A thought on Social Media & Self-Esteem
I think the major challenge of the parents of our generation is to figure out how to teach our kids to not take social media too seriously, and how to not let social media influence their ego and self-esteem.
And most importantly, how to build confidence without having to rely on social media for self-validation.
Back then, I studied in a high school full of kids from really wealthy family backgrounds (children of big figures, business person, etc).
Funnily, I'm not aware of most of them until many years later via social media.
Aside from the fact that my peers are really well-taught & low profile with their backgrounds, I think a big part is social media was still really new back then.
Looking back, I'm grateful that my teenage years are pretty much clear from the social media scene that we living in today.
As a kid from the M40 group, I could make friends with anyone without feeling overwhelmed by the differences in our backgrounds. And there's less pressure trying to catch/copy the latest material stuff & trends, and instead allowing my curiosity to prosper.
I think the major challenge of the parents of our generation is to figure out how to teach our kids to not take social media too seriously, and how to not let social media influence their ego and self-esteem.
And most importantly, how to build confidence without having to rely on social media for self-validation.
Gonna be a tricky hurdle given how even we, supposedly mature adults, are equally influenced by social media anxiety as well, don't you think?
Why figuring out what's important to you in life is so crucial
Knowing what I want also means I can truly be happy for other people's wins in life without being sour.
Why? Because there's no point comparing to someone else's life that you do not see yourself living.
My recent revelation: You gotta spend time thinking about what's important to you.
Knowing your priorities will tone down a lot of the anxieties that we have in our adulthood life.
I spent my 20s figuring out that (i) PEACE of mind + (ii) pursuing my CURIOSITY are things I value A LOT.
For me, peace of mind means I don't rush myself into a relationship just because most of my best friends got engaged/married last year. (9 weddings, no joke)
It also means I don't/stop investing in things that can disturb my mental peace (eg. Properties 
, individual stocks), regardless of what my peers/other Youtubers are doing.
It also means I don't take up financial commitments simply because my peers are doing 'em. (
)
Letting go of FOMO granted me the peace to pursue my genuine curiosity in work and life - be it the market, learning about love/relationship, traveling, and more without feeling guilty or I'm 'later' in my adulthood life than the peers around me.
Finally, knowing what I want also means I can truly be happy for other people's wins in life without being sour.
Why? Because there's no point comparing to someone else's life that you do not see yourself living.
Life's more fruitful and less overwhelming when there are clear priorities, cheers.
Guide: How to buy your first US share via Rakuten Trade (+Tips & Tricks!)
Rakuten Trade has recently released their much anticipated US stock trading service.
In fact, thanks to Rakuten Trade’s affordable fee structure, it is the only Malaysia-regulated broker that I’d recommend for Malaysians who want to invest in the US stock market.
In this guide, let me share with you (step-by-step) how to buy your first US share on Rakuten Trade!
Also, I’ll show you some tips & tricks to familiarize yourself with the jargon on the platform!
Before you proceed, here are some related posts that might interest you:
How to buy your first US share on Rakuten Trade (+tips)
Note: The following steps are the same regardless of whether you use Rakuten Trade’s web platform or iSpeed app to buy US stocks.
Step 1: Search for stock/ticker & decide to buy shares in MYR or USD
Log in to your Rakuten Trade account. Then, search for the name or ticker of the stocks/ETF that you want to invest in.
Then, decide if you want to execute your trade using MYR or USD. You can refer to my guide HERE to learn when is the best time to use MYR or USD.
READ MORE: Rakuten Trade USD trading feature – trade using MYR or USD!
Step 2: Decide on your limit order price
Buy Limit Order allows investors to line up their orders to buy shares at a specific price or better. At the moment, it is the only execution method on Rakuten Trade.
Example: As shown in the screenshot, Apple’ share price is $168.40.
- If you want to buy Apple shares at a lower price, let’s say $168.00, then set your limit price to $168.00. Essentially, what you are doing is telling the system that ‘Execute Buy Order if the price drops to $168.00 or less’
- Tips: If you want to buy Apple shares directly at $168.40, then set your limit price at $168.40. Usually, for most shares with enough liquidity, you should most likely be able to buy at the price without issue.
