StashAway Simple
In this part, let’s 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, it’ll 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 – 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 Simple’s 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 I’ll 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 Lah’s 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 ‘step-by-step’ 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 ‘Direct CDS’ atau ‘Nominee CDS’
Akaun ‘Central Depository System’ (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 ‘security box’ 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.
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:
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| 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 ‘paperwork’ bagi pihak anda dalam ‘corporate action’ 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 ‘track record’ 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
Referral Link EXCLUSIF: Gunakan referral link saya untuk buka akaun Rakuten Trade anda hari ini, dan terima 1000 Rakuten Trade (RT) Points (bernilai RM10) yang anda boleh gunakan sebagai rebat untuk caj broker semasa melabur!
Buka Akaun Rakuten Trade Anda Hari Ini!
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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 – 10,000 | RM10,000 – 50,000 | RM50,000 – 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 ‘Cash Upfront’ atau akaun ‘Margin/Contra’.
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 ‘joint venture’ 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 ‘paperwork’ dalam seluruh proses pelaburan.
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Panduan ‘Step-by-Step’ untuk membuka akaun Rakuten Trade (Cash Upfront Account)
Langkah 1: Klik link di bawah untuk membuka page pendaftaran Rakuten Trade. Dalam ‘Account Type’, pilih ‘Cash Upfront’.
Buka Akaun Rakuten Trade Anda Hari Ini!
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Langkah 2: Masukkan Nama, IC dan maklumat Warganegara.
Langkah 3: Muat naik foto IC anda (depan & belakang)
Ingat: Pilih ‘NoMoneyLah’ di bawah ‘Educator’, 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 ‘trading pin’ 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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Kesimpulannya…
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 ‘user-friendly’.
Suka artikel ini dan nak buka akaun Rakuten Trade? Gunakan ‘referral link’ saya (atau masukkan ‘NoMoneyLah’ di bawah ‘Educator’ sewaktu anda mendaftar)! Dapatkan 1000 Rakuten Trade (RT) Points (bernilai RM10) yang anda boleh gunakan sebagai rebat untuk caj broker semasa melabur!
Buka Akaun Rakuten Trade Anda Hari Ini!
ANDA MUNGKIN BERMINAT:
(1) How to Make Your First Trade Using Rakuten Trade?
(2) Have a question about Rakuten Trade? Click HERE to get your solution!
(3) 4 Powerful Features on Rakuten Trade that’ll help you invest better!
(4) How to create your own powerful Bursa stock screener via Rakuten Trade?
(5) NEW: Rakuten Trade Long-Term User Review: 5 Reasons Why it is my go-to Stock Broker!
Sometimes, simply surviving is good enough
Every weekend, I have a habit to reflect on things I am grateful for. In a specific section, I'd write down things that I did well for the week.
Lately, I am just grateful for the fact that I am surviving the week (and month):
Tough, tough April
April thus far has been extremely challenging.
Every week, I have multiple deadlines to meet. Some tasks are me (being me) overestimating my capabilities, while some are impromptu ones that I am somewhat obliged to fulfill.
Well, that is still bearable, considering that fulfilling deadlines are part of the thing I do as a content creator.
What's not, is I've been suffering from a prolonged coughing situation since early this year, which is close to 4 months now.
This means my coughing has been causing me to stay awake at night, and I had to rely on cough syrup on some days just to get myself to sleep.
Needless to say, my sleep has been BAD - not for a few days, but for MONTHS.
The result of bad sleep and multiple deadlines?
I ran out of creative juice.
I struggled hard to create content.
I get distracted and frustrated more easily.
My auto-coping mechanism, apparently, is binge-watching movies and dramas till late at night to escape from all the deadlines that I got to fulfill.
And this causes a downward spiral of even more late nights of sleeplessness (and hence cough syrup), and feeling guilty for waking up feeling like a piece of unproductive sh*t.
And yeah, the dizziness from cough syrup whenever I wake up doesn't help make things better.
Sometimes in life, simply surviving is good enough
Despite all the chaos around, I delivered.
I delivered my task by the deadline this week.
