How to Open An Investment Account in Bursa Malaysia

Steps to become stock investor is to open an account with Bursa Malaysia. Below are the steps:

Step 1: Open CDS account with Bursa Malaysia. CDS is an acronym for “Central Depository System”. The Central Depository System is a system that is fully owned and operated by Bursa Malaysia Depository Sdn Bhd (formerly known as Malaysian Central Depository Sdn Bhd), a wholly owned subsidiary of Bursa Malaysia Berhad. There are 3 forms that you need to fill in:

CDS Card Form

Open account with Bursa

E-Dividend Form: This is for crediting dividend direct into your bank account

Investors who wish to trade in securities listed on Bursa Malaysia must open CDS accounts with Authorised Depository Agents (ADAs), i.e. stockbroking companies. Securities bought will be credited into CDS accounts that the investors have opened. Likewise for securities sold, these securities will be debited from the CDS accounts.

You need to pay RM10.00 fee to open an account. But some brokers do waive this fee.

Step 2: For your trading account (trust account) with authorized brokers with Bursa. You can call them and ask them to meet you which is nearest to your home:

Bursa Registered Brokers

The buy and sell activities will be transacted with brokers. If you asked me, i am biased for CIMB Securities, Malacca Securities and Jupiter Securities

What you should be looking for when choosing brokers for investment?:

1. Cheaper brokerage fee. Normal standard fee is around 0.40%. The cheapest would be around 0.05%
2. Excellent, efficient service and definitely fast response or feedback from them
3. Extensive Report analysis for stock. CIMB Securities provides excellent analysis on this.
4. Easier to transfer money from and to your trust account. You can withdraw the money from trust account and transfer your saving account if you need the money (only once you sell off your shares)

Sample screen of Trust Account

Step 3: Start transferring your money into your trust account. Don’t worry, your trust account is safe and secure.

Step 4: Set your investment goals and strategies

Step 5: Start your investment transaction – buy and sell stocks

Contact me if you are interested to open with any of the above brokers. I can refer to my dealers to arrange your account opening.

See ya around!