Rakuten Securities Review

Company Background & Regulation

Rakuten Securities, a prominent name in the brokerage industry, was founded in 1999 and is headquartered in Tokyo, Japan. It is a subsidiary of Rakuten Inc., a globally recognised e-commerce and internet services company. As part of the expansive Rakuten Group, Rakuten Securities benefits from the brand's strong reputation and extensive market experience. This has enabled the brokerage to establish itself as a major player in the Japanese financial markets, boasting over nine million accounts and ranking as the second-largest online broker in Japan.

Rakuten Securities operates under the regulation of the Financial Services Agency (FSA) of Japan, which is known for its stringent regulatory standards and commitment to ensuring financial market integrity. The broker holds an FSA licence, a testament to its adherence to high standards of operational transparency and client protection. This regulatory oversight ensures that Rakuten Securities maintains robust compliance protocols and offers its clients a secure trading environment.

In terms of client fund protection, Rakuten Securities adheres to strict regulatory requirements set forth by the FSA. Client funds are kept in segregated accounts, ensuring that these funds are distinct from the company's operating capital. This separation acts as a safeguard against potential company insolvency, ensuring that client assets are protected in the event of financial difficulties faced by the broker.

While Japan does not have a compulsory investor compensation scheme like some European countries, the segregation of client funds and the regulatory oversight provided by the FSA offer a significant level of protection to investors. Rakuten Securities' strong focus on compliance and client security underscores its commitment to maintaining trust and confidence among its clients.

Trading Fees & Spreads

Rakuten Securities offers a competitive fee structure designed to cater to a diverse range of trading needs. The brokerage is particularly noted for its zero-commission trading on stocks and ETFs, which provides an attractive proposition for investors looking to minimise costs. For other asset classes, the broker offers tight spreads and competitive pricing, ensuring that clients can trade efficiently without incurring excessive costs.

Spreads at Rakuten Securities start from as low as 0 pips for forex trading, reflecting its commitment to providing cost-effective access to the markets. For major currency pairs, the spreads can be particularly competitive, which is advantageous for forex traders seeking to optimise their returns. In addition to forex, the broker offers trading in stocks, ETFs, cryptocurrencies, and indices, each with its own specific fee structures and spreads.

When it comes to overnight swap rates, Rakuten Securities follows the standard industry practice of charging or crediting clients based on the interest rate differentials of the currencies or assets being traded. These rates are subject to regular updates and can vary, so traders are advised to check the latest rates on the broker’s platform or website to stay informed.

Rakuten Securities also maintains a transparent approach to deposit and withdrawal fees. There are generally no fees for deposits, aligning with industry standards to facilitate easy account funding. Withdrawal fees may apply depending on the method chosen, with detailed information available on their platform to ensure clients are fully aware of any potential costs. Additionally, the broker does not charge inactivity fees, which is a significant advantage for traders who may not trade frequently. When compared to competitors, Rakuten Securities offers a cost-effective trading environment, particularly for those keen on equity trading without incurring commission costs.

Trading Platforms & Tools

Proprietary Web Platform

Rakuten Securities offers a robust proprietary web trading platform designed with user-friendliness and efficiency in mind. This platform is particularly suited for traders who prefer accessing their accounts and executing trades directly from their web browsers, eliminating the need for any software downloads. The web interface provides seamless navigation and is equipped with essential features such as real-time market data, dynamic charting tools, and a comprehensive range of order types including market, limit, and stop orders. Users can customise their trading experience with various layout options and widgets, enhancing the overall usability of the platform.

Proprietary Mobile Platform

The proprietary mobile platform by Rakuten Securities is tailored for traders who require the flexibility to trade on-the-go. Available for both iOS and Android devices, the mobile app mirrors the functionality of the web platform, ensuring a consistent user experience across devices. Key features include advanced charting capabilities with multiple indicators, real-time price alerts, and the ability to execute trades swiftly. The app supports biometric login, providing an additional layer of security. Users can also manage their portfolios, monitor market movements, and access research tools, making it a comprehensive solution for mobile trading.

MarketSpeed II

MarketSpeed II is Rakuten Securities' flagship desktop trading platform, renowned for its advanced features and customisability. Designed for serious traders, MarketSpeed II offers a sophisticated suite of tools including high-speed data feeds, detailed charting with over 100 technical indicators, and multiple screen support. This platform caters to algorithmic traders with its comprehensive API support, allowing for the integration of custom trading algorithms and automated strategies. The platform's alert system is highly configurable, enabling users to set up alerts based on specific market conditions, ensuring they never miss critical trading opportunities.

Charting Capabilities and Third-Party Integrations

Across all platforms, Rakuten Securities provides superior charting capabilities that support a wide range of technical analysis needs. Users can choose from various chart types and timeframes, with the ability to overlay multiple technical indicators and drawing tools. Despite its extensive proprietary offerings, Rakuten Securities currently has limited third-party integration options, reflecting its focus on maintaining a secure and controlled trading environment. Nevertheless, the platforms are equipped with comprehensive tools that are sufficient for most trading strategies, from beginner to advanced levels.

