How to buy share from Bursa Malaysia?

Eligibility:

> 18 years old.
Step by Step Guide:
1. Open a Central Depository System (CDS) account: you can do this by approaching an authorized depository agent such as stockbroking company and some banks.
   -provide photocopies of IC (identity card)
   -fee RM10
   -You will receive the account document by mail.

   - Form required: CDS opening form

 
2. Open a trading account with stockbroker: this will be done simultaneously when you open the CDS account.
  - need to provide income statement
  - fill out trading account form
  - the stockbroker will check your credit status at CTOS (Credit Tip-off Service) and stockbrokers’ defaulters’ list – in order to qualify you and set your trading limit

What do you need to know about CDS account?

- it allows you to buy and sell shares
- it also allows you to trade non-equity counters such as bond and warrants
- it is something like a bank account – you keep cash in bank accounts, you keep shares in CDS accounts.
- you can have more than one CDS account
- there are two type of CDS accounts: direct and pledge
- if you have a direct account, you will receive the dividend checks and prospectus mailed to your house.
- if you have a pledge account, the stockbroker will receive the dividend payout and prospectus on your behalf. Then the stockbroker will bank in to your account.
- normally banking stockbrokers will require you to open a pledge account.
you will get CDS account statement monthly. If there is no activity, you will still get the statement on June and December.

3. Get a remisier: normally your stockbroker will appoint one to you if you don’t have any particular preference.
  - remisier has to be licensed by the Securities Commission
  - remisier helps you make the order: sell? or buy? at what price?
  - get someone you like and trustworthy as your remisier

4. Buying and Selling Shares: You can key in your order at online system provided by your stockbrokers, or call your remisier to make the order. If your buying order match a selling order, you will get a trade confirmation. The stockbroking firm will then send out contract notes to you specifying details of transaction.
5. Payment: When you buy share of company S, your CDS account will be credited with share S at 9am on T+3 (T=transaction date). The 3 days only include working days. Your payment had to be made on 12.30pm that day. If not, your share will be forced sold at a contra loss or contra gain.

6. Fees

• brokerage fees – maximum 0.7% of the value of total shares traded, normal practise is 0.6%, If you choose cash upfront account, You may get as cheap as 0.035% (Mplus online) or 0.1% (Hong Leong Bank)
• Clearing fees - 0.04% of contract value subject to cap of RM500
• stamp duty – 0.03% or RM1 for every RM1,000 worth of value

Source: KC Lau