FAQs - Foreign Equity - Cash & Portfolio Management
It depends what type of trader you are, or the type of strategy employed. If foreign currencies appreciate more than Ringgit Malaysia due to monetary policy or market conditions, you may consider converting your Ringgit Malaysia into either HKD or USD. Be advised that settlement can only be done in either Ringgit Malaysia or the local market currency (either HKD or USD).
No but do check how much you will need to successfully to fully perform your trade (s).
Step 1: Login to the dashboard
Step 2: Access the Menu screen “Currency Exchange”. Alternatively, you could also tap on My Account for similar function.
Step 3: Tap on the ($) icon (circled in red) and you’ll be taken to the foreign funds screen.
Step 4: On the foreign funds screen, choose to convert your cash from Ringgit Malaysia into either USD or HKD. You’ll be able to see the indicative rate that will be used at time of conversion.
Step 5: After you’ve decided how much you want to convert, key in your trading pin and click CONFIRM. In real-time, you’ll see the updated cash amount in the selected currency on the My Account tab.
Yes you can. Steps to perform the conversion can be found on our website (Tip sheets).
Yes. For example, if you convert RM4,000 into USD, your FEA Investment Limit Utilized amount is RM4,000. Therefore, the remaining FEA balance is RM 996,000.00. Likewise, when you convert Ringgit Malaysia into HKD.
No. Withdrawal requests are performed in Ringgit Malaysia.
No. All cash deposits accepted must be performed in Ringgit Malaysia via your registered bank account with Rakuten Trade.
Just like a money changer counter, the demand and supply of a currency will affect the indicative rate between two currencies. Please note that the daily indicative rate is non-negotiable.
It’s updated multiple times a day. The last update will be when the foreign market opens for trading.
It’s displayed based on the chosen settlement currency. For example, if you choose to settle in USD, the realized profit loss will be in USD. For foreign shares sold in Ringgit Malaysia, the realized profit loss will be in Ringgit Malaysia. Likewise, for foreign shares sold in HKD, the realized profit loss will be in HKD.
No. Please treat them as profit/loss amounts of respective currencies.
For example, if you sell your Apple (AAPL) at USD 152 and you bought it at USD 142, your realized profit is USD 10. But if you bought Walmart (WMT) at USD 130 and sold it at USD 126, your realized loss is USD 4. That means, your net profit for both AAPL and WMT will be USD6.
For example, if you sell your Alibaba Group Holding Limited (9988.HK) at HKD 120 and you bought it at HKD 80, your realized profit is HKD 40. But if you bought HSBC Holdings plc (0005.HK) at HKD 52 and sold it at HKD 39, your realized loss is HKD 13. That means, your net profit for both Alibaba and HSBC will be HKD 27.
For trading in Ringgit Malaysia, if you bought Pinterest (PINS) at RM 166 (USD37) but sold it at RM 76 (USD 17), your realized loss is RM 90. But, if you bought Beyond Meat Inc (BYND) at RM 247 (USD 55), and sold it at RM 112 (USD 25), your realized loss is RM 135. That means, your net loss for both PINS and BYND will be RM 225.
Therefore, our display will read:
Foreign Currency: USD
Total profit = USD 10 [for APPL]
Total loss = USD 4 [for WMT]
Total realized profit/loss = USD 6
Foreign Currency: HKD
Total profit = HKD 40 10 [for 9988.HK]
Total loss = USD 13 [for 0005.HK]
Total realized profit/loss = HKD 27
Local Currency: Ringgit Malaysia
Total profit = RM 0
Total loss = RM 225 [for PINS & BYND]
Total realized profit/loss = RM 225
It depends. Conversion of Ringgit Malaysia into USD or HKD will impact your Foreign Exchange Administration Investment Limit amount per calendar year. For example, if you convert Ringgit Malaysia into USD to buy US shares in this calendar year, it will impact your FEA Investment Limit amount. There will be no impact if you bring forward your USD or HKD cash balance from previous calendar year to buy US shares.
Yes but it’s market specific (i.e: USD for U.S. Markets and HKD for Hong Kong), but cash withdrawal requests will be processed in Ringgit Malaysia.
There is no change to the existing online/offline deposit and withdrawal services. The processing turn-around time will be on a Malaysian trading day.
Our indivative rate or daily reference exchange rate is based on the previous day’s rate quoted as received from the external licensed FX dealer. We will apply a reference exchange rate as an estimate or for valuation purposes only. For settlement, the quoted rates will be applied.
You may choose and select according to different stock exchanges.
Our daily reference exchange rate is based on the previous day’s rate quoted as received from the external licensed FX dealer. We will apply a reference exchange rate as an estimate or for valuation purposes only. For settlement, the quoted rates will be applied.
We will only finalize each foreign buy/sell contract at the end of the foreign market’s trading session.
Yes you can, provided that you have sufficient USD cash balance or HKD cash balance but you can’t settle your HKD trades in USD or vice versa.
Yes, you can however not via a combination of currencies.
Settlement processing will be based on the foreign market’s T+2 settlement rules, subject to a Malaysian trading day.
For example, if you made a purchase on Monday (US trading day), your settlement of the purchase will be on Wednesday (US trading day). Your trust money will be deducted on Wednesday (MY trading day).
If a sale was made on Monday (US trading day), your settlement of the sales will be on US Wednesday trading day. Sales proceed in Ringgit Malaysia will be credited to your trading account on Wednesday (MY trading day)
The above scenario was made based on the assumption that there are no public holidays at respective market. If the due date of the settlement falls on weekend or public holiday, the settlement process will be adjusted accordingly to fulfil the foreign market T+2 settlement rules
Our daily exchange rate is a reference. Generally, when you buy the foreign shares, there will be a conversion between Ringgit Malaysia and the respective foreign currency. Therefore, we will display the daily reference exchange rate to serve as a guide / resource.
Please note that the daily reference exchange rate is non-negotiable.