The Bursa Malaysia, or formerly known as the Kuala Lumpur Stock Exchange (KLSE), is the major stock market exchange in
The emergence of the internet has made it possible for anyone who knows how to use the computer to day-trade. Say goodbye to the days when day-trading at the KLSE stock market (or in fact, most stock exchanges in the world) are the privileges of financial firms or professional and private investors.
If you would like to do day-trading at the KLSE stock market at the comforts of your own home, here is a general step-by-step guide that can help you out.
- Get internet access
This should be pretty standard. But do some research and use an internet service provider that provides fast-connection. Try to avoid dial-up connections using a phone line. Also, if you can help it, use a LAN line instead of wireless connection when trading, as wireless connections are more prone to disconnections by weak signals and glitches.
- Open a Central Depository System (CDS) and trading account
Again, do your research here. To try to get your business, banks and stock broking companies offer different benefits and advantages such as free transactions, less service fees, etc. All of them will serve the same purpose, so see which benefits (if any) suits your needs the most.
At the same time, you will open the trading account with a stockbroker. You will need to present some documentation to the stockbroker, which includes:
- Photocopies of your Identification Card (IC)
- Income statement
Your credit will be checked by the stockbroker at a credit tip off service and against the stockbroker’s defaulters’ list. This procedure will determine your credit limit and qualify you for the trading.
Visit your local bank branch or stock broking agency and fill out all the necessary paperwork. Be sure to get a copy of all the paperwork, especially anything that they ask you to sign.
- Get yourself a remisier
The remisier is your main contact person from the stockbroker company. So whatever questions or problems you encounter, it will go through your remisier. The remisier’s job is to help you with the transactions that go on in everyday trading: the buying, the selling, the price checks, etc. Ask if your remisier is licensed by the Securities Commission, as this is required by law.
You can start your trading once all three steps are established.
The fees that are involved are summarized below:
Brokerage fee: It is 0.6 percent of the value of total shared traded for normal practices, with a maximum of 0.7 percent.
Clearing fee: With a top cap of RM 500, this clearing fee is 0.04 percent of contract value.
Stamp duty: For every RM 1000 value worth, RM 1 is charged for stamp duty.
Also note that it will take 3 working days for your account to be credited for shares that you purchase. Be sure to make your payment at 12:30pm on that third day, or else your shares will be forced to be sold at a contra gain or contra loss.
The LSE stock market is becoming more popular in day-trading as China and other Asian countries have emerged as economic powerhouse in stock market watch. Malaysia has benefited greatly from this.
