What is an investment account?？

An investment account is an account opened by an investor with an investment bank or securities dealer for trading and investing in securities so that he can buy and sell stocks, bonds, funds and other financial products.。After opening, you can choose and allocate between different investment products according to your investment objectives and risk tolerance.。

Opening an investment account requires some basic information and supporting documents, such as personal identification and bank account information, so that the broker can verify your identity and open an account。Once your account is successfully opened, you can trade through the broker's trading platform and can check your portfolio and account performance at any time。

In Malaysia, investment accounts are divided into Trading Account, Brokerage Account and CDS Account。

Both Trading Account and Brokerage Account refer to your trading account with a brokerage firm, while CDS Account is managed by Bursa Malaysia Depository Sdn Bhd and is used to record all stock transactions.。To trade on the Malaysia Stock Exchange, all investors must have a CDS Account and a trading account.

Malaysia Stock Account Types

Malaysian Central Depository System accounts are divided into two types of CDS accounts: Direct CDS Account and Nominee CDS Account.。

If investors want to manage and process their accounts independently, have voting rights and receive direct dividend income, then Direct Account may be a better option。

Nominee Account for investors who like to simplify the trading process。One of the biggest benefits of using Nominee Account is that it is easy to manage, any administrative or documentary work (such as completing equity placement and bonus share application forms) will be handled by the brokerage firm for it, and investors will still receive any dividends paid by the companies they own.。

Comparison of horse stock trading commissions of major Malaysian brokerages.

Here to sort out the Malaysian investment banks and securities dealers commissions and account types have made it easy for you to choose the right securities dealer for you.。

How to Open a Malaysian Stock Investment Account？

Account Opening Conditions

If you want to start investing in stocks, you can open an investment account and start your investment journey as long as you meet the following conditions。

1. Age 18 years or above
2. Prepare the required documents (the information required by different brokerages is similar)

• Copy of ID card
• Latest Job Payroll
• Bank statements for the last 3 months
• RM10, payment of CDS Account fee (some brokerages exempt from this fee)
• W8-BEN Form (function of brokerage platform supporting US stocks)

Account Opening Steps

• Select an investment broker

Malaysia has more than 10 investment banks and securities dealers such as CGS CIMB, M + Online, Rakuten Trade, FSMone, Hong Leong Investment Bank and many more。

Each offers different services, choice of accounts (Direct Account / Nominee Account), commission fees (Brokerage Fee), etc.。After making the comparison, you can choose the brokerage platform that suits you.

• Online or in person with investment banks / brokerages.

Before the epidemic, most investment banks or securities dealers required investors to apply in person to open an account, but after the epidemic began, many of the application processes also shifted to online applications.。

If you want to apply for Nominee Account, you can usually apply online.。If you want to apply for Direct Account, you have to see if the investment bank / securities firm of your choice offers an online application, otherwise you need to go to the investment bank / securities firm office building to apply in person.。

• Submission of registration documents

If you choose to apply for an investment account online, you can attach the prepared information (PDF electronic version) as required in the application process.。

If you apply at home, hand over the documents to the person in charge and they will handle it for you.。The person in charge may ask you for a paper or electronic version of the document, you can also save the contact information of the person in charge, if there are any problems with opening an account in the future, you can consult him.。

Usually, with complete information, the investment account is successfully opened within 1 week after RM 10 is also paid.。

• Received confirmation email

After successfully opening an account, you will receive an email from the broker, which will include details such as your Client Code, Account Number, etc.。

At the same time, you can log into your investment account according to the instructions in the email.。The next thing you need to do is to transfer the funds into your account and you can start buying and selling stocks and your investment journey.。

SUMMARY

In summary, opening an investment account is the first step for investors to enter the securities market and conduct investment activities.。

Before opening an investment account, investors should carefully consider their investment objectives, risk tolerance and level of investment knowledge, and choose the right securities broker and investment products.。Investors need to continue to learn and master investment knowledge, remain calm and rational, and adjust their investment strategies in a timely manner to achieve long-term stable investment returns.。