Online equity broker Rakuten Trade has officially launched a new fractional share trading feature on its platform, enabled specifically for its US trading service (NYSE and NASDAQ-listed shares). This makes it the first platform in Malaysia to introduce a fully digital US fractional share trading service for its investors.

In a statement, Rakuten Trade said that the new feature will allow investors to start trading US shares, American depositary receipts (ADRs), and exchange-traded funds (ETFs) from as little as 0.01 (Buy) or 0.0001 (Sell). That said, note that US shares priced below US$1 are only tradable in a whole unit, and that the list of fractional tradable share may change every quarter. Once it is taken off the list, you will not be able to perform fractional trading for the share unless it is re-listed.

Brokerage fees, meanwhile, will range from RM1 to RM100, or US$1.88 to US$25 – depending on your trade amount. Of course, these fees can be offset using Rakuten Trade Points (RT Points) if you have any; every 1 RT Point will let you offset RM0.01 brokerage fee (while RM1 brokerage will earn you 1 RT Point).

“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 the chief executive officer of Rakuten Trade, Kazumasa Mise.

For context, the fractional trading feature is the second enhancement that Rakuten Trade has made to its US trading service. Back in August 2022, the online broker also introduced the foreign currency facility to the service, which allows investors the flexibility to trade in the US market in either the US dollar (USD) or the Malaysian ringgit (MYR). This facility was subsequently extended to Rakuten Trade’s Hong Kong trading service as well.

“Rakuten Trade’s foreign market trading platform serves as a catalyst for new investors to test trading strategies on Bursa Malaysia before diversifying onto the US markets. Over the last 16 months, more than 30,000 clients have added foreign market trading to their Cash Upfront account, resulting in over 160,000 successful orders placed. This service presently accounts for nearly 21% of the company’s revenue,” Kazumasa further said, explaining the platform’s focus in upgrading its foreign market trading service with multiple new features.

Rakuten Trade had previously hinted at its intention to introduce fractional trading for its US trading service since mid-April – when it revamped its brokerage fee structure – and then reiterated it in early May. With the feature now officially launched, Kazumasa hopes that foreign market share trading will be made even more accessible to retail investors.

(Source: Rakuten Trade)

• TAGS:
• Kazumasa Mise
• Rakuten Trade
• Rakuten Trade Fractional Share Trading
• Rakuten Trade HK Trading Service
• Rakuten Trade Points
• Rakuten Trade US Trading Service
• Share Market
• Shares
• Stocks
• US Stocks