FAQs
RakuMargin is Malaysia’s latest and most innovative 3rd party margin financing trading account serviced by Rakuten Trade. This next generation margin trading account operates like a credit card allowing you to trade using available funds and/or with a pre-approved facility limit powered by Kenanga Investment Bank Berhad.
Third party margin is a loan facility, made available to you by a company other than Rakuten Trade. In this case, the third party is KENANGA INVESTMENT BANK BERHAD while we will handle your account services.
A combination of trading accounts - Cash Upfront account (like a debit card) and a RakuMargin account (like a credit card).
DUAL account opening means you are signing up for both Cash Upfront account and Contra account at the same time. COMBO account opening means you are signing up for both Cash Upfront Account and RakuMargin account at the same time.
Picking the right combination depends on your investing style and your comfortable risk level. A RakuMargin account offers financing solutions to its account holder and there is usually no immediate deadline to settle trades whereas trades via Contra account must be settled within two days.
It depends on what type of investor you are. RakuMargin trading is typically more suitable for the sophisticated investor with a thorough understanding of investment risks and margin trading requirements.
Yes (between Rakuten Trade and Kenanga Investment Bank – the financier) as per our General Terms and Conditions on the application form (page 1).
Malaysian and non-U.S. citizens who are 18 years old or above subject to other terms and conditions that can be found on page 1 of the application form.
No. You just need to provide a soft copy of your NRIC/Passport via the online account application form.
We are the only broking house offering a completely digital trading experience from account opening, cash deposits, digital execution and settlement of trades to accessing research reports, investment ideas and earning rewards. You can also request an increase in facility limit via the web platform. We also offer real time margin ratio that you can check on your own any time compared to the more traditional framework where you are reliant on someone else to keep you updated.
Our RakuMargin offers free online registration as it requires no hardcopy supporting documents and we charge the lowest brokerage fees in town.
No. You need to maintain at least a Cash Upfront account.
No. RakuMargin client must at least maintain either cash upfront account or contra account or both accounts.
You just need to log onto your dashboard, click the “Margin OpenNow!” tab to register. You may do it via iSPEED.my app as well.
Yes, as long as you have more than six (6) months left on your passport.
It depends on when the application is submitted and processed. In an ideal scenario, you can start trading as fast as within 72 hours but it’s largely due to how fast the applicant can create and sign off the margin related documents.
You’ll be notified via your registered email that your application has been approved and it requires your digital signature on margin related documents. Please follow the steps within the email sent on how to sign off digitally your margin letter of offer, agreement and related documents. The date received such email hereby is considered the offer date of margin documents.
RakuMargin digital certificate is a digital signature of registered client. Applicant can use this digital certificate to sign off margin documents.
You will receive an email that will prompt you to create a digital signature. It requires you to answer a security question. Upon successful verification, you need to enter your PIN – Personal Identification Number to complete the digital sign off. Steps will be sent to you via email upon successful processing.
Successful applicants are required to view and digitally sign Margin Letter of Offer, Margin Supplementary Letter of Offer, Margin Agreement, Margin letter of Defer Stamping.
We encourage you to accept the margin documents offered by RakuMargin within fourteen (14) calendar days after the offer date.
Yes, on the 14th day after the offer letter has been sent via email.
You can reapply only after 90 calendar days.
What should I do if I happen to transfer cash to my other Rakuten Trade account instead of the RakuMargin account?
You may do the inter cash transfer via web member page or App.
Why is the inter-account cash transfer between RakuMargin and other Rakuten Trade accounts not reflected immediately?
Inter-account cash transfers from RakuMargin account to another RT trading account requires manual approval from Kenanga Investment Bank Berhad and Rakuten Trade to ensure your margin ratio after the withdrawal doesn’t go below the 180% threshold.
1.75% per annum on unutilized cash.
Inter-account cash transfer from RakuMargin account to another RT trading account requires manual approval from Kenanga Investment Bank Berhad and Rakuten Trade to ensure your margin ratio after the withdrawal doesn’t go below the 180% threshold.
