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:
Downloads
Stock Investment Starting Guide InfographicYou might need to "right-click" and "save link as" to download this PDF file to your computer.
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 (CTOS Data Systems Sdn Bhd) 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:
- 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
Stock 101 Quiz
Stock Investment Course
- Free Training: How to Make Massive Profits in Stocks without Worrying about Market Crash
- Bursa Method - Stock Investment Course for Malaysians
Stock Investment Guide
What's the Return on Equity (ROE) and how to calculate it? (Video Tutorial)
451 replies to "How to Trade Stock at Bursa Malaysia: Investing Basic"
I’m an undergraduate student intending to pursuit into finance.I am really interested about investment and stock markets.However,I do not know who to seek for information purposes.I would like to learn more about buying and selling shares to earn money to support my future education .how much a person should at least have before opening a CDs account ?how much should he have to buy and sell shares ?How much should I save to start participating in investing ?pls respond to me.I would really appreciate your kind help
Dear Vignesh.
This is normally an investor will ask. If you need an experienced remisier, i can recommend you ie koh_126@hotmail.com
Hi KCLau,
Is there any website where I can browse insider trades, ownership, income statement, cash flow, key ratio etc for Malaysia stock? I can access this data easily for US market but not Malaysia. Thanks in advance.
hi kc,
I want to know, can u open a cds acc with different bank and then open a trading acc with different bank?
u can contact me through koh_126@hotmail.com
Hi everyone.I’m eager to jump start my investing.however, im a total newbie to this.its about time to start learning from scratch.can anyone show me the way?where to go?who to look for?any recommendation of good book for people like me?
you can email to
koh_126@hotmail.com
he can advise you how and what to invest…..
hi kc.. i just wan to know weather malaysian share market operates in office time oly or how???
only 9am-5pm weekday. And there is a recess during lunch hour too.
hi kc… nw i’m collecting info about share market n usually reads ur tips. tat’s really good. n my question is stock market in malaysia operating in office hrs or how??
kclau, I am new in equity market, I want to know, can I make short-term trading for more than one million riggit ?
After I open an account, if I dont need remisier, I manage myself by going to Bursa daily, is it possible?
Can I buy shares directly from Bursa without going thru remisier?
Open an online trading account. However, some online trading activities still go through a remisier to approve.
Hi kc…Im interested in investing in share and get some money back…i wantted to know if i can start up with a small amount? because im new to this share market… and…who can i actually meet to know about this investment in detail?? like, any bank officers or any consultants or remisers? Is it better to go for investment bank? I want to know more about this… THANK YOU
Hi KC,
I am ready to invest in stock market, i would like to start investing in idex fund. So if i open a CDS & trading Acc from RHB/Maybank. Do i able to trade those index fund like MyETF Titan25/ ABF/ CIMB FSTE ASEAN40 through their online trading website?
Hi KCLau,
what is requirement to open CDS and trding acc?
i work for small company and i dont have any income statement.
my salary only RM800 a month………. am i eligible to trade stock at bursa malaysia??
yes there is charge..the charge for maybank i think around rm20, no minimun capital requiered..just google map maybank investment..maybe u need maybank account too. no need income statement, when u have cash just buy the share u want,
for cimb need minimun capital rm10k..
each bank different req and different brokerage rate
Hello KCLau,
I am 21 this year and recently got interested in trading; I am still studying and therefore i do not have much money on me. I still would like to give it a shot however, I am sick and tired of waiting till I finish my degree before I actually earn some money, how much capital do I need if i’m starting small?
i also was a student when i start trading. A lesson that i learnt is to start early start small..
coz when u start working u dont have much time to study the market.
when i 1st trade 2010 my stock price fall 20% within months.. but lesson learnt..
dont be greedy…carefully choose ur stocks some people prefer to trade long term, mid term and short term. Carefully build up ur stock portfolio. be disciplin. Remember the higher the reward the higher the risk but u can always filter the risk.
