How to Trade Stock at Bursa Malaysia: Investing Basic

I started trading at KLSE (Kuala Lumpur Stock Exchange) back in my university years. As a young investor, I was eager to learn how to do investment and earn money without hard work. I was proven wrong that investing takes hard work, unless I want to be a passive investor that will be a different story. To trade stock at Bursa Malaysia ( previously named KLSE), the first question I asked is: How to have a trading account and start buying shares?

Want to read some history about Bursa Malaysia? The best articles are:
Bursa Malaysia at Wikipedia
Bursa Malaysia at

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:

Stock Investment Guide Infographic


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 - 0.03% of contract value subject to cap of RM200
  • stamp duty - RM1 for every RM1,000 worth of value

Free Resources about Bursa Malaysia:

  • - provides charts, counter history and analysis tools. Free to join as member
  • - provides almost real time stock prices. You can register to monitor your stock portfolio up to 25 counters. Also free to join as member.

Stock Investment Course

Stock Investment Guide

What's the Return on Equity (ROE) and how to calculate it? (Video Tutorial)

About The Author


personal finance author and trainer


Comment navigation

  • azam khan

    Reply Reply December 3, 2012

    Oi would like yo get information to open an account in bursa Malaysia advance foreigner.

  • mabel

    Reply Reply January 12, 2013

    Hi Mr.Kc

    I wanted to know more about online trading.
    example when I key in an order ,will it automatically goes to bursa or d broker has to place d order for me after I key in order through online system?

  • Lily

    Reply Reply February 20, 2013

    Hey, I want to know if I want to trade online by myself, does that mean I have to get a direct account?

  • Goh

    Reply Reply June 3, 2013

    May I know which is the best Online trading platform for stock? Are you trading online as well, if so which platform you recommmend?

    • KCLau

      Reply Reply June 11, 2013

      There are many. I personally only tried OSK, Alliance Bank and Public Bank. All are not bad. We just use the platform to do transaction anyway.

  • Tong

    Reply Reply July 13, 2013

    Is it possible for a college student to open a trading account as I don’t have any income currently

    • KCLau

      Reply Reply July 15, 2013

      Yes, I think you can. I opened my first CDS account when I am in university, without any income.

  • Francis Salvador

    Reply Reply July 16, 2013

    I am a Filipino working in Singapore. I already had opened a savings account with Maybank in Johor. For some reason they did not ask me anything. I currently trade on different markets and I am interested in KLSE. I wouldn’t have problems opening a trading account with them right?

  • rita

    Reply Reply July 18, 2013

    How much money do i need for a start up? i am clueless about stock trading but very interested, where do you suggest i start?

    • KCLau

      Reply Reply July 18, 2013

      @Rita, you can definitely start with a few thousand ringgit.

  • Francis Salvador

    Reply Reply July 18, 2013

    Kindly disregard my question. I just finished opening an account with Maybank Securities. Thanks!

  • Chan

    Reply Reply July 22, 2013

    I’m a college student and have no income, it seems that i can open CDS account, but then can i buy shares? Thanks.


      Reply Reply July 26, 2013

      Yes. As long as your CDS account is active, you can start your share trading right away.

      Do note that your CDS account shall become dormant if it is inactive more than a year. You have to reactive it back by contacting your brokerage firm.

      • Chan

        Reply Reply July 31, 2013

        Thanks for the feedback. I just opened a CDS account. πŸ™‚

    • KCLau

      Reply Reply July 28, 2013

      @Chan, yes you can buy share with cash if you have a CDS account.

  • Ang Kee Wei

    Reply Reply July 22, 2013

    hi, i am new to stock market. would like to ask 1 lot equivalent to how many units? 100 or 1000 units?

    thanks 1st.

  • Kishannair

    Reply Reply July 27, 2013

    I need to ask you how much can i make if i invest around rm4000.sorry about that i am new here and i would certainly love to start the way,i am still a university student.

    • KCLau

      Reply Reply July 28, 2013

      @Kishannair, it is advisable to learn about the company profitability. When you buy a share, it is owning a piece of a real business.

      • Sandy

        Reply Reply September 10, 2013

        May i ask KCLau, do u hear before?

        • Sandy

          Reply Reply September 10, 2013

          Sorry typing error… should be

          • KCLau

            September 18, 2013

            @Sandy, so sorry that I’ve never heard of this website before. So no comment on it.

      • Celyn

        Reply Reply May 12, 2016

        How to access a company profile?

        • KCLau

          Reply Reply May 12, 2016

          Every listed company have to publish their annual report. You can read about what the business do in the Annual Report and also their company’s website. The shortcut to get a summary of what this companies do, you can checkout Google Finance.


      Reply Reply August 1, 2013

      @Kishannair, the return is very much subject to how much do you know about you investment. Of course, this include the nature of business, the industry the business in, its financial performance as well as performance consistency. The investment timing is also playing an important role.

