KUALA LUMPUR: Rakuten Trade Sdn Bhd has seen a surge in stock trade account openings during the Movement Control Order (MCO) period arising from the Covid-19 pandemic.
Rakuten Trade said more than 11,000 new accounts were activated (100 per cent month-on-month), of which more than 64 per cent was during the first phase of the MCO period alone.
Managing director Kaoru Arai said many investors had opted for a “zero contact” equities trading platform like Rakuten Trade.
Arai said the easy to use, non-face-to-face trading platform, and seamless account activation process that comes with using a digital platform like Rakuten Trade had become key benefits to enabling investors to trade in equities.
“Seamless, real-time trading coupled with affordability and greater control are an attractive package.”
“In tandem with the surge in account activations, Rakuten Trade also recorded a 20 per cent increase in trading value in March 2020, month-on-month,” he said.
Meanwhile, Arai said increased market participation bodes well for the equities market as it would contribute towards market liquidity and resilience.
He also said investors see the current equities market climate as an opportunity to “bottom fish” fundamentally strong small to mid-cap stocks that have dropped in price but will eventually rise again.
“They are in for the long run and understand the importance of holding these investments in the current climate," added Arai.
Expanding its digital services to cater to more experienced traders, Rakuten Trade recently launched its third product – RakuMargin.
RakuMargin offers an automated facility limit approval of up to RM100,000 and carries the same low brokerage fees as its Cash Upfront and Contra Accounts.
More recently, Rakuten Trade launched HIVE, an effort to generate investment and trading ideas for clients from Kenanga Investment Bank Bhd and Rakuten Trade’s research and algorithm teams.
As at March 31, it generated close to RM11 billion in trading value on Bursa Malaysia and activated almost 70,000 trading accounts in less than three years.
The company said this was further testament to its appeal factor in attracting a new generation of investors who are inclined to trading completely online.