Investing Using Dual Currencies
The Case of Red Pill or Blue Pill.
The red pill or blue pill scene from the movie Matrix (1999) was nothing short of memorable. It was the turning point for both the lead character, Neo and the movie as he had to make the choice to either live in ignorance or be able to live a life of truth … otherwise seen as slowing down the “speed of a bullet” and cool dodging skills.
The keyword here is ‘choice’ and here’s your turn to choose. Ready?
You Choose; Ringgit Malaysia or USD
The Red Pill: Ringgit Malaysia
When I started trading on the U.S. market (as a beginner), currency conversion was a concern. Not on the MYR/USD currency value but more on how to convert my cash.
Investing through local banks were out of the question due to high brokerage fees and possibly taking longer than expected for conversion, and support.
The experience of trading U.S stocks on the Rakuten Trade platform can be summarized in one sentence; Auto settlement in Ringgit is more convenient because it provided a shortcut for me to own U.S. stocks with a snap of the finger.
While I may lose out on the foreign exchange, FX (because of auto conversion from MYR to USD when I bought shares, and USD to MYR when sold), it didn’t bother me that much because I hold stocks for mid to long term and I rarely day trade.
I also do not need to worry about additional steps or calculations, and I don’t need to know when the time was right to convert my cash to MYR from USD.
The Blue Pill: USD
The idea of "levelling up" is enticing, just like upgrading to the latest Samsung Galaxy Flip 3. But, are you ready?
Trading in USD instead of MYR can be daunting for beginners but for those more familiar with trading, who are more confident in their trading strategy or trade more than three times a month, trading in USD might be a better pill to swallow.
And YES! Rakuten Trade will offer trading services to the US Market in either USD or MYR!.
Like what Morpheus is trying to say… the choice is yours.
You now have the flexibility to choose which currency to trade in, that best fits your style.
I’ve been trading U.S. stocks since Rakuten Trade first launched its service in Jan this year, I’m now quite comfortable trading U.S. stocks and believe it’s time for an upgrade that better complements my style.
By allowing my funds to remain in USD, I only pay the FX conversion fee once and keep available cash in USD, ready to trade. This will help me save on my trades especially since I’m keen to start making short-term trades aka Buy and Sell more frequently or within a short time frame.
When I’d like to cash out, all I need to do is to request the conversion into MYR on the dashboard and voilà!
Currency conversion happens in real-time so that means that you don’t need to wait a few days for your funds to be converted into USD from MYR or vice versa. Just deposit, convert and go!
In A Nutshell
New to trading in the U.S. and keen to own familiar brands like Apple, Tesla, Google, etc? Here’s your chance to do it at the same low brokerage (from USD1.88 to a maximum USD25).
Existing, seasoned investors can opt to keep your funds in USD for a more seamless trading experience.
So whichever “pill” you choose… Rakuten Trade can make it happen!