Carving out a new segment of retail investors with technology

Rakuten Trade, a 50:50 joint venture between Kenanga Investment Bank Berhad and Rakuten Securities, has introduced Rakuten Securities’ first online equity broker outside of Japan, last May. That isn’t the only first for Rakuten Trade; it is also the first to be awarded a restricted CMSL by the Securities Commission Malaysia, according to Rakuten Trade’s Managing Director, Kaoru Arai.

CMSL or a Capital Markets Services Licence, is a single licensing framework which overall results in less paperwork and administrative work on capital market intermediaries.

In turn, the capital market in Malaysia would be witnessing something that is different than before, in the form of, Rakuten Trade’s localised version of their mobile trading app in Japan.

Rakuten Trade’s Managing Director, Kaoru Arai

Arai explained, “Ours is a unique trading experience, offering a 360-degrees trading experience from account opening, execution, real-time deposits and withdrawals, request for limits, settlement of trade, research and trading ideas, as well as rewards and financial knowledge.

“It is an all-in-one seamless platform that enables investors to execute their own trading ideas, end-to-end.”

Needless to say, a cutting edge solution like this is targeting an audience which is already tech-savvy and comfortable with e-commerce. “We are targeting millennials, and matured investors who are new or experienced, and digitally inclined. We want to create a new market of retail investors,” Arai pointed out.

Infused with technology

Taking into account major trends like increasing digitalisation in the industry, disruptive financial technologies that can provide new user experiences, as well as the use of data analytics to better understand customer needs and promote customer-centricity, Rakuten Trade’s is uniquely addressing the industry’s need for speed, security and seamlessness.

It offers one of the lowest brokerage rates in town, as well as easy and fast access to financial market and curated research information from experts at Rakuten Trade’s and also Kenanga Investment Bank’s research teams.

This high-tech solution comes at an opportune time, when there is growing interest in small mid cap stocks, and a demand for simplified investment ideas.

Moving forward

Arai said, “We are focused on establishing the brand as Malaysia’s first completely online equity broker. We want to show investors how simple our platform is to use.

Rakuten Trade’s new solution is also in line with Bursa Malaysia’s recent move to develop a new kind of retail investors by focusing on the younger generation as well as the SME market.

Arai is bullish on the growth potential of the online equity broker market in Malaysia.

He concluded, “We are aiming to capture 20- to 30-percent of the online market share in three years.”



Rakuten enters Malaysia’s Online Stock Trading Space with a RM30 million investment

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