    • ZFS

      Reply Reply August 6, 2013

      Even knowing the company is profitable doesn’t guarantee you will make money, it’s all depend on your investing length which coincide with the market climate at the period of your investment. If you have no luck, you will be caught investing in downturn and submerge in a loss for quite some time. Of course, if you invest in profitable company, chance of making a return is higher than invest in a not so profitable company in any climate

  • Hari

    Reply Reply August 12, 2013

    Hi, im a fresh grad. just planning to start my trading career. hehe. Ive played the OSK investment challenge before. Is it how the real environment is? and I have read about ‘Trading Options’ in some books, do such thing exist ? If do we implement it? through a stockbroker? or can be done online?

  • Chan

    Reply Reply August 12, 2013

    I wonder whether can i buy for instance 100000 shares at price of 0.005, and wait until it rises up to 0.015 or higher then sell it. Is that feasible? Because 0.005 seems like the lowest price a stock can go. This question might sound silly, forgive me I am a new trader.

    • Peter Lim

      Reply Reply August 25, 2013

      No, that is not feasible because the stock can get delisted or bankrupt which means the stock becomes worthless. Thus, your potential loss is 100% even if it’s just 0.5 cents per share.

  • pk

    Reply Reply August 21, 2013

    can give me example of fee that need to pay per transaction?

  • Jamie

    Reply Reply August 29, 2013

    Hi I’m newbie too. I am very confuse about definition of lot. All these while my understanding is 1 lot = 1000 units. But in online many says 1 lot = 100 shares? Are the two saying same?
    If the price for a share is RM1.50. Using online trading, I key in [10]x100shares. I paid RM1500. In this case, I have purchased 1 lot or 10 lots?

  • Owen

    Reply Reply August 29, 2013

    Jamie, I think you are confused.. correct me if i’m wrong. with the clarification, i guess the 1 lot = 100 shares is not identical to 1 to 1000.

    here is what i think. 1 lot is equal to 100 shares and 1 lot is equal to RM1,000, hence 100 shares is equal to RM 1,000. but in terms of trading with remisier, i guess when you buy or sell a share, you sell but “1 lot” and not “1 share”. i think this is what i understand. hope this can clarify things

  • Jamie

    Reply Reply August 29, 2013

    Thanks Owen. Yes I’m confused that’s y I’m here. haha.
    I know when we buy/sell shares, we transact in the term “lot”, such as minimum 1 lot. What I would like to know is:

    1) Is 1 Lot = 1000 Units ?
    2) Based on one of the answer above by Lai Seng Choy, he wrote 1 lot = 100 share. So is “1 Lot = 1000 Units” and “1 lot = 100 share” refer to the same thing?
    3) If the price of a share called ABC is RM1.50, so if I want to buy 1 Lot, I need to use RM150 or RM1500 to buy it?

    Sorry as I’m really new in stock market. Hope any expert here can help to clear my doubts. Thank u very much.

    • naim

      Reply Reply January 16, 2014

      hi jamie. Ok lets start 1 by 1.

      1 lot contains 100 unit. A lot is 100 times larger than a unit. If you want to buy let say TENAGA (search it on you need to buy minimum of 1 lot that is 100 unit times RM11.6 =1160. With RM1160, you made your first lot in Bursa Malaysia.

      Depends on which counter you prefer, it varies accordingly. Let saya you interested in IRIS RM0.45 times 100 unit= you got 1 lot at RM45.

      1 lot IRIS and 1 lot TENAGA is the same quantity of unit. But different in value..

  • David

    Reply Reply September 24, 2013

    I’m new investor. For the public bank share trading account is the same as Central Depository System (CDS) account?

  • rishinder

    Reply Reply October 2, 2013

    Hello Guys,

    I have a few questions and i’d be grateful if anyone could answer it. much komisyen or payment do trading platform take from you.
    2.Which is the best online trading platform in term of lowest komisyen/deduction.
    3.can I buy stocks and sell in on the same day and do it over and over again ?(would I get charged for every transaction or only when I withdraw $)

    Thanking you in advance

    • naim

      Reply Reply January 16, 2014 much komisyen or payment do trading platform take from you.

      Differ on which broking house you choose.
      I’m using Jupiter currently.
      Kindly refer to this website:

      2.Which is the best online trading platform in term of lowest komisyen/deduction.

      Find it on

      3.can I buy stocks and sell in on the same day and do it over and over again ?(would I get charged for every transaction or only when I withdraw $)

      Yes. Let say i buy at 0900am. and the price goes up at 3pm. I sell at 0330pm. I will be charged separately. so, make sure the profit can telan all the rate and charges. If you have 10,000 above, just buy penny stocks. Don’t thinking of getting TENAGA or BAT..

      • naim

        Reply Reply January 16, 2014

        If you have 10,000 ABOVE, just buy penny stocks. Don’t thinking of getting TENAGA or BAT..

        If you have 10,000 AND LOWER, just buy penny stocks. Don’t thinking of getting TENAGA or BAT..

