How to start trading stocks in Malaysia

The Malaysian stock market is a very lucrative investment options for investors to invest their money. The movements in the market provide various opportunities to the investors to make the most out of their investments.

However, many beginners are often worried about the process of stock trading on Bursa Malaysia. But the process of buying and selling stocks is not that difficult. Today we will discuss about how to begin trading in shares on Bursa Malaysia.

Table of Contents

How to start trading stocks in Malaysia

• Know your Risk Appetite

• Open a CDS account

• Choose your Broker

• Research

So, without further ado, let us discuss about each one of these steps in detail and help you start your trading journey with Bursa Malaysia.

• Know your Risk Appetite

This is the first and foremost step before you plan any sort of investment. However, this is often ignored by most of the investors. Knowing your risk appetite helps you understand about the amount of risk you can take in the market. The amount of food you consume depends on your appetite, similarly, the amount you are investing depends on your risk appetite. An investment advisor can help you in conducting your risk profile analysis which will help you in understanding your risk appetite.

• Open a CDS account

A CDS account is mandatory for trading in stocks on Bursa Malaysia. A CDS account or Central Depository System Account can be opened with any of the investment banks or stock broking companies.

The CDS account holds all the securities which you buy. When you sell any of the security it is debited from the CDS account. For opening a CDS account you will need your identity card and RM10.

A trading account is also required which is usually opened simultaneously along with your CDS account.

• Choose Your Broker

After you are done with your CDS account and trading account you need to choose a broker or remisier. The remisier will an agent from the broking house which will be licensed by the Securities Commission.

You will be charged a brokerage fee which is usually in the range of 0.05% to 0.80%. You can choose a broker with the best brokerage offer for you.

Alternatively, you can also trade online yourself by opening an online trading account. Such accounts usually attract very low brokerages and provide lot of convenience to the investor. However, with so many listed stocks, a new investor may get confused and end up making losses.

• Research

This is one the most important aspect when you plan to invest in stocks. Any investment in stocks without proper research often ends in losses. It is impossible to tame the markets. The markets do provide opportunities but are also full of risk. Proper research can help you in figuring out the best trades for your investment. An investment advisor can help you by providing trade recommendations for your trading based on research.

Conclusion

Stock markets are one of the most sought-after platforms for investing your money. So now you know how you can start trading in shares on Bursa Malaysia. So, what are you waiting for? Get in touch with an investment advisor and start your investment journey by knowing your risk appetite.

‍