Account Types & Minimum Deposit

Account Tiers

Rakuten Securities offers a straightforward account structure designed to accommodate different types of traders. The standard account provides access to all available markets, including stocks, ETFs, cryptocurrencies, forex, and indices, with a maximum leverage of 1:3. This account type benefits from competitive spreads starting from 0 pips and zero commission fees on stock and ETF trades. Additionally, Rakuten Securities integrates with the Rakuten Points system, allowing traders to earn and redeem points through their trading activities, particularly appealing to those already engaged in the Rakuten ecosystem.

Demo and Islamic Accounts

For beginners or those wishing to test the platform, Rakuten Securities offers a demo account that allows users to practice trading in a risk-free environment. While the demo account provides a realistic simulation of the live trading environment, it does not reflect the Rakuten Points integration. At this time, Rakuten Securities does not offer a specific Islamic account option, which may limit its appeal to traders seeking Sharia-compliant trading solutions. This is an area where the broker could expand its offerings to cater to a broader audience.

Minimum Deposit and Supported Deposit Methods

One of the notable features of Rakuten Securities is its $0 minimum deposit requirement, making it accessible to traders of all experience levels. This policy, combined with zero commission trading on certain asset classes, greatly reduces the barrier to entry. The broker supports a variety of deposit methods to accommodate its clients, including bank transfers and credit/debit card payments. However, it's important to note that the primary operational language remains Japanese, and certain payment methods might be more regionally focused, reflecting the broker's strong presence and customer base in Japan.

Markets & Instruments

Rakuten Securities offers a diverse range of markets and instruments, catering primarily to traders interested in stocks, ETFs, forex, indices, and cryptocurrencies. Given its strong presence in Japan, the broker provides extensive access to Japanese stocks, making it an attractive proposition for those looking to invest in the world's third-largest economy. The platform boasts over 4,000 Japanese stocks, allowing traders to capitalise on local market opportunities.

For international traders, Rakuten Securities provides access to more than 3,600 US stocks and ETFs. This extensive list includes major American companies, offering traders the chance to diversify their portfolios with globally recognised brands. Additionally, the platform supports trading in 20 forex pairs, covering all the major and several minor currencies. This range ensures that forex traders can employ a variety of strategies, from trading major currency pairs to engaging in more exotic trades.

In the realm of cryptocurrency, Rakuten Securities offers a modest selection, focusing primarily on major cryptocurrencies such as Bitcoin and Ethereum. While the offering may not be as extensive as some dedicated crypto platforms, it provides sufficient options for those looking to include digital assets in their investment portfolios. A unique feature of Rakuten Securities is its integration with the Rakuten Points system, allowing clients to earn points that can be redeemed across the Rakuten ecosystem, adding another dimension to the trading experience.

Safety & Security

Rakuten Securities places a strong emphasis on safety and security, adhering to the stringent regulations set forth by the Financial Services Agency (FSA) of Japan. One of the core pillars of its security framework is the segregation of client funds. This policy ensures that client assets are kept separate from the company's operating funds, providing an additional layer of protection against potential financial instability or insolvency.

In addition to fund segregation, Rakuten Securities implements robust cybersecurity measures to safeguard client data and transactions. These measures include advanced encryption protocols and multi-factor authentication, which help prevent unauthorised access to trading accounts. While the broker does not explicitly offer negative balance protection, the relatively low maximum leverage of 1:3 reduces the risk of accounts falling into negative equity. With a regulatory history that reflects compliance and integrity, Rakuten Securities is considered a reliable choice for traders prioritising security.

Who Is Rakuten Securities Best For?

Rakuten Securities is particularly well-suited for traders who are deeply embedded in the Japanese market or those who have a keen interest in trading Japanese stocks and ETFs. Its extensive catalogue of Japanese equities makes it an excellent choice for investors looking to tap into local market dynamics. Additionally, the integration with the Rakuten Points system adds value for users who are already part of the Rakuten ecosystem, providing them with unique benefits that extend beyond trading.

International traders seeking access to US stocks and ETFs will also find Rakuten Securities appealing due to its comprehensive selection of over 3,600 instruments. This feature, combined with zero commission trading for stocks and ETFs, makes the broker an attractive option for those looking to minimise trading costs while maintaining a diverse portfolio. Moreover, the platform's proprietary trading tools, such as MarketSpeed II, are designed to cater to both novice and experienced traders, offering a user-friendly interface alongside advanced features.

That said, Rakuten Securities may not be ideal for traders who prefer a more international focus or those seeking extensive language support outside of Japanese. The primary language of the platform is Japanese, which could pose a barrier for English-speaking clients. Furthermore, the broker's dependency on the broader Rakuten ecosystem may not appeal to traders looking for a more standalone trading experience.

• Ideal for traders focused on the Japanese market with access to over 4,000 Japanese stocks.
• Beneficial for international investors interested in US stocks and ETFs with zero commission.
• Suitable for individuals embedded in the Rakuten ecosystem due to integrated Rakuten Points.
• Accessible for both novice and seasoned traders with user-friendly proprietary platforms.
• Less ideal for traders seeking extensive non-Japanese language support.
• Not recommended for those looking for high leverage opportunities due to a 1:3 leverage cap.