Step 3: Decide quantity to buy + mindful of the indicative exchange rate
Next, decide on the number of shares that you want to buy.
Tips: Some shares are denominated in x1 units, while some are in x100 units, so do be mindful of it! Before you execute your order, it is helpful to know that on Rakuten Trade, you can invest in US stocks using MYR or USD.
Hence, do take note of the exchange rate for your transaction. The rate is updated daily, quoted by Rakuten Trade’s foreign exchange provider. There is usually a minor spread between the rate offered compared to what you found on Google.
Step 4: Decide the validity period of your order
Validity decides how long your buy order will stay relevant until it expires. Under validity, there are 2 options:
- Day: Your limit order will be canceled automatically by the end of the trading day if it is not filled. No commissions will be charged for the canceled order.
- Good-till-date (GTD): Your limit order will remain active until a specified date of your choice. Select GTD if you want your limit order to stay active for a longer period of time.
Step 5: Key in trading pin
Key in your Rakuten Trade trading pin to approve the order. Click ‘Confirm Order’ and your order will be processed – that’s it!
Tips: Use RT Points to offset brokerage fee
RT points are points that are rewarded when you open an account, fund your account, and place a trade.
If you have existing RT points, you can select the option to use your points to offset the brokerage fee. This feature is only available if your limit order’s validity is set to Day instead of GTD.
Note: You’ll still pay for the brokerage fee when your order is filled, but it’ll be rebated back to your account by the end of the trading session.
p.s. If you are planning to open a Rakuten Trade account, definitely consider using my referral link by clicking the button below!
Open a Rakuten Trade Account Today!
Must-Know: US Stock Market Operating Hours
Barring holidays or special circumstances, the US stock market opens between 9:30am to 4:00pm eastern time (ET) in the US.
As Malaysians, there are 2 things that we need to know while investing in the US stock market:
- Malaysian time is 12 hours ahead of the US.
- Daylight Savings Time (DST): DST is the time of the year when the US market adjusts their clocks to move an hour of daylight from the morning to the evening.
What does DST mean to Malaysian investors?
- In 2024, DST will start on 10th March. During DST, the US stock market will begin at 9:30pm Malaysia time.
- Meanwhile, DST will end on 3th November 2024. After DST ends, the US stock market will begin at 10:30pm Malaysia time.
No Money Lah's Verdict
So there you have it – how to buy your first US stock on Rakuten Trade!
If this is your first time investing in US stocks on Rakuten Trade, I hope this buying guide has been helpful to you!
For more personal finance and investing content, consider subscribing to my FREE newsletter.
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 the purpose of sharing such experience only. It is not intended as professional investment advice. Please contact Rakuten Trade for more information.
What is Rights Issue and How to deal with it? (with Example Calculation)
So, you invested in a company in the stock market and one day, you received a notification about rights issue by the company. What exactly is a rights issue and what should you be doing with it?
Let’s address this in this article:
A rights issue is an action by companies to raise capital – be it for expansion, debt repayment, and so on.
Through rights issue, a company allows investors to purchase additional shares at a discounted price. The number of additional shares that can be bought depends on how many shares an investor owns.
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Highlights of a Rights Issue
- Rights issue is a process where companies raise funds for various purposes (eg. acquisition) by offering equities at a discounted price. It is an alternative to methods like taking up debt which comes with interest payments.
- The number of additional shares that an investor can buy is in proportion to the investor’s existing shareholding.
- Rights issue is optional. This means that an investor can choose whether to take up the offer (a.k.a. subscribe), or to ignore the rights issue.
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However, ignoring a rights issue will cause the investor’s existing share value to become diluted after the release of additional shares into the market. (Just imagine adding more water to your Ribena drink)
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Example - How to calculate a Rights Issue?
Step 1: Before you proceed, find out the following details first:
- How many shares do you own in the company?
- What is your average acquisition price for this investment?
So, let’s use an example from Atrium REIT, an industrial REIT that manages warehouses and manufacturing facilities. Let’s say I own 1000 shares of Atrium REIT, with an average acquisition price of RM1.05 per unit.
Then, Atrium REIT announces a rights issue, as seen below:
Step 2: Entitlement Ratio & Issue Price
At first glance, things seem to be a little intimidating, but don’t worry – you just need 2 pieces of info from the screenshot above:
- Entitlement Ratio: How many rights do investors get to subscribe in proportion to their existing shareholding?
