FAQs - Applying For Foreign Trading
Yes, via our Cash Upfront account once the “Foreign Equity” service has been successfully activated.
Only Cash Upfront clients.
You may apply for it via your member dashboard. LOGIN >> DASHBOARD >> Activate Now!
You may also apply via our APP, LOGIN >> MY ACCOUNT >> Foreign Markets >> Activate Now
In addition, you’re required to fill up additional information which should take about 5minutes.
Two or three US trading days. You’ll receive an email notification once activation is successful.
Yes, you will receive email notification on activation from RT.
Once activated, you can only deactivate it upon closing your Cash Upfront account. It may also affect your eligibility to maintain margin account.
Prior to closure of account, we require that all shares (local & foreign) held in the account to be liquidated and all cash (less expenses) to be withdrawn.
You may write us an email request to deactivate Foreign Equity service after considering the consequences above.
You’re required to update your profile with the latest personal information
- Domestic borrowing declaration
- Spouse name and identification details
- Next of Kin name and identification details
- Annual income
- Primary or secondary holder’s name of the bank and the relationship,
- Bank Statement
- Permanent Address
- Mailing Address
- Employer Address
- Employment Status
- Working Industry
- (non-Malaysian) Passport expiry not less than 6 months
- Declaration of Foreign Exchange Administration (FEA)
- US Tax Withholding and Reporting (W-8BEN)
You can start trading 1 business day after your US trading account has been activated. In the meantime, do ensure your Cash Upfront account has enough cash funds to ensure a seamless trading experience.
You’re required to key in your “Trading Pin” to complete the application to enable foreign equity service.
FEA rules are a set of rules that are administered by Bank Negara Malaysia (“BNM”) under the Financial Services Act 2013 and Islamic Financial Services Act 2013 to safeguard the value of the Malaysian currency.
FEA rules presented in this FAQ were made on a selective basis and does not represent the full and its exhaustive requirements. We advise you to refer to the complete and latest set of FEA Rules from Bank Negara Malaysia (BNM)’s website at https://bnm.my
Resident who is:
(a) A citizen of Malaysia, excluding a citizen who has obtained PR status in a country or a territory outside Malaysia and is residing outside Malaysia for more than 182 days.
(b) A non-citizen of Malaysia who has obtained PR status in Malaysia and is ordinarily residing in Malaysia for more than 182 days.
(a) Malaysian citizen who has obtained permanent resident (“PR”) status of a country or territory outside Malaysia and is residing outside Malaysia for more than 182 days;
(b) Embassies, consulates, high commissions, superannuation, or international organizations; or
(c) Any person other than a Resident.
Borrowing in ringgit obtained by a Resident from another Resident, including Licensed Onshore Banks (personal loan, share margin financing), to purchase either more than one (1) residential property or more than one (1) vehicle, but shall EXCLUDE items below:
(a) Trade credit terms extended by a supplier for all types of goods or services;
(b) Forward contract with a licensed onshore bank excluding a contract that involves:-
- the exchanging or swapping of ringgit or foreign currency debt obligation with another foreign currency debt obligation; or
- the exchanging or swapping of foreign currency debt obligation with a ringgit debt obligation;
(c) Performance guarantee or financial guarantee;
(d) Operational leasing facility;
(e) Factoring facility without recourse;
(f) A credit facility or financing facility obtained by a Resident individual from a Resident to purchase one (1) residential property and one (1) vehicle; or
(g) Credit card and charge card facility obtained by a Resident individual from a Resident
Please be advised that the FEA rules presented in this FAQ were made on selective basis and does not represent the full and exhaustive requirements of the FEA rules. Clients are advised to refer to the complete and latest set of FEA Rules from Bank Negara Malaysia (BNM)’s website at https://bnm.my
It applies to you if you have existing Resident with domestic Ringgit borrowing. It is subjected to up to RM1 million equivalent in aggregate FEA investment limit (per calendar year) using funds from:
- the conversion of Ringgit
- swapping of financial assets
- transfer from a Foreign Currency Account (FCA)
There is no FEA investment limit for those without Domestic Ringgit Borrowing and a Non-Resident with/without Domestic Ringgit Borrowing.
For a clearer picture, please refer to the table below:
BNM residency status
Domestic Ringgit Borrowing
Any credit facility, financing facility, trade guarantee or guarantee for payment of goods, redeemable preference share (including Islamic), private debt security (including Islamic) or similar facility in whatever name of form
- Trade credit terms extended by a supplier for all types of goods or services;
- Forward contract with a licensed onshore bank excluding a contract that involves:-
- the exchanging or swapping of Ringgit or foreign currency debt obligation with another foreign currency debt obligation; or
- the exchanging or swapping of foreign currency debt obligation with a Ringgit debt obligation;
- Performance guarantee or financial guarantee;
- Operational leasing facility;
- Factoring facility without recourse;
- A credit facility or financing facility obtained by a Resident individual from a Resident to purchase a (1) residential property and a (1) vehicle; or
- Credit card and charge card facility obtained by a Resident individual from a Resident
Please be advised that the FEA rules presented in this FAQ were made on selective basis and does not represent the full and exhaustive requirements. You’re advised to refer to the complete and latest set of FEA Rules from Bank Negara Malaysia (BNM)’s website at https://bnm.my
A:You will have a FEA Investment Limit of RM1 million and will need to subtract existing utilized portion/amount (FEA Investment Limit Utilized) per calendar year.
The Resident individual with Domestic Ringgit Borrowing had a foreign currency denominated shares/stocks purchased of RM100,000 equivalent from broker A and RM300,000 equivalent from broker B in Malaysia in calendar year 2022. Your FEA Investment Limit Utilized for this calendar year will be RM400,000. Your available FEA limit for this calendar year is RM600,000.
Unfortunately, no. Please email firstname.lastname@example.org for support.
No. Changes made on FEA Investment Limit Utilized will be subjected to Rakuten Trade’s approval.
We will advise you to seek approval from Bank Negara Malaysia (BNM).
Yes, if there is reasonable doubt on the client’s transaction and the purpose of transaction, or if you’re found to be non-compliant of the Foreign Exchange (FE) Rules.
Please seek approval from BNM and provide the approval letter to perform the transaction.
"Investor who wish to invest in US market must sign the W-8BEN form. It is required by US regulatory."
Form W-8BEN ("Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting") must be submitted by all Rakuten Trade clients with foreign equity service who receive certain types of income in the United States.
The form also helps those who wish to claim a reduction or an exemption from the U.S. tax withholding if you also reside in a country with which the United States has an income tax treaty and the income received is subject to that treaty.
Unfortunately, Malaysia does not have a tax treaty with US, therefore Malaysians in general will be charged a withholding tax.
Foreign individuals are subject to a prevailing tax rate of 30% (subject to changes in US tax regulations) on specific types of income, including:
- Compensation for services rendered.
No. Any amendment to the SSN or ITIN must be made via email to Rakuten Trade.
The W-8BEN will expire in 3 years from the date of Foreign Equity Service activation. Upon expiry, you’re required to re-sign the form again either digitally or physically to avoid being blocked from trading foreign shares.
Yes. Upon expiry, you’ll be prompted to renew it by signing off the form on the login page.
Yes. You need to declare inheritance for your source of income, and you are required to fill in the source of inherited income and how long it has been passed down.
You may refer to the reference exchange rate of RM1 = USD 0.20
Unfortunately, no. Your estimated net worth should be higher than your liquid assets.
It refers to your most liquid asset which turns into cash when needed.
You will need to key in the 12 characters of alphanumeric.