How To Start A Brokerage Account In Malaysia?

So, you have read through all the basics about investing from our investing 101 page. You are now ready to start dipping your toes into the stock market. That is wonderful news. However, how do you actually trade shares in the market? Here are the three easy steps to start investing.

1. Open Your Trading Account + CDS Account

There is only one stock exchange in Malaysia; Bursa Malaysia. The market is tracked by the Kuala Lumpur Composite Index (KLCI), which is a market-capitalisation weighted index of the 30 constituents on Bursa Malaysia.

To trade in Malaysia, you would have to open two accounts; a trading account with a brokerage and a Central Depository System (CDS) account. A CDS account is a depository for you to keep your Malaysia stocks after you buy them. The CDS account is maintained by Bursa Malaysia directly and has no links to the brokerages. Think of it as a safe deposit box for your shares.

Fortunately, most brokerage should be able to help you process the opening of a CDS account when you open the trading account.

There are many brokerage houses in Malaysia, and most local banks would have a brokerage arm as well. iMoney.my provide a good summary of the fee structure of most of the brokerage houses here.

To know more click HERE.

There is no ads to display, Please add some