Remisier vs Dealer: What's the Difference & Why It Matters for Investors
Many new investors in Malaysia are confused about who a remisier actually is and how they differ from a stock dealer. Both roles are frequently mentioned in the investing world, but their functions, how they work, and how they help you as an investor are actually very different. In this article, I will explain in detail who a remisier is, what sets them apart from a dealer, and why choosing the right remisier can have a significant impact on your investment journey.
Quick Answer
A remisier is a Securities Commission-licensed agent who works independently under a brokerage firm, with their income entirely dependent on commissions from client trades. A dealer, on the other hand, is a permanent employee of a brokerage firm who receives a fixed monthly salary. For investors, remisiers typically provide more personalised service because their success depends directly on client satisfaction.
What Is a Remisier?
A remisier is a licensed trading representative registered with the Securities Commission Malaysia (SC) and Bursa Malaysia. They act as intermediaries between investors and stockbroking firms.
Unlike regular employees, remisiers are not permanent staff of a brokerage firm. They work independently - you could say they are entrepreneurs within the financial industry. The licence they hold allows them to carry out share trading transactions on behalf of investors on Bursa Malaysia.
Key Roles of a Remisier
- Opening CDS accounts - Helping investors register a Central Depository System account to start trading shares
- Executing buy and sell orders - Receiving and processing trading instructions from clients
- Providing market information - Sharing insights, analysis, and investment recommendations
- Assisting with corporate actions - Such as IPO applications, private placements, and margin financing
- Ongoing support - Being the point of contact when investors have issues or questions
How Do Remisiers Earn Their Income?
Remisiers earn their income through commissions - a percentage of the brokerage fee charged each time their clients make a buy or sell transaction. Generally, the commission split is around 40% for the remisier and 60% for the brokerage firm, although this rate can vary depending on the firm and the remisier's experience.
This means remisiers only earn income when their clients actively trade. That is why a good remisier will ensure their clients have a positive investment experience - because their clients' success is their success too.
What Is a Stock Dealer?
A stock dealer, officially known as a Dealer's Representative, is a permanent employee of a brokerage firm or investment bank. They are also licensed and registered with the SC, but their employment status is very different from a remisier.
Dealers work during the office hours set by their employer, receive a fixed monthly salary, and enjoy employee benefits such as EPF contributions, SOCSO, and annual leave. They are bound by their company's policies and procedures just like any other corporate employee.
Remisier vs Dealer - Detailed Comparison
Here is a key comparison between remisiers and stock dealers:
| Aspect | Remisier | Dealer |
|---|---|---|
| Employment status | Independent agent | Permanent employee of brokerage firm |
| Income | Commission-based | Fixed monthly salary |
| Income ceiling | Unlimited - depends on effort | Limited to salary scale |
| Working hours | Flexible, no fixed office hours | Follows company office hours |
| Employee benefits | No EPF, SOCSO, or paid leave | EPF, SOCSO, and paid leave included |
| Motivation | Client satisfaction = personal income | Carries out duties as assigned |
| Client relationship | Long-term, personal | Depends on assignment rotation |
| Autonomy | High - manages own schedule | Bound by company policies |
According to Persatuan Remisier Bumiputera Malaysia (PRIBUMI), a remisier is a commissioned trading representative who serves as the link between investors and stockbroking firms. They play a vital role in the Malaysian capital market ecosystem.
Benefits of Having a Remisier for Investors
You might be wondering - in this age of online trading, do you still need a remisier? The answer depends on what you need as an investor. Here are the key benefits of having a remisier:
1. Personal and Dedicated Service
Remisiers give more personalised attention to each client. Because their income depends on their clients, they have a natural incentive to ensure you receive the best service. Compared to a dealer who may handle hundreds of accounts on rotation, your remisier knows who you are, your investment goals, and the level of risk you are comfortable with.
2. Access to Information and Analysis
Experienced remisiers typically have access to research house reports, technical analysis, and corporate information that may not be easily accessible to regular retail investors. According to Maybank Investment Bank, their remisiers closely monitor stock movements and execute transactions effectively.
3. Assistance with Corporate Actions
There are many processes in stock investing that require professional assistance - IPO applications, private placements, margin financing, and more. Your remisier can help facilitate all of these processes.
4. Support When Issues Arise
When you face technical issues with the trading platform, settlement problems, or any account-related questions - you have someone you can contact directly. This is especially valuable for investors who are just starting out.
5. Ongoing Education and Guidance
A good remisier does more than just take orders - they also educate clients about the market, investment strategies, and risk management. This helps investors make smarter decisions over time.
Why Choose Maher Alias As Your Remisier?
As a licensed remisier under Mplus Online (formerly M+ Online), I, Maher Alias, offer several unique advantages to my clients:
Experience and Track Record
I have been active in the Malaysian stock market industry for many years. This experience extends beyond just buying and selling shares - it includes understanding market cycles, investor sentiment, and the dynamics of stocks on Bursa Malaysia.