However inter-account cash transfers from Cash Upfront to RakuMargin or Cash Upfront to your Contra Account will be immediate.
It will be reflected immediately upon the sighting of the funds.
Cash withdrawal requests is subjected to manual approval of Kenanga Investment Bank Berhad and Rakuten Trade to ensure your margin ratio after the withdrawal does not go below the 180% threshold.
There is no minimum amount.
No. You get a facility limit of RM100,000. Your trading limit will depend on the cash and shares pledged as collateral subjected to margin ratio
Facility consists of a loan made available to you as per the terms under the RakuMargin agreement.
Facility limit means the amount that we are prepared to lend you when you trade via your RakuMargin account.
Generally, your trading limit is determined based on the pledged cash and shares. They will each be assigned a multiplier.
For example,
- RM10,000 (Cash deposit) : Trading limit of RM22,500 (x2.25 cash)
- RM10,000 (shares) : Trading limit of RM12,500 (x1.25 pledged shares)
Note: Example above is based assumption you do not have outstanding balance in RakuMargin account.
If you have outstanding balance in your RakuMargin account, the formula is as follows. Either option A or B can be adopted. Whichever is lower will be adopted as the margin trading limit.
Option A: (Share Collateral Value + Cash) – Gross Outstanding x MOF
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(MOF –100%)
Option B: Margin Facility Limit – Gross Outstanding Balance
A percentage of the collateral value pledged to secure the loan.
For example, Raku Margin’s MOF requires 180% (RM18,000/RM10,000) where you need total of RM18,000 of collateral to secure the outstanding loan of RM10,000.
Yes by submitting your request together with supporting materials via the trading platform. Request is subjected to Kenanga Investmen Bank Berhad’s (our financier) approval.
Supporting documents:
- Income Evidence (EPF statement, BE Form, Salary Slips)
- Proposal for pledged cash
- Proposal for pledged shares
We will send you an email and ask for a digital sign off on the supplementary Letter of Offer which is available on the “Agreement” in the member webpage.
The amount deducted from your facility limit that have been utilized to finance outstanding purchases.
“Outstanding” is defined as items that are owed by you such as financed shares, contra loss, debit interest etc.
Yes, you may but only limited to paid shares. A RM10.00 transfer fee will be realized as the charged transaction and financed by Kenanga Investment Bank Berhad.
Share transfer out from RakuMargin account is subjected to manual approval of Kenanga Investment Bank Berhad and Rakuten Trade to ensure the margin ratio after the transfer does not go below than 180%.
For shares transfer out request made before 10AM, it will take the same business day to process.
Can I perform an inter-account share transfer within Rakuten Trade and when will it be reflected in my account?
Yes. You are only allowed to do inter-account share transfer to the same beneficiary owner.
If the inter-account shares transfer request is received before 10:00am, the transfer will be done on the same business day. If the instruction is received after 10:00am, the transfer will be done the next business day.
Inter-account share transfer from your RakuMargin account is subjected to the approval of Rakuten Trade and Kananga Investment Bank Berhad.
On the Bursa Malaysia website under Indices Overview.
We allow shareholders to choose financing by Kenanga Investment Bank Berhad or via available cash balance.
For shareholders who choose to be financed with Kenanga Investment Bank Berhad, such transaction will be treated as outstanding charges until the corporate action share being credited successfully into RakuMargin account.
Both payment options are subjected to approval of Kenanga Investment Bank Berhad and Rakuten Trade to ensure margin ratio after the corporate action subscription does not go below than 180%.
Please refer to the CORPORATE ACTION section of the FAQs.
If you require further clarification, please give our customer service team a call.
You can trade shares that are tagged “marginable shares” only while shares marked non-marginable shares can only be sold via our platform.
The list of marginable shares will be revised by from time to time at Kenanga Investment Bank Berhad’s discretion. [STOCK INFO >> MARGINABLE STOCKS or NON-MARGINABLE STOCKS].