  • Austin T.

    Reply Reply October 7, 2013

    Hi, I am a newbie in this field as well.
    Yes, just wanted to know, is it eligible to have CDS account & Trading Account for foreigners?
    I am holding a Expatriate Permit in Malaysia, and having bank account in Public Bank and May Bank. Hope to hear from you guys!

  • jyteng

    Reply Reply November 13, 2013

    I opened a cds and trading account with kenanga. Now how do I deposit money into my cds account from my maybank saving account to start trading? Please guide me, thank you.

  • Eirc

    Reply Reply January 11, 2014

    I am currently a college student which is very interested in learning how to trade. Can someone please talk to me about this?

  • Chua Yuan

    Reply Reply February 9, 2014

    For a newbie which company will you all suggest for us to start invest?

    • KCLau

      Reply Reply February 10, 2014

      Buy the company you understand that’s profitable and have future income growth.

  • Kevin

    Reply Reply February 10, 2014

    Hi, I have question regard the brokerage fee. As you mentioned the brokerage fee will be charged based on total shares traded. So if let say, I bought 1 lot today and bought another lot next day, the brokerage fee is charged on these two different transaction or is charged during the point when I sell all the lots? Please advise, much appreciated.

    • KCLau

      Reply Reply February 10, 2014

      You will have to pay each and every time you trade – whether buy or sell. This means you pay when you buy, and you again when you sell the same lot later.

  • TanCS

    Reply Reply February 20, 2014

    Mind if I ask if there is any stock simulator for newbie to get the look & feel before dipping into the real sea? If yes, how different would these simulators be to the real world? Is it really helpful?
    Appreciate all advises…

  • AT

    Reply Reply March 21, 2014

    hi i am new, would like to know the following :-

    1. What is penny stock
    2. just say I want to buy some simple and cheap stock to make short term
    extras, can subscribe to maybank2u to view and trade stocks
    3. My friends told me the “MAS shares” is at 10 – 20 cents, and advice me to
    buy, how do I purchase this share

    so sorry, i new to this

    • KCLau

      Reply Reply April 3, 2014

      Hi AT, regarding your questions:
      1. Penny stock – stocks trading at very low price e.g. 5 sen, 30 sen, or even 50 sen
      2. You can open any trading account for whatever purpose ( not money laundering of course πŸ™‚ )
      3. I would not advice investor to buy MAS. You can speculate with MAS share (like gambling), but certainly not investing in it.

  • ling

    Reply Reply April 1, 2014

    Hi,I’m new to stock market also. I’m using the online trading. I have buy the shares for 2 days already, but the shares cannot match, so it become expired at the end of day. Is it normal process? Anyway can speed up the process?

    • KCLau

      Reply Reply April 3, 2014

      Hi Ling, when the order expired, you will need to enter the order again the next day. It is normal that some orders are not matched because there is no willing buyer/seller at your asking price.

  • YK

    Reply Reply April 5, 2014


    I’m newbie and i would like to know the following;
    1. I have applied an CDS account and i would like to make trading via online, what i should do?

    2. Can trade all equity via online? what about warranty and bond?


    • KCLau

      Reply Reply April 7, 2014

      @YK, all you need is a trading account. CDS account will be open at the same time. Just visit any securities firm (Public Bank, CIMB, Maybank, RHB, HwangDBS etc) to get it done. And you will be able to do all the above.

  • winelim

    Reply Reply April 5, 2014

    any comment for xdl-wa?

  • Satheesh

    Reply Reply April 8, 2014

    hi, I am a non-Malaysian and i am currently working in Malaysia so is it possible if I able to open a CDS account will I be able to buy shares?

  • JJ

    Reply Reply April 15, 2014

    can i just buy online n not throught the broker? so tat i no need to pay the broker.

  • choi

    Reply Reply April 21, 2014

    May I know the calculation if I did RM2000 to buy a share and how many will be charged and also for sell.

  • Leon

    Reply Reply April 22, 2014

    Hi…im very new in shares..Here is something that i dont understand…What are stock warrants?? and what do they do? i tried googling it and it seems that they are options that can be converted to real shares.. its really confusing…lol..Please help me explain just what a stock warrant is.

  • jackson

    Reply Reply April 28, 2014

    Which securities firm easy for student open an account?

  • as

    Reply Reply May 16, 2014

    Why is stamp duty and clearing fee payable even if it’s a contra transaction – buy and sell before T+3? Isn’t it rather odd that Bursa Malaysia is double dipping by charging both seller and buyer stamp duty and clearing fee? btw, the clearing fee is 0.03% not 0.04% as stated above.

  • teong

    Reply Reply June 10, 2014

    Hi, I’m very new in shares too. My questions is now using Maybank2U for the online stock. I tried to buy some share though online. It is already proceed but why my amount from Maybank2u account not deduct?
    My maybank2u account for SE/SC is RM10,000.
    I bought 1 lot for Tenaga Share (Eg RM11.6). So amount should be RM1,160 lets say.

