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 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
{ 107 comments… read them below or add one }
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
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
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
To invest in share, I guess the minimum is very low since nowadays, you can buy unit in lot of 100, not 1000.
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
Hi Aisha,
I think there is a stock broker near your place. I don’t have the list with me.
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.
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?
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.
Hi KCLau,
Thanks for the reply. Will do that when i go back to Malaysia
Welcome!
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?
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.
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
@ Dimyati,
I am not sure about your situation. It is better to ask your remisier.
hey lau, is it possible to trade online? i meant like a day trader, and what is your perspective towards day trading?
@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.
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,
This are great info you have provided! Thanks.
hi KClau,
currently i am a diploma student, if wan to invest wit limited budget . so may u give me some advise.
Hi Eric,
Start small is good. I suggest you do more reading and research before you invest in any stock.
A good start is study the prospectus and annual report of some good performing unit trust funds.
From the portfolio, you can narrow your research on specific stocks.
Read some books!
thx for opinion !
can suggest some books for me?
I’m a absolute beginner I would like to ask if I wanted to buy foreign shares like Johnson and Johnson in US, is it possible can I do that?
Thank you
very good education. thank you
Don't you think it will so cool to buy stock online by yourself?
How many and what banks in malaysia are having the CDS account service? how much for the deposit? We can buy in a lot of 100? cos i heard was a lot of 1000… how to buy the singapore share? Thanks for your advise in advance!
@ Alice,
I don’t track the exact list. To my knowledge, CIMB, Maybank and Alliance provide online stock trading platform.
You can buy at Bursa Malaysia in lot of 100. It was reduced from the previous lot of 1000.
Singapore share? I’ve yet to invest in that country. But I do have friends who invest there. See if I can get his insights.
Thanks for visiting and commenting!
Can i apply CDS account through online and which website can let me apply?
I don’t know any security firm or bank in Malaysia that provide online registration. Normally we need to go to their branches.
Hi,
After I open CDS account, can I buy any stock from Bursa? Should I open trading account? What is the different between CDS account & trading account?
Hi Nik,
I am not personally involved in the technical processing of stock trading. What I understand in layman term is:
CDS account – for you to keep the record of the share you bought and own
Trading account – for you to make the transaction, handled by a middle man (broker).
Correct me if I am wrong. Anyone?
Hi KCLau,
I opened a CDS account back in year 2000 but have never traded in it.
However, I received a statement dated 31/Dec/2008 from the Trading Firm that I have traded in year 2002 and that I have just over rm1,600 credit in my account.
I e-mailed stock broker and he confirmed that I have the credit money in my account and asked whether I want to withdraw the money.
What should I do?
I hope you can advise me.
Thanks.
William
@William,
It is your money. You can withdraw it of course.
Hi KC,
Yes, I know I can cash withdraw if I so chooses.
But didn’t the remiser/stock broker committed some offence by trading in my account without my consent?
Thanks.
William
@William,
That shouldn’t happen. So what is the explanation the broker gave you?
Hi KC,
I have not asked the stock broker yet, but I know I have never traded in my account since opening it.
I think the stock broker is using domant accounts with rm40k credit to capitalize on and for quick profits on certain stocks.
I feel like confronting my stock broker, but I do not want the hassle of being a witness to and having to testify to the crime.
Cheers!
hi KC,
I am really interested in investing in stock market but i am really a noobs and have no idea how to go about it. your brief article above is very good for basic and i believe it is not enough, so my questions are:-
1)any useful latest info that i should read?
2)what should i have to know after opening the necessary accounts before and where to find the info?
3)any trader club or forum that i should join?
sorry for the questions but hey,thanx alot if you can guide…thanx again bro..
@mdfuad,
I think you should start by reading some books. The best to start with is the stock investing books by a local author, Ho Kok Mun.
Hi KC,
Good Day!
I’ve started investing in local equities for quite sometimes. Nowadays the price for foreign equities from US is quite worthy as the price is already hammered down more than half the original value.
How should i start investing in foreign equities like GE?? What are the risk and cost involve??
Can i buy through my own remisier??
hi
i would like to trade on stocks
but i want to knw wat will be the fees likely of a remisier and what is the minimum investment needed?
@ Lucky,
The fees of trading is normally below 1%, depends on your trade volume.
Minimum investment needed? You can start as low as 1-2k per trade.
oic.
where can i find a remisier in ipoh?and where is the stock exchange located in ipoh?
Hi KC, I have lotsa questions, can you help me?
1. What is the minimum units of shares allowed to be invested?
2. What is clearing fees?
3. Do we pay brokerage fees, clearing fees and stamp duty each time when we buy or sell or just when we buy?
4. When we buy/sell the shares, do we buy/sell at the price of T or T+3?
5. Can you give me some examples of licensed sharebrokers please?
Sorry for asking so much and thanks ^^
Hi Luke,
1. minimum 100 units ( also 100 units increment – 200, 300, etc)
2. Not sure about the clearing fees
3. you need to pay those fees for every transaction (regardless buy or sell)
4. it is the price during the transaction (T) – say RM0.50 per share on 4.30pm 6 May 2009
5. OSK.. and some other firms normally ending with the words “securities”
Hi KC,
Can we buy unit share ( lets say 10shares ) instead of 1 lots ( = 1000 shares) for BM stocks?
thanks
@ Uppsala,
You can buy at 100 shares per lot. (last time have to be 1000).