I went to the gym as per my usual routine this week (though I had to reduce the weights).
I did my first-ever Bursa webinar this week.
I f*cking survived the week (and the month, so far).
Sometimes, simply surviving is good enough. And I am genuinely glad that I did.
I am also grateful that I was mindful of all the negative emotions lingering in my head lately.
A few days ago, I made myself write down all the thoughts I had in my mind:
Taking it one step at a time
With life full of chaos lately, I am glad that I found out about my negative emotions early.
My priority now would be to prioritize my mental & physical health over everything else.
This means:
- Visit the doctor about my coughing matter.
- Rest early. And rest more.
- Reduce time-sensitive tasks for Quarter 2.
- Block time to clean up my room that is too cluttered with stuffs.
- Workout as per routine.
- Stay grateful.
Regardless, in times like this, I am genuinely grateful that I have an avenue like this blog to rant/express/spill out my thoughts in words.
If you are reading this and are currently going through a difficult time, remember:
Sometimes in life, simply surviving is good enough.
And write things down - it helps!
Guide: How to open a CDS & Stock Trading Account Online
If you are looking to invest in the stock market in Malaysia, the first thing that you got to do is to open a CDS account & stock trading account.
Opening a CDS and stock trading account is actually pretty simple. In this article, we are going to cover all the things that you should know before opening your stock trading account, and HOW to open one!
Before this, here are some posts that you might find useful:
- Rakuten Trade long-term user review: Why it is my go-to platform to buy stocks!
- Guide: How to buy your first stock on Rakuten Trade
- The best dividend-paying ETFs in Malaysia
Step 1: Decide if you are opening a Direct CDS or a Nominee CDS account
A Central Depository System (CDS) account is an account that records the ownership of your stock holdings and any of your transaction history whenever you buy or sell shares. Take it as an electronic safe box that keeps your shares.
In Malaysia, all CDS accounts are maintained and operated by the Bursa Malaysia Depository. As such, you will receive a monthly account statement if there is any transaction made in your CDS account during the preceding month.
As a side note, you need to be 18 years old and above to open an account. Also, there is an RM10 fee for CDS account opening. In addition, your broker will help you to open your CDS account simultaneously when you register for your stock trading account.
There are 2 types of CDS account – Direct CDS and Nominee CDS account.
| Description | Direct CDS | Nominee CDS |
| Account holder’s name | Shareholder (You – Mr./Ms.) | Broker’s name (eg. Rakuten Trade Nominees for Mr./Ms.) |
| Eligibility for IPO application | Yes | No |
| Dividend Payment | Credited directly into registered bank account. | Credited into your brokerage account |
| Paperwork on corporate actions (eg. Rights issue, dividends) | Managed directly by the shareholder. | Managed by the broker on behalf of shareholder with a service charge*.
[*Free on Rakuten Trade] |
| Annual reports & dividend vouchers | Received directly from the Registrar. | Will not receive directly from the Registrar.
[Annual reports can be easily downloaded from Bursa] |
| Rights to attend AGM | Yes | Yes, with broker's consent letter. |
| Shares transfer | Transferable to family members’ accounts. | Transferable to own account only. |
Which is better, Direct CDS or Nominee CDS Account?
Generally, choosing to go with either Direct CDS or Nominee CDS will not affect your investment journey significantly.
That said, if you are just getting started with stock investing, my suggestion is to open a Nominee CDS account (specifically Rakuten Trade), because:
- Convenience: Your broker will manage all the necessary paperwork on your behalf in the event of corporate actions such as dividends and rights issue. This is a huge convenience as the paperwork process can be overwhelming to new investors. Some Nominee CDS brokers may charge a small handling fee on this but it’s free on Rakuten Trade (yup, no charges!).
The only obvious downside of a Nominee CDS account is users are not able to apply for Initial Public Offering (IPO) for soon-to-be listed companies. Honestly, I don’t think this is a big letdown because most investors should be looking to invest in companies with a long track records and financial data.
