How to trade on Bursa Malaysia?

How do you trade on Bursa Malaysia? Simple! You need to have TWO accounts:

1) Open CDS account Central Depository System Account

2) Open Direct Trading Account or Nominees Account

1) CDS account which is the account maintained by Bursa Malaysia where they kept all the shares you owned/transacted. (Something like your saving account where it will keep your Credit/Debit transactions)

2) Direct Trading/ Nominees Account is maintained by the stock broker. Where you need this account to trade shares.

Direct Trading Account

* Able to apply for IPO

* Your name shall be register in the Share Registrar

* Transfer of share to another direct trading is viable

* Annual Report, divided, etc will be mail directly to you

While Nominees account shall be the opposite of the mentioned Direct Trading Account:

* Unable to apply IPO

* Your name shall not be register in the Share Registrar (Stock Broking Company shall represent you on behalf)

* Transfer of share to another direct trading is not viable (If necessary you can have it transfer to a direct trading)

* Annual Report, divided, etc will not be mail directly to you

Since Direct Trading Account has all the advantage, why there is a Nominees Account? Simple! Nominees account has a lower brokerage fees as it act as an intermediate house to represent you.