New to investing? Here are 7 SC-licensed apps in M’sia to take control of your finances.

Disclaimer: This article is for educational and informational purposes only. It is not intended to be a substitute for financial advice. Readers are encouraged to do their own research before arriving at any conclusions based solely on this content. Vulcan Post disclaims any reward or responsibility for any gains or losses arising from the direct and indirect use and application of any contents of the written material.

Money is scary in more ways than one, especially when you have no clue what to do with it. And that’s exactly why so many wealth management apps have popped up in recent times.

Simply put, a wealth management app is a software designed to aid users in managing their investment portfolios and financial assets. These days, not only do apps provide investment advice, some also double as brokers themselves.

An update to a piece we did in 2020, here is a list of several wealth management apps licensed by the Securities Commission Malaysia (SC) to embark on your investment journey.

Taking the bull by the horns

Image Credit: Moomoo

There was a certain period of time on YouTube where I’d get nothing BUT ads for one particular platform. Some of you might have heard of it, it’s called Moomoo.

Hailing from Silicon Valley, the company was founded in 2018, licensed by the U.S. Securities and Exchange Commission (SEC). It operates as a brand of Hong Kong-based Futu Holdings, and is the parent company’s entry into the global market.

Moomoo would make its way into Malaysia in 2023, becoming the company’s third expansion into Asia. Regulated by the Securities Commission Malaysia (SC), it hasn’t had any publicly known controversies to date.

Several have noted that this app is a solid place to start. This is in part due to the resources it provides users on coming up with an investment strategy. 

That being the case, Moomoo’s primary function is for trading. Users can trade stocks, ETFs (exchange-traded funds), options, mutual funds, and forex (foreign exchange) among others via the platform. Though there are slight differences when trading each type, generally the process is the same. 

After creating an account, users have to make a deposit of their choice. Then, they can navigate to what type and who within that type they want to trade in. Select the quantity, confirm the trade, and you’re golden.

Minimum starting deposit: None Withdrawal fee: None Platform fees: RM3 per order Commission per transaction: 0.03%

Robo-advisors

Robo-advisors are wealth management platforms where the app itself will be the one managing your portfolio via algorithms.

Typically after creating an account, users will be presented with a series of questions regarding their financial situation or investment goals, for instance. From there, the app will recommend a portfolio tailored to the user’s needs and handle the rest, from making investments to rebalancing.

It’s no stretch of the imagination that, yes, you can expect to see artificial intelligence (AI) play a role in these apps’ operations. And whatever model they’re using is likely only going to get more competent as the world of AI continues to grow.

Regardless, robo-advisors present a beginner-friendly experience for those looking to make their start in investing.

1. Stashaway

Image Credit: Stashaway

Co-founded by ex-ZALORA CEO Michele Ferrario, StashAway got its start in Singapore back in 2016. It would enter the Malaysian market shortly after in 2018, becoming the first robo-advisor to be approved by the SC.

In July, 2020, however, Malaysian users were greeted with quite the scare when an error caused the app to make back-to-back transactions on their automated monthly payments. Though the official post-mortem analysis of the event no longer exists, the company carried themselves quite well throughout the ordeal. Accountability was taken and refunds were promptly made.

The company looks to have kept it clean since. 

Minimum starting deposit: None Withdrawal fee: None Portfolio switching fee: None Annual management fee rate: 0.8% for first RM50,000 0.7% for any additional amount between RM50,000 to RM100,000 0.6% for any additional amount between RM100,000 to RM250,000 0.5% for any additional amount between RM250,000 to RM500,000 0.4% for any additional amount between RM500,000 to RM1,000,000 0.3% for any additional amount between RM1,000,000 to RM3,000,000 0.2% for any additional amount above RM3,000,000 0.3% for a single ETF Flexible Portfolio (no minimum)

2. Wahed

Image Credit: Wahed

Wahed Invest is an American investment platform soft-launched in 2016. Claiming to be the “first Shariah-compliant digital investment platform,” it started operations in Malaysia in 2019 shortly after receiving SC approval.

Investments will not be made in anything involving liquor, firearms, gambling, tobacco, or pornography, as per Islamic values. This is monitored by a committee, and their certification can be viewed near the bottom of this webpage. 

However, since our last article, Wahed has found itself in two major controversies.

The first was a US$300,000 fine imposed on the company by the SEC in 2022. It was found that the company was advertising proprietary funds that simply did not exist on top of not rebalancing the advisory accounts of investors.

Wahed was also alleged to have used the advisory assets of customers to launch a proprietary ETF without consent or notification. The company paid the penalty without confirming or denying the report.

More recently, Wahed received heavy criticism for an advertising campaign which featured visuals of foreign currency being burned. In the UK, several of these ads have since been banned as per a report by the BBC. Though now unlisted, a video for the campaign is still available on YouTube at the time of writing.

Minimum starting deposit: RM100 Withdrawal fee: None Portfolio switching fee: None, but a switch can only be made once every three months Annual management fee rate: 0.79% between RM100 to RM499,999 0.39% from RM500,000 and above

3. MYTHEO

MYTHEO finds its origins in 2016 Japan with Money Design. Regulated by the Japan Financial Services Agency, the company is credited with creating the Land of the Rising Sun’s first robo-advisor, THEO.

