KUALA LUMPUR: Rakuten Trade Sdn Bhd has launched its new service, Raku-Invest, which enables access to the equity markets in the United States from as low as RM100.
Investors can initiate automated recurring trades for US shares, American Depositary Receipts (ADRs), and exchange-traded funds (ETF) from RM100.
It will automatically continue to trade at pre-selected scheduled periods, either weekly or monthly, without human intervention.
Raku-Invest is a localised version drawing from the success of Tsumitate Investing offered by Rakuten Securities, Inc (RSec) in Japan.
Rakuten Trade chief executive officer Kazumasa Mise said the firm aims to reach 300,000 accounts by year-end from 280,000 accounts to date.
He said the launch of the product in Malaysia will contribute to reaching the target as it is a key service that improves clients' investing experience.
"Tsumitate Investing has performed incredibly well in Japan appealing to young, beginner investors and we hope it will do the same in Malaysia.
With the US stock market capitalisation representing about 40 per cent of the total global stock market capitalisation, it is a significant and potentially lucrative market for investors. However, the barriers to entry for Malaysians can be challenging," said Mise.
Tsumitate investing involves regularly investing small amounts of money over time instead of a lump sum.
It aims to reduce the impact of market volatility on investments.
Mise said Raku-Invest allows Malaysians to approach investing that will be particularly beneficial for first-time traders entering the US markets.
It supports a dollar cost averaging investment strategy, promoting the concept of accumulated investing for novice investors.
Dollar cost averaging is a practice of investing a fixed dollar amount, on a regular basis, regardless of the share price. "It removes emotions and instead promotes disciplined investing by committing to a regular trading schedule.
This focus on long-term goals, despite market fluctuations, helps to mitigate the impact of market volatility and reduces the risk of investing a large sum of money at an inopportune time," said Mise.
As at May 30, 2024, almost 20 per cent of all Rakuten Securities US equity traders trade via Tsumitate Investing reflected a continued incremental growth of almost five per cent month-on-month of which more than 12 per cent were first time US investors.
"Raku-Invest is poised to empower Malaysians with the tools and knowledge needed to build wealth intelligently and securely," said Mise.
At the time of launch, over 1,200 US shares will be tradeable for Raku-Invest services, with plans for expansion in the future.
Meanwhile, Rakuten Trade equity sales head Vincent Lau said the FTSE Bursa Malaysia (FBM) KLCI is poised to hit 1,700 by year-end.
"In the local market, we have ample stocks to trade and a lot of trading opportunities. We are bullish for the market this year," he said.
He added foreign funds have returned to the local market, albeit not in a big way, but they are directed to big cap stocks. We expect to see further inflow from foreign funds into our market," said Lau.