Rakuten Trade Changes Its Brokerage Fees To Stimulate Retail Trading.
KUALA LUMPUR, 14 April 2023 – Rakuten Trade Sdn Bhd (Rakuten Trade), Malaysia’s first fully digital equity broker, announced that effective 17 April 2023, it would be making a significant change to its brokerage rates.
The minimum rate will go from RM7 to RM1 with the maximum remaining at RM100. The new rates will apply to all markets Rakuten Trade offers access into – Bursa Malaysia, NYSE/NASDAQ, and Hong Kong Exchange (HKEX).
According to Rakuten Trade’s CEO Mr Kazumasa Mise, “The new pricing structure, aims to stimulate retail participation and to further democratize digital equity broking in Malaysia. In May 2017, Rakuten Trade successfully lowered the barriers to entry and soon, will be crossing another industry milestone of further lowering the barriers to trade. By making investing more affordable and providing opportunity to many more, digital investing will now be more accessible to investors keen to grow their wealth.”
Quick on the heels of its recent trading launch, onto HKEX, Rakuten Trade will also be revising its rewards program structure. Its multi-award-winning Rewards Ecosystem will give investors 1 RT point for every RM1 spent on brokerage fees. This will give investors a faster way to earn brokerage free rebates than ever before. .
Mr Mise said that at Rakuten Trade, they want to empower investors to build their wealth via portfolio diversification. “Retail investors are becoming increasingly important to many brokers. Despite recent uncertainties, it has not discouraged retail investors from making opportunistic move.
“In the last 12 months, we have recorded a steady stream of account openings of almost 2,000 per month with trading strategies remained unchanged, relying on identical trigger points month on month. This tells us that retail investors are attracted to the convenience and accessibility of online trading platforms. To better support the needs of retail investors, we will be introducing fractional share trading for US stocks by the end of the month.”
As of 31 March 2023, Rakuten Trade had activated more than 260,000 accounts and handled almost RM115billion in total trading value since business day one (May 2017). Its clients’ assets under administration were over RM3.7billion.