Online equity broker Rakuten Trade has expanded its foreign trading service to include the Hong Kong Stock Exchange (HKEX), the fifth largest stock market in the world. It is the second foreign market to be added to Rakuten Trade’s service, with the first being the US stock market.

According to Rakuten Trade, this new service is designed primarily for experienced traders who are keen to explore beyond the Malaysian market, allowing them to invest in over 2,500 companies listed on the HKEX. These include well-known entities such as Tencent, Alibaba, Xiaomi, Haidilao, and Sinopharm.

Investors also have the option to settle their trades in Malaysian ringgit (MYR) or the local market currency (HK dollar) – a convenience offered via the foreign currency facility for Rakuten Trade’s foreign trading service, rolled out in August 2022. Meanwhile, the brokerage fee for MYR settlements ranges between RM7 to RM100, and starts from a minimum of HK$35 for HKD settlements, as is detailed below:

Trading value	Brokerage fee (trading in RM)	Brokerage fee (trading in HK$)
<RM1,000	RM7	HK$35
RM1,000 – RM10,000	RM9	0.10% of trading amount
RM10,000 – RM100,000	0.10% of trading amount	0.10% of trading amount
>RM100,000	RM100	0.10% of trading amount

On top of that, Rakuten Trade is currently providing free access to real-time price feeds for the Hong Kong market until 31 March 2023, after which it’ll cost investors a subscription fee of RM10. Other perks that Rakuten Trade clients can also look forward to include competitive foreign exchange rates, access to trading ideas by a licensed research and equity sales team, as well as rewards via Rakuten Trade’s loyalty programme.

Clients who wish to begin trading in the HKEX – or even the US markets – must first have a cash upfront account, as well as enable the foreign trading service through the account. Once done, they can then enjoy the convenience of being able to trade in all three markets offered by Rakuten Trade – Malaysia, US, and Hong Kong – via just one cash upfront account.

Chief executive officer of Rakuten Trade, Kazumasa Mise said that the company’s latest offering comes at an opportune time as the Hong Kong market is poised for recovery, especially with China gradually lifting its zero-Covid policy. “In fact, the HKEX benchmark index soared 6.2% in the first two weeks of December, showing positive signs that recovery is imminent,” he stated.

Kazumasa also said that both the US and Hong Kong markets that have been rolled out were the top two markets that were requested by Rakuten Trade clients through its voice-of-customer feedback programme. “Thus far, response for the foreign market service has surpassed expectations and continued to grow at a healthy rate,” he added.

Meanwhile, the head of research for Rakuten Trade, Kenny Yee highlighted that this is a good time to look at the Hong Kong market as valuations remain at reasonable levels. “Based on the current price-earnings ratio of 10.5 times, against its three-year average of around 13 times, we believe there is still further upside for HK stocks, especially with the easing of restrictions in China. The financials will lead the recovery, especially from banks and insurance companies,” he shared.

Rakuten Trade officially launched its foreign market trading service in January last year, with the US markets as its first foreign market offering. It enabled its clients to trade US stocks and exchange-traded funds (ETFs) that are listed on the New York Stock Exchange (NYSE) and NASDAQ.

(Source: Rakuten Trade [1, 2])

• TAGS:
• Foreign Market Trading
• Hong Kong Exchange (HKEX)
• Hong Kong Stocks
• Kazumasa Mise
• Kenny Yee
• Rakuten Trade
• Stock Market
• Stock Trading
• Stocks