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In this example, the ratio is 2:5. Meaning, for every 5 shares you owned in the company, you are entitled to buy 2 additional shares.
p - Issue Price: At what price is the company offering the rights?
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In this example, the issue price is RM1.02/unit. The issue price is usually offered at a discount relative to the market price to entice existing investors to subscribe to the rights issue.
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Step 3: Now that we have all pieces of info that we need, we can proceed with the calculation.
a. What’s the initial value of my portfolio (before rights issue)?
= Total shares owned at the start x Average acquisition price
= 1000 shares x RM1.05
= RM1050
b. How many units of right am I eligible to subscribe?
= Total shares owned at the start x Entitlement Ratio
= 1000 shares x (2/5)
= 400 shares
c. How much do I need to subscribe to all 400 shares from this rights issue?
= Total shares I am eligible to subscribe x Rights offering price
= 400 shares x RM1.02
= RM408
d. Total portfolio value after rights subscription:
= Initial portfolio value + Value of Rights Issue
= RM1050 + RM408
= RM1458
e. Theoretical acquisition price after rights issue:
= Total portfolio value after rights subscription/Total shares owned after rights subscription
= RM1458/1400 units
= RM1.041
Notice that I mentioned the acquisition price per share as ‘theoretical’. This is because the market fluctuates up or down upon rights issue depending on market sentiment.
If the rights issue is received with positivity, then an increase in share price upon rights issue means that investors will benefit from capital appreciation. If the rights issue is not perceived well by the market, then the share price will drop and investors’ capital will depreciate.
In this example, I’ll need a total of RM408 to subscribe to all my rights issue. Subscribing to this rights issue allows me to prevent dilution to my existing share value. It is also a good way for me to dollar cost average into companies that I am already investing in.
(Note that you can also choose to subscribe partially to your rights. Meaning, for whatever reason (eg. lack of capital) if you do not want to subscribe to the full rights issue of 400 units, you can choose to only subscribe to 200 units, and so on.)
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What’s the impact of not subscribing to the rights issue?
So, let’s say I decide not to subscribe to Atrium REIT’s right issue above, how would it impact my share value?
Total impact of not subscribing to the rights issue:
= (Theoretical acquisition price after rights issue x Initial shares owned) - Total portfolio value IF I subscribe to rights issue
= (RM1.041 x 1000 shares) – RM1458
= RM1041– RM1458
= - RM417
This means that the value of my shareholding on Atrium REIT would be diluted by RM417 if I do not subscribe to the rights issue.
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Should You Subscribe to a Rights Issue? (+ tips)
Essentially, subscribing to a rights issue allows you to buy shares in the company that you are investing in at a discounted price.
If you are investing in a company for the long-term and the company requires additional capital for expansion, it’d be logical to take on the rights issue. Doing so will prevent the dilution of your existing shares in the company while preparing you to enjoy any potential reward from the expansion in the future.
As such, a tip here is to ALWAYS have additional cash prepared in your brokerage account so you can respond to a sudden rights issue in your investing journey.
On the contrary, if a company is under huge debt, and it announces a rights issue to repay the debt, it is wise to think twice before subscribing to the rights issue. If the market doesn’t perceive this rights issue positively, chances are you might lose more by taking up the rights.
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How to Subscribe to Rights Issue?
Subscribing to a rights issue is a simple process. Just remember that you’d need to have enough funds in your brokerage account to subscribe to a rights issue!
Below are how you can do so via Rakuten Trade (Malaysia market) and Tiger Brokers (Singapore, US, HK, Australia, and China market):
a. Subscribing to Rights Issue via Rakuten Trade (Malaysia stock market)
- Step 1: If you are eligible for a rights issue, you will receive an email notification from Rakuten Trade.
- Step 2: To subscribe to the rights issue, log in to your Rakuten Trade account. Then, under ‘My Account’, select ‘Corporate Action Subscription’.
- Step 3: Follow the instructions shown to subscribe to the rights issue.
- Step 4: You will receive your additional shares in your brokerage account on the stated entitlement date.
(eg. For the Atrium REIT example above, it’d be on 30th August 2019)
READ MORE: How to Build Your Powerful Bursa Stock Screener on Rakuten Trade?
