24 Jun 2007 | 21 comments | investment | Comments feed
How to Trade Stock at Bursa Malaysia: Investing Basic
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Want to read some history about Bursa Malaysia? The best articles are:
Bursa Malaysia at Wikipedia
Bursa Malaysia at Answer.com
Do you qualify to trade at Bursa Malaysia?
You have to be at least 18 years old. If not, wait until your 18th birthday.
Step by Step Guide:
1. Open a Central Depository System (CDS) account: you can do this by approaching an authorized depository agent such as stockbroking company and some banks.
- provide photocopies of IC (identity card)
- fee RM10
You will receive the account document by mail.
2. Open a trading account with stockbroker: this will be done simultaneously when you open the CDS account.
- need to provide income statement
- fill out trading account form
- the stockbroker will check your credit status at CTOS (Credit Tip-off Service) and stockbrokers’ defaulters’ list - in order to qualify you and set your trading limit
What do you need to know about CDS account?
- it allows you to buy and sell shares
- it also allows you to trade non-equity counters such as bond and warrants
- it is something like a bank account - you keep cash in bank accounts, you keep shares in CDS accounts.
- you can have more than one CDS account
- there are two type of CDS accounts: direct and pledge
- if you have a direct account, you will receive the dividend checks and prospectus mailed to your house.
- if you have a pledge account, the stockbroker will receive the dividend payout and prospectus on your behalf. Then the stockbroker will bank in to your account.
- normally banking stockbrokers will require you to open a pledge account.
- you will get CDS account statement monthly. If there is no activity, you will still get the statement on June and December.
3. Get a remisier: normally your stockbroker will appoint one to you if you don’t have any particular preference.
- remisier has to be licensed by the Securities Commission
- remisier helps you make the order: sell? or buy? at what price?
- get someone you like and trustworthy as your remisier
4. Buying and Selling Shares: You can key in your order at online system provided by your stockbrokers, or call your remisier to make the order. If your buying order match a selling order, you will get a trade confirmation. The stockbroking firm will then send out contract notes to you specifying details of transaction.
5. Payment: When you buy share of company S, your CDS account will be credited with share S at 9am on T+3 (T=transaction date). The 3 days only include working days. Your payment had to be made on 12.30pm that day. If not, your share will be forced sold at a contra loss or contra gain.
Fees involved:
- brokerage fees - maximum 0.7% of the value of total shares traded, normal practise is 0.6%
- Clearing fees - 0.04% of contract value subject to cap of RM500
- stamp duty - RM1 for every RM1,000 worth of value
Free Resources about Bursa Malaysia:
- TradeSignum.com - provides charts, counter history and analysis tools. Free to join as member
- TheStar.com.my - provides almost real time stock prices. You can register to monitor your stock portfolio up to 25 counters. Also free to join as member.
- BursaMalaysia.com
Technorati Tags: bursa malaysia, stock trading, KLSE
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Good Day
Very helpful information. Thankyou.
Can you tell me if foreign people (ex. Taiwaness) can legally trade Malaysian stockes or not ? If yes, where can I find a list of stockbrokers ?
Your attention would be very much appreciated!
Best Regards
Chiyen
Chiyen Huang - 05 Jul 07 at 8:57 pm
If you are an individual investor, you may go to an ADA of your choice and:
1. Complete the Opening of Account form and two (2) Specimen Signature Cards.
2. ii. For Malaysians, submit the documents together with two (2) certified true copies of your Malaysian National Registration Identity Card (NRIC). As for foreigners, you need to pay the Account Opening fee and submit two (2) certified true copies of your passport.
This is the rules stated at
http://www.klse.com.my/website/bm/bursa_basics/faqs/investors_guide_to_the_cds.html
But if you reside in foreign country, I suggest that you get your local authorized dealer/stock broker who can trade at Bursa Malaysia.