Marginable stock are those that give you collateral value whereas non marginable stocks are those that did not give collateral value for your RakuMargin Account.
Marginable shares refers to stocks that are allowed to be financed under RakuMargin account. Stocks with high liquidity are most likely marginable. Most brokers will publish list of marginable stocks and non-marginable stocks on their website.
List of marginable stocks and non-marginable stocks are available at the STOCK INFO page or STOCK INFO >> MARGINABLE STOCKS or NON-MARGINABLE STOCKS.
Generally non-marginable counters are:
- PN17 counters
- GN3 ACE Market
- Delisted counters
- Call Warrants counters
- Designated counters
- Warrants and Loan Stocks that have expiry of less than 180 days
- Leverage and Inverse ETFs
- Related counters such as Bonus shares, Rights Entitlement separately quoted, Loan Stocks, Transferable Subscription Rights, Warrants and other type of equity related to Non-Marginable Counters are to be deemed as non-marginable
- Any other identified counters identified by Kenanga Investment Bank Berhad.
Yes, but do be mindful of your margin ratio and ensure it doesn’t fall below the 180% ratio. GTD orders or orders placed during non-trading hours will be rejected should the margin ratio at the start of day be lower than the required maintenance ratio of 180%. You will though be notified via email on canceled orders.
We adopt the First In First Out (FIFO) approach which means the earliest outstanding purchases/contracts will have the highest priority in terms of being contra-ed off. The contra process will be processed at the end of the day.
Other realized debit outstanding items will be auto setoff/settle daily against available cash in RakuMargin based below in terms of priority
- Miscellaneous Charges
- Debit Interest
- Contra Loss
Is there an auto set off or settlement on outstanding purchases in my RakuMargin account if my margin ratio is above 180%?
No. If you wish to settle your outstanding purchases, you’re required to submit settlement instruction(s) via the trading platform.
Please login and select “MY ACCOUNT” >> “Margin” >> “Outstanding” and key in the amount that you wish to settle in “Amount for settlement”.
Settlement of outstanding purchases will be based on board lot and First In First Out (FIFO) basis.
You can do it via the trading platform.
Please login and select “MY ACCOUNT” >> “Margin” >> “Outstanding” and key in the amount that you wish to settle in “Amount for settlement”.
Be advised that it is subject to manual approval from Kenanga Investment Bank Berhad and Rakuten Trade to ensure that margin ratio does not go below 180%.
Collaterals are cash and marginable shares that are pledged to obtain a trading limit.
Generally, cash and shares quoted on the Bursa are accepted as the collateral securities for RakuMargin account. For more information, list of marginable stocks and non-marginable stocks will be available at STOCK INFO page or STOCK INFO >> MARGINABLE STOCKS or NON-MARGINABLE STOCKS.
All marginable shares collateral value will be valued at either the ceiling price or percentage haircut on the last done price of the preceding market day.
Rakuten Trade and Kenanga Investment Bank Berhad will take whichever collateral value is lower in determining the margin ratio.
- ACE Market: valued not more than 50% of the last done price on the preceding market day
- Main Market: valued at a ceiling price determined by Kenanga Investment Bank Berhad or the last done price on the preceding market day, whichever is lower. The ceiling price valuation excludes FBM KLCI counters
- Warrants and Loan Stock Market: valued at a ceiling price determined by Kenanga Investment Bank Berhad or the last done price on the preceding market day, whichever is lower. The ceiling price valuation excludes warrants and loan stocks related to the mother share of FBM KLCI counters.
- Suspended Counters: Counters that are suspended from trading after 1 market day will have a 50% haircut imposed. Counters that are suspended for more than 3 market days will have a 100% haircut.
Are shares entitlement resulted from a corporation of non-marginable counters are considered as non-marginable shares as well?