    Please advise.

    • KCLau

      Reply Reply June 16, 2014

      HI Teong, you better check with your service provider (maybank) on how payment should be made for the stock you purchased using their platform.

  • erlleynder

    Reply Reply August 8, 2014

    hi kclau..I am a university student can I open a CDS account with Maybank? and can you recommend me the best brokerage firm..thank you..

  • jeff chin

    Reply Reply August 20, 2014

    when we buy share also need to paid for clearing fees & stamp duty?

    • KCLau

      Reply Reply August 30, 2014

      yes. Every transaction whether buy or sell.

  • mars

    Reply Reply August 28, 2014

    Hi kclau, im newbie in shares as well. may i know 1 lot equal to how many units??
    And in your opinion, can i see profit if i start with small shares? Tq

    • KCLau

      Reply Reply August 30, 2014

      last time 1 lot used to be 1000 units. But now is minimum 100 lot. Most of the time, we tell remisier how many units we want to trade – to avoid the confusion.
      If you are able to identify good company to invest, it is still profitable whether you buy 1000 units or 1 million units.

  • TC

    Reply Reply September 11, 2014

    What is the most profitable stock at current market. Any advise to buy.

  • Wong

    Reply Reply October 15, 2014

    Hi, MAS is de-listed from KLSE. Do i have option not to sell the share and wait until it’s re-listed.

    Do KLSE have a policy when company is de-listed. You must sell the share?


    • Anon

      Reply Reply December 12, 2014

      While your idea is a cute one, but no, that’s not how it works… Khazanah needs to be the sole shareholder of MAS in order to facilitate the recovery plans for MAS.

  • ronny

    Reply Reply October 26, 2014

    dear kclau,
    just want to ask you a question..
    i just bought few lots of lysaght few days back by cash. Later my remisier phoned me just now & told me today is force selling day. It turned out that it was a miscommunication, he bought for me 10 times the share i ordered (coz mistaken 1 lot = 1000 units, not 1 lot = 100 unit). So it became incidentally contra transaction. However i let him force sell coz already got profit rm 25k. The problem is he demanded a portion of my profit (which he had not stated yet how much) because due to his ‘mistake’, i ended with large profit.. is it legitimate for him to do this? Hope to hear your wise opinion please.. thank you very much

    • KCLau

      Reply Reply November 5, 2014

      I would say “no” in my opinion. I think a legal advisor is more suitable to answer your question.
      I recommend doing online transaction to reduce this type of dispute.

  • KatherineC

    Reply Reply November 7, 2014

    I am new at this. Recently my company offered shares for me 3lot(1000units)@RM1.00. However, I was not keen and a friend offered to buy it from me @ RM1.50 for 2lots (2000units) using me as the so-called representative as the stock is not transferable. My friend submit RM2000K to purchase the 2 lots. Recently sold off 1lot (1000units) to KLSE at RM1.83 and after deductions, profits are at RM1787. My question is, if I sold of to my friend how much should I be getting? Is it RM1500 or just RM500. I am confused. Please help.

    • KCLau

      Reply Reply December 3, 2014

      I think it is RM500 – since he paid the capital RM1000 for that 1000 units. He gets back his capital and the profit after paying RM500 to you.

  • Spacebomb

    Reply Reply November 25, 2014

    Hello. after college I was working few years as english tuition teacher and assistant at a company. But at the moment im not well and have stopped working completely, still waiting for recovery been few years now before can go back to work. I have few thousand ringgit that i would like to invest say less than RM10000. Would stock market be wise to invest? would they(banks and brokers) accept me since i am now unemployed and have no income flow? thank you

    • KCLau

      Reply Reply December 3, 2014

      You can invest in stocks, even as low as a few thousands ringgits. No income is not an issue since you can invest with your cash in hand. Income is needed when you are taking up loan.

      • Spacebomb

        Reply Reply December 9, 2014

        Thank you KCLau for the reply and info really helpful appreciate it. I forgot to ask nowadays do you still have to go through a remisier for stock selling and buying? I heard about online trading, can you buy and sell bursa stocks online on your own without a remisier/phone calls? thanks

  • CK

    Reply Reply December 17, 2014

    Hi sir, I am going to become a fresh graduate in next year February and I was thinking to work for investment bank or any related company. Since I’m not a financial student and I’m just a degree in business management, so do you think it is a good choice for me to choose this field? or any Pros or Cons that you can advise? Honestly I’m quite interested in investment such as stock or Forex (because of the positive income), but I have less knowledge about it, do you think the company willing to accept me? Sorry for my question that are not related to trading, I’m confuse and just need a light to guide me.

  • GH

    Reply Reply February 6, 2015

    Hi, may I know why from the maybank website they stated 21years old is the minimum age to open a trading account?

    • KCLau

      Reply Reply February 6, 2015

      Hi GH, I am not sure about that. You got to ask Maybank.