Most important things keep on learning!
i just confuse..primary market and secondary market..who actually can trade or execute an order in primary market?Participating Organisation or dealer representative? and secondary market?
Dear KC,
I want to ask what is mean L.Vol , Volume,and TO/CP for investment stock?
Thanks~
I think first you need to find out what’s the short code stand for.
Volume is the amount of stock traded in that particular trading day.
Dear KC,
I am thinking of open a cds account.
Can u advise me which one is better?
OSK securities or Maybank..
Waiting for your reply.
Thanks.
Anyone that’s convenient for you.
i want work of share market of malaysia. what is salery.
Dear KC,
Im invest/trad in malaysia stock & buy share below Rm0.10/unit. Starting for RM 1k ++ only. 1st time i made profit Rm300.00 for 1month. yesterday i got profit Rm 400 + for 1week +.
Question:
which market can make more profit? Malaysia/us/spore.
How to make profit daily?
Which share can make profit? <%volume/<%change
I hope u can share with me.
Thanks.
U said u started as student
but how u apply without income statement?
hi kc,
is that possible to make 0.03sen profit on each share unit.
hi Sir,
I would like to invest in Malaysian stock, pl help how i can invest as a non Malaysian citizen.
thanks in advance for helping me in this regard.
regards
obaied
Hi Obaied,
Non-Malaysians are allowed to open CDS & trading account. Go to a stockbroker/investment bank and bring along your passport and RM10 being account opening fee. The bank will conduct a check to ensure you are not a bankruptcy or defaulter.
Certain stockbroker/investment bank may impose their own bank policy or credit rating for foreigner. You may need to inquire the bank further on this.
Hi KC,,I’m 21 years old.I’m still studies in Business course, I’m very interested in this INVESTMENT..Is it OK to open the CDS without my income statement…????
I don’t think you will need income statement to open CDS account
Hi KC, i would like to ask about the online trading and exactly how does it work??
Hi FR,
Bursa Malaysia has made it a requirement that you sign up for e-Dividend as well during account opening. Purpose if for your traded counter dividend to be credit directly into your bank account.
if you do not have an income statement, Bursa Malaysia will also accept bank-in receipts. photocopied of your check book. Easiest way is to bank in RM10 into your personal bank account and submit the bank in slip to the bank as a supporting for registration for e-Dividend.
Note that Bursa Malaysia only accept saving / personal account.
hi. i am just begin to invest in the stock market. however, i am still not really familiar with the bursa rules and regulation.
here are my doubt:
1. let say the share A is RM2.50. i wish to buy only rm1.00. is it possible? is there any different of the remiesier + processing charges compared to the normal trading where buy one unit.
2. if i buy the share all the time with the unit less than one, any obstacle when the time i want to sell it?
i am appreciated for ur advises.
thanks
Hi KP,
Question 1…it is only possible for you to enter at RM1 for share A if the trading price has fallen, otherwise…nope.
Question 2…buying less that 1 unit is what they call it ‘odd lot’ (which is equivallent to 1000 shares). You may refer to Bursa Rules Securities under Chapter 7 for odd lot trading.
Hi, I am wondering whether I can hav a cds account even I am 19 years old but jobless ?
thanks,
Jun
Hi Jun,
You must be 18 years and above to qualify to open an account. Being jobless does not disqualify you from opening an account, however may affect your credit rating. More often than not, you will be advise to trade base on collateral basis i.e. limit will be given based on the amount of money or shares you have in your account.
Hi Mr. Lau,
I would like to buy OTC stock of US. Do you know which brokerage firms provide this service?
thanks,
stone
Maybank can buy OTC stock of US but the order must go through phone call during office hours. It is quite risky to buy OTC stocks unless you’re pretty sure that it will be raise up very fast in short time.
