RAKUTEN TARGETS 20-30PC SHARE

Firm inks deal with Kenanga to form online equity brokerage

JAPAN-BASED Rakuten Securities Inc is confident in capturing between 20 and 30 per cent of Malaysian retail investor market for Rakuten Trade Sdn Bhd, its online platform, within three years.

The company yesterday inked a 50:50 joint venture with Kenanga Investment Bank Bhd to form online equity broking firm Rakuten Trade.

The RM30 million venture saw Rakuten Securities and Kenanga Investment Bank each pumping RM15 million into Rakuten Trade.

The new online stock trading company launched its trading application, iSpeed.my yesterday.

iSpeed.my will empower retail investors to become traders and will charge the most competitive rates in the market, said Rakuten Trade managing director Kaoru Arai at the media briefing.

Arai said the application is the first app targeted at smartphones in the market that allows for the online opening of trading accounts Central Depository System accounts; and allows for the app to act as a financial portal, giving investors access to simplified research materials and realtime market information and enable cash transfers.

Rakuten Securities president Yuji Kusunoki said that Rakuten brings to the deal its front-end expertise (app, technology, web security) while Kenanga brings its expertise on regulatory matters and market/brokerage expertise and access.

The brokerage fee at Rakuten Trade’s iSpeed for investments amounting to less than RM1,000 is a flat rate of RM7; sums from RM1,000 to RM9,999 incur a flat rate of RM8; RM10,000 to RM100,000 a rate amounting to 0.10 per cent of the sum; and RM100,000 and above is a flat rate of RM100.