This guide is for first-time investors who want to know what a share trade really costs before they place it. It is also for anyone who has received a contract note and could not tell what each line meant.
I am Dexter Chia, a remisier at Malacca Securities. I explain these numbers to clients every week, so I will walk you through them the same way.
Every Charge on a Bursa Malaysia Contract Note
Four charges appear on almost every local trade. Only one of them, brokerage, is set by your broker.
| Charge | What it pays for | Who collects it | How it is calculated |
|---|---|---|---|
| Brokerage | Executing your order, plus advice if you use a remisier | Your stockbroking firm | Percentage of trade value, with a minimum per trade |
| Clearing fee | Clearing and settling the trade | Bursa Malaysia clearing house | 0.03% of trade value, capped at RM1,000 per contract |
| Stamp duty | Government duty on the share transfer | Government (LHDN) | RM1 per RM1,000 or part thereof, capped at RM1,000 |
| SST | Service tax on applicable fees such as brokerage | Royal Malaysian Customs Department | Prevailing rate; check your broker schedule |
A common trip-up is stamp duty. It is not a flat RM1 per trade. A RM2,100 trade counts as three parts of RM1,000, so the duty is RM3.
How Brokerage Is Charged and Why Rates Differ
Most Malaysian brokers charge a percentage of the trade value, with a minimum fee per trade. You pay whichever is higher.
Online self-directed accounts are often priced lower because you make every decision alone. Remisier-assisted accounts have traditionally cost more because they include a licensed dealer representative who gives guidance and handles your queries.
For clients who open M+ Global with my invitation code UBZQ (from 4 Nov 2026), Bursa brokerage is 0.08% for trades up to RM50,000 and 0.05% above RM50,000, with a minimum of RM8. My personal remisier service is included at no extra charge.
Worked Example: Buy and Sell 1,000 Shares
All figures are illustrative. They use the UBZQ brokerage rate and exclude SST, which you should add at the prevailing rate.
Buy 1,000 shares at RM2.00 (trade value RM2,000):
- Brokerage: 0.08% is RM1.60, so the RM8 minimum applies: RM8.00
- Clearing fee: 0.03% = RM0.60
- Stamp duty: two parts of RM1,000 = RM2.00
- Total buy cost: RM2,010.60
Sell 1,000 shares at RM2.10 (trade value RM2,100):
- Brokerage: RM8.00 minimum
- Clearing fee: RM0.63
- Stamp duty: three parts = RM3.00
- Net proceeds: RM2,088.37
Your profit is RM77.77 before SST, not the RM100 the price move suggests. Round-trip costs ate about RM22.
Break-even: you need roughly 2.2 sen per share just to cover fees. In this example, selling at RM2.02 still loses money, while RM2.03 clears costs before SST. That is a move of about 1.1%.
Why Small Trades Are Hit Hardest
The minimum fee is the culprit. Below a certain trade size, you pay RM8 no matter how little you buy.
| Buy value (illustrative) | Brokerage | Clearing | Stamp duty | Total | Cost as % of trade |
|---|---|---|---|---|---|
| RM1,000 | RM8.00 | RM0.30 | RM1.00 | RM9.30 | 0.93% |
| RM2,000 | RM8.00 | RM0.60 | RM2.00 | RM10.60 | 0.53% |
| RM10,000 | RM8.00 | RM3.00 | RM10.00 | RM21.00 | 0.21% |
| RM20,000 | RM16.00 | RM6.00 | RM20.00 | RM42.00 | 0.21% |
Bursa trades in board lots of 100 units. For a low-priced stock, a few lots may be worth only a few hundred ringgit, so the minimum fee becomes a big percentage.
Frequency matters too. Ten small trades a month means ten minimum fees on the buy side and ten on the sell side. Fewer, larger trades are usually more cost-efficient.
How to Read Your Contract Note Line by Line
- Check the trade date and settlement date. Bursa settles on T+2, so payment for a purchase is due two market days after the trade.
- Confirm the stock name, stock code, buy or sell, quantity and price match your order.
