The COVID’19 pandemic has been catastrophic to the world as a whole. It has sunk a variety of businesses and even brought new meaning to the word poverty. Businesses of all kinds are trying to find new ways to innovate and pivot their existing revenue streams to stay afloat. Now, the question lies in, what we can do as individuals to innovate our existing revenue streams to stay afloat. One way of doing it would be through trading. Yup! Today’s topic will discuss the 7 best Trading Account in Malaysia.
Trading has long been in existence even before the pandemic. Individuals have become overnight successes from trading. The flip is also true where individuals have lost everything through trading. So, we will share with you all existing trading accounts in Malaysia for your understanding before cracking into the world of trading.
Before we do that, we would like to bring forth meaning to the word trading. The word trading in the English dictionary means to buy or sell an item or services. However, depending on what you are trading especially stocks, the factors of time and predictive analysis can play a huge role.
What are the 7 best trading accounts in Malaysia?
Here are a few best trading account in Malaysia that you can view.
Rakuten Trade Trading Account
Rakuten trade is licensed by Securities Commission of Malaysia. It holds a restricted Capital Market Services license as well. They trade within the equity industry. The products that they have to offer are also very diverse. It includes a cash-upfront account, cash upfront & contra accounts, and of course their very own cash upfront and Rakumargin accounts.
The main selling point for Rakuten includes
- Their fully licensed capability to even provide investment advice
- Instant rewards to choose from upon sign-up
- Internal mechanism to convert points to BIG, Bonuslink or Boost points
- Low brokerage fee
Although, one thing we would like Rakuten to improve on would be their slow dividend processing. The process will take at least 5 working days. This definitely proves to be an issue compared to other trading accounts. Aside from which, it has an earlier corporate action deadline. So, if you miss this, you would have forfeited the opportunity.
All in all, Rakuten trade account processes and characteristics are still considered to be the leaders in the market. There are not many trading organizations that would provide advice to you to trade better. Here is a summary of its of suitability.
Pros
- Fully licensed by Securities Commission of Malaysia
- RT point conversion capabilities
- Low brokerage fee (RM7.00 min)
Cons
- Slow dividend processing time
HLeBroking
HLeBroking is an online share trade portal straight from Hong Leong Investment bank. It is specially designed with the customers in mind. It provides all services of a convention broker and more. One of the best advantages of this HLeBroking platform is that it allows for customers to trade with better margins. It also provides advanced customers information to assist with their investment decision.
The main selling point of the HLeBroking is
- Low brokerage fee
- Real-time stock quotes
- Access to news powered by Dow Jones
- HLeChart powered by NextView
The downside would be in terms of the security features of the account. As we all know that our phones and even bank accounts all come with biometric sensors (FaceID). This raises more scepticism when their banking app has it. Additionally, we all know that we always get larger phone screens to see images better. Although, what happens when the image is stuck on horizontal. This is a problem where the HLeChart cannot be rotated.
In short, the app is heavily supported by its mother company which is Hong Leong Capital Berhad. This organization is listed on the main board of Bursa Malaysia. Although, backed such a financial giant, we feel that there are definitely ways to go for the app. Here are some of its suitability.
Pros
- Low brokerage fee (RM8.00 min)
- Improved user experience features
- Ability to trade foreign stocks such as US & UK
Cons
- Lagging issues and stability of app
AmEquities Stock Trading
AmEquities is a specially designed platform by Ambank berhad. They want to make internet stock trading as fast, convenient, reliable and enjoyable for the user as possible. Similar to others, they have a large variety of products available for consumers to trade on. This includes equities, foreign investing services, share margin financing and more.
The main selling point of AmEquities comes are
- Its uniquely adaptable platform
- Real-time