Trust Account & Available Trading Limit at M+ — Complete Fund Flow Guide
Among the most common questions from M+ clients are "why did my money decrease after depositing?", "what is the difference between Trust Account and Available Trading Limit?", and "why is there money in my trust but I can't trade?". This article provides a complete explanation of how the fund system in your M+ account works.
What Is a Trust Account?
A Trust Account is a custodial account that holds your cash at M+. It functions as a "wallet" within your trading account. All money you deposit enters here first before being used for trading.
Simple analogy: Trust Account = Your actual cash balance at M+. Available Trading Limit = How much you can use to buy stocks right now.
Why Is It Called "Trust"?
Because Malaysian law requires brokers to keep client funds in a trust account that is separate from the broker's own company funds. This protects your money if the broker faces financial difficulties.
Trust Account vs Available Trading Limit
These are two different figures that often confuse new clients:
| Item | Trust Account | Available Trading Limit (ATL) |
|---|---|---|
| What is it? | Your actual cash balance | Amount you can use to buy stocks |
| When updated? | After settlement (T+2) | Immediately after deposit/trade |
| Can withdraw? | Yes, only from Available Trust Withdraw | No — this is not your actual balance |
| Example | Deposit RM 5,000 → Trust = RM 5,000 | ATL = RM 4,935 (after buffer) |
Why Is ATL Less Than Trust?
M+ reserves 0.5%–1.3% of your deposit as a buffer to cover upcoming transaction costs (brokerage fee, clearing fee, stamp duty, SST). This buffer money is not deducted — it is only "locked" temporarily and can be withdrawn if unused.
Money Flow in Your M+ Account
Here is the flow of funds from deposit to withdrawal:
- Deposit → Money enters your Trust Account
- Buffer reserved → A small portion is reserved → Remaining becomes Available Trading Limit
- Buy stocks → ATL decreases by purchase value + estimated costs
- Settlement T+2 → After 2 business days, transaction settles → Trust Account updates
- Sell stocks → Proceeds enter Trust after T+2
- Withdraw → From Available Trust Withdraw to your bank account
Important: Available Trust Withdraw ≠ Trust Account balance. You can only withdraw money that is "free" — meaning money not tied to any pending settlement.
Why Does Money Decrease After Depositing?
This is the number one question from new clients. Example scenarios:
- Deposit RM 1,000 → Available Trading Limit shows RM 950
- Deposit RM 5,000 → Available Trading Limit shows RM 4,935
- Deposit RM 10,000 → Available Trading Limit shows RM 9,870
Answer: Reserve Buffer
M+ reserves a small portion (~0.5%–1.3%) as a transaction cost buffer. This is not a charge — it is only an estimate of costs that may arise when you trade. If you don't trade and withdraw everything, you will get back the full RM 1,000.
Calculation Examples
| Deposit | Buffer (~1.3%) | Available Trading Limit |
|---|---|---|
| RM 1,000 | ~RM 13 | ~RM 987 |
| RM 3,000 | ~RM 39 | ~RM 2,961 |
| RM 5,000 | ~RM 65 | ~RM 4,935 |
| RM 10,000 | ~RM 130 | ~RM 9,870 |
Note: Buffer percentage may vary slightly depending on account type and deposit size.
Available Trust Withdraw — When Can You Withdraw?
Available Trust Withdraw shows how much money you can withdraw at that moment. It differs from the Trust Account balance because:
- Stock sale proceeds — Enter Trust after T+2 (2 business days after selling)
- Newly deposited money — Usually withdrawable on the same day or next day
- Money tied to pending orders — If there are unmatched orders, funds are temporarily locked
Example Scenario
You sell stocks on Monday worth RM 5,000:
- Monday: Sell stocks → ATL increases immediately (can use to buy other stocks)
- Tuesday: T+1 — Funds still in settlement process
- Wednesday: T+2 — Funds enter Trust Account. Available Trust Withdraw increases → Now you can withdraw
Trust Has Money But Can't Trade?
This situation occurs when you see a balance in your Trust Account but Available Trading Limit shows zero or less. Common causes:
| Cause | Explanation | Solution |
|---|---|---|
| Pending settlement | Funds tied to unsettled transactions | Wait for T+2 settlement to complete |
| Outstanding contra loss | Contra losses must be settled before trading | Deposit additional funds to cover contra loss |
| Account frozen | Account may be frozen due to compliance issues | Contact M+ customer service: 1300 22 1233 |
| System not updated | System sometimes slow to update after deposit | Wait until after lunch hour or next day |
| 3rd party deposit | Deposit from another person's bank — pending status | Deposit requires manual verification by M+ |
Cash Movement Statement
To understand every money movement in your account, check the Cash Movement Statement in the M+ app:
- Location: Menu Account > Statement > Cash Movement
- Shows every deposit, withdrawal, purchase, sale, and charge
- Useful for reconciling if you feel the balance is incorrect
- Can be downloaded as PDF for personal records
Common Items in Cash Movement
| Item | Meaning |
|---|---|
| FPX Deposit | Deposit via online banking |
| Purchase | Stock purchase (T+2) |
| Sales Proceed | Stock sale proceeds (T+2) |
| Brokerage | Broker fee |
| Clearing Fee | Clearing charge |
| Stamp Duty | Stamp duty |
| Withdrawal | Withdrawal to bank |
| Dividend | Stock dividend received |
Does Money in Trust Earn Interest?
No. Cash sitting in your M+ Trust Account does not earn any interest or dividends. It is simply held as cash. If you want your money to generate returns, you need to invest (buy stocks) or withdraw it to other instruments.
Frequently Asked Questions
Why is my Available Trading Limit negative?
This is usually caused by unsettled contra losses. You need to deposit funds to cover the losses before you can trade again.
Deposited in the morning but ATL not updated, why?
FPX deposits usually update within 15–30 minutes. If it has been more than 1 hour, check if the money has been deducted from your bank. If yes, contact M+ customer service.
Can I withdraw all money in trust?
You can only withdraw the amount shown in Available Trust Withdraw. If there is pending settlement, some funds remain locked until T+2 is complete.
How long does withdrawal take to reach my bank?
Withdrawals require 3 business days to process. If you request withdrawal before 4 PM, counting starts that day. "Updated" status means the bank has received the request — wait 1-2 more days for funds to arrive.
Trust Account vs Cash Account — what's the difference?
Cash Account is a type of trading account (as opposed to Margin Account). Trust Account is where money is stored. All account types (cash or margin) have a Trust Account.
Need help? Contact our team at t.me/mahersahamplatform for any questions about your account balance and funds.
This article was written by Wan Mahersaham, a registered M+ Online remisier, as a reference for investors to understand the flow of funds in their trading accounts.