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b. Subscribing to Rights Issue via Tiger Brokers (Singapore, US, HK, Australia, and China stock market)
- Step 1: If you are eligible for a rights issue, you will receive an email/app notification from Tiger Brokers.
- Step 2: To subscribe to the rights issue, log in to your Tiger Brokers app. Then, under ‘Tiger Account’, select ‘Corporate Actions’.
- Step 3: Follow the instructions shown to subscribe to the rights issue.
- Step 4: You will receive your additional shares in your brokerage account on the stated entitlement date.
READ MORE: Tiger Brokers review - the broker I use to invest in the SG, US and HK stock market!
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No Money Lah’s Verdict
Hopefully this article sheds some light for you about rights issue!
Ultimately, it is just one of the many ways companies raise funds for their business objectives. As an investor, it is important for us to know how to calculate and deal with rights issue when we are eligible it.
What are some other corporate actions that you want me to cover? Feel free to share with me in the comment section below!
Keen to Open Your First Stock Investing Account?
Check out my preferred brokers for the local and overseas market below:
a. The broker I use to invest in Malaysia stock market: Rakuten Trade (Read my review HERE)
(Use my referral link HERE with the code NOMONEYLAH to open an account, and receive 1000 RT points upon successful account activation!)
b. The broker I use to invest in the overseas stock market (SG, US): Tiger Brokers (Read my review HERE)
(Use my referral link HERE to open an account, and receive account opening rewards like commission-free trades and stock vouchers upon successful account activation and funding!)
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.
Fresh-grad to working adult: How my financial planner helped transform my finances!
Time flies and it has been 5 years since I graduated from university and went into the workforce officially.
A lot has changed in the past 5 years, especially when it comes to my finances. Of all, working with my financial planner, Stev, since 2020 has been a major decision in my journey.
In this post, I’d like to look back at my progress over the past 5 years, the lessons I learned along the way, and how my financial planner, Stev, has helped me in this journey!
Progress in my finances (2018 - 2023): Dividends, Net-worth, Expenses
(i) Dividend Income
While not much, I am happy to share that the annual dividend income from my dividend portfolio has grown from nothing to a little bit more than RM2.5k in 2023.
In other words, my dividend portfolio has been paying me an average of RM250/m in passive income this year (not too bad!).
The idea of building a dividend portfolio is so that in 15 – 20 years’ time, the dividends could supplement my cashflow to prepare for things like aging parents, family commitments, or on a lighter note, traveling whenever I feel like it (fingers crossed!).
(ii) Net-worth
Thanks to the guidance of my financial planner, Stev, I have been fortunate enough to grow my net worth steadily in the past few years.
In 2023, as I saved and invested more as my income increased, my net worth grew about 45% compared to the previous year (2022).
(iii) Personal Expenses
Being in my late 20s, single, with no expensive hobbies, and minimal commitments, I do not have many large personal expenses.
That said, I was sick for 4 months earlier this year so I spent a lot on Traditional Chinese Medicine (TCM) treatments. I also got more conscious of my health in 2023 so I’ve been getting chiropractic sessions, as well as personal trainers to help me with my fitness.
All in all, my key expenses are:
- Family expenses (eg. money to parents, miscellaneous family expenses): 24%
- Traveling: 11%
- Personal Care & Sports (TCM, Chiro, Personal Trainer): 10% & 9% respectively
How my financial planner helped transform my finances since 2020
Long-time readers would know that I’ve been working with my financial planner, Stev, since 2020.
For newer readers, Stev is a licensed financial planner from WealthVantage, as well as the person behind personal finance blog, My Personal Finances (MyPF). With Stev’s help, my finances have never been more organized and this allows me to focus on important priorities in my life (eg. family and career).
You can follow my financial planning journey below:
Stev’s guidance is one of the crucial reasons why I managed to improve my finances to the way it is today.
Since engaging Stev as my financial planner, my overall financial health (cashflow, net worth, protection) has made a major improvement in 2023 compared to late 2019, when I first started working with Stev.
