Stock Trading Charges in Malaysia

Assalamualaikum and greetings to all. Hope everyone is in good health.

I often get questions about what charges are involved in stock trading. Will I be charged if I cancel an order? What about fees if I hold stocks for a long time?

First and foremost, charges are only imposed when a buy or sell transaction is successfully executed.

On the Mplus platform, check the order status section — if the status shows ALL MATCHED, only then will charges apply. In this article, I will share with you the charges involved in stock trading.

As I mentioned earlier, charges are only imposed when the order is MATCHED. As long as the order has not been MATCHED, no charges will be applied.

4 Stock Trading Charges in Malaysia

First: Brokerage Fee

Stock Trading Charges in Malaysia

Each broker charges a different brokerage fee. Refer to your remisier for details.

However, I am under MPLUS, so I will explain the Mplus rates. Want to open an account? Head over to CDS Account

The Mplus brokerage fee for a Cash Account is a minimum of RM8 or 0.08% (overnight) and 0.05% (intraday).

For example, you buy ABC BERHAD shares worth RM4,500. The charge imposed would be RM8.

Another example: you buy XYZ BERHAD shares worth RM50,000. The charge would be RM50,000 x 0.08%.

IMPORTANT NOTE: 0.05% applies for same-day buy and sell (intraday). If you are not doing intraday trading — meaning you buy today and hold (swing) — the rate charged is 0.08%. In this explanation, I assume this is not an intraday transaction. The investor buys and holds for several days.

The total amount would be RM40.

Second: SST (Exempt for Bursa Shares)

Brokerage fees for trading shares listed on Bursa Malaysia have been exempted from Sales and Service Tax (SST) since 1 January 2022. Before that, 6% SST was charged on the brokerage fee (RM0.48 on an RM8 brokerage). The exemption stayed in place when the service tax rate went up to 8%, so on ordinary Bursa shares you pay RM0 SST.

So in both case studies below, the SST line is RM0.00.

Third: Clearing Fee at 0.03%

The clearing fee is the same across all brokers. The clearing fee is calculated based on the ringgit value of shares you purchase.

For example, buying RM4,500 worth of ABC BERHAD shares, the clearing fee is 0.03% of RM4,500, which equals RM1.35.

Another example: buying XYZ Berhad shares worth RM50,000. The clearing fee is RM50,000 x 0.03% = RM15.

Fourth: Stamp Duty

Stock Trading Charges in Malaysia

Every stock purchase and sale is subject to stamp duty.

Stamp duty is calculated at RM1 for every RM1,000 of transaction value, capped at RM1,000 per contract note.

For example, you buy RM4,500 worth of shares. RM4,500 divided by RM1,000 = RM4.50. This value is rounded up to RM5.00 because stamp duty is charged in whole ringgit amounts (RM1, RM2, RM3, RM4, RM5, and so on).

Case Study: Buy

You buy ABC BERHAD shares worth RM4,500.

The charges involved for the purchase are:

Brokerage fee: RM8.00
SST: RM0.00 (exempt)
Clearing fee: RM1.35
Stamp duty: RM5.00

The total amount is RM14.35.

Case Study: Sell

You sell ABC BERHAD shares worth RM6,000.

The charges involved for the sale are:

Brokerage fee: RM8.00
SST: RM0.00 (exempt)
Clearing fee: RM1.80
Stamp duty: RM6.00

The total amount is RM15.80.

Conclusion

If you find this sharing beneficial, please spread it around so that more people can benefit, Insha ALLAH.

Still don't have a CDS account? If you are interested to learn from Zero to Advanced, you can register for a CDS account with us.

FAQ - Stock Trading Charges in Malaysia

What are the 4 main charges in stock trading on Bursa Malaysia?

There are four charges to know about: the brokerage fee (broker's commission), clearing fee (0.03% of transaction value), stamp duty (RM1 per RM1,000, capped at RM1,000) and SST. For ordinary shares listed on Bursa Malaysia, SST on brokerage has been exempted since 1 January 2022, so in practice you pay the first three on every buy and sell transaction.

Will I be charged if I cancel a stock order?

No. If you cancel your order before it is executed, no charges will be imposed. Charges are only applied when a transaction is successfully executed.

Why is it important to know the charges before buying stocks?

Because charges affect your actual profit. If your gross profit is only RM50 but the total buy + sell charges amount to RM30.15 (as in the case studies above), your net profit is only RM19.85. Without factoring in charges, you may overestimate your returns.

Are stock trading charges the same for all brokers in Malaysia?

Clearing fee and stamp duty are standardised across all brokers, and the SST exemption on brokerage applies at every broker. However, the brokerage fee varies between brokers. Mplus offers among the lowest rates compared to other brokers in Malaysia.

Understanding these charges ensures that you can calculate your net profit accurately and set a realistic target price before selling your shares.

Download our free investment basics ebook to learn the fundamentals of stock investing.

Don't have a CDS account yet? Open a CDS account to start buying shares on Bursa Malaysia.