  • robert hill

    Reply Reply February 13, 2015

    hello…how much minimum money i need in CDS accaunt to get started with stock market?(after open CDS acc.)

    • KCLau

      Reply Reply February 17, 2015

      if your trading account doesn’t include margin facility, you will need to deposit money first in order to trade. I don’t think there is a minimum. A few thousands ringgit will be good as a start.

  • Ghusoon

    Reply Reply February 13, 2015

    Hi Sir, I am international student, can I open a CDS for trading ?

    • KCLau

      Reply Reply February 17, 2015

      You got to approach the security firm (brokers) to confirm.

  • Amatur

    Reply Reply February 17, 2015


    On your opinion, which one is the best choice for beginner ?
    Stocks or Futures?
    I heard about investment in Gold which is based in US, and it’s an online trading with min US6K, is it more risky than stocks?

    In addition, i’m interested with forex but not really knows about it. Could you please explain?

    Thank you.

  • Nash

    Reply Reply March 24, 2015

    Hi KCLau

    Can an expat working in Malaysia invest on Bursa Malaysia?

    • KCLau

      Reply Reply April 1, 2015

      I think yes. Try approaching the security firm

  • Mad

    Reply Reply May 29, 2015

    Hi mr. KCLau,

    What about cash collateral, trading limit? Lets say we deposit RM1000, however the Bank said that we have trading limit up to RM3000. Then, if we buy shares, does the dividend is depend on how much shares we bought or only the RM1000.

    • KCLau

      Reply Reply May 29, 2015

      For the trading limit, you should call up your bank/security firm to ask for the details. Each firm might be different.
      For the dividend, it is paid out based on the number of shares unit you own, not on the price you pay.

  • farhan

    Reply Reply July 1, 2015

    can i ask, what is mechanism of trading in bursa malaysia ?

  • maliga

    Reply Reply July 7, 2015

    hi there sir, im just 18 year’s old and already opened an cds account.With a budget of rm 200 ringgit can i invest in any company and what company would u suggest to buy shares. thank you sir

    • KCLau

      Reply Reply August 3, 2015

      Hi Maliga, due to the minimum commission and clearing fees, trading RM200 will not be cost-effective. You can consider to buy share with capital of a few thousand ringgits.

  • Anand

    Reply Reply August 25, 2015

    Hi KC Lau,

    Im keen to invest RM 5,000 in share market.Can advice me whats the best share or type of share to buy at this moment? Can you name the few profitable shares to consider at this time around?


    • KCLau

      Reply Reply September 26, 2015

      Hi Anand, it is best to learn about how to invest first.
      I suggest you use this money to buy books to read or attend courses. Then you will know how to invest wisely.

      • WilliamWoo

        Reply Reply October 13, 2015

        HI KC, i’m fresh into investment field, you are right we have to gain some knowledge before we got into the field, may i ask which book you would recommend for me to learn how to invest wisely? or which courses is good to follow..

        Thanks πŸ™‚

        • KCLau

          Reply Reply October 13, 2015

          Hi William, recently there is a book by Michael K.C. Law. The title is “Simple Strategies to Profitable Investments in Stocks”. It is very well written.

  • YS

    Reply Reply October 6, 2015

    Can I trade without a broker? All by myself?

    • KCLau

      Reply Reply October 7, 2015

      Can use online trading – very popular nowadays.
      But still need a broker anyhow. But the commission is lower.

  • Fadi

    Reply Reply October 13, 2015

    Hi, how can I know if the listed companies in the market are working with Islamic law or not, I mean, is there a separate market or list for the company deal with Islamis Law -Sharia-?

  • Ivory

    Reply Reply January 19, 2016

    HI, how should i actually study the company? through its Annual report, the Press, the announcements, the dividend being declared? How do you normally study a company whether it is safe to invest? My first comment here, hopefully you will see it and reply me! thanks!

    • KCLau

      Reply Reply January 20, 2016

      You can learn about fundamental analysis and value investing. There are countless books written about the topic.
      The basic is to look at the annual report to make sense of the numbers presented.
      First, we want to know the company is making profit without fail, and better if making more profit each year and quarter compared to history.
      Of course, there are other things to look at too, such as the debt level, cash flow, directors’ holding etc.
      Second, we want to pay a lower price to get a good company. That don’t happen all the time, but it does happen from time to time.

  • chen

    Reply Reply March 12, 2016

    Hi there, I am new to share trading so I have a few questions that I hope you could help.
    1) Let’s say I open an online trading account and saving account with Maybank, I have money in the saving account, let’s say I found a good stock, then I can transfer the money to my trust account and buy/sell shares all by myself online, so it means no remiser will be involved in the process right?

    2) Because I spend most of the times in Singapore, so can I just go online and trade with Bursa Malaysia using my Maybank online trading account (notice that I will be using Singapore IP address)?

    3) Is online trading account safe/have no delay? Would you recommend it compare to working with remiser/broker?