The Mahersaham Education Platform
In addition to remisier services, I also run the mahersaham.com platform which provides free investment education content for Malaysian investors. This means my clients get access to:
- Regular articles and analysis on the Malaysian stock market
- Educational videos on investing fundamentals and technical analysis
- Free ebook on stock market basics for new investors
- An active investor community sharing knowledge and experience
Education-First Approach
My philosophy as a remisier is to educate, not just sell. I believe that knowledgeable investors make better decisions - and that benefits everyone in the long run. I do not want clients who rely solely on signals without understanding why they are buying or selling a particular stock.
Technology Support
Clients who register through me get access to the Mplus platform, complete with technical analysis tools, real-time market data, and an intuitive online trading experience. Combined with the support from Mahersaham's apps and content, you get a comprehensive investing ecosystem.
Easy to Reach
I believe good communication is the foundation of a successful remisier-client relationship. My clients can reach me through various channels - WhatsApp, Telegram, or social media - for any questions or assistance.
How to Choose a Good Remisier
Choosing the right remisier is an important decision. Here are some tips to help you:
Check Their Licence and Registration
Make sure your remisier is registered with the SC and Bursa Malaysia. You can verify the licence status of any remisier or financial planner through the SC Investment Checker. Never deal with an unlicensed individual - this could expose you to fraud risk.
Assess Their Knowledge Level
A good remisier does more than just key in orders. They should have deep understanding of the stock market, fundamental and technical analysis, and current economic developments. Ask questions - a knowledgeable remisier will not hesitate to share their expertise.
Look for Commitment to Education
Does the remisier provide educational content? Do they share analysis and insights regularly? Remisiers who invest time in educating their clients are usually more committed for the long term.
Consider Communication and Responsiveness
How do they communicate? Are they responsive when you have questions? Are they proactive in sharing relevant information? A good remisier-client relationship is built on open and consistent communication.
Do Not Choose Based on Commission Alone
Many new investors choose a remisier based on who offers the lowest commission rate. While cost matters, it is not the only factor. The value-added services provided by a remisier - in the form of education, support, and advisory - are often far more valuable than saving a few ringgit on brokerage fees.
FAQ - Remisier vs Dealer
1. Does every stock investor need a remisier?
Technically, no. You can trade stocks online without directly interacting with a remisier. However, every CDS account will be linked to a remisier or dealer. Even if you trade on your own, it is beneficial to have a remisier you can contact when you need assistance.
2. How much does it cost to have a remisier?
There is no additional cost for having a remisier. The remisier's commission comes from the brokerage fee you pay on each transaction - it is not a separate charge. Whether you trade on your own or through a remisier, the brokerage rate is usually the same.
3. Can I switch my remisier?
Yes, you can switch your remisier. The process involves filling out a transfer form at your brokerage firm. If you want to switch to a different broker, you will need to open a new CDS account with that broker.
4. What is the difference between a remisier and a Marketing Representative (MR)?
A Marketing Representative (MR) or Trading Partner is an individual who works under a remisier. MRs help remisiers with marketing and opening new accounts, but they do not hold a full licence like a remisier. MRs receive a smaller commission compared to remisiers.
5. Can a remisier guarantee profits?
No. Nobody - including remisiers, dealers, or any financial professional - can guarantee profits in stock investing. The stock market always involves risk. Be cautious of anyone promising fixed returns or guaranteed profits - this is a warning sign of a scam.
6. How do you become a remisier?
To become a remisier, you need to pass the Module 6 (Securities) and Module 7 (Financial Planning & Regulations) examinations administered by the Securities Industry Development Corporation (SIDC). After passing, you need to obtain a licence from the SC and register with a brokerage firm. According to Bursa Malaysia, remisiers must be officially registered before they can operate.
7. Is a remisier responsible if a client loses money?
Generally, a remisier is not responsible for a client's investment losses as long as they carry out duties according to the client's instructions and comply with regulations. However, there are certain situations - such as unsettled contra losses - where a remisier may need to bear part of the losses. This is one of the key risks in a remisier's career.
8. Can I have more than one remisier?
Yes, you can open CDS accounts at several different brokerage firms, and each account can be linked to a different remisier. This allows you to access multiple platforms and advisory services.
Conclusion
Understanding the difference between a remisier and a dealer is an important step for every stock investor in Malaysia. Remisiers offer more personalised and flexible service, while dealers provide the stability of a corporate structure. Most importantly, choose a representative you are comfortable communicating with, who is knowledgeable, and who prioritises your interests as an investor.
If you are just starting to invest in stocks or are looking for a remisier who can guide your investment journey, the first step is to open a CDS account.
Open a CDS Trading Account through Maher Alias to start investing on Bursa Malaysia with ongoing guidance and support. Register here.
Download the Free Stock Market Basics Ebook to understand the fundamentals of stock investing before you begin. Get your free ebook.