KUALA LUMPUR, April 8 ― Rakuten Trade Sdn Bhd has recorded a 100 per cent surge in month-on-month new accounts activation to more than 11,000 new accounts in March despite the nationwide imposition of the movement control order (MCO) due to Covid-19.
In a statement today, the fully digital equities broker said more than 64 per cent of the new accounts were activated during the first week of MCO, which was enforced from March 18 to March 31 before it was extended to April 14.
In tandem with the surge in account activations, Rakuten Trade also registered a 20 per cent jumped in trading value in March 2020 month-on-month.
As of March 31, 2020, Rakuten Trade has generated close to RM11 billion in trading value on Bursa Malaysia and activated almost 70,000 trading accounts in less than three years.
“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.
“In view of this, we see many investors opting for a 'zero contact' equities trading platform like Rakuten Trade,” said managing director, Kaoru Arai.
The increased market participation bodes well for the equities market as well as towards contributing market liquidity and resilience, he said.
“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,” Arai added.
In addition, Rakuten Trade recently introduced third product ― RakuMargin, that 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.
It has also 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.
Arai said using Telegram, HIVE provides avid investors with consensus trading signals, stock picks, counter performance and where applicable “Take Profit” suggestions.
Going forward, Rakuten Trade will continue to introduce new innovative products and services to its platform. ― Bernama