FAQs - Account Opening - RakuMargin
RakuMargin is Malaysia’s latest and most innovative 3rd party margin financing trading account serviced by Rakuten Trade. This next generation margin trading account operates like a credit card allowing you to trade using available funds and/or with a pre-approved facility limit powered by Kenanga Investment Bank Berhad.
Third party margin is a loan facility, made available to you by a company other than Rakuten Trade. In this case, the third party is KENANGA INVESTMENT BANK BERHAD while we will handle your account services.
It depends on what type of investor you are. RakuMargin trading is typically more suitable for the sophisticated investor with a thorough understanding of investment risks and margin trading requirements.
Yes (between Rakuten Trade and Kenanga Investment Bank – the financier) as per our General Terms and Conditions on the application form (page 1).
Malaysian and non-U.S. citizens who are 18 years old or above subject to other terms and conditions that can be found on page 1 of the application form.
No. You just need to provide a soft copy of your NRIC/Passport via the online account application form.
We are the only broking house offering a completely digital trading experience from account opening, cash deposits, digital execution and settlement of trades to accessing research reports, investment ideas and earning rewards. You can also request an increase in facility limit via the web platform. We also offer real time margin ratio that you can check on your own any time compared to the more traditional framework where you are reliant on someone else to keep you updated.
Our RakuMargin offers free online registration as it requires no hardcopy supporting documents and we charge the lowest brokerage fees in town.
No. A cash upfront account must be activated first to apply RakuMargin Account.
No. A RakuMargin client must maintain Cash Upfront account.
You just need to log onto your dashboard, click the “Margin OpenNow!” tab to register. You may do it via iSPEED.my app as well.
Yes, as long as you have more than six (6) months left on your passport.
Usually within 72 hours but it’s dependent on how fast the you can digitally sign the margin related documents.
Successful applicants are required to view and digitally sign Margin Letter of Offer, Margin Supplementary Letter of Offer, Margin Agreement, Margin letter of Defer Stamping.
Facility consists of a loan made available to you as per the terms under the RakuMargin agreement.
A percentage of the collateral value pledged to secure the loan.
For example, Raku Margin’s MOF requires 180% (RM18,000/RM10,000) where you need total of RM18,000 of collateral to secure the outstanding loan of RM10,000.
“Outstanding” is defined as items that are owed by you such as financed shares, contra loss, debit interest etc.
It will take up to 48 hours to process.
On the Bursa Malaysia website under Indices Overview.
Please refer to the CORPORATE ACTION section of the FAQs.
If you require further clarification, please give our customer service team a call.
Marginable stock are those that give you collateral value whereas non marginable stocks are those that did not give collateral value for your RakuMargin Account.
Marginable shares refers to stocks that are allowed to be financed under RakuMargin account. Stocks with high liquidity are most likely marginable. Most brokers will publish list of marginable stocks and non-marginable stocks on their website.
List of marginable stocks and non-marginable stocks are available at the STOCK INFO page or STOCK INFO >> MARGINABLE STOCKS or NON-MARGINABLE STOCKS.
Generally non-marginable counters are:
- PN17 counters
- GN3 ACE Market
- Delisted counters
- Call Warrants counters
- Designated counters
- Warrants and Loan Stocks that have expiry of less than 180 days
- Leverage and Inverse ETFs
- Related counters such as Bonus shares, Rights Entitlement separately quoted, Loan Stocks, Transferable Subscription Rights, Warrants and other type of equity related to Non-Marginable Counters are to be deemed as non-marginable
- Any other identified counters identified by Kenanga Investment Bank Berhad.
Yes, but do be mindful of your margin ratio and ensure it doesn’t fall below the 180% ratio. GTD orders or orders placed during non-trading hours will be rejected should the margin ratio at the start of day be lower than the required maintenance ratio of 180%. You will though be notified via email on canceled orders.
We adopt the First In First Out (FIFO) approach which means the earliest outstanding purchases/contracts will have the highest priority in terms of being contra-ed off. The contra process will be processed at the end of the day.
Other realized debit outstanding items will be auto setoff/settle daily against available cash in RakuMargin based below in terms of priority
- Miscellaneous Charges
- Debit Interest
- Contra Loss
Notes: Contra gain will be credited on the due date; contra loss will be realized on the due date.
Your outstanding debit bills, contra loss would be settled first followed by settlement of outstanding purchases will be based on board lot and First In First Out (FIFO) basis.
You can do it via the trading platform.
Please login and select “MY ACCOUNT” >> “Margin” >> “Outstanding” and key in the amount that you wish to settle in “Amount for settlement”.
Be advised that it is subject to manual approval from Kenanga Investment Bank Berhad and Rakuten Trade to ensure that margin ratio does not go below 180%.
Yes. If the entitlement of shares was resulted from corporate action of non-marginable counters, this entitlement of shares will be considered as non-marginable shares as well.
You may get margin call letter at MY STATEMENT on member’s web page and select Margin Call/Forcesell notification.
You may view the short fall on member’s web page at Dashboard.
You may view the short fall via iSPEED.my APP at Margin Summary under My Account.