Stock Trading Costs in Malaysia — Complete Breakdown of Fees & Charges
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Just like any business, stock investing also involves costs.
There are investors who try to sell after seeing their profit reach RM100, but end up only hitting breakeven (no profit, no loss).
That is why it is important for you to know stock transaction costs from A to Z. Generally, there are 4 types of costs involved in buying stocks on Bursa Malaysia:
The cost charged varies depending on the type of account you open and which brokerage firm you choose.
For example, at M+ we offer cash account trading and margin account trading.
The brokerage fee for a cash account is lower compared to a margin account.
An SST charge of 6% will be applied on the brokerage fee only.
The standard rate for all brokers is RM1 for every RM1,000 of investment capital.
For example, if you invest RM10,000 to buy stocks, the stamp duty would be RM10.
If you invest RM8,000 to buy stocks, the stamp duty charged would be RM8.
The standard rate for all brokers is 0.03% of the total contract value.
If you invest RM10,000, the clearing fee would be 0.03% of RM10,000.
We will show you two scenarios to give you a picture of how transaction costs will affect your profit if your investment capital is too small.
Initial Capital and Profit
| BUY | SELL (2% profit) | SELL (5% profit) | |
| Trade Price | 1.00 | 1.02 | 1.05 |
| Total Shares | 900 | 900 | 900 |
| Proceed (RM) | 900.00 (A) | 918.00 (B) | 945.00 (C) |
Buying and Selling Costs Involved
For Scenario B, you can see that with a gross profit of 2%, the investor still incurs a loss because the stock trading costs exceed the profit percentage from selling the stock.
Calculation: RM908.24 - RM909.75 = -RM1.51
Scenario C, with a gross profit of 5%, the investor can finally enjoy a profit because the stock trading costs are lower than the profit percentage from selling the stock.
Calculation: RM935.235 - RM909.75 = RM25.485
| BUY | SELL (2% profit) | SELL (5% profit) | |
| Trade Price | 1.00 | 1.02 | 1.05 |
| Total Shares | 5,000 | 5,000 | 5,000 |
| Proceed (RM) | 5,000.00 (A) | 5,100.00 (B) | 5,250.00 (C) |
Buying and Selling Costs Involved
| Brokerage Fee (RM) | 8.00 | 8.00 | 8.00 |
| SST 6% (RM) | 0.48 | 0.48 | 0.48 |
| Stamp Duty (RM) | 5.00 | 5.00 | 5.00 |
| Clearing Fee (RM) | 1.50 | 1.53 | 1.58 |
| Total cost (RM) | 14.98 | 15.01 | 15.06 |
| Contract Price (RM) | =5,000 + 14.98 =5,014.98 (Scenario A: Buy) | =5,100 - 15.01 =5,084.99 (Scenario B: Sell) | =5,250 - 15.06 =5,234.94 (Scenario C: Sell) |
With a larger investment capital, whether the gross profit is 2% or 5%, you will still record a profit. Calculation:
2%: RM5,084.99 - RM5,014.98 = RM70.01
5%: RM5,234.94 - RM5,014.98 = RM219.96
Our advice: if you want to invest, a suitable starting capital is RM5,000 and above.
Otherwise, you will have to bear the risk of losses due to transaction costs.
If you still want to start investing with a small capital, you can — but make sure your gross profit is at least above 3%.
The main costs include brokerage fee, clearing fee (0.03%), stamp duty (RM1 per RM1,000 transaction value), and SST (6% on brokerage fee). All these costs are charged on every buy and sell transaction.
Most brokers charge a minimum brokerage fee of around RM8 to RM12 per transaction. This means even if you buy shares worth RM100, you still need to pay the minimum fee.
Because transaction costs are charged twice — once when buying and once when selling. If the total buying cost + selling cost exceeds your gross profit, you will only breakeven or incur a loss. It is advisable to ensure your gross profit exceeds 3%.
No. Each broker has different brokerage fee rates. Mplus, for example, offers amongst the lowest rates in Malaysia. Clearing fees and stamp duty are standard rates set by Bursa Malaysia.
Understanding stock transaction costs is essential so you can calculate your actual profit and set a realistic target price for each trade.
Download our free investment basics ebook to learn more about the costs and strategies of stock investing.
Ready to start investing? Open a CDS account to begin buying stocks on Bursa Malaysia.