READ: Rakuten Trade Long-Term User Review: 5 Reasons Why it is my preferred stockbroker
Rakuten Trade Nominee CDS vs Typical Nominee CDS Account
Just a quick note: Not all Nominee CDS Accounts are created the same. Personally, I am using Rakuten Trade Nominee CDS Account over the others because:
|
|
Rakuten Trade Nominee CDS Account |
Typical Nominee CDS Account |
|
Corporate Action Fees |
Free |
Small Handling Fee |
|
Share transfer |
Yes, transferable to family members |
Yes, transferable to own account only |
|
Rights to attend AGM |
Yes, simply email your request to Customer Service 10 working days before the AGM |
Yes, requires consent letter from bank/broker |
|
CDS Account Opening Fee |
Waived |
RM10 |
🎁 Rakuten Trade Referral Link for New Users
If you are keen to open a Rakuten Trade account, consider using my referral link below! For that, you'll get:
- 1000 Rakuten Trade (RT) points worth RM10 to offset your brokerage fee.
- + 150 RT points when you deposit a min. of RM1,000 within 5 days.
- + 1000 RT points when you transfer your shares from other brokers to Rakuten Trade.
- + 1x brokerage fee rebate when you place your 1st trade within 30 days after your account is activated.
Aside from that, Rakuten Trade users get +1 RT point for every RM1 brokerage paid! Click HERE for the full T&C on RT points.
Open a Rakuten Trade Account Today!
Step 2: Choose a Stock Broker
Now that you know what a CDS account is, the next thing is to choose a stock broker. Essentially, a stock broker provides you with the platform to buy and sell stocks.
Recap: When you sign up for a stock brokerage account, your broker will open a CDS account for you. Hence, the key here is to choose the right broker for yourself.
There are 2 main things that you have to consider before opening a brokerage account, namely the (1) brokerage fees and (2) whether you are opening a Cash Upfront or Margin/Contra account.
i. Malaysia Stock Brokers Fee Comparison
The brokerage fee is an important consideration for an investor, especially if you are starting with small capital. Below is a list of stockbrokers in Malaysia and their brokerage fee:
|
Transaction Value & Commissions |
< RM699.99 |
RM700 – 9999.99 |
RM10,000 – 50,000 |
RM50,000 – 100,000 |
|
Rakuten Trade |
1%/RM1, whichever higher |
RM9 |
0.10% |
0.10% |
|
M+ Silver Cash Upfront Account |
0.08%/RM8, whichever higher |
0.05% |
||
|
Hong Leong HLE Value Trade Account |
0.10%/RM8, whichever higher
|
|||
|
Maybank |
0.42%/RM12, whichever higher
|
|||
|
UOB UTrade |
0.42%/RM28, whichever higher
|
|||
|
CIMB Clicks Trader |
0.0388%/RM8.88, whichever higher |
|||
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As you can see in the above picture, there is a difference in how brokers charge their fees. If I were to buy into 100 units of shares at RM1.00 per unit:
Maybank Investment Account (0.42% or RM12, whichever is higher): Total Cost = RM100 + RM12 = RM112
Rakuten Trade (0.1% or RM7): Total Cost = RM100 + RM1 = RM101
Also, do note that the brokerage fee is charged twice: when you buy and when you sell your shareholdings. Hence, it is crucial for you to choose a stockbroker with a low brokerage fee!
LATEST: Get discounts on your brokerage fee on Rakuten Trade! Click HERE to find out more.
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ii. Cash Upfront or Margin/Contra Account
Next, consider if you need a Cash Upfront or a Margin/Contra account.
Essentially, Cash Upfront is pretty straightforward: you only invest the money that you have in your account (imagine a prepaid card).
In contrast, with a Margin account, you get to buy shares with a total value higher than your available cash. In other words, you can borrow money from your broker to buy shares using your Margin account.
When you buy shares on margin, your profit will be amplified when the share price goes up. On the flip side, your losses will also be amplified when the share price goes down.
On a personal note, I do not recommend new investors to buy shares on margin, unless you really know what you are doing and you can handle the risk involved.
READ: What's the difference between cash upfront and margin account?
