This guide is for first-time investors, people comparing brokers, and anyone who has looked at a contract note and wondered why the net amount is not what they expected. I handle these questions every day for my clients, so I will walk you through the calculation exactly as I explain it to them.
The Four Cost Layers on Every Bursa Trade
Not all of the fees you pay go to your broker. Only brokerage is the broker’s income. The rest is collected on behalf of Bursa or the government.
| Fee | How it is charged | Who receives it |
|---|---|---|
| Brokerage | Percentage of trade value, subject to a minimum per trade | Your broker (shared with your remisier, if you have one) |
| SST on brokerage | Current SST rate applied to the brokerage amount only | Government, collected by the broker |
| Clearing fee | 0.03% of trade value, capped at RM1,000 per contract | Bursa Malaysia’s clearing house |
| Stamp duty | RM1 per RM1,000 of contract value or part thereof, capped at RM1,000 | Government (LHDN), collected by the broker |
Clearing fee, stamp duty and SST rates can change in a national budget. Before relying on any figure, check current Bursa Malaysia and LHDN announcements.
Worked Example: Calculating a Buy and a Sell
Fill in three placeholders from your own broker’s fee schedule: B = your brokerage rate, M = your minimum brokerage per trade, S = the current SST rate on brokerage.
Buy: 1,000 units (10 board lots of 100 units) at RM2.00.
- Trade value: 1,000 × RM2.00 = RM2,000.
- Brokerage: the higher of (B × RM2,000) or M.
- SST: S × brokerage.
- Clearing fee: 0.03% × RM2,000 = RM0.60.
- Stamp duty: RM2,000 is two blocks of RM1,000, so RM2.
- Total you pay: RM2,000 + brokerage + SST + RM2.60.
Sell: the same 1,000 units at RM2.20.
- Trade value: RM2,200.
- Brokerage: the higher of (B × RM2,200) or M, plus SST on it.
- Clearing fee: 0.03% × RM2,200 = RM0.66.
- Stamp duty: RM3. This trips people up. RM2,200 is two full thousands plus a part, and the part counts as a full RM1.
- Net you receive: RM2,200 − brokerage − SST − RM3.66.
Your real profit is the net you receive minus the total you paid. Settlement is T+2 for both sides.
Minimum Brokerage and Your Breakeven Price
On small trades, the minimum charge applies instead of the percentage. Your effective rate is M ÷ trade value. For a hypothetical RM10 minimum on a RM500 trade, that is 2% each way, or about 4% for the round trip before stamp duty.
Stamp duty rounding adds to this. A RM500 trade still pays RM1, which is 0.2%.
To find your breakeven:
- Add up your total buy cost, including all fees.
- Estimate sell fees using your buy value as a starting point.
- Breakeven price = (total buy cost + estimated sell fees) ÷ number of units.
- Recalculate sell fees at that price and adjust slightly if needed.
If the breakeven sits several price steps above your buy price, the trade is probably too small for your fee structure.
Online Self-Directed vs Remisier-Assisted Trading
Many brokers charge a lower rate when you place orders yourself online and a higher rate when a remisier assists you. A remisier is an SC-licensed dealer’s representative attached to a stockbroking firm.
The extra cost usually pays for stock ideas, market insights, help placing orders by phone or WhatsApp when you cannot access the app, and someone to call when a corporate action or margin call confuses you. Whether that is worth it depends on how much guidance you need. Some arrangements include remisier service at no extra charge, so ask.
Reading Your Contract Note and Monthly Statement
The contract note is issued for each trade. It shows the trade date, settlement date, stock, quantity, price, gross value, and each fee on its own line: brokerage, clearing fee, stamp duty and SST. The final line is the net amount payable or receivable.
Check every line against your own calculation. If the brokerage line looks wrong, compare it with your agreed rate and the minimum.
The monthly statement summarises all trades, cash movements and holdings. Look here for charges that do not appear on contract notes, such as CDS-related fees or foreign custody fees. You can find both documents in the app, and you can cross-check your CDS holdings through Bursa Anywhere.
Other Charges to Check Before Opening an Account
- CDS account opening or transfer fees. You open a separate CDS account with each broker, so moving shares between brokers can cost money.
- Foreign market fees: brokerage minimums in USD or HKD, exchange-imposed levies, currency conversion spreads and custody fees.
- Charges for corporate actions, dividend handling or physical statements.
- Deposit and withdrawal charges, and any inactivity fees.
Ask your broker or remisier for the official fee schedule in writing. Do not rely on a promotional banner.
Answering the Common Searches
Brokerage fee Malaysia: it is set by each broker, usually a percentage with a minimum, plus SST. Broker trading: you can trade online yourself or through a remisier. Best share trading account in Malaysia and best stock trading app Malaysia: the best one is the account with the lowest total cost for your typical trade size, with an app you find reliable. For a broader comparison, see my best stock broker Malaysia guide.
Checklist: Compare Brokers on Total Cost
- What is the brokerage rate and minimum for my usual trade size?
- Is the rate different for online and remisier-assisted orders?
- What are the foreign market rates, minimums and custody fees?
- Are there CDS, transfer, inactivity or withdrawal charges?
- Can I get the full fee schedule in writing?
- Who do I call when something goes wrong?
For the last question, my guide on how to choose a remisier on this blog covers what to ask.
Common Mistakes to Avoid
- Comparing headline rates while ignoring the minimum fee.
- Counting only buy-side fees and forgetting the sell side.
- Treating stamp duty as a flat RM1 per trade.
- Buying a single board lot of a low-priced stock where fees exceed the expected gain.
- Never checking contract notes against your agreed rate.
Key Takeaways
- Only brokerage is broker income; clearing fee, stamp duty and SST go to Bursa or the government.
- Calculate fees on both buy and sell before entering a trade.
- Minimum brokerage can make small trades very expensive.
- Your contract note and monthly statement show every fee line.
- Compare brokers on total cost for your own trade size.
Frequently Asked Questions
How much does it cost to buy shares on Bursa Malaysia?
It costs brokerage plus SST, a 0.03% clearing fee and stamp duty of RM1 per RM1,000 or part thereof. Your brokerage rate and minimum depend on your broker, so check its current fee schedule.
Do I pay capital gains tax when I sell Bursa shares?
No, individuals pay no capital gains tax on shares listed on Bursa Malaysia. From YA2025, individuals pay 2% tax on Malaysian dividend income above RM100,000 a year.
What if my contract note shows a wrong fee?
Contact your remisier or broker’s customer service as soon as you spot it, with the contract number ready. They will check against your agreed rate and correct it if an error was made.
Are my shares protected by PIDM?
No, PIDM covers bank deposits, not shares held with a broker. Your Bursa shares are recorded in your own CDS account, operated by Bursa Malaysia Depository Sdn Bhd.
If you want help working out your own trading costs or opening an account, I am Dexter Chia, a remisier at Malacca Securities Sdn Bhd. Open M+ Global with invitation code UBZQ to get my personal remisier service at no extra charge, plus 7 days free access to my AI Stock Trend Terminal at ai.dexterchia.com. Check the current fee schedule when you sign up, and WhatsApp me at +60169059789 with any questions.
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?