    4) Would you recommend Maybank trading account? Or have you heard of any unpleasant events around you involving trading with Maybank online account?

    Sorry for the long questions, thanks in advance for your help!!

    • KCLau

      Reply Reply March 13, 2016

      Hi Chen,
      1. I believe a remiser/representative is present anyhow. But you can definitely trade online without involving them.
      2. Yes. I believe you can do that.
      3. It is safe. I would prefer online trading.
      4. I use Public Bank due to their fast customer service. I tried walking in to Maybank to get an online trading account but the branch is so crowded that I realized it will be very hard to get things done in the future.

  • Nina

    Reply Reply March 23, 2016

    From the comments above, I have noticed that there are lots of very young investors. Is it too late to start with investing/share trading in 30s? πŸ™ Any important advice or must-know for newbie? Thanks for this very helpful post! *although I only read it like 3 years later…

    • KCLau

      Reply Reply March 24, 2016

      It is never too late to learn. Savvy retirees also invest in share.

  • Kishwan

    Reply Reply April 5, 2016

    Hi Mr.kclau… I’m an aircraft engineer… as some others over here I’m also fresh to stock market… can you give me the full form of and explain what they mean by B/C, B/P, S/P, S/C, L/D and VOL on the screen….? Thank you Mr.kclau

    • KCLau

      Reply Reply April 5, 2016

      Hi Kishwan, I believe the short code you mentioned is in shown in the trading platform. I am not sure what they are. You can ask your stock brokers on how to check what those codes stand for.

      My guess is: VOL = Volume (the number of unit shares traded)

      These are not financial ratios, but the trading data.

      • Kishwan

        Reply Reply April 5, 2016

        Alright Mr.kclau … Thank you very much

  • Azureen Zulkifli

    Reply Reply May 18, 2016

    Hi Mr KCLau. Thank you for providing such an informative article.

    I’m from a Malacca Securities Sdn Bhd and may I assure you that our brokerage rate is as low as 0.05%.
    Good for new traders as you would want to reduce your transaction cost as much as you can.

    Now we even absorb the CDS account opening fee.

    Feel free to ask for further enquiries.

  • sam

    Reply Reply May 30, 2016

    Hi Mr Kclau,

    I’m fresh grad,interested in joining bursa malaysia junior talent program.

    Do u have any insights about this programme?

    Any tips for my interview?

    What are the hiring managers at bursa looking for?

    Thanks in advance for ur help.

    • KCLau

      Reply Reply May 30, 2016

      Hi Sam, I am sorry that I don’t know what they are looking for. Good luck in your interview.

  • CCH

    Reply Reply June 5, 2016

    Hi KCLau,

    Can a company invest in stock and any precaution?

    Thanks in advance for your kind advice.

    • KCLau

      Reply Reply June 6, 2016

      Yes. Company can invest in stocks too.
      The precaution – probably from tax efficiency point of view. When your company is getting most of your income from investment, it will be categorized as investment holding company. Then the smaller operating part of your business will not enjoy the qualified expense.
      About the details, I can’t be sure and always rely on my accountant’s advice.
      You should talk to your accountant too for more info.

  • POPO

    Reply Reply June 14, 2016

    any idea can we use our EPF money to trade stock at Bursa? whats the procedure? all the brockers allowed trade stock using EPF money?
    Based on your experience, will it be better to keep the money to earn EPF dividen or to have partial to be invest in stock?

    • KCLau

      Reply Reply June 20, 2016

      Previously, EPF members can withdraw from Account 1 (subject to the terms) for stock investment. But since a few years ago, EPF found that a lot of members lose money in by trading on their own, so only professionally managed fund is allowed for such withdrawal.

      EPF is providing around 6% dividend without risk. If you withdraw, there are fund management fee about 1.5% and also the upfront commission paid to the marketer around 3%. So better make sure your withdrawn money can generate around 10% a year.

      • mega

        Reply Reply June 21, 2016

        hi im mega,25 years old college student.
        im planning to buy share market but im not sure whether im eligible or not since im not earning big amount. please advise. tq

        • KCLau

          Reply Reply June 22, 2016

          You don’t need to have an income to buy shares, as long as you have the money.

          • MEGA

            June 27, 2016

            hi MR.KCLau ok noted. can u pls advice me howmuch will be minimum price of share market so that i can buy and also what will be the first step?

  • Adrainao Enthal

    Reply Reply July 4, 2016

    Hi. I interested to invest in stock and trading.

    Where I can Open CDS and trading account?

    Did rm5000 enough?

    • KCLau

      Reply Reply July 4, 2016

      Malaysia stock is trade at 100 units lot. So RM5000 is definitely enough to get you started.

      • Adrainao Enthal

        Reply Reply July 5, 2016

        How about CDS? CIMB or PUBLIC BANK available to open this CDS account?

        How about trading account?

