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"
How is the brokerage fee charge if I sell and buy a same company shares more than 2 times in a day?
Usually brokers give discount for similar trade in a day. Ask your brokers for the details since each one charge differently.
can government servants participate in bursa
I don’t think there is a problem. Do you?
Expat are eligible to apply?
Anyone use algo trading? Available for Malaysia Stock
I’m Junn, from UOB Kay Hian.
For Cash up-front & Collateralize Account
As low as just ** 0.1% or MIN RM 8 ** brokerage fees
*** not require any special T&C, applicable for all.
Other than competitive brokerage fees, we also provide additional value to the users:
1) SEMINAR (physically / learning online)
– A to Z training from platform training to fundamental or technical analysis seminars.
2) Private WhatsApp group providing trading ideas.
3) Foreign markets accessible (US, HK, SGX)
4) Robot orders (Stop Limit & Limit if Touch)
– System help execute orders while you’re working.
5) EXTRA TECHNICAL ANALYSIS TOOL
– Technical Screener & real-time charting software.
6) RESEARCH REPORT (covered US, HK, SG, M’sia market)
– From whole market, sector, to particular listed company.
7) IDSS (intraday short selling)
6) Provide 2.38% interest per annum in trust account.
Never ask never know, any inquiries please WhatsApp me via: http://www.wasap.my/60162413687/kclau or call 016-2413 687
Happy trading/investing.
boleh percaya ke. nanti time withdraw mcm2 problem.
How do you manage to open a brokerage account at 18 without income tax number, I’m a student now and I wanna start trading with my saving money but I’m required to present my income tax number, which i don’t have. To to get an income tax number i need to have a pay-slips, business which all i dont have.
HI, yesterday I go to Maybank to open the CDS account, but the broker tell me I below 21 years old. Not at least 18 years old? So what should I do?
Have to wait till 21 now.
are Foreigner allowed to invest/trade in burs Malaysia?
Hi K do you have any online trading platform you recommend on buying oversea stock?
Use Stash Away or IQ Option
Hii Junn,
Are u able to manage shariah compliance stock
I Would like to know wheather can buy or sell stocks without stock broker
Hi,
I would like to get exposure on how to get into stock investment.
It includes gather the data on stock market, analyze, prepare the plan, invest and monitor.
Where should I start and is there any available courses, which can provide comprehensive training and exposure for beginner with no experience like me?
check out our course: https://BursaMethod.com
The link u share cannot open. This member is it under your coach?
Hi
Can foreigner working in malaysia trade in stock market by opening CDS account.
I’m Junn, from UOB Kay Hian.
For Cash up-front & Collateralize Account
As low as just ** 0.1% and MIN RM 8 ** brokerage fees
*** not require any special T&C, applicable for all.
No need walk in to our branches. Contact me for arrangement.
Other than competitive brokerage fees, we also provide additional value to the users:
1) SEMINAR (attend physically / learning through online)
– consistently provide A to Z training including platform training, fundamental/technical training, market outlook & stock picks
2) ADDITIONAL TECHNICAL ANALYSIS TOOL
– Chart Genie : real-time technical signals alert sending to your phone
– Tech Analyzer : technical indicator screener (filter out stock with own’s favourite technical pattern / indicator
3) RESEARCH REPORT (covered US, HK, SG, M’sia market)
– Market Monitor (daily review of M’sia market with stockpicks & market/corporate news.)
– Regional Morning Notes (daily assessment of market sentiment, sector analysis & stockpicks.)
– Special Focus (covering a range of investment topics & tactical trading ideas.)
– US Reports (daily report & stock report with Thomson Reuters Research.)
4) IDSS (intraday short selling)
5) Robot orders (Stop Limit & Limit if Touch)
6) Provide 2.38% interest per annum in trust account.
WhatsApp me via http://www.wasap.my/60162413687/uobkayhian or call 016-2413 687
Happy trading.
Hi, i’m from Kuching Sarawak and interested to start trading. Is there any body from kuching here to help me get started? thanks
Kindly advice if a foreigner can trade at the Malaysian stock exchange,?
Hi. I am a form 6 student. If I wish to open a trading account, I need to state my income. But currently I’m not working yet. I received some pocket money from my mom. Currently I have quite a sum of money in my account, what should I do to start investing given my current state?
hi
i am a daytrader in Sweden.
when checking malaysian plattforms i can not find any online good ones? Am i missing something?
Our online plattforms here are connected live to Nasdaq without any delay.
do you have any realtime plattforms without so much fuzz?
if so… what do you recommend?