[…] How to Trade Stock at Bursa Malaysia: Investing Basic I started trading at KLSE (Kuala Lumpur Stock Exchange) back in my university years.. Payment: When you buy share of company S, your CDS account will be How to Trade Stock at Bursa Malaysia: Investing Basic […]
I just want to know at least how much I can start .I mean moneys is RM how much at least.
Hi Yuzaki,
it all depending on the stock/counter purchased.
normal charges are:
1. brokerage fee at 0.7% (minimum is RM40 per contract)
2. clearing fee at 0.03%
3. stamp duty at RM1 for every thousand.
Honestly you dont even need a cent when you trade. This is because you are given 3 days grace period to pay for your purchase. If the market has gone up and can make a profit from selling, you may proceed to sell. Thus making profit at no cost.
However, if the market is going against your position you have 2 options.
1. Sell off the share which will result in a contra losses; or
2. Make payment for the shares you bought initially, and hold on to it until a better time to sell.
e.g purchase 10,000 Genting shares @ RM2
Brokerage = (10,000xRM2) x 0.7% = RM140
clearing fee = RM6
SD = RM20
total contract amount = RM20,000 + RM140 + RM6 + RM20 = RM20,166
hi KC,
I got a few questions
1. Let says I buy 1000 shares at RM1=RM1000 (cost). Then when market closed, share price go down at 20cent. Am I realized the 20cent loss if i’m not selling the shares yet? only the market was closed.
2. Currently my investment related directly to stock price, my return around 5% per month and I make average 60% return p.a on my investment, if I trade in KLSE, am I subject to pay tax on my profit???
Hi Joey,
1. The loss is not realized yet. Which means it is just a paper loss.
2. No tax on capital gain.
hi, can u tell me what is a trading pin number? thnx
Hi KC,
Im a 16-year-old student. I wonder if i can sign up for a personal CDS account. Or can i somehow sign up under my parent’s name?
The minimum age is 18. So I dont think you cna have a CDS account under your name.
hi kc.. what are your thoughts on online trading? do i have to open a cds account as well.. is it safe to do online trading with companies such as TRADER XP etc.. is it more fun trading thru this sites or doing it the old fashion way? how reliable are this sites.. (trader XP)
Hi Valerian,
Online trading is of cos more convenient. You are also entitled to a discounted brokerage (negotiable). maximum 30%. The reliability of the online trading solely depends on the platform provided by the stockbroker/investment bank
Hello,
I live in UAE and would also like to invest in the Malaysian Stock Exchange. Do you have any idea about how to start? Is it possible to open an account from UAE?
Greetings from the USA, I too would like to start some investing in the Malaysia Stock Exchange. There is a specific stock I’m looking at thats an Equity Stock. I’m looking at investing $5,000USA. Does anyone know the procedures for a foregin investor? Most likely I will invest in the one company stock and hold it for sometime. I will be in Malaysia in OCT, could I open an account in person at a local bank? Thanks for the info, Cheers.
Hi Ray,
You may open an account with any broker in Malaysia to start trading. Just bring along your passport and Ringgit Malaysia 10 being account opening fee.
Foreigners are exempted from registering of e-Dividend.
I am an Indian citizen. If i want to start trading in Malaysian Stock Exchange what are the formalities??? Kindly revert…
Hi Vikas,
You may open an account with any broker in Malaysia to start trading. Just bring along your passport and Ringgit Malaysia 10 being account opening fee.
Foreigners are exempted from registering of e-Dividend.
Hi, please give some review regarding this web site http://www.plus500.com. Because it allow trader start to trading only with RM100.
Is reality the company can make u started to trade with RM 100 cause they company using the leveraj system , lets say the leveraj they use is 1:50 example lets say one unit share is RM1 of course one lot will cozt RM 1000 right? But this is before leveraj , after the make the leveraj u maybe RM 20 ribut the lot of the share .. This is why they can let u started resdung with RM 100 but make sure u fully understand all the terma and condition before u started to trading . Hope u can success in your investment. .. Hope u can understand my explanation..
