Rakuten Trade Launches Raku-Invest
KUALA LUMPUR, 19 June 2024 - Rakuten Trade Sdn Bhd (Rakuten Trade) has announced the launch of its new service, Raku-Invest, a game-changing platform designed to simplify and regularize investing.
“Raku-Invest is about enabling and democratizing access to the US equity markets,” said Rakuten Trade CEO, Kazumasa Mise. “With the US stock market capitalization representing about 40% of the total global stock market capitalization, it’s a significant and potentially lucrative market for investors. However, the barriers to entry for Malaysians can be challenging.
“Raku-Invest is a localized version drawing from the success of “Tsumitate Investing” offered by Rakuten Securities, Inc (RSec) in Japan. It has performed incredibly well in Japan appealing to young, beginner investors and we hope it will do the same in Malaysia,” added Mise.
Tsumitate investing, originating from Japan, involves regularly investing small amounts of money over time instead of a lump sum. It's a strategy that aims to reduce the impact of market volatility on investments. Investors can initiate automated recurring trades for US shares, American Depositary Receipts (ADRs), and ETFs from RM100. It will automatically continue to trade at pre-selected scheduled periods --- either weekly or monthly --- without human intervention.
For example, investors can schedule their Raku-Invest purchase of Advance Micro Devices (AMD) shares monthly, starting today with an initial investment of RM100. Now imagine you invested in AMD consistently for the last six months. The accumulated shares would now be worth almost 30% more.
Here are four easy steps to set it up:
Step 1: Log onto your iSPEED.my app and choose the US stock you want to trade
Step 2: Click “Action” > “Schedule Buy” > Select the “frequency (either weekly or monthly) and the Ringgit amount you want to trade (minimum of RM100)
Step 3: Click “Confirm” and you’re all set!
Raku-Invest is a revolutionary way for Malaysians to approach investing that will be particularly beneficial for first-time traders entering the US markets. It supports a Dollar Cost Averaging investment strategy, promoting the concept of “Accumulated Investing” for novice investors. It removes emotions and instead promotes disciplined investing by committing to a regular trading schedule. This focus on long-term goals, despite market fluctuations, helps to mitigate the impact of market volatility and reduces the risk of investing a large sum of money at an inopportune time.
Tsumitate Investing offerings in Japan have yielded remarkable growth primarily in novice traders and continues to record robust performance across several key indicators, reflecting the sustained interest and participation in the market.
As at 30 May 2024, almost 20% of all RSec U.S. equity traders trade via Tsumitate Investing reflecting a continued incremental growth of almost 5% MoM of which more than 12% are first time US investors. “Raku-Invest is poised to empower Malaysians with the tools and knowledge needed to build wealth intelligently and securely,” said Mise.
At the time of launch, over 1,200 US shares will be tradeable for Raku-Invest services, with plans for expansion in the future.
Rakuten Trade is committed to boosting acquisition and trading among M40s in Malaysia and positioning itself as a market innovator by focusing on services appealing to beginner investors, distinguishing Rakuten Trade from its competitors.
With over seven years of operation, Rakuten Trade has surged ahead, boasting nearly 300,000 activated accounts, facilitating almost RM150 billion worth of trades across three markets. This achievement underscores the continued demand among local investors for Rakuten Trade's services, a trend that shows no indication of waning. With clients' assets under administration nearing RM5 billion, Rakuten Trade continues to strengthen its position as a key retail player in the local financial landscape.