HI KC Lau,
If someone blacklist with CTOS @ CRIS can apply share market in company.
Than you.
Hi KC LAU , is Stock investment affordable for government servant because I am thinking to venture into it but unsure about trustworthy stockbroker etcc. How much actually I need as capital to start up the Investment considering the fees and loss.?
Stock investment is easy to start nowadays. The minimum lot size is 100 unit, which means a few hundred ringgit is enough to purchase a stock.
Just bear in mind the minimum commission. Relatively, the cost will be high if your transaction value is low.
Hi KC,
I’m new to invest in stock market. First step is to open up a CDS account, right? Any suggestion in brokerage company or bank that you think is good to open up a CDS account?
Thank you.
When you open a trading account with any securities broker, they will open the CDS account for you too. So it is actually very straight forward. Just walk in to any securities firm to do it, or open it online with sites like Rakutentrade.my
Would like to let your readers know that RakutenTrade is a nominee account and not CDS. There are some difference which I wont detail them out here, readers can google them up their differences. Account with RHB, CIMB, UOB Kay Hian, Maybank, HLE are usually CDS accounts. Cheers.
Hi, I m kim from rhb investment. U may whatsapp me at 013-6089433. Tq
Hi kclau,
I opened a CDS account during University years. Although I haven’t started trading stocks, every month I receive a bank statement from the bank.
Now that I just started working, do I need to keep these monthly bank statements?
Best regards.
If there is no holding in your CDS account, I don’t think the statement will have any use to you.
How do you open CDS account
Hello K.C., where can I learn about trading?
How much the class fees
I am Filipino working here in MY. Can I participate in MY’s stock market?
Thanks in advance
I’m Junn, from UOB Kay Hian.
As low as just ** 0.1% and MIN RM 8 ** brokerage fees.
*** not require any special T&C, applicable for all.
No need walk in to our branches. Contact me for arrangement.
# Consistently educational support
– market outlook & stockpicks (monthly)
– fundamental analysis & technical analysis training (biweekly)
– platform training (biweekly)
# Special technical analysis tools
– ChartGenie: monitors your portfolio & alerts you for technical chart break signals
– TechAnalyzer: screen stocks through technical strategies & patterns
# Profit & loss calculator
# provide 2.38% interest per annum in trust account
Contact me via http://www.wasap.my/60162413687/uobkayhian or ericyapjun@gmail.com
Happy trading.
HI KCLau , paid RM10 to apply for cds account and after all no more fees will be charge and its permanant?
no more fee after that unless you transact.
Good afternoon. How do I calculate the PE of the company
Take the price = market cap = number of shares x stock price
Take the earnings = net profit (from annual report income statement)
PE ratio = Price per earnings (P/E)
Hello there, in the articles it mentions that we need to provide our income statement in order to open a cds acc. But, I’m a student how do I provide it as I’m not working?
Income statement is not required.
hi ,
Iam uni student, can i open my CDS account?
iam thinking of using Maybank, it is a good choice?
Students are eligible too.
Hi Naim, I’m Jun from UOB Kay Hian.
UOB provide consistently educational support such as:
– market outlook & stockpicks (monthly)
– fundamental analysis & technical analysis training (biweekly)
– platform training (biweekly)
Please do not hesitate to ask me for more details.
Contact me via http://www.wasap.my/60162413687/uobkayhian
Thank you.
Kindly advice if a foreigner can trade at the Malaysian stock exchange ?
do all brokerages provide same dividend rate for trading fund per year?
hi kc, since your post this in the year of 2012, may I know is the procedures still the same in the year of 2017?
I m not the author, But i can ans you that it still the same Bro.
Hi KC,
I am new and intend to invest in stock trading. May I know what is the difference to have a stock trading account with the banks (eg: MBB, PBB) compare to online platform such as Rakuten Trade?
Hi Henry,
Normally banks provide margin financing at a lower interest rate compared to non-bank brokers.
I think all bank-brokers use nominee account for your trade. It means when the stocks declare dividend, mail out annual report, corporate exercises etc, will be mailed to the banks. In this case, banks will cash your cheque and deposit to you for some charges. It means you will have additional service from them.
But for most non-bank brokers, you info is registered directly and you will get the annual report, cheque etc mailed to your mailing address.
So which one better, any recommendations? hi
Hello. I got ripped off by them as well it was hard to get a withdrawal after several failed attempts. I had to hire a recovery solution company to get my money back. Glad I got a refund and this is finally over for me. jackiewill32atgmaildotcom
which one jacque ? the bank or non-bank brokers ?