Let us walk you through the different types of CDS accounts in Malaysia once you understand how a CDS account works and its importance before you venture into the stock market. As you are probably aware, trading in the stock market necessitates the opening of a CDS account as well as a trading account. You won’t be able to trade on the Malaysian stock exchange unless you have these two.
Let us now look at each of the trading and CDS accounts available in the Malaysian stock market, how they work, the steps and requirements to open them, their pros and cons, as well as a list of stock brokers offering the CDS account, the brokerage fees, and why it is the best for you to trade with.
Rakuten Trade is known for its lowest brokerage fees, which is at a minimum of RM7. Additionally, corporate action fees under Nominee CDS account for this broker is also free. A collaboration with Kenanga Investment Bank in Malaysia, and Kenanga Securities from Japan, Rakuten Trade is regulated by the Malaysia's Security Commission (SC).
Before registering, you need to prepare two documents:
To register with Rakuten Trade , you are advised to use the Rakuten Trade website
After entering the required information, enter the IRB tax account number, if applicable. If you don't have an LHDN tax account number, click the I don't have any TIN numbers button. Then, to submit the application form, click the Submit Application button. Rakuten Trade will send you an email requesting confirmation via the link provided. You will receive the results of your application to open a Rakuten Trade account within a few hours.
If you pass, you will be emailed the password in pdf format. You can now access the account by entering a valid username and password.
|Pros of Rakuten Trade CDS Account||Cons of Rakuten Trade CDS Account|
|Zero inactivity fee||Limited product and services available|
|Fast and easy account opening process||Unavailability of web trading platform|
|Interactive mobile trading platform||Poor customer services|
In addition to Rakuten Trade, Hong Leong Bank Trading has one of the lowest brokerage fees, with a minimum of RM8 and offering investors with Direct CDS account and Nominee Account for trading. Hong Leong Bank is a well-known Malaysian bank that provides investors with flexibility. Hong Leong Bank, also known as HLeBroking, allows you to buy or sell trades with a single phone call.
Let's go over how to open a trading and CDS account with HLeBroking, the benefits and drawbacks of stock investing in local markets, and everything else you need to know about this brokerage firm.
|Pros of HLeBroking Brokerage Account||Cons of HLeBroking Brokerage Account|
|Competitive brokerage fee||Different brokerage rate for different order types|
|Interactive online trading tools||Unavailability of biometrics login on mobile platform|
|Availability of mobile trading platform|
Another well-known name in the Malaysian market. Teh Hong Piow founded Public Bank in 1966, and it now provides a variety of accounts, credit cards, loans, deposits, and other financial aid. Furthermore, the bank allows investors to open a non-margin/margin CDS account as well as a Nominee account to trade with.
Let's walk through the steps to open a CDS account with Public Invest Bank, which charges a minimum brokerage fee of RM12, or 0.42 percent for investments of RM100,000 or less.
Public Investment Bank Berhad
Level 11, Bangunan Public Bank,
No. 6 Jalan Sultan Sulaiman,
50000 Kuala Lumpur.
|Pros of Public Invest CDS Account||Cons of Public Invest CDS Account|
|Competitive brokerage fee||Unavailability of online payment|
|Availability of market news on platform||Only allows to trade in shares listed on the Bursa Malaysia|
|Availability of eTrade platform|
Mercury Securities, like Public Invest, charges a minimum brokerage fee of RM12, or 0.42 percent per RM100,000 invested. As a result, this online broker has been named one of the best brokerage firms in our opinion. Margin financing, nominees and custodian services, and electronic trading services are among the services available once you have successfully opened a stock brokerage account with this broker.
Let's take a look at the steps involved in opening a stock trading account and a CDS account with Mercury Securities.
To be able to trade online through Mercury Online Services, traders must first have the following:
Alternatively, you can also visit any of Mercury Securities' offices below to open the accounts:
PRINCIPAL OFFICE (HQ)
Ground, 1st, 2nd and 3rd Floor, Wisma UMNO
Lorong Bagan Luar Dua
12000 Butterworth, Seberang Perai
Tel: 604 – 3322123 Fax: 604- 3231813/3312195
e-mail : [email protected]
KUALA LUMPUR BRANCH
L-7-2, No 2, Jalan Solaris,
Solarix Mont' Kiara
50480 Kuala Lumpur
Tel: 603- 6203 7227 Fax: 603 – 6203 7117
e-mail : [email protected]
81B & 83B
Taman Melaka Raya
Tel: 606 – 292 1898 Fax: 606 – 292 6898
JOHOR BAHRU BRANCH
Suite 17.1, Level 17,
Jalan Kuning, Taman Pelangi,
80400 Johor Bahru.
Tel:607 – 331 6992 Fax: 607 – 332 2693
Email: [email protected]m.my
2nd Floor, Standard Chartered Bank Chambers,
2 Lebuh Pantai,
Tel:604-263 9118 Fax:604-261 2118
1st Floor, 16 Jalan Getah,
BAYAN BARU BRANCH
70-1-22, Jalan Mahsuri
Bandar Bayan Baru
Tel:604-640 0822 Fax:604-640 0823
|Pros of Mercury Security CDS Account||Cons of Mercury Security CDS Account|
|Availability of mobile trading platforms||Limited stock exchange market|
|Availability of online application for account opening||Trading is only allowed during business hours|
|Availability of economic market research|
Kenanga Investment, also known as KenTrade, the name of their online trading platform, is the last but not least on our list of the best online brokers. Kenanga, with a slightly higher brokerage fee, offers clients a minimum of RM28 brokerage fee or 0.42 percent for investments of RM100,000 or less. Online share trading, share margin, global trading, futures trading, and Islamic stockbroking are among the products or services offered by KenTrade.
Let us go over how to open a Kenanga stock trading account.
Just like any other online brokerage firm, KenTrade enables new investors to open a stock trading account with them in such easy ways.
|Pros of Kenanga Trading||Cons of Kenanga Trading|
|Availability of Islamic stockbroking||Slightly higher brokerage fee|
|Availability of e-learning||Unavailability of online payment|
|Availability of mobile trading platform|
Finding the best stock broker with whom to trade is critical. There are numerous stock brokers, or online brokers, who offer interactive trading platforms that allow you to participate in the stock market. With the right online broker, you can start trading stocks and leveraging their trading tools quickly and easily! Choosing the wrong online brokerage, on the other hand, may increase your chances of losing money rapidly.
As a result, it is best for you to conduct research before investing in stock markets, particularly Malaysian stocks. The best broker will provide you with not only a platform to invest in, but also other stock brokerage services such as stock trend, technical analysis, mobile trading platform, educational tips and tricks, other financial instruments, and a trading demo account.
We hope that this guide will be useful for your investment journey by assisting you in locating the best stock broker with the most competitive fees for your online trading.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .