Anyone who starts investing on Bursa Malaysia hits the term “CDS account” within the first five minutes: on the broker’s sign-up form, in IPO application screens and on contract notes. This guide explains what it is, how it differs from a trading account, what a nominee CDS account is, and what to do with yours once you have it.
What Is a CDS Account?
CDS stands for Central Depository System, the electronic register run by Bursa Malaysia Depository. Shares on Bursa no longer exist as paper certificates. Instead, every share you own is recorded as a book entry in your CDS account.
Think of it as a locker for your shares:
- When you buy shares, they are credited into your CDS account after settlement.
- When you sell, they are debited out of it.
- When you receive IPO shares, bonus issues or rights, they land in it too.
CDS Account vs Trading Account: What’s the Difference?
You always need both, and they are opened together, but they do different jobs.
| CDS account | Trading account | |
|---|---|---|
| Who runs it | Bursa Malaysia Depository | Your stockbroker (e.g. Malacca Securities for M+) |
| What it does | Holds and records the shares you own | Lets you place buy and sell orders |
| Can you trade from it directly? | No | Yes |
| Needed to apply for an IPO? | Yes, the CDS number goes on the application | No |
You open the CDS account through a broker, which acts as the Authorised Depository Agent. That is why one sign-up form usually opens both. If you trade with two brokers, you will normally have two CDS accounts, one under each broker, each with its own number.
Direct CDS Account vs Nominee CDS Account
This is the most important choice, and many beginners don’t realise they are making it.
- Direct CDS account: the shares are registered in your own name. You receive dividends and corporate notices directly, can attend AGMs, and can apply for IPOs with your own CDS number.
- Nominee CDS account: the shares are registered in the name of the broker’s nominee company and held on your behalf. Many app-based brokers use this model. You are still the beneficial owner, but you are not the registered holder.
The full comparison, covering ownership, dividends, IPO balloting, AGMs and broker risk, is in Direct CDS vs Nominee Account: Which Owns Your Shares?
What Do You Need to Open a CDS Account?
- Age 18 or older
- MyKad (Malaysians) or passport (foreigners, subject to the broker’s acceptance)
- A bank account in your own name, for trading settlement and dividends
- Bursa Malaysia Depository charges RM10 to open a CDS account. Some brokers absorb it during promotions.
Most brokers now open both accounts online with eKYC (a selfie and an MyKad photo), with no branch visit. The step-by-step process is in How to Open a CDS and Trading Account in Malaysia.
Your CDS Account Number
Your CDS account number identifies the account that holds your shares under a particular broker. You will need it for IPO applications, share transfers and registrar queries. You can find it in your broker’s app profile, on contract notes and statements, or in the Bursa Anywhere app. M+ clients will see a 15-digit number starting with 012-001.
The full walkthrough is in How to Find Your CDS Account Number in Malaysia.
How to Check What’s in Your CDS Account
Since 25 August 2025, Bursa sends CDS statements and notices electronically. You can view them in the Bursa Anywhere app or on the MyBURSA portal, or receive them by email. Depositors aged 70 and above still receive printed statements automatically. Others can subscribe to printed statements for RM10 a month.
Inactive and Dormant CDS Accounts
A CDS account doesn’t stay active forever if you leave it alone:
| Status | When it happens |
|---|---|
| Inactive | No debit or credit entries for 36 consecutive months, but the account still holds shares |
| Dormant | A nil balance for 36 consecutive months |
Both can be reactivated through your broker. The steps are in CDS Account Inactive or Dormant? Here’s How to Reactivate. If your application was rejected or is stuck, see CDS Account Rejected or Pending: Fix It Fast.
Why Your CDS Account Matters for IPOs
To apply for a Bursa IPO, you enter your CDS account number in the application through online banking or your broker. If you are allotted shares, they are credited straight into that CDS account before listing day. An account that is not active, or a typo in the number, is one of the most common reasons an IPO application fails. See How to Apply for an IPO in Malaysia.
Frequently Asked Questions
What does CDS stand for?
CDS stands for Central Depository System, Bursa Malaysia Depository’s electronic register of who owns which listed shares.
Is a CDS account the same as a trading account?
No. The CDS account holds your shares. The trading account, with a stockbroker, is what you use to buy and sell. You need both, and they are usually opened together.
How much does it cost to open a CDS account?
Bursa Malaysia Depository charges RM10 to open a CDS account. Some brokers absorb this fee.
Can I have more than one CDS account?
Yes. You normally have one CDS account per broker you trade with, and each has its own account number.
What is a nominee CDS account?
An account where your shares are registered in the name of the broker’s nominee company and held on your behalf, instead of in your own name. You remain the beneficial owner.
Can I open a CDS account online?
Yes. Most brokers, including M+ Global, let you open a CDS and trading account online with eKYC.
What happens to my shares if my CDS account goes inactive?
They stay in your account. An inactive account still holds its shares, and you can reactivate it through your broker to trade again.
Key Takeaways
- A CDS account is your share account at Bursa Malaysia Depository. It holds the shares; it does not trade them.
- You need a CDS account plus a trading account with a broker, and they are usually opened together online.
- A direct CDS account registers shares in your own name. A nominee account registers them in the broker’s nominee name.
- It costs RM10 to open. Keep it active, because accounts go inactive or dormant after 36 months.
- Your CDS number is what you need for IPO applications.
If you want to open a direct CDS and trading account and have someone to ask when things get confusing, message me. I’m Dexter Chia, remisier at Malacca Securities Sdn Bhd, on WhatsApp at +60169059789 or via M+ Global invitation code UBZQ.
Need Help With This?
Opening your first CDS account, or reactivating an old one? Message me and I will walk you through it.
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 2,200+ clients at Malacca Securities Sdn Bhd (M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