However, if you come to Malaysia, you can approach any Stock Broker company here, open the account and deposit your advance investment fund in the local account. Apply for online trading.
Then when you go back to Taiwan, you can use online trading.
If you are not planning to come to Malaysia, maybe you can contact some of the brokers here see whether they will accept your mailed document and bank transfer fund.
Hope this help
kclau - 06 Jul 07 at 10:19 am
hi,
thank you for your information.it’s very useful for people like me who are keen to know about investing in shares.can you tell me what is the minimum amount of money that a person should have to begin investing?
thanks.
regards,
thrash
thrash - 28 Dec 07 at 4:33 pm
To invest in share, I guess the minimum is very low since nowadays, you can buy unit in lot of 100, not 1000.
KCLau - 03 Jan 08 at 4:58 pm
hi
am a was wondring if u could give me a list of certified stock brokers . i school in malaysia and am a foriegner.thank you
aisha - 16 Jan 08 at 1:50 pm
Hi Aisha,
I think there is a stock broker near your place. I don’t have the list with me.
KCLau - 17 Jan 08 at 11:33 am
HI..KCLAU,
Thanks for the info it really help us as a investor to this world of investments just like to know more how is it if we Malaysian like to invest in oversea market example U.S.A or others
please guide and give info in it…happy new year and lots of luck to you.
fazillah - 21 Feb 08 at 9:28 am
I am still a student in University, hence i do not have an income statement. Would it be possible for me to open a CDS account?
nicholas - 06 Mar 08 at 7:28 pm
Hi Nicholas,
I think income statement is not required for opening a CDS account when I opened mine when I was still an undergraduate.
You better check with the local security firms.
KCLau - 06 Mar 08 at 10:58 pm
Hi KCLau,
Thanks for the reply. Will do that when i go back to Malaysia
nicholas - 17 Mar 08 at 8:19 am
Welcome!
KCLau - 22 Mar 08 at 11:28 pm
Hi,
I am Malaysian. Currently i am studying in Singapore and i am interested in trading Malaysia Stock. Please advice how can i trade Malaysia Stock?
Winson - 26 Mar 08 at 2:02 am
Hi Winson,
It is very simple and easy. Just present yourself at any security firm in Johor Bahru. They will help you to open your trading and CDS account.
KCLau - 26 Mar 08 at 11:21 pm
Hi KC Lau
I have 2 CDS account with MIDF SISMA and Maybank Nominees. A few years back I was sucessfull with one of the IPO under MIH. My question is where is my share deposited? is it at MIH, SISMA or Maybank? what happen to all the dividends and which account did they paid it into?
Your input is appreciated
Dimyati
M Dimyati Abdullah - 11 May 08 at 5:50 pm
@ Dimyati,
I am not sure about your situation. It is better to ask your remisier.
KCLau - 13 May 08 at 11:11 am
hey lau, is it possible to trade online? i meant like a day trader, and what is your perspective towards day trading?
christopher - 14 May 08 at 8:18 pm
@Christopher
I am not a day trader. But I know there are a few professional traders who successfully make a living doing just that.
I am also aware that there are professional gambler earning a living from casino to casino. It requires high level of discipline and emotional intelligence. If someone can be a professional gambler, I guess being a professional day traders shouldn’t be impossible.
KCLau - 14 May 08 at 11:40 pm
Another suggestion is to go to Investment fairs such as the Asia Trader & Investor Convention held at KL Convention Ctr every yr in March..There you can open trading accounts with various securities companies / banks. And on that day..they will waive all fees & even throw in free gifts for you.
I went last yr..opened with RHB Invest, got RM45 vouchers worth of MPH, Starbucks & metrojaya .
Thrift Solutions
http://thriftsolutions.blogspot.com
Thrift Solutions - 04 Jul 08 at 1:55 pm
@ Thrift Solutions,
This are great info you have provided! Thanks.
KCLau - 16 Jul 08 at 11:34 am