- Look at the gross amount: quantity multiplied by price.
- Check brokerage against your agreed rate. If it shows more than the minimum, confirm the percentage is correct.
- Verify the clearing fee is 0.03% of the gross amount.
- Recalculate stamp duty, remembering to round up each part of RM1,000.
- Note the SST line and which fees it applies to.
- Check the net amount: gross plus charges for a buy, gross minus charges for a sell.
Clients often panic when two notes show different brokerage for the same stock. Usually one trade was large enough to exceed the minimum and the other was not.
Costs Beyond Trading Fees
Your CDS account is operated by Bursa Malaysia Depository. You open one CDS account with each broker, so ask whether there is an opening fee and any ongoing account charges. You can view your holdings through Bursa Anywhere.
For foreign markets, my UBZQ rates are US 0.18% (minimum USD8) and Hong Kong 0.18% (minimum HKD48). Ask separately about:
- FX conversion spread when changing ringgit to USD or HKD
- Custody or safekeeping fees on foreign holdings
- Exchange or regulatory fees charged by the foreign market
- Fees for handling dividends and corporate actions
On the plus side, individuals pay no capital gains tax on Bursa-listed shares.
Choosing a Broker in Malaysia: Questions to Ask
People search for the best share trading account in Malaysia or the best stock trading platform in Malaysia. The honest answer is that it depends on your trade size, frequency and how much help you want. For a side-by-side view, see my best stock broker Malaysia comparison.
Before opening an account, ask:
- What is the brokerage percentage and minimum fee for my usual trade size?
- Are online and remisier-assisted rates different?
- Is there a CDS opening fee or any ongoing account fee?
- What are the foreign market rates, FX spread and custody charges?
- Which fees attract SST?
Always confirm current figures on the broker’s published fee schedule and on Bursa Malaysia’s official website. Rates change, and the schedule is what counts.
Common Mistakes to Avoid
- Treating stamp duty as RM1 per trade instead of per RM1,000 or part thereof.
- Ignoring the sell-side costs when calculating profit.
- Buying tiny positions that never earn enough to cover two minimum fees.
- Forgetting FX spreads on US and Hong Kong trades.
- Missing the T+2 payment deadline after a purchase.
Key Takeaways
- Each trade has brokerage, clearing fee, stamp duty and SST, collected by different parties.
- Minimum fees make small trades proportionally expensive.
- Calculate your break-even price, including both buy and sell costs, before entering.
- Check every contract note against your agreed rates.
- Ask about CDS, custody and FX costs, not just brokerage.
Frequently Asked Questions
How much is brokerage fee in Malaysia?
It depends on the broker, but it is usually a percentage of trade value with a minimum per trade. For UBZQ clients on M+ Global, Bursa brokerage is 0.08% up to RM50,000 and 0.05% above, with a RM8 minimum. Check each broker’s official fee schedule for its current rates.
When do I have to pay after buying shares?
Payment is due on T+2, two market days after your trade date. Your contract note shows the exact settlement date, so pay before it to avoid any issues.
What documents do I need to open a share trading account?
Typically you need your MyKad and a bank account in your own name, and the process is done in the app. Requirements can vary, so check the current list on the M+ website before you start.
What if my contract note shows the wrong fee?
Contact your remisier or broker immediately with the contract number and the line you dispute. Recalculate using the steps above first, as most mismatches come from the minimum fee or stamp duty rounding.
If you would like help working out the real cost of your trades or opening an account, message me, Dexter Chia, remisier at Malacca Securities Sdn Bhd, on WhatsApp at +60169059789. Sign up for M+ Global with invitation code UBZQ to get my remisier service at no extra charge and 7 days free access to my AI Stock Trend Terminal.
Need Help With This?
If you are an M+ Global client and need help with this process, message me directly — I handle these requests for clients every week.
WhatsApp: +60169059789 | M+ Global Invitation Code: UBZQ
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,300+ clients at Malacca Securities Sdn Bhd (M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
