Rakuten Trade Sdn Bhd (Rakuten Trade), is set to shake up the status quo by being the first to introduce fractional share trading for NYSE/NASDAQ-listed shares.
“We are making significant changes to our services in ways that will stimulate online trading and boost retail participation, especially among new investors.
“US fractional share trading is a game-changer for Malaysia’s investors, allowing for more affordable, diversified and balanced portfolio that includes familiar brands like Apple, Amazon, and Tesla,” said Kazumasa Mise, CEO of Rakuten Trade
For those who are unaware, a fractional share (or stock slice) is when you own less than one whole share of a company. Fractional shares allow you to invest in stocks based on a dollar amount, so you may end up with a fraction of a share, a whole share, or more than one share.
With Rakuten Trade, fractional share trading starts from as small as 0.01 (Buy) or 0.0001 (Sell) for US stocks, ADRs and ETFs tradeable* on Rakuten Trade. Brokerage fees range from RM1 to RM100 or USD1.88 to USD25.
This launch marks the second enhancement that Rakuten Trade has made to its US Trading Platform. In August 2022, it announced its foreign currency settlement services enabling investors to choose to trade in either Ringgit Malaysia or in US Dollar.
“Rakuten Trade’s foreign market trading platform serves as a catalyst for new investors to test trading strategies on Bursa Malaysia before diversifying into the US markets,” added Mise.
Additionally, Rakuten Trade made two massive changes soon after it launched its trading services on the Hong Kong Stock Exchange. These include:
- It lowered its brokerage fee to a historic low of RM1, and
- Revamped its Points Program to simplify the earning of brokerage free trades.
