How to open a share market account in Malaysian Market

If you want to step into the world of share trading and stock investment in the Malaysian Capital market, the first and foremost thing you need is to open a share market account.

Choosing a broker is the first and foremost step for the same, and the most important criteria for finalizing a broker would be the commission rate/ brokerage plan. Additional perks and benefits also play a key role in choosing a broker. You can open a Malaysia brokerage account once you finalize your broker.

CDS Account and Nominee Account

You can choose to open a CDS account or Nominee Account with Authorized Depository Agents (ADAs). The Central Depository System is a system that is fully owned and operated by Bursa Malaysia Depository Sendirian Berhad (SDN BHD), which is a wholly-owned subsidiary of Bursa Malaysia Berhad.

Investors who want to trade and invest in securities listed on Bursa Malaysia must open CDS accounts with Authorized Depository Agents (ADAs). There are differences between CDS and Nominee Account. So, you must consider the pros and cons of both of them carefully. Direct CDS account has an edge above the Nominee account, that you own the stocks directly. For nominee accounts, your broker takes care of all these and charges a small fee in return.

The stockbroker platforms offer two types of accounts like a cash account and a margin account.

You can borrow cash from your broker using a margin account.

Conclusion:

Opening a share market account in Malaysia is  a very easy process. Once you have your account active, you can start trading in the stock market. However, it must be noted that the financial markets are full of risks, therefore it is recommended to trade with research based recommendations from an investment advisor.