If you want to step into the world of share trading and stock investment, the most basic tool you need is a stock brokerage account.
When choosing a broker, of course the most important criteria would be:
- commission rate
- perks and benefits
How to Open CDS Account in Malaysia
Here’s a step-by-step guide on how to open CDS Account in Malaysia. For those of you completely new to stock trading in Malaysia, I hope this guide is useful.
1. Choose either Direct CDS or Nominee Account
There are pros and cons for each. There are differences between both, so do consider the pros and cons carefully. For Direct CDS account, the advantage is that you own the stocks directly. The disadvantage is, you’ll have to do some things by yourself, for e.g. corporate exercises, signing up for the dividend reinvestment plan and so forth. For nominee accounts, all these are taken care of by your broker with a small fee. However, the downside is that you don’t own the shares as the nominee company owns it on your behalf.
2. Go to i3investor to compare between brokerages
i3investor has a very good comparison page so you can compare the different commission rates between brokers, their requirements, trading conditions and so forth.
3. Pick a brokerage
After selecting your preferred broker, simply send an application via their official website. Make sure you prepare the required documents before hand by scanning them. Pro tip: Keep your scanned copies of important documents inside a secure cloud storage like Dropbox or Google Drive to save time in the future.
Best Stock Broker in Malaysia
Personally I’m using a direct CDS account (MPlus Online) with Malacca Securities to take advantage of isaham.my’s premium offering. MPlus is good for its low rate and fast execution, and I like having control over my shares.
That being said, my first account was a nominee account with Maybank. Their offering is quite reasonable for a newbie investor like me back then.
Many people also go with Rakuten because it has referral feature and you get reward points for trading. For those actively trading, this might be attractive.
Actually, the whole process is pretty straightforward. I hope you know how to open CDS account in Malaysia after this so you can get started with picking the best stocks to invest in Malaysia right away.
Remember, the longer you let your gains compound in the stock market, the higher chance you have of having your investment provide a satisfactory return.