What Is a Stock Broker in Malaysia? Complete List & How to Choose
What Is a Stock Broker?
Many people misunderstand this concept.
According to the dictionary, a broker is a middleman in business transactions.
Many assume that a stock broker is an individual, much like a property broker or car broker. However, a stock broker is actually a company.
A stock broker is a licensed intermediary company that connects investors with Bursa Malaysia.
This is because investors cannot purchase company shares directly from Bursa Malaysia.
Open Stock Market Structure
Company: A company listed on Bursa Malaysia whose shares are available for public purchase.
Bursa Malaysia: Formerly known as the BSKL stock exchange, it functions as a marketplace that facilitates buying and selling between the public (investors) and companies (business owners).
Broker / Investment Bank: A company that holds a licence and authorisation from the Securities Commission (SC) to act as an intermediary connecting the public (investors) with companies (business owners).
Dealer/Remisier: If someone wishes to open a CDS share account, they must do so through a dealer or remisier who manages the account. Dealers and remisiers are also responsible for executing buy and sell transactions.
Investor: The general public (all of us).
List of Stock Brokers in Malaysia
According to Bursa Malaysia, there are 29 stock broker companies in Malaysia. The image above is merely a list of companies and does not represent any ranking.
With so many stock brokers available, choosing the right one can feel overwhelming. To make an informed decision, you will need to do some research.
Among the many options, there are certainly differences between them.
So what sets each stock broker apart? Let us continue reading.
Differences Between Stock Brokers
The most notable differences between stock brokers include:
- 1. Brokerage fee
- 2. Trading platform
- 3. Services provided by the Broker / Remisier
Brokerage Fee
As we know, stock investing involves transaction costs for buying and selling.
The brokerage fee is one of these costs.
The charges vary depending on the type of account you open and the broker company you choose.
For example, at MALACCA SECURITIES SDN BHD (Mplus / M+), they offer cash account trading and margin account trading.
The brokerage fee for a cash account is lower compared to a margin account.
The brokerage fee charged by MALACCA SECURITIES is as follows:
| INTRADAY | 0.05% | Minimum RM8 |
| SWING | 0.08% | Minimum RM8 |
Brokerage fees at Mplus are very affordable
You can read more in the article on Mplus online brokerage fees.
Trading Platform
Mplus (M+) has a user-friendly trading platform. The M+ Online Trading Platform and M+ Online Application interfaces are easy to understand and simple to learn.
If you would like to buy and sell shares through the Mplus platform but are still unsure how, do not worry. You can read the article on buying and selling shares on the Mplus platform.
For those using the M+ Online Application, you can read the article on key features of the M+ Online application for further information.
Services by Broker / Remisier
Their primary role is to execute buy and sell transactions for shares.
If someone wishes to open a CDS share account, they must open it through a dealer or remisier who will manage the account.
Haven't got a CDS account yet? Open a CDS Trading Account with Mahersaham and join our exclusive classes for Mahersaham clients.
We hope this article has answered your questions about stock brokers. May it be beneficial to you.
FAQ - Stock Brokers in Malaysia
What is a stock broker and what is its role?
A stock broker is a licensed intermediary company registered with Bursa Malaysia that facilitates the buying and selling of shares on behalf of investors. Unlike property brokers who are individuals, stock brokers refer to securities firms such as Malacca Securities, RHB, and Maybank.
What is the difference between a broker and a remisier?
A broker refers to a licensed securities firm or company, whereas a remisier is an individual dealer representative who works under the broker firm. Remisiers are responsible for executing share buy and sell transactions and assisting investors in opening CDS accounts.
How many stock brokers are there in Malaysia?
There are more than 20 licensed and registered stock broker companies in Malaysia. These include Malacca Securities, RHB Investment Bank, Maybank Investment Bank, CIMB Securities, and Kenanga Investment Bank.
How do I choose the right stock broker for me?
You can choose a broker based on several factors such as the commission rate or brokerage fee, the convenience of the online trading platform, customer service quality, and the ease of opening a CDS account. Ensure the broker is registered with the Securities Commission Malaysia (SC).
Level Up Your Investment Knowledge
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Investment Basics:
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Further reading: