1. Open a Trading Account
Open a trading account from the approved securities / broker company. This will come with your CDS account (account to record your share in Bursa Malaysia).
This is the securities / broker company that approved by Bursa Saham Malaysia.
http://www.klse.com.my/website/bm/brokers/equities/list_of_brokers_alpha.html
To open an account, you will need to fill in the form and a copy of your IC. Some company will provide free account. If not, you will need to pay RM 10 to open a CDS account.
There is 2 kinds of account:
a) Direct Account
b) Pledge Account
Pledge Account, where by the broker company will manage all your dividen, form to sign on rights, annual reports. The company will send everything to the Broker Company. And this Broker company will receive and respond on behalf. If there is any deviden, the Broker Company also will bank in to your account.
Normally if you register with Bank as your Broker Company will provide you this type of account.
And this also include some service charge by the Broker Company.
Direct Account, where Bursa Malaysia will directly link to you. The dividen of the company, Purchase form for Rights, and any other material will directly send to your mailling address.
Normally independent Broker Company will provide you this account.
There is no extra service charge in this kind of account.
2. Do your research / study
As mention in few articles, you need to do studies, know your investment plan.
3. Start Trade
a) DIY Online Trading
A lot of Broker Company provide online trading service. And normally this is cheaper in broker fee (around 0.3% per trading).
You just need to log in to the online trading page, select your stock, and click BUY.
Key in the units that you want(minimum 100 units) and the price that you want.
If your desire buying price is not achieve, then you can see that you are in the buying q.
b) Call your Remisier
This is a very simple way. Just call up your remisier, and tell the remisier on the stocks name, buying unit and desier price.
Normally the remisier will call back if your trade done.
After buying on the stocks, and you can also sell on the desier price.
4. Payment
Of course you will need to pay for the stocks that you buy. Normally, payment is require on T+3.
T means for Trading Day, 3 is the days after trading.
Let say you buy the stock on Monday. Monday is your Trading Day. Thursday is the due date for your payment.
If you sell off your share before or on Thursday, you does not need to pay on the share price. BUT you will pay / receive on the difference of the price or we call as Margin. (Explain more in Margin Trading)
If you plan to keep the share, you will need to pay on Thursday. Else, the broker company will sell off your share and you will pay / receive the margin and a Penalty.
5. Monitor and Respond
If you plan to hold on the share, you will need to monitor. Depends on your strategy, you can buy / sell the share. Some of the company activity might need your responce. (Eg. Rights issue, Bonus, Dividen)
Note: This is the BASIC trading method. We will share on more kind of trading ways and strategy in other topics.
HAPPY INVESTING
Subscribe to:
Post Comments (Atom)
What is the minimum initial investment for stocks?
ReplyDeleteAt first you will need to open an account. Registration fee might be RM 10 (Some Broker Company will give free)
ReplyDeleteThen you will need to pick your stock. In Bursa Malaysia, the minimum unit to purchase is 100 units or we mention it as 1 lot.
Let say you want to buy Airasia. Current price is RM 1.30; so you will need minimum
100 x RM 1.30 = RM 130 + Broker fee ~ RM 2
Your minimum investment is RM 132.
So the minimum initial investment is depends on which share you want to pick up.