        I’m really newbie about this but I’m willing to try and if possible could Mr @ KCLau teach me how to trade safely and if possible low risk.

        Really appreciate your help.

  • Ms Sze

    Reply Reply July 8, 2016

    Hello, I am interest to do cross trade DVP /FOP transaction Malaysia Stock, do you know Malaysia stock any price restriction for DVP? e.g. +/- 15% price restriction

    Where can I find out this information? Thank you!

  • Rickin

    Reply Reply July 28, 2016

    Hello Sir, I need to know further on NCBO transactions.
    a) Is it against the rule?
    b) As i heard each client, cannot have more than 1 CDS account cause they might buy and sell to own self. Is that such thing?
    c) Besides that, in what circumstances the client can have more than 1 CDS account?
    d) Is the client can decide to whom they sell the shares via online trading?

    Please advise. Thank you.

  • Shuwn Yuan

    Reply Reply August 8, 2016

    I came across different orders type that can be placed with certain brokers for US stocks, they are: market order, limit order, stop order. But when we buy stock with RHB (previous OSK), there is only 1 type of order, which we specify intended buy price (usually lower or equal current price). So is this categorised as “Limit Buy order”? Thanks!

    • KCLau

      Reply Reply August 8, 2016

      US trading platform is more sophisticated. I think the order type used in RHB is similar to “Limit Buy Order” – meaning he pays the specified price or less for the purchase of the security. While the price is guaranteed, the filling of the order is not; if the specified price is never met, the order is not filled and the investor may miss out on the trading opportunity.

  • ET

    Reply Reply August 23, 2016

    No. Bursa Malaysia listed all shariah compliant and non-shariah company in same market. But if you have an Islamic Trading Account (you can apply to open with broker firm or bank that provide islamic investment service) your trading platform will automatically list only shariah compliant company and you also cannot trade by non-shariah methods.

    • KCLau

      Reply Reply August 23, 2016

      Hi ET, thanks a lot for providing this useful guidance on Islamic Trading account.

  • Sophia

    Reply Reply August 25, 2016

    Hi KC, May i know what does it means by ‘maturity date’ as stated in the Contract Agreement? Thanks in advance.

  • Max

    Reply Reply September 1, 2016


    I understand REITs are quite stable. I am looking into IGBREIT or PAVREIT but unable to decide and the price now is quite high. IGBReit has always been good in returns.

    How do you decide which and is Friday always the best time to buy when it drops?.


    • KCLau

      Reply Reply September 1, 2016

      We don’t know when the price will drop. We can only make decision based on the price we right now. Does it provide good yield? Does it have good margin of safety?

      • Nixon Ooi

        Reply Reply September 5, 2016

        REIT i bought nearly expiry this few day but i want holding this stock what i need to do in the proceeding?

  • Lyana

    Reply Reply September 20, 2016

    If I’m a Malaysian studying overseas and want to invest in the Bursa Malaysia, can I pay using the currency here?

    • KCLau

      Reply Reply September 20, 2016

      technically, you can open a Malaysia trading account, and fund it with Ringgit.

  • LYS

    Reply Reply September 20, 2016

    Can i still invest in Bursa Malaysia if i not having any income statement? Or i can do i directly using CDS account?

    • KCLau

      Reply Reply September 21, 2016

      You don’t need to prove your income as long as you have the cash to buy the stocks. CDS account is required to hold your stocks.

  • james

    Reply Reply October 4, 2016

    in paragraph above, you say that you had start investing during your university day but opening cds account needed income statement for the cds acccount given to us. my question is how you can open your cds account while you are a student in uni

    • KCLau

      Reply Reply October 11, 2016

      I don’t think you need income proof to open a CDS account. But you will need income proof if you want to trade on margin. When you trade on margin, you are buying stocks not with your money, but your brokers’ money. If you don’t fund your account within the time frame, they will need to force sell your stocks. If the force-sold stocks value is not enough to recover the funds in margin, it means brokers is losing their money on your trade.

      Without income, you can still put in money to your trading account. You fund your account before you trade.

  • yozepo

    Reply Reply November 22, 2016

    Hi KCLau,

    So far I heard the best way to get into stock trading is by participate in stock trading game. It is a simulator like where we can invest using real-time stock price and all that without using real money.

    I only knew that Maybank offer this service but the portfolio can only be kept up to 2 months only.

    So my question is, can you suggest me any other bank/website that can offer this service that is base on the Bursa Malaysia.

    Thank you.

    • KCLau

      Reply Reply November 22, 2016

      I don’t know any. However, it is quite different when you are trading with fake money versus real money. Real money requires mental strength.

      • yozepo

        Reply Reply November 23, 2016

        that’s true. thank you for your response.


    Reply Reply November 23, 2016


  • mohd fathi

    Reply Reply December 19, 2016

    Hi Sir,

    Just to get some suggestion on my problem regarding stock investment. I’ve buy a share from one company with higher amount (RM3.++ per share)and after a few time the share price was slip down almost half of the amount above (I think it is because of share was split to a small share such us CP,CQ,CR and so on).