Money Design would go on to collaborate with local industry veteran Silverlake Group to form GAX MD, tailoring THEO to suit the Malaysian market. Hence, MYTHEO.

The app launched in 2019 following its approval by the SC. MYTHEO has not had any major controversies since its inception that could be found.

Minimum starting deposit: RM100 Withdrawal fee: None Portfolio switching fee: Free for the first six switches of the year, US$2.50 for subsequent switches Annual management fee rate: 1.0% for first RM30,000 0.9% for next RM30,000 to RM100,000 0.8% for next RM100,000 to RM300,000 0.7% for next RM300,000 to RM500,000 0.6% for next RM500,000 to RM1,000,000 0.5% for over RM1,000,000

4. Versa Invest

Image Credit: Versa Invest

A local contender, Vulcan Post previously covered Versa’s successful fundraising campaign in 2022.

The company’s story began in 2018 when founder Teoh Wei-Xiang was forced to break his fixed deposit for his dog’s emergency surgery, according to their website.

Unable to find an alternative that he liked, he partnered with his friends and Dato’ Teng Chee Wai’s AHAM Capital to create Versa. The platform was launched in 2020, and is regulated by the SC.

The app offers Shariah-compliant funds, and, recently, a new mechanic known as “Versa Quests” was announced. This feature seeks to “gamify” the user experience, with rewards being handed out for completing certain tasks. Details about the feature can be found on these two web pages.

From what could be found, Versa hasn’t had any hiccups over the past few years.

Minimum starting deposit: RM100 Withdrawal fee: None Portfolio switching fee: None Annual management fee rate: 0.3% to 1.8% depending on investment fund

5. BEST Invest

Run by Bank Islam subsidiary BIMB Investment, BEST Invest was launched in 2020. 

Shariah-compliant and cleared by the SC, users can choose between handling investments themselves or making use of their “robo-intelligence,” claimed to be distinct from robo-advisors.

No controversies have been noted as of the time of writing, but its 2.2 rating on Google Play is something that might raise a few eyebrows, with several reviewers complaining of being unable to even register properly due to bugs.

Minimum starting deposit: RM10 Withdrawal fee: None Portfolio switching fee: None Annual management fee rate: 0.5% to 1.8% (not specified)

6. Kenanga Digital Investing (KDi)

Image Credit: Kenanga Investment Bank Berhad

KDi is the brainchild of 52-year-old Malaysian financial service company Kenanga Investment Bank Berhad.

Introduced in 2022, the platform takes particular pride in its AI and is licensed by the SC. 

Do note that there are currently two ways to access KDi’s robo-advisor services. The first is through the KDi app itself. This is the go-to choice for those solely looking to automate the investment process. 

If you’d like a Swiss army knife of all of Kenanga’s services however, then KDi GO would suit you better. This newly released app rolls together KDi, the “stockbroking e-wallet” Kenanga Money, and KenTrade 2.0, a manual Bursa and foreign stock market trading app.

Though KDi has not garnered any controversies so far, of note is its low rating on Google Play, with a score of 2.4. KDi GO also doesn’t fare much better with its 2.9 rating.

Minimum starting deposit: RM250 Withdrawal fee: None Portfolio switching fee: None Annual management fee rate: Free for RM3,000 and below 0.7% between RM3,000 to RM10,000 0.6% between RM10,000 to RM100,000 0.5% between RM100,000 to RM250,000 0.4% between RM250,000 to RM500,000 0.3% between RM500,000 to RM2,000,000 Flat fee of RM6,000 above RM2,000,000

7. Akru Now

Licensed by the SC, this is the only platform on this list that is not available as a mobile app.

Akru found its start in 2017 courtesy of co-founder Julian Ng. The now-CEO has 20 years of experience in the banking and fund management industries, working for names like CIMB and J.P. Morgan.

At present, the company itself has had no publicly known controversies since its inception. There is, however, a scammer currently running around online using their name. 

Though not uncommon for the industry, this does serve as an important reminder for all investors to be vigilant and cautious.

The company specifically notes in their report that Akru does not solicit new clients through WhatsApp. Should any suspicious activity be encountered, the company urges all to reach out to them via anita@akrunow.com or +60 12-279 4983 on WhatsApp.

Minimum starting deposit: None Withdrawal fee: None Portfolio switching fee: None Annual management fee rate: 0.7% for first RM100,000 0.6% between RM100,000 to RM250,000 0.5% between RM250,000 to RM500,000 0.4% between RM500,000 to RM1,000,000 0.3% between RM1,000,000 to RM3,000,000 0.2% above RM3,000,000

Walk before you run

It is important to note that investing will always be risky. Profits are hard to guarantee, and there’s always a chance that platforms will go under. That was the case with Raiz Invest which made our previous list, and has since shut down its Malaysian operations. 

Exercise caution, read reviews, and do your own research before diving deep. It is equally important to also temper expectations and be realistic as well as patient. 

Money, as they say, is serious business.

Read other articles we’ve written about fintech here.

Featured Image Credit: Vulcan Post