Opening Your CDS & Stock Trading Account Online via Rakuten Trade
Rakuten Trade is a joint venture between Kenanga Investment Bank (Malaysia) and Rakuten Securities (Japan), which is regulated by Malaysia's Securities Commission (SC).
- It is my go-to broker to invest in the stock market in Malaysia.
- 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 that are starting with a small capital – more below.
- Launched in January 2022, Rakuten Trade now offers users access to the US stock market at a highly affordable commission!
Let’s dive deeper and find out more about Rakuten Trade:
#1 One of the lowest brokerage fees around
Rakuten Trade offers one of the lowest brokerage fees among the brokers in Malaysia – hence making it one of the most affordable options for new and experienced investors or traders alike.
|
Transaction Size |
Brokerage Fee |
| < RM699.99 | 1% (min. RM1) |
| RM700 – RM9,999 | RM9 flat fee |
| RM10,000 – RM99,999 | 0.1% |
| > RM100,000 | RM100 flat fee |
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#2 Open CDS Account & Stock Trading Account at the same time
When you apply for a stock trading account through Rakuten Trade, your CDS account will also be opened automatically on your behalf.
It took me about 15 minutes to register for a Rakuten Trade share trading account. The best part is that your application will be processed extremely quickly and you can start investing after your account has been activated.
[Recap: Rakuten Trade stock trading accounts are Nominee CDS. Meaning, you do not have to deal with all the related paperwork in your investing or trading journey.]
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#3 Trade both Malaysia & US Stock Market via Rakuten Trade
Starting 2022, Rakuten Trade users can trade the US stock market at a highly affordable price! It is the BEST platform to invest in the US market in Malaysia.
Check out my in-depth review on Rakuten Trade US stock trading below:
READ: Rakuten Trade Us stock trading review
Step-by-Step Guide to Open a Rakuten Trade Stock Trading Account (Cash Upfront account)
Step 1: Click the button below to open Rakuten Trade's registration page. Select ‘Cash Upfront’ as your Account Type.
Open A Rakuten Trade Account Today!
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Step 2: Key in your Name, Nationality & IC
Step 3: Upload the front & back snapshot of your IC.
p.s. Select 'NoMoneyLah' under 'Educator', and you will get a free 1000 Rakuten Trade points (worth RM10) that can be used to reduce your brokerage fees and/or converted into Big Points or Boost Coins!
Step 4: Key in your Contact, Email, Username and Security Question.
Step 5: You have to set a 6-digit trading pin to execute any transaction for buying or selling shares. This pin is VERY important as you need to key in this pin for all your transaction on Rakuten Trade!
Step 6: Key in your personal particulars in the next few sections.
Step 7: Update your bank account details & upload your Bank Statement.
Step 8: Answer the few remaining questions for profiling purposes.
Step 9: Update your bank account details & upload your Bank Statement.
Step 10: Pay RM10 for your CDS account opening (p.s. Currently waived by Rakuten Trade).
Step 11: Upon payment, you will receive an email in your inbox asking you to verify your email.
Step 12: Done! You will be notified once your Rakuten Trade account is approved. Next, you can start to fund your account and start investing or trading!
No Money Lah Verdict
To start investing or trading the stock market, choosing a reliable stock trading platform is important, and I have no problem recommending Rakuten Trade due to its ease of application and additional perks (eg. Using RT points to reduce brokerage fee, converting RT points to BIG Points for every transaction.)
If you are keen to open a Rakuten Trade account, consider using my referral link below! For that, you'll get:
- 1000 Rakuten Trade (RT) points worth RM10 to offset your brokerage fee.
- + 150 RT points when you deposit a min. of RM1,000 within 5 days.
- + 1000 RT points when you transfer your shares from other brokers to Rakuten Trade.
- + 1x brokerage fee rebate when you place your 1st trade within 30 days after your account is activated.
Aside from that, Rakuten Trade users get +1 RT point for every RM1 brokerage paid! Click HERE for the full T&C on RT points.
Open a Rakuten Trade Account Today!
Disclaimers:
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.