KUALA LUMPUR (April 8): Rakuten Trade Sdn Bhd has seen more than 11,000 new accounts activated in March, a 100% increase from February, during the movement control order (MCO) period.

In a statement today, the country’s first and only fully digital equities broker said more than 64% of the total new accounts opened in March were during the first phase of the MCO period alone.

“We attribute the high volume of appeal to many now working from home and other brokers still requiring some form of face-to-face contact,” said its managing director Kaoru Arai.

“In view of this, we see many investors opting for a 'zero contact' equities trading platform like Rakuten Trade. The easy to use, non-face-to-face trading platform, and seamless account activation process that comes with using a digital platform like ours have become key benefits to enabling investors to trade in equities.

“Seamless, real-time trading coupled with affordability and greater control are an attractive package,” he added.

In tandem with the surge in account activations, Rakuten Trade also recorded a 20% month-on-month increase in trading value in March 2020.

As at March 31, 2020, it generated close to RM11 billion in trading value on Bursa Malaysia and activated almost 70,000 trading accounts in less than three years.

“Increased market participation bodes well for the equities market as it will contribute towards market liquidity and resilience.”

“Investors see the current equities market climate as an opportunity to 'bottom fish' in 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," said Arai.

Expanding its digital services to cater to more experienced traders, Rakuten Trade also 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, said Rakuten Trade.

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. “Using Telegram, HIVE provides avid investors with consensus trading signals, stock picks, counter performance and where applicable 'Take Profit' suggestions,” said Rakuten Trade.

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