For an investor to start investing in Bursa Malaysia, they must open a CDS and share trading account. These two accounts serve different functions. Normally, when you open an account with any broker, these two accounts will be created together.
The whole application process can be done by completing physical offline forms or some brokers will provide online applications. With this online application process, opening a share trading account will be hassle-free.
But before we look at how to open a CDS and share trading account, read below for a deeper understanding of what is a CDS account and a trading account.
What Is A CDS Account?
Central Depository System (“CDS”) is a system that is fully owned and operated by Bursa Malaysia Depository Sdn Bhd (“Bursa Depository”), which provides central bookkeeping of securities and facilitates the settlement of securities transactions in a scriptless manner.
Putting it simply, a CDS account acts like a wallet where you keep the shares that you purchased.
Investors who wish to trade in securities listed on Bursa Malaysia Securities Berhad must open accounts on CDS. Securities bought or sold will be credited or debited into the CDS accounts of depositors accordingly.
There are a few ways you can open a CDS account such as walking into any investment bank/broker, registering online via a website and you can also open a CDS account via the Bursa Anywhere mobile app.
Source: Bursa Marketplace
Read: Guide To Registration of Bursa Anywhere Account
What Is A Trading Account?
A share trading account is where you deposit money and use that account to buy/sell stocks via a broker’s trading platform.
Refer to Bursa Malaysia’s website for the list of brokers in Malaysia: List of Participating Organisations
For those who are wondering, an individual investor is allowed to open only one CDS account with each broker. It means that you can have 1 CDS account with different brokers such as Maybank, CGS-CIMB, Malacca Securities, RHB, and many more.
However, a corporate investor may open multiple accounts with the same broker.
It is very easy to open a CDS and share trading account. You have to ensure you have the necessary documents, so the process can be smooth.
Required Documents
There are a few documents that you have to prepare in order to open a CDS and share trading account for an individual. You are required to provide:
- Photocopies of NRIC/Passport
- Latest 3 months’ bank statements
- A copy of the latest 3 months’ payslip
Do you have a trading account? If not, you are invited to open an account with one of the brokers available in Malaysia.
Click this link to open an account with CGS-CIMB: https://www.cgs-cimb.com.my/en/Account-opening-Tr.jsp
Don’t forget to key in PR1M495 in the Remisier Reference section. A designated Dealer’s Representative will attend and assist you with your account opening. All the best in your investment journey!
Now you know how to open a CDS and share trading account? It is very easy, let’s get started today.
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