Hi KC ..I am very interested in investment because In need to capitalise and increase my money. Anyone here can teach me how to get started in investment. Please drop me your email. Glad to hear good respond from you guys.
yes. i giving lesson to those who are willing to learn. is free
wh, is it still applicable for now?
thanks. n contact me miroyin0406@yahoo.com
yes, i want to learn also
where to start the course at?
i cant understand a risk on investing in trade market, would you like to clarify it to me? i need to own a business of small and low cost investment, what would you advise me to do. i need to notify to you that i have no knowledge on business but i need to start something to make money.
Hi wh, i’m interested in stock exchange n want to learn more bout it. How to attend your free lesson? reply me at samy_palan@yahoo.com
Thanks.
wh, stil applicable for now, pls kindly mail me, vyner12@hotmail.com, thx a lots
wh, i m interested of ur short course too. my email address is peihshia@hotmail.com
Hi wh,I’m interested in your free lesson to start investing.pls email me at alisa.sofia012@gmail.com
TQ~
currently i know there is one session in December 2012.
kindly email your enquiry to
koh_126@hotmail.com
you can drop a line to
koh_126@hotmail.com
he can share with you his experience
I am searching for a short course of how to invest in stock..any suggestion?
yes.. i am giving shorts course for free to those who are really keen. just email me for appointment. thank you.
Hi wh, i am interested to learn about Investment. Can i have your email address for an appointment with you? Thanks.
Hi wh, i’m interested to learn about investing in stock market. this is my email justinnpe@yahoo.com.my
hi, wh , i m interested on ur short course, can u
email me,vyner12@hotmail.com, for futher contact,thx
can u please reply to my mail cause i m really interested in learning
ragu_98@hotmail.com
wh im intrested to im totally new n hv no idea about stock investment.. email drdot86@yahoo.com
hi, i m also interested in learning please email me for further information thanks. my email address is kheli.kelly@gmail.com
currently i know there is one in December 2012.
kindly email your enquiry to
koh_126@hotmail.com
My company offer a 15% to 20% return each year. Although it is not stock market involve just to share with you guys. Investing is all about potentials and risks. For me stock market is too risky. Until I found my company. Mail me if interested. I shall tell u the rest.
hi, can u explain to me about ur company, for me 15% to 20% is good enough. Tq
Ziwen, Can you put in your email, or return a email to me, jackreacher@mail.com
Hi Ziwen, Can you provide some details on the 15%/20% that you are talking about? my email: srvanan.a@gmail.com
Hi ziwen
Please tell me abt the investment plan u hv. U may drop me an email at jaclyn.thorn@gmail.com
anybody interested in 24% then?
best part is, you don’t have to put it in for a year
it’s 2% per month…..
Are you talking about gold investment?
he’s talking about scamming you by promising high returns. RULE: If anyone tells you about an investment promising more than market rates (i.e. more than FD ~ 3%/annum) and doesn’t tell you what they are investing in, its a scam. You WILL lose your money. You can see from the comments here that there are many ready victims just waiting to throw their cash down the drain.
Hi, Ziwen.
Please tell me abt the investment plan u hv. U may drop me an email at chucky_ckz@hotmail.com
thanks
Hi,I would to know more about your company Ziwen.Would you please e-mail the details of your company to my e-mail?ultimatesuwar@gmail.com
I would like to know the following?
Can an expart invest in your company?
How much is the lowest amount expected to be invested?
when is the 15%/20% that you are talking about will be payable to the invester?
hi KC…
i was wondering :
can i start invest in local stock market with RM500 only OR less?? * (sorry for the “not so smart question”.)
anyway, i like this blog and keep up the good work..
*i just wanted to minimize risk by investing a small amount of capital.
investing RM500 will not be cost effective because the transaction fees is about RM20.
hi…
I have created a CDS account with Maybank as well as a trading account. However, when I logged into the Maybank2u.com, then I realised Maybank provides 2 types of trading accounts – named maybank investment account and stock trading account. Do you have any idea what are these about.
