Part 1: Understanding A RakuMargin Account
RakuMargin 101
RakuMargin is an account that allow you to trade (buy/sell on Bursa Malaysia) using available funds and/or with a pre-approved facility limit powered by Kenanga Investment Bank Berhad. It operates like a credit card.
But why is it called a third party margin account?? It’s because it’s a loan facility developed by Kenanga Investment Bank Berhad, designed exclusively for our Rakuten Trade digital savvy clients.
Key characteristics of a RakuMargin Trading Account:
- 100% online trading experience
- Auto facility limit up to RM200,000 [Pro tip: You may request higher facility limit via your dashboard]
- Loan facility extended by Kenanga Investment Bank Berhad
- Account approval within 72 hours
- Same low brokerage rates from RM1 to a maximum of RM100
- 6.5% p.a interest on outstanding balance
- 0% rollover fee
Glossary:
1.Facility limit is the amount that we are prepared to lend you when you trade via your RakuMargin account. The default facility limit of RakuMargin account is RM 200,000.
2.Outstanding is defined as items that are owed by you such as financed shares, contra loss, debit interest etc.
How To Determine Your RakuMargin Trading Limit?
Generally, to trade via a Margin account, you need to know your trading limit. With the RakuMargin Account, the trading limit is determined based on the collateral (pledged cash and marginable shares).
Example 1: No outstanding balance
Example 2: With outstanding balance
Option 1: 
Option 2: Margin Facility Limit – Gross Outstanding Balance
*Option 1 or 2 whichever lower implies.
**MOF stands for Margin of Financing. A percentage of the collateral value pledged to secure the loan.
How To Calculate The Interest On Your Margin Outstanding Balance?
Interest on outstanding transactions are at 6.5% per annum. It’s calculated daily after T+2, at the end of each day. The interest on outstanding balance will be realized at the end of the month.
How to Request A Higher Facility Limit?
