KUALA LUMPUR (Jan 13): Stockbroking firm Rakuten Trade Sdn Bhd on Thursday (Jan 13) announced the expansion of its cash-upfront share trading account for clients to include access into foreign markets beginning with the US, to diversify Rakuten Trade's revenue.

"Malaysian stock market was going down towards the end of last year, our brokerage revenue was also affected. Thus, we are looking for an alternative revenue source," Rakuten Trade chief executive officer Kazumasa Mise said.

Mise, who was speaking at a virtual media briefing in conjunction with the launch of Rakuten Trade's Next Gen Trading Account, said that with the launch of Rakuten Trade's US share-trading service, he expects Rakuten Trade's US and Malaysian share-trading business to improve.

After the US share-trading service, Rakuten Trade hopes to launch its Hong Kong share-trading service by the second quarter this year, according to him.

"We are a business that evolves in tandem with what the clients want and need. With the roll-out of the foreign market trading service, we are ensuring a more consistent growth in new retail investors year-on-year," he said.

According to him, Rakuten Trade has remained profitable since April 2020, thanks to its clients, many of whom are beginners in share investing.

As at Dec 31, 2021, Rakuten Trade had activated more than 236,000 share-trading accounts and handled more than RM95 billion in total trading value on Bursa Malaysia since Rakuten Trade started business in Malaysia on
May 19, 2017, according to the company.

Rakuten Trade said on its website that the company is a joint venture between Kenanga Investment Bank Bhd and Japan's Rakuten Securities, Inc, which is part of Rakuten Group Inc.