Rakuten Trade upbeat on contra 2.0 Platform

Rakuten Trade managing director Kaoru Arai launch the Contra 2.0 platform at Eco City, KL.

KUALA LUMPUR: Rakuten Trade Sdn Bhd is confident it can attract more clients to its contra trading platform with the recently launched new features of Contra 2.0 to enhance investors’ trading experience.

Managing director Kaoru Arai said Rakuten Trade, which started operations in mid-2017, has about 27,000 accounts, more than 10 per cent of which are contra accounts that contribute 27 per cent towards the company’s monthly earnings.

He said the contra trading platform has received a lot of interest from traders below 40 years old who make up 80 per cent of its total existing accounts.

“For the Contra 2.0 platform, the enhancement was made based on feedback from the clients, hence we believe it would be well received and would help us increase the client base, “ he said during the media briefing on Contra 2.0 here today.

Arai said the company’s clients have recorded a total of over RM3.5 billion in trading value on Bursa Malaysia, a feat for a start-up of less than two years and a testament to its FinTech business model.

He claimed that the Rakuten Trade contra platform has again disrupted the market as it offers a higher multiplier facility of five times compared to other brokers where investors are extended a spending limit based on the paid shares and cash placed as collateral.

“Rakuten Trade hopes to attract more clients with the platform in the near future as it has a lower entry barrier compared to its peers by allowing customers to register their account within two hours, plus offering the lowest brokerage fees,” he said.

He said the Contra 2.0 platform offers a reduction in brokerage fees ranging from a minimum of RM7 to a fixed RM100, mirroring the cash upfront facility.

He added that the account also offers a day trade rebate programme, which applies to their “sell” brokerage fees for investors who trade “buy” and “sell” frequently off the same counter on the same day, which will be credited to their account at the end of the trading day.

“Our objective is to encourage more people to trade online and we believe in keeping things simple.

“With the improved Contra 2.0 we are confident that our seamless upgraded facility will resonate well with both the experienced investors and those who might have previously only used the Cash Upfront platform,” he added. - Bernama