Second, would you mind to enlighten me what margin trading and non-margin trading are about.
Thanks
Hi John,
I don’t use Maybank to trade share. So no comment on that.
Margin trading is using borrowed money to buy securities, with the expectation of increasing profits. Margin trading can bring big returns, but is also risky
hi kc,
Im currently in singapore.i want to know how to trade in singapore stock market.im a malaysian.
hi KC i’m interested in dng this share things… i’m still a student age 20 frm penang.. where cn i get more info bout this in png??? any specfic bank or sumthing… keshivnder111@hotmail.com.. thnks…
hi kc…im pretty interested in investing and gettin some money back…i just want to know if i can start up with a small amount? because im still a student… and…who can i actually meet to know about this investment in detail?? like, any bank officers or any consultants? because i want to know more about this… TQ
you can visit any broker firm (securities firm) and they will be able to brief you step by step.
HI Sri I’m a dealer from OSK, If you need any assistance can drop me at an email at natasha.gvision@gmail.com tq
hi sri.
you can email koh_126@hotmail.com who is in the line since 15 years ago and i believe he can guide you accordingly.
cheers
Hi KC,
I wanted to ask a few questions:
(1) What is the minimum budget to be able to trade in stock market?
(2) Any recommendation on good and reliable stockbroking company?
Thank you.
Kenny,
1. a few thousands ringgit can get you start investing
2. they are very tightly regulated by Securities Commission. So just choose the one that’s most convenient to you.
hi kenny
i know there is one remisier who is in the line for the past 15 years and he is mobile ie he gives seminarm, meeting clients to talk about market outlook etc.
his email is koh_126@hotmail.com
hi KCLau.. i’m ivan from malacca.. i’m currently 18++ and i’m very interested in investment as i had started reading books on investment since 16.. the problem is.. i duno where and how to start.. i need a CDS account.. i’m already qualified as in age.. but u said i need an income statement..? i’m stil a student studying in secondary school.. am i eligible?
Ivan, it is better that you meet someone at the securities firm to get more info. I am not sure if income statement is mandatory.
Hi Ivan,
if you do not have an income statement, Bursa Malaysia will also accept bank-in receipts. photocopied of your check book. Easiest way is to bank in RM10 into your personal bank account and submit the bank in slip to the bank as a supporting for registration for e-Dividend.
Note that Bursa Malaysia only accept saving / personal account.
i know somebody from Melaka who is a helpful remisier and maybe you can drop him a line
koh_126@hotmail.com
hi KC, im a university student and interested in learning the market. what would you say a good amount of money to start with as a beginner to make a decently diversified portfolio (say strictly on equity stocks at this point)? would, say, RM50,000 be too little?
i might be getting ahead of myself (but i do have RM50, 000 in cash) but just out of curiosity, do experienced, confident traders ever borrow money to trade thinking that they can beat the interest rate? or is stock trading strictly a cash business?
thanks.
It is very risky to invest with borrowed money. As the greatest and wealthiest stock investor, Warren Buffett makes about 25% p.a. return on average.
If you can make that kind of return persistently, then it is worth borrowing money to invest.
You can borrow money to invest if you know what you are doing. Warren Buffett also borrow money, first just after the oil crisis back in the early 1970’s and now. He issued bonds and used the money to invest.
You can open margin account at some reputable bank. But do invest wisely and no wild speculation please!
For beginners go for the high dividend paying stocks with a good track record.
Hi,
I am from Pakistan and now a days i am doing my PhD. I want to Invest can you tell me how i invest and can you guide me in detail about stock exchange business.
Regards,
Muhammad Babar Hussain
Hi Melati,
RM 50,000 is is quite decent amount to start with. I’m a dealer from OSK, If you need any assistance can drop me at an email at natasha.gvision@gmail.com
hi k.c,how much is the minimum price i can make profit in each share.let say i buy 0.75sen per share,and i sold it for 0.78sen is that possible.thank you.
it depends on how many share you trade (the volume).
