Bursa Malaysia
- Bursa Malaysia is the only exchange holding company in Malaysia which operates and regulates a fully integrated exchange offering a comprehensive range of exchange-related facilities including listing, trading, clearing, settlement and depository services. It offers a diverse spread of products covering equities, derivatives, offshore listings and services and bonds and Islamic offerings. In shorter words, it is the only and biggest stock exchange market in Malaysia.
How to have a trading account and
start buying shares?
Are you eligible to start trading?
- At least 18 years old
Open a Central Depository System
(CDS) account
- Can be opened in authorized depository
agent such as stock broking company and some banks.
o Provide photocopies of IC (identity card)
o Fee RM10
The account document will be sent to you by mail.
Open a trading account with
stockbroker
- This will be done simultaneously when
opening the CDS account.
o Provide income statement (Students may not
need to provide income statement)
o Fill out trading account form
o 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.
Both accounts normally will be successfully opened within 5 days
of application.
10 authorized examples of
stockbrokers in Malaysia
What do you need to know about CDS account?
- to buy and sell shares
- 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
- 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.
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
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.
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
(Source: KCLau.com)