Yes. If the entitlement of shares was resulted from corporate action of non-marginable counters, this entitlement of shares will be considered as non-marginable shares as well.
Also known as an equity ratio, it is the total collateral value divided by the gross outstanding balance in your RakuMargin account.
For example,
RM18,000 (Collateral value) = Margin ratio is 180%
RM10,000 (Gross outstanding)
It affects the status of your RakuMargin account in the event of the following scenarios.
- Should the margin ratio fall below 180%, the following condition will apply:
- Buy limit zero (0),
- Cash withdrawal limit zero (0)
- Share transfer limit zero (0)
At the end of the trading day, the system will auto offset the other outstanding debit items and the remaining cash balance will be utilized to cover the outstanding purchases.
- Should the margin ratio fall below 150%, a margin call email and web notification will be sent to you and you have three (3) market days to pledge additional cash or/and acceptable shares to bring the margin ratio above the 150% ratio.
- Failure to pledge sufficient funds / shares will result in force-selling of shares in your RakuMargin account on the 4th market day.
- Your RakuMargin account will also be suspended from buying any further securities
- If the margin ratio falls below the Force Sell Ratio (140%), a force sell email notification and web notification will be sent to inform you that the RakuMargin account financier, Kenanga Investment Bank Berhad shall have the absolute discretion to, and without notice to the client, liquidate the available shares and/or such other collateral provided by the client, to bring the margin ratio up to the Required Margin Ratio.
Scenario A
- Monday after trading hour: Margin ratio drops below 150%. Margin call triggered
> System auto sends margin call email to you
- Thursday: Last day of margin call
- Friday: Force sell of the collaterals
Scenario B
- Monday after trading hour: Margin ratio is less than 150%. Margin call triggered.
> System auto sends margin call email/notifications to you.
- Tuesday: You rectify your margin ratio and at the end of the trading day and your margin ratio is above 150%. The margin call will deactivate.
Scenario C
- Monday after trading hour: Margin ratio is less than 150%. Margin call triggered.
> System auto sends margin call email to you
- Wednesday: Margin ratio is rectified by bringing margin ratio greater than 150% during trading hours. However, at the end of trading day margin ratio is lesser than 150%. It is still considered as second trading day margin call.
- Thursday: Last day of margin call
- Friday: Force sell of the collaterals
Scenario D
- Monday after trading hour: Margin ratio drops below 140%
> System auto sends margin call email to you
- Tuesday: Force sell of the collaterals
Yes, please deposit with sighted cash or sighted shares into your RakuMargin account. Alternatively, you can sell the financed shares.
Yes. Please try to immediately rectify your position with sighted cash or sighted shares in your RakuMargin account before 11:59PM on the day the margin ratio drops triggering the force sell ratio.
Can I request RakuMargin or Kenanga Investment Bank Berhad as the financier to no liquidate my financed shares?
Just write us a proposal to settle outstanding balance. Our financier Kenanga Investment Bank Berhad will review it and upon approval subject to terms and conditions agreed both of you.
You may get margin call letter at MY STATEMENT on member’s web page and select Margin Call/Forcesell notification.
You may view the short fall on member’s web page at Dashboard.
You may view the short fall via iSPEED.my APP at Margin Summary under My Account.
You may get Daily Margin Statement at member’s web page via MY ACCOUNT >> RakuMargin >> MY STATEMENT >> DAILY MARGIN STATEMENT.
Interest on outstanding transactions are at 6.8% per annum.
It is calculated daily after T+2, at the end of each day. The interest on outstanding balance will be realized at the end of the month.
Rollover fee is calculated at flat rate 0.5% of each principal buy outstanding amount at the expiry of each rollover period. Rollover period for RakuMargin is 3 months. For example, if you have outstanding purchases with amount of RM10,000, the rollover fee will be RM50.00.
It’ll be auto deducted from the available cash balance in your RakuMargin trading account at the end of the 90th trading day. If there is no cash balance to offset, the rollover fee will remain as an outstanding amount.