There are minimum cost involved in each trade.
Hi,I am WSK. 21 years old.
I am very interested in investment because In need to capitalise and increase my money value. Thus, after I did a few research. I decided to invest in stock market.I had just applied to open a Central Depository System (CDS) account today by approaching to an authorized depository agent ( an investment Bank in KL)
I submitted provide photocopies of IC (identity card) and paid
fee RM10 .But I haven’t receive the account document by e-mail yet.
I have few Questions here. When I asking the dealer representative of the investment bank about trading about. He gave me an answer that made me confused.
First , he asked me to wait for the ACTIVATION e-mail in this 2 days. Then, after I activate it,later, I can start buying shares. He said, for the 1st time, I need to bank in money to their BANK ACCOUNT. This can be done by CASH or CHEQUE. If I bank in money, I have to call him immediately after I put in that $, then he will transfer it / put it to ????( i don’t understand what he explained). After that, he will buy the shares for me.. I also asked about the process of buying and selling shares, and where my $$ go to and how can I get my $$$ back after I sold my shares… However, the procedure, for me, is so complicated and I don’t understand how it work.
Could you please explain it in a simplier way to me? How ,normally, the way of dealing shares purchasing?
is “pledge account” = “trading account”?
i want ask about this question too! that is quite complicated for us.. thanks a lot!
Hi,
It is common for remisier to ask new client( young and salaried employee) to deposit some cash into their investment bank account and later credit the amount to your trading account. Many clients phone their remisers to place buy huge amounts and if the share/counter he bought already makes huge losses before the payment day, it become a risk / liability to the remisier after T=3 (3 days transaction payment). a) For “big” clients which remisiers known for many years, remisier might even want to receive cheque payment . Then, remisier will issue their own cheque to pay out their client transaction at the payment counter.
Some “big” clients straight away wire transfer the transaction amount payment to their remisier’s bank account and within a few minutes, remisier will issue their cheque to pay their client transaction at the payment counter. Some people brings huge cash for payment at the paying counter. I can’t figure why they do that?
Alternatively, Go to Maybank / CIMB / Public Bank and ask for online share trading which is much cheaper in term of brokerage fee.But very careful when puting your buy/sale figure on the lot trading size ( 100 units, 200 units, 400 units or 1000 units ) during online transaction. For Foreign share trading, usually they use online trading and need strict documentations require to open an account unless you work in Multi National Company(MNC) which got business/bank relationships. Have a great day & Enjoy Trading ..
hi, i am jasmine, 20 years old.
I have just created my CDS account few days ago. What am I going to ask is for the online trading, we must go to the bank and request for the that? because I think i have done everything while creating the CDS account already. My remiser did not say anything or teach me anything too. I am now waiting for the account activation via email. Thanks for your reply.
for share enquiry you can email this for any question you may have
koh_126@hotmail.com
Hi WSK,
DO NOT issue a cheque made payable to your remisiers!! there has been many scam on this issue in this industry. Authorities have made it very clear that all cheques must be made payable to the stockbroking house/investment bank ONLY! If you are making payment in cash, you may do it over-the-counter at your broker’s office.
ACCOUNT
CDS Account – an account with BURSA MALAYSIA where all your shares will be kept. RM10 being opening fee. You will be granted a CDS number which is followed by broker code-branch code-personal number e.g. 123-123-123456789
WSK – please call the broker to check if your account has been opened. Dont be surprise if the forms are not submitted for account opening.
Trading account – an account you open with the broker for trading purposes i.e. buying and selling of shares. This account is linked to your CDS account. All your contracts, money that you have in the account, losses will be reflected in this account.
You can open a CDS account without opening a Trading account, however you will not be able to trade. On the other hand, you cannot open a trading account if you dont have a CDS account.
