Rakuten Trade Ups the Ante on Contra Trading

Rakuten Trade Sdn Bhd (“Rakuten Trade”) recently launched its Contra 2.0, raising the bar in the equity broking space as a result of new features focused on enhancing the investor's trading experience. 

First-in-market Contra 2.0 features a reduction of Rakuten Trade’s original Contra Account brokerage fees, to now mirror its Cash Upfront facility. Contra 2.0 will see fees** ranging from a minimum of RM7 to a fixed maximum of RM100. 

Additionally, Contra 2.0 has a Day Trade Rebate Programme for investors who trade (BUY and SELL) frequently on the same counter, within the same day. The rebate** will be applied to their ‘SELL’ brokerage fees when they buy and sell the same stock on the same day. The rebate will be credited into their account at the end of the trading day. 

Mr. Kaoru Arai, Managing Director of Rakuten Trade said, “Contra 2.0 is game-changing. It completely revolutionizes the contra trading platform currently available. Our objective was to encourage more people to trade online and we believe that by keeping things simple such as reducing our brokerage fees and adding a Day Trade Rebate Program on top of the current Contra Trading platform, we can do exactly that. We operate in a fast-paced digital landscape where traders' expectations are constantly changing. With the improved Contra 2.0, we are confident that our seamless upgraded contra trading facility will resonate well with both the more experienced investor and those who may have previously only used our Cash Upfront platform."

A Contra Account is a trading account where investors are extended a spending limit based on the share(s) and / or cash placed as collateral. Then depending on the shares the investor intends to buy Rakuten Trade will extend a multiplier of up to 5x more. Settlement is, though, required within three days.

Kindly refer to the tables below for details on Contra 2.0:

Table 1: Brokerage Table After Upgrade

 Rakuten Trade currently has more than 27,000 accounts as at 1 March 2019 of which more than 10% are contra accounts holders. Rakuten Trade’s Contra Account serves as a complement to Rakuten Trade’s existing Cash Upfront facility. In the last nine months, post introduction, Contra trading has attracted investors below 40 years old with trading experience of between one to three years. Contra trading contributes approximately 27% towards Rakuten Trade’s earnings monthly.

For more information on Rakuten Trade or to open an account, please visit www.rakutentrade.my or download iSPEED.my app via Google Play Store or Apps Store.

About Rakuten Trade Sdn Bhd (“Rakuten Trade”)

Rakuten Trade (楽天トレード) is the result of a joint venture between Malaysia’s leading independent investment bank Kenanga Investment Bank Berhad and Japan’s Rakuten Securities, Inc. part of Rakuten Group (“Rakuten”), a global innovation leader. The Rakuten Group empowers society, while providing convenience to customers around the world with easy-to-use and innovative services. Named FinTech Company of the Year 2018, Rakuten Trade created waves in the investment banking industry on 19^th May 2017 when it was officially launched as the country’s first digital equity broker in Malaysia. Their FinTech platform gives investors the opportunity to have a completely online equity broking experience from account opening, live market feeds, execution and settlement of trades, research reports as well as rewards. Rakuten Trade is also the first equity trading broker to launch its own rewards eco system that collaborates with three of the country's top loyalty partners - AirAsia BIG, B Infinite and BonusLink. Clients receive Rakuten Trade points whenever they engage with Rakuten Trade from opening an account, trading to referring their friends and family. Rakuten Trade holds a restricted Capital Markets Services License (“CMSL”) by the Securities Commission Malaysia to deal in listed securities and provide investment advice.