Rakuten Trade CEO Kazumasa Mise said: “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 a more affordable, diversified and balanced portfolio that includes familiar brands like Apple, Amazon, and Tesla,” he added.

Through fractional share trading, investors can purchase a partial share (less than one unit) of a company.

According to Rakuten, traders may trade fractional US shares – as well as American depository receipts or exchange-traded funds – from as small as 0.01 unit (buy) or 0.0001 unit (sell).

The platform said in its statement today that its brokerage fees range from RM1 to RM100 or US$1.88 (RM8.55) to US$25 (RM113.70).

Catalyst to test trading strategies

Rakuten’s foreign market trading tool will assist new investors to test various trading tactics on Bursa Malaysia prior to approaching the US market, said Mise.

He also reported that over 30,000 “cash upfront” clients have added foreign market trading over the past 16 months, placing over 16,000 successful transactions.

“This service generates almost 20% of (our) corporate revenue,” he revealed.

This is the second change to Rakuten Trade’s trading tool in the US.

In August 2022, the platform announced that investors could choose to trade in either ringgit or US dollar through their foreign currency settlement services.

Since May 2017, Rakuten Trade has activated over 265,000 accounts and handled over RM115 billion in trading. Its clients’ assets under administration has surpassed RM3.7 billion.