Once your CDS and Trading account is opened, you may start trading. No activation is required unless your CDS account is dormant/inactive. The rule says that opening of account is usually within the same day, otherwise latest by the next business day.
TRADING
On the day of purchase, in the financial term is called T-day (transaction/trading day). You are given 3 days grace period to make payment/settlement, which means settlement is on T+3 by 12.30pm. Your shares will be delivered to your CDS account on T+3 9am =)
PAYMENT
Payment can be made using cheque, TT or cash.
Cheque – Remember cheque is only made payable to the broker only. DO NOT ISSUE A CHEQUE IN FAVOUR OF YOUR REMISIER!!
TT – you need the bank’s account number. After you TT over, call your remisier to inform them on the transaction. You may need to fax/email the supporting over to your remiser. Your remisier will then inform the treasury department to credit the amount into your account.
Cash – you can do it OTC. some remisier provide added services by collecting on your behalf.
SELLING
If you feel that you are already profiting before settlement date, you can sell your shares. Thus you shall be expecting to receive contra gain. There are 2 payment method i.e. credit into your account or to issue a cheque in favorable to you. You may need to advise your remisier on the preferred method.
FORCE SELLING
If you do not make settlement by T+3, the broker has the right to force sell your shares on T+4. Contra gain will be absorbed by you, likewise any losses will be borne by yourself.
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?
Hi Doraisamy,
To start trading in KLCI index you must first open a futures account with a stock broker/investment bank.
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 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.. Is it possible to trade without going through stock broker in malaysia?
Hi KC,
How can I short sell?
Regards.
edward;
what do you mean by ‘short sell’?
Hi Edward & Nizami,
Short selling is selling of shares with insufficient shares for delivery and is a violation to the Bursa Rules.
However if by mistake you oversold, you must submit a request to do a buy-in which you will be penalized 10 bids higher.
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
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.
Hi KW Lam,
Most of the broker/investment bank now allows foreign trading. Simply open a CDS & trading account and you may start trading in foreign exchange. Fees and charges applies.
Hi,K c Lau
Hw can i become a remisier or a broker??
Thx
Hi Wei Hoe,
In order to be a licensed remisier, it is a requirement to obtain the licence from Securities Commission. refer to http://www.sidc.com.my for more info. You will need to register to sit for 2 examination that is Module 6 & Module 7. Once your license is approved and issued by Securities Commission, you may apply with the stockbroker as a remisier. Being a remisier requires you to deposit and maintain a certain amount of money with the bank. The money will be used to grant you trading limit and to secure the bank from any losses incurred by your clients. different bank has different minimum amount required.
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 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, 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 🙂
I need to know the list of brokers in JOHOR BARU
Hi K.C.
Bro….what are the blue chips stocks in Malaysia?
Thanks
Most of the blue chips are included in the index.
Can i use the same direct CDS account with different brokerage?
Not sure about this.
Please consult your remisier
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.
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
u guys heard before public-bank provide e-trade investment by using internet????
Hi kc
I wish to buy some shares, but dont know anything about share.
1st thing is got to prepare how much capital?
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 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.
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 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).
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”
oic.
where can i find a remisier in ipoh?and where is the stock exchange located in ipoh?
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.
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 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,
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,
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 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,
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?
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.
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!
Don't you think it will so cool to buy stock online by yourself?
very good education. thank you
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
thx for opinion !
can suggest some books for me?
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!
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.
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.
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.
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,
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 KCLau,
Thanks for the reply. Will do that when i go back to Malaysia
Welcome!
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 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.
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, i would like to ask what if 15years ago.. i bought 1unit=1000lot… as you said now 1unit=100lot…
if i bought a share of 2000lot on 15year ago… now the share consider how many unit?
Hi Tan, the unit remain the same unless the company split the share or some other changes. It has nothing to do with the “lot” we are talking about.
[…] Kclau.com […]
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.
[…] Do you invest in share? Learn how to trade at Bursa Malaysia. […]
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 🙂
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