How to trade stock at KLSE/Bursa Saham Malaysia?

After understanding the concept of stock market, I think you might be having question how can I start trading?

I will focus on how to trade stock at KLSE/Bursa Saham Malaysia stock market first, as the application process is simplify and straight forward, and it provides better access for beginners whereby you can immediately call your remisier when you have any doubt.

I’ll covering below topics which is often being questioned by beginners:

• How to Open CDS and trading account and trade in KLSE/Bursa Saham Malaysia?
• Which stock broker to choose and how to deposit money into your trading account?
• Whether to trade either online/offline?

How to Open CDS and trading account and trade in KLSE/Bursa Saham Malaysia?

KLSE (Kuala Lumpur Stock Exchange) or Bursa Saham Malaysia are where all the stocks or shares are listed. In order to trade, you need to have a CDS and trading account. CDS (Central Depository System) is an electronic account maintain by Bursa Depository. Whereby all the shares you bought will be credited to your CDS account on due date, and debited from your CDS account when you sell the shares. However you can’t trade without the trading account.

You can open the CDS and trading account together by presenting yourself to the nearest registered brokers (known as ‘Pacticipating Organisations’ or PO in Bursa Saham Malaysia). You can get the list of brokers from Bursa Saham Malaysia. Some broker companies do offer application though online for those not in Malaysia, but will need to have documents supported by Notary Public like Ambassadors of Malaysia in the respective foreign country.

Documents you needed to prepare are two (2) certified true copies of your Malaysian National Registration Identity Card or foreigner’s passport and income statement. The rest of the documents you can obtain from the PO. Also remember you need to pay RM10 for the CDS account application.

Which stock broker to choose and how to deposit money into your trading account?

There are many so many stock brokers available, and I’m currently using OSK, and I’d been continuing using it since 5 years ago. I’m quite satisfied with the customer service and also the response of my remisier. Also I get used to the online platform which I think the interface is user friendly, also the database is powerful whereby I can get all the financial data for the past 5 years easily come with comparison table. This is the most important for me! You will know why later on when we going to talk on how to pick stock.

Many people wondering which broker companies at Malaysia offer the cheapest rate for trading, and they tend to go for it. However, for me the brokerage fee is the least that I really care, difference by 0.1-0.2% per transaction doesn’t mean much to me, or for long term investor. As long as I get a good service and database from the broker company. That will for sure compensate the ~0.1-0.2% differences if I pick the correct stock for investment.

Whether to trade either online/offline?

Personally I trade offline for the first few weeks after my trading account being approved. All the times my remisier will be there for me, maybe not immediately but will respond within 5 minutes. However after I get used to the online platform, I never call her again. The online platform has everything you need, and is real time, with a lower brokerage fee. So I would recommend everyone to trade online, unless your internet is down or unavailable.

After you go through this post, I believe you already taken the first step to stock market investment; you can start trading soon after you deposit money into your trading account.