Thanks for your reply
Pls also advice can i buy some odd shares ( lets say 10 or 20 shares) to add up a LOT?
This is given in a situation where the dividends is given in terms of some odd shares ( not in a LOT).
If can, where can i buy the odd shares?
Thank you.
@ Uppsala,
I have no experience in trading odd share lot. Please contact your remisier to inquire more details.
Hi KCLau
Step No 1. Open CDS account
Step No 2. Open a trading account with stockbroker
*Are the both steps at the same bank (for example: OSK Investment Bank) ?? or different Bank
*How if we want to buy and sell online??
Just apply with the stockbroker, then how? got any software??is that just by clicking to trading Online???
*How About Open account by using Company Name (my own business) can or not?
currently now i playing Bursa just began one week..(beginner) and I using the bursa station software to look the price movement.
How about You, What software do You Using?is it provide by your stockbroker company?
But not with my own account, My friend help me to buy and sell…So, I need Call by phone everyday.
And now I am interesting in Play Online with my own account..
Thanks a lot for your explanation
@ Tiong,
When you visit a securities firm, they will be able to help you process Step 1 and 2.
For online trading platform, you will be provided a login details to log into your personal trading account hosted on the web.
hello sir,
i m a pakistani.student at Fazili international college(ungrudate).i wanna 2 invest here.is i allow wd my passport 2 do this.and also inform me from RM……… i can open my accounts if possible.
Hi kc
I wish to buy some shares, but dont know anything about share.
1st thing is got to prepare how much capital?
u guys heard before public-bank provide e-trade investment by using internet????
Hi,
I nave 1 question to ask. can i buy and sale share without stockbraker thro internet?
what website can i apply the account?
Thanks lot!
Regards,
Chee hou
I am Trading from 6 months here in pakistan..KSE 100.Now im planning to come to Malaysia for my ACCA.My Question regardin the topic is ,Are we allowed to open an online trading account as we r on student VIsa.
2. Most of the people here tried to ask but the answer was not adequate,i.e,how much money we need to open an account at brokerage?Like how much we have to deposit for the opening for the first time.
3. Do these brokers give services of candle stick charts (realtime),for technical analysis?
Thank you in anticipation.
Can i use the same direct CDS account with different brokerage?
Not sure about this.
Please consult your remisier
Hi K.C.
Bro….what are the blue chips stocks in Malaysia?
Thanks
Most of the blue chips are included in the index.
I need to know the list of brokers in JOHOR BARU
Hi, thanks for the wondefull discussion.
im a foreigner studying in malaysia, are international students (with a valid student pass) allowed to invest in the stock exchange/start a trading account?
i dont have an income statement as well will depend on ma family for the initial capital.
is there a minumum required?
will be glad if you could be kind enough to answer those questions.
Thanks in advance
hi there…
Im sandeep and im 18 years old.
Im a college student and i wants to buy shares in bursa Malaysia…
how could I buy shares,what is the procedure for me and what is the minimum amount i need to buy shares?
tq..
hey there..
this is my second time commenting u and i hope u can reply me….
now i’m 19, and i’ a student..i would like to buy shares in bursa malasyia, but the problem is,i dont know the rules and regulation…what is the procedure that i should follow?
i hope u can reply me..
thz
Sandeep,
Don’t worry. Just go to the securities firm and everything are there.
They will guide you to open the account and assign the remisier to assist you in trading.
Hi KC, I just want to ask that if I open CDS and trading account, and not use let say around one year, is there any penalty such like will be label inactive account or need to pay any fees?
Thanks.
I don’t think there is any fees if the account is inactive.
Better check with your remisier.
Hi,K c Lau
Hw can i become a remisier or a broker??
Thx
Please tell me how to register so that I can trade with shares shown in Singapore Stock Exchange , Hong Kong Share market and U.S.A. share market in Malaysia.
thank u for a very informative site.can a person on a mm2h visa trade shares in malaysia via a malaysian brokerage. can local malaysian brokerages trade shares for me on other stockmarkets, say ftse.Does one pay tax tax on your share profits. do you know the rate? anyway thanx
Hi KC,
How can I short sell?
Regards.
edward;
what do you mean by ’short sell’?
Hi.. Is it possible to trade without going through stock broker in malaysia?
Hi everybody. u can check the authorized Malaysia broker company at http://www.klse.com.my. They also provide the top remisier company of the month. updated each month. good luck.
hi k.c im rajesh.thank you for ur useful information.how to know that some stocks available or not to buy?or we need to wait until other shareholder to sell it?
In share trading, you can only buy when someone is selling.
But normally there will be someone selling when the price is right.
Hi Mr. K.C.
As an individual can i trade in KLCI index futures? If so where can I start trading.? I would like to do so online and at home. Is there an opportunity for me?
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