    Until now I just receive a dividen from the company but it is quiet long time ago ( almost one year). I really appreciate if you can give me your opinion regarding this matter either I should sell the share and bare the loss around 60% of loss or should I maintain the share and just receive any dividend until the price going up again.

    Mohd Fathi

    • KCLau

      Reply Reply December 20, 2016

      I think it is important to know why you bought the share in the first place. If the share split, you end up with more shares at a lower price. That means your total holdings will still be about the same in RM value. You can find out what happened to the share by calling up your brokers or visit Bursa Malaysia website, or the company’s website for the announcement and corporate exercise.

  • MT

    Reply Reply December 20, 2016

    Hi KC, I would like to know what constitutes insider trading in Malaysia?
    Let’s say if you work in a listed company (AAA) and is a shareholder of AAA, and you failed to close a high-profile deal which you anticipate AAA’s price will drop drastically (or otherwise), hence you decided to sell your shares. Is this case consider insider trading?

    Or you know it is going to be bad but in order to not break the law you have to watch your money burn in the market?

    • KCLau

      Reply Reply December 20, 2016

      I am not sure about this since I am not qualify to give any legal advice.

  • Syabil

    Reply Reply December 21, 2016

    Hello, do you know any app or websites where i can practice trading malaysian stocks simulations?


    Reply Reply January 17, 2017

    I’m 18 years old…Still studying…how to provide income statement ?

  • mandy

    Reply Reply February 2, 2017

    How can i know which share is giving dividend. I want to just buying the share which can give dividend every year.

  • danial

    Reply Reply February 9, 2017

    Hi, I’m confused about the T+3 transaction rule. Say I’m trading with my own money (not with a margin account) and I buy ABC stocks for RM1000 and sell it a few minutes later on the same day with 15% profit. Do I get to use that initial RM1000 and the profit straight away after I close my position for another trade or will it only be available to me on T+3 day?

    • KCLau

      Reply Reply February 10, 2017

      Better check with your brokers to confirm.

  • danial

    Reply Reply February 9, 2017

    one more thing, can u suggest a website for free intraday chart for malaysian stocks. It doesn’t even have to be in real time. thank you.

  • Yap

    Reply Reply February 16, 2017

    Hi KC,
    When open CDS account, broker requires next to kin details. What’s the reasons? They also need latest 3 month bank statement. If my bank account don’t have much money, is it ok?

    • KCLau

      Reply Reply February 20, 2017

      @Yap, I don’t know the reason why they ask for “next of kin”, probably just to contact when they couldn’t get in touch with the account owner. You can ask the broker for the reasons why they ask for those documents.

  • Sean Goh

    Reply Reply February 22, 2017

    Good Day,

    Dear Kc Lau,

    I do have a question which is when a company that
    I bought my stocks declared dividend, how should I
    claim it? Do I need to do anything, or it will be automatically be credited to my account based on how many units I have?
    Kinda uncertain with that as I’m still a newbie

    Thanks in advance

    • KCLau

      Reply Reply February 26, 2017

      @Sean, the dividend payment is paid automatically. If yours is a nominee account (e.g. with Maybank, Public Bank, CIMB etc), the dividend will be credited to your account automatically. If your trading account is with securities firm, you would receive the dividend payment by cheque mailed to your address.

  • Yin

    Reply Reply March 3, 2017

    May in know why there is a Capital [S] behind some of the company name?
    for example: STERLING PROGRESS BERHAD [S] (0140)

    but some company don’t have
    for example: SUNZEN BIOTECH BERHAD (0148)


    • KCLau

      Reply Reply March 4, 2017

      The [S] indicates that the company is syariah-compliant

    • Kumar J

      Reply Reply March 11, 2017

      Hi,i am a newbie here.My question is,let’s say i purchased 5lots of shares valued at Rm1 each unit.If the price dropped,how long can i hold it?Can i wait till the price rise again before selling.How abt the T+3 settlement rule.Can i sell whenever i want?A bit confused?

      • KCLau

        Reply Reply March 18, 2017

        Hi Kumar, the T+3 settlement rule means you need to pay the amount needed to acquire the share. In your example, say 1 lot = 100 units. 5 lots will be 100 x RM1 = RM500. You need to pay the broker RM500 + commission and fee. If you pay the RM500+ within T+3, you are officially the owner of the share. And you can keep it as long as you want.

  • shaz

    Reply Reply March 7, 2017

    Hi, I’ve somehow ended up with less than 100 shares for a certain stock. Thru reinvestment of dividends, etc

    For instance I have 3168 shares of Maybank. Thru online, I can sell 3100 shares. How do I get rid of the 68 shares?

    • KCLau

      Reply Reply March 8, 2017

      The 68 shares is call odd lot. You can contact your remisier (or the broker’s representative) to sell it for you. But the charges will be higher than the normal trading online.

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