Q & ACategory: StocksLOCAL BROKER OR INTERNATIONAL BROKER FOR MALAYSIAN??
JONE CHUAN asked 4 years ago

Hi KC,

I am contemplating whether to invest in overseas stock with local broker or international broker. My concern is the ongoing charges per month that international brokers impose. Good thing about international broker is their commission rate is very low comparatively to local Malaysian brokers. Is it better to go for local broker as they don’t have ongoing monthly charges but high commission & dividend fees? Or international broker with low rates but with monthly charges? By the way, the market that I am currently looking at is Hong Kong, Australia & China. Appreciate your view in this as I am looking at the lowest cost possible for long term investment.Thank you.
BR,
Jone

1 Answers
KCLau Staff answered 4 years ago

Hi Jone, there are pros and cons.
It will be simpler to use the local brokers, and easier to retrieve the money. It is also more convenient for estate planning (in the situation when the account holder dies prematurely)
But the trade-off is as you had mentioned, higher fee.
If you buy stocks and hold it for many years, and buy in significant amount each time, you can minimise the costs.

But if you trade frequently, foreign broker might be better for you.