Here are some basics on how to choose and open a shares trading account so you can invest in shares in Bursa Malaysia. To invest in Bursa Malaysia, you will need a CDS Account and Trading Account. Both can be opened together when you choose a broker.
What is a CDS Account?
CDS stands for the Central Depository System (CDS). It represents ownership and movement of securities. A CDS account allows you to trade securities which includes shares, REITs, bonds, warrants, and IPOs online. For each trading account you have, you require a separate CDS account. If your CDS account remains inactive for 36 months (3 years), your account will be deactivated.
Depending on your choice of broker, there are 2 types of accounts:-
Direct Account
- The shares are held directly by you.
- You receive information on shares-related matters directly (dividends, splits, annual reports, Annual General Meetings, etc).
- You handle the paperwork by yourself
- You can apply for Initial Public Offerings (IPOs).
- You can transfer shares from your CDS directly to your other CDS or family member’s CDS account.
Nominee or Pledge Account
- The shares are held on your behalf.
- Your brokerage/investment firm receives shares-related information on your behalf (i.e. if you want to attend a company’s AGM, you must be appointed as a proxy).
- Your broker handles your paperwork (A service fee is charged)
- You cannot apply for IPOs.
- You require approval from your brokerage/investment firm to transfer shares from your CDS to your other CDS or family member’s CDS account.
What is a Trading Account?
A trading / brokerage account allows you to buy and sell shares through a broker – who acts as your agent – because you cannot buy and sell shares yourself.
Bursa Trading Hours
Bursa Malaysia’s trading days are from Monday to Friday (except Public Holidays/Market Holidays)
Opening a Brokerage Account
Minimum age: 18 years old
Documents Required (depending on broker)
- 3 copies of NRIC (front and back) for Malaysian, OR international passport if you are a Malaysian Permanent or a non-Malaysian citizen.(Note: Use A4 size paper)
- Bank statement OR savings passboo
- Latest EPF statement (supporting document)
- Latest Payslip (supporting document)
- Account Opening Forms
- RM10 (Account Opening Fee)
Fees for Brokerage Transaction
Below are standard fees for both buy and sell transactions. Please check with your brokerage to confirm.
Trading via Broker
- 100k below: 0.60%
- Above 100k: 0.30%
Trading via Online
- 100k below: 0.42%
- Above 100k: 0.21%
Brokerage Intraday Trading
- 0.10%-0.15%
(Intraday Trading: Trades made within a single day. This is important if you are a short term trader who opens and closes a position in a day.)
Other Fees
- Clearing Fee: 0.003% per transaction (limited to maximum RM200 per transaction)
- Stamp Duty: RM1 per RM1,000 amount of transaction or part of it
Comparing Brokerage Accounts
There is little difference in transaction fees for normal trading. If you are a short-term trader / day trader and trade frequently, go for the lowest brokerage charges depending on your average trading amount.
Note: Different brokerages use different trading platforms and features (PC/mobile app). Each may have different charting software, research, screeners (stock screening tools), etc
Online Trading Brokerage Charges
- Malacca Securities (M+): from 0.05%
- Rakuten Trade: from RM7 or 0.10%
- Jupiter Securities: from 0.20%
- Hong Leong Investment Bank: from 0.10%
- Alliance Investment Bank: from 0.15%
- AmInvest Bank: 0.40%
Minimum Brokerage Charges per Trade
- AmInvestment Bank: RM6
- Rakuten Trade: RM7
- CIMB Bank (Clicks Trader): RM8
- Hong Leong Investment Bank: RM8
- Maybank Investment Bank: RM8
- Malacca Securities (M+): RM8
Trading Bracket Order Features
(i.e. Stop Loss, Take Profit)
- Jupiter Securities
- RHB Investment Bank
- Malacca Securities (M+)
Trading Good Til Date (GTD) Feature
- CIMB Bank
- Affin Hwang Capital Trade
- Rakuten Trade
- AmInvestment Bank
- Hwang DBS Securities
- RHB Investment Bank
- JF Apex Securities
- SJ Securities
- Jupiter Securities
- Malacca Securities (M+)
Other Things to Consider
- Overseas brokerage trading
- Minimum balance required to open/hold in your account
- Online funds transfer (deposits/withdrawals)
- Cash and/or collateralized account
- Cash balance interest earnings
- Trading tools and materials (charting software, screeners, research reports, etc)
Do not choose a broker just based on the lowest fees. Consider your needs, the broker’s reputation and ability, and your relationship with the broker.
Note: Most brokerages charge a minimum of RM8 to RM28 per trade. Brokerage charges are usually higher if you do margin trading.
(Margin Trading: Buying shares using borrowed money from the broker. The cash and shares in the investor’s account are used as collateral.)
