First in Malaysia: Rakuten Trade Now Offers US Trade Amalgamation
Rakuten Trade has blazed a new path for the local stockbroking industry, pioneering US trade amalgamation in Malaysia — a new feature that automatically combines your buy or sell trades of the same US stock within the same trading day.
This allows you to capture opportunities without breaking a sweat over multiple fees.
What Is Amalgamation?
In trading, amalgamation is a process where multiple buy or sell orders for the same stock, placed on the same trading day, are combined into a single transaction for settlement purposes. Instead of being charged separately for each order, you will be charged a single brokerage fee based on the total amalgamated trade volume.
How Does It Benefit You?
- Lower Trading Costs – By consolidating your trades into one transaction, you can save money on brokerage fees.
- Simplified Portfolio Management – Your trade records become cleaner, as multiple trades of the same stock appear as a single transaction in your settlement records.
But how does amalgamating your trading fees save you on brokerage fees? When dealing in Ringgit settlement, Rakuten Trade’s brokerage fees are as below:
| Trading in MYR (US) | Trading Value (RM) |
Brokerage (RM) |
| Below | 699.99 | 1% of Trading Value (Min RM1) |
| Between | 700.00 - 9,999.99 | 9.00 |
| Between | 10,000 - 99,999.99 | 0.1% of Trading Value |
| Equal & Above | 100,000.00 | 100.00 |
Between a trading value of RM700-RM9,999.99, your brokerage fees are a flat RM9. This is a sweet spot where traders can take advantage of the latest US amalgamation feature.
Simulation
Here's an example of amalgamation in action (MYR Settlement):
| You Trade On | Stock | Action | Quantity | Share Price (USD) |
Trading Value (USD) |
Trading Value (RM) |
Brokerage (RM) |
| Monday | Stock A | BUY | 0.50 | 240.00 | 120 | 540 | 5.40 |
| Monday | Stock A | BUY | 0.60 | 250.00 | 150 | 675 | 6.75 |
| Total Brokerage Paid Before Algamation Feature | RM12.15 | ||||||
| Monday | Stock A | Amalgamate | 1.10 | 490 | 245.45 | 1,215 | 9 |
| Total Brokerage Paid With Algamation Feature | RM9 | ||||||
*Currentcy exchange rate USD1 = RM4.50
In the scenario above, investors can save RM3.15 on brokerage from just two trades. You could save much more if you are trading a stock many times in a day, with the brokerage remaining at RM9 up to a total trading value of RM9,999.99.
Who Can Benefit From This Feature?
This feature is ideal for:
- Day traders who frequently scale into or out of positions throughout the day.
- Casual investors who want flexibility without worrying about multiple brokerage fees.
- Market watchers who buy dips or sell at peaks multiple times a day, especially during periods of increased volatility like financial earnings.
Things To Keep In Mind
- US trade amalgamation only applies to the same stock bought or sold on the same trading day.
- The consolidated price will be calculated based on the weighted average price of all trades.
New To US Markets?
If you have not made your first trade on NYSE/NASDAQ, debut now and get RM1 brokerage for up to 3 months! Plus, this promotion stacks with Rakuten Trade’s US trade amalgamation, which means you can buy the same stock as many times as you want in a day and pay only RM1. The same applies to your sell brokerage.
With access to fractional trading and Raku-Invest as well, the barrier to entry has never been lower for retail investors to dip their feet in the US markets.