Check out my Wealth Vantage Score – a visual of how Stev measures my overall financial wealth in 2019 vs 2023:
Several key aspects Stev has helped me massively are:
(i) Unbiased insurance planning
Unlike insurance agents that represent a specific insurance company, Stev is a financial planner which means he can source insurance products from different insurance companies.
In other words, Stev can be unbiased when it comes to customizing the best insurance solutions (life, medical, and critical illness coverage) for his clients.
Check out the key differences between a financial planner and insurance agent HERE.
(ii) Optimizing my taxes
Stev has also been helping me in optimizing my taxes. For instance, Stev will filter for specific tax rebates that I can benefit from whenever a new Budget is announced each year.
In addition, I will always send my tax draft to Stev to go through before submitting it for payment every year, just to make sure I am benefitting from all the tax rebates that I am qualified for.
(iii) Retirement planning via savings and investment
Through working with Stev for the past few years, Stev has guided me in how to best allocate my savings and investments towards my retirement and other financial goals.
Some key things that Stev has guided me over the years include:
- Which PRS funds are the best for my risk appetite?
- How much should I contribute to EPF as a self-employed?
- How to improve my credit score, given my personal circumstances?
Whenever I felt discouraged or impatience about my wealth-building journey, Stev always made sure I saw what was possible if I stayed consistent in my journey.
(iv) Will-writing
As the value and variety of my assets increase, Stev has also guided me on writing my own will in 2022, so my assets will be distributed accordingly to my loved ones should something happen to me.
To find out why it is crucial to create a will + my experience, check out my will-writing experience HERE!
FIND OUT MORE: Why I write my will at 28, and my experience!
Top 4 most important financial decisions I made since I started working:
#1: Working with a financial planner
The decision to work with Stev has helped me improve every aspect of my finances, from insurance & will-writing, to investments, and retirement planning. I couldn’t have done it by myself without the help of licensed professionals like Stev.
Learn about how is it like to engage a financial planner in the next section!
I'd also like to thank Catherine and Gabriel, who both are currently financial planners for WealthVantage for assisting me in my financial planning journey as well for the past 4 years!
#2: Increasing and diversifying my income sources:
As someone running my own business, the idea of me losing everything I built still bugs me every now and then (though much less intense these days).
As such, I’ve been working on improving and diversifying my income sources over the past few years to ensure that my income remains relatively stable regardless of what happens to one specific revenue stream.
#3: Learning about the financial condition of my family:
I also took the initiative to find out about my family’s financial condition, such as existing mortgages, insurance coverages, and savings.
This helps me identify any potential financial risks in the family so I can take action earlier instead of being caught off guard.
For instance, just like myself, I convinced my mom to engage a financial planner to help organize her finances to live a more fulfilling retirement life.
#4: Saving for different purposes
With age, I noticed that there will be expenses that are best planned ahead.
Some expenses that I prepare ahead of time are travel/holiday, parents' old-age expenses, and wedding angpau funds (I attended 9 weddings in 2023 lol, luckily, I saved for them).
Should you engage a financial planner in Malaysia?
Having Stev as my mentor and guide for the past 4 years has been massively fruitful.
With my finances in place, I can go on to pursue different life goals without worries – as there is always someone looking over my shoulder when it comes to my finances.
So, here’s a question for you:
Do you have important priorities in life that you want to pursue or dedicate time to without having to always worry about your financial status:
“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.
[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.
No Money Lah's Verdict
So there is it - how my finances have evolved for the past 5 years since I started working!
An important lesson that I've learned is that wealth-building is a long process that requires patience and proper planning.
With Stev's guidance, I've managed to improve my overall finances steadily - and I hope this convinced you to consider getting proper guidance if you feel overwhelmed or miserable about your finances!
Remember, you can always sign up for a FREE consultation session to see if it is a good fit for you before making a decision!
Disclaimer
This article is made possible through a collaboration with WealthVantage. Special thanks to Stev and the team for making this collaboration such an impactful one.
WealthVantage did not receive copy approval rights on this article – that means they are reading this article for the first time, right alongside you.
p.s. This post contains affiliate links, which afford No Money Lah a small referral if you sign up for any paid services.
StashAway Flexible Portfolios Review: Customize your favourite portfolios in 4 steps!
Life only gets busier as we grow up.
In the final year of my 20s in 2023, I am occupied with work, family, and health matters (yeap, 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.