This guide is for new Bursa Malaysia investors who want to understand exactly what they are paying on each trade. I am Dexter Chia, a remisier at Malacca Securities, and these are the same explanations I give clients every week when they ask why their contract note total differs from price times quantity.
The Four Costs on Every Bursa Contract Note
When you search brokerage fee Malaysia, most results only talk about the broker’s commission. That is just one of four lines on your contract note.
- Brokerage: Paid to your broker for executing the trade. It is usually a percentage of trade value with a minimum fee per trade, and it differs by broker and account type.
- Clearing fee: Paid to Bursa’s clearing house for settling the trade. It is 0.03% of trade value, capped at RM1,000 per contract.
- Stamp duty: A government duty on the contract. It is RM1 for every RM1,000 of contract value or part thereof, capped at RM1,000. It is not a flat RM1 per trade.
- SST: Service tax charged on the brokerage only, not on the full trade value.
Trades settle on T+2, so the net amount must be paid (for buys) or will be credited (for sells) two market days after the trade date.
Worked Example: A Buy Trade and a Sell Trade
The rates below are illustrative: brokerage at 0.08% with a RM8 minimum, clearing fee at 0.03%, stamp duty at RM1 per RM1,000 and SST at 8% of brokerage. Always confirm current rates on your own contract note or with your broker, as rounding methods also vary.
| Item (illustrative) | Buy: 10,000 units at RM2.50 | Sell: 10,000 units at RM2.80 |
|---|---|---|
| Gross trade value | RM25,000.00 | RM28,000.00 |
| Brokerage (0.08%) | RM20.00 | RM22.40 |
| Clearing fee (0.03%) | RM7.50 | RM8.40 |
| Stamp duty | RM25.00 | RM28.00 |
| SST on brokerage (8%) | RM1.60 | RM1.79 |
| Total charges | RM54.10 | RM60.59 |
| Net amount | You pay RM25,054.10 | You receive RM27,939.41 |
The share price moved 30 sen, a gross gain of RM3,000. After round-trip charges of RM114.69, your actual profit is RM2,885.31.
How Minimum Brokerage Hurts Small Trades
Now take a RM1,000 trade at the same illustrative rates. Brokerage at 0.08% would be just RM0.80, but the RM8 minimum applies instead.
Add the clearing fee (RM0.30), stamp duty (RM1) and SST on RM8 brokerage (RM0.64), and you pay about RM9.94. That is close to 1% each way, or roughly 2% round trip, versus around 0.22% each way on the RM25,000 trade above.
This is the most common surprise for new clients. With a minimum fee, the smaller the trade, the bigger the percentage you lose to costs.
Online Self-Directed vs Trading Through a Remisier
For anyone looking for the best share trading account in Malaysia or the best stock trading platform Malaysia, the right answer depends on how much help you want. At many firms, remisier-assisted trades carry a higher brokerage rate than self-directed online trades.
| Feature | Online self-directed (typical) | Remisier-assisted (typical) | M+ Global with code UBZQ |
|---|---|---|---|
| Brokerage | Usually lower | Often higher | 0.08% up to RM50,000, 0.05% above, minimum RM8 |
| Who places orders | You, in the app | You or your remisier | You, in the app |
| Guidance and stock ideas | None | Yes | Yes, my personal service at no extra charge |
A remisier is an SC-licensed dealer’s representative attached to a stockbroking firm. The extra value is investment guidance, stock ideas, market insights and someone to call when a contract note or settlement looks wrong.
How to Read Your Contract Note Line by Line
Your contract note is available in the app and is usually emailed to you after each trade. Check it the same day.
- Confirm the trade date, and that the settlement date is two market days later (T+2).
- Check the stock name, stock code, buy or sell, quantity and price match your order.
- Recalculate gross value: quantity times price.
- Check brokerage against your agreed rate, and that the minimum was applied only where the percentage falls below it.
- Verify the clearing fee is 0.03% of gross value.
- Check stamp duty: divide gross value by RM1,000 and round up. People often round down here and think they were overcharged.
- Confirm SST is calculated on brokerage only.
- Check the net amount and its due date.
You can also confirm the shares landed in your CDS account through Bursa Anywhere. Remember each broker gives you a separate CDS account number.
Working Out Your Break-Even Price Before You Buy
Using the illustrative rates, each side costs about 0.22% of trade value, so round-trip costs are roughly 0.43%. A quick rule: break-even sell price is about your buy price times 1.0043.
- Calculate your total buy cost including charges (RM25,054.10 in the example).
- Estimate the sell price where net proceeds exceed that figure.
- Round up to the next tradeable price.
In the example, selling at RM2.51 still leaves a small loss after charges. RM2.52 is the true break-even. For trades near the minimum fee, recalculate properly because the percentage rule underestimates costs.
Common Mistakes to Avoid
- Making many small trades where the minimum brokerage eats a large share of any gain.
- Buying odd lots (fewer than 100 units, the standard board lot) without realising the minimum fee still applies and odd-lot liquidity is thinner.
- Forgetting that stamp duty and clearing fees apply on the sell side too.
- Comparing broker trading costs by headline rate only, ignoring minimum fees and service levels.
- Not checking contract notes until a problem has already passed settlement.
Key Takeaways
- Every Bursa trade has four charges: brokerage, clearing fee, stamp duty and SST on brokerage.
- Charges apply on both buy and sell, so think in round-trip terms.
- Minimum brokerage makes small trades expensive in percentage terms.
- Stamp duty rounds up per RM1,000 or part thereof.
- Calculate your break-even price before placing the order, not after.
Frequently Asked Questions
What is the brokerage fee in Malaysia for share trading?
It depends on your broker and account type, but it is usually a percentage of trade value with a minimum fee per trade. My UBZQ clients on M+ Global pay 0.08% for trades up to RM50,000 and 0.05% above, with a RM8 minimum. Always check the rate printed on your own contract note.
Do I pay stamp duty when I sell shares on Bursa?
Yes, stamp duty applies to both buy and sell contracts. It is RM1 per RM1,000 of contract value or part thereof, capped at RM1,000.
What if my contract note shows the wrong fees?
Contact your broker or remisier immediately with the contract number and your calculation. Most discrepancies turn out to be stamp duty rounding or minimum brokerage, but genuine errors should be raised as early as possible.
Do I pay tax on my share profits in Malaysia?
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.
If you want a broker in Malaysia who will check your numbers with you, I am Dexter Chia, a remisier at Malacca Securities Sdn Bhd. Open an M+ Global account with invitation code UBZQ to get my rates and personal remisier service at no extra charge, plus 7 days free access to my AI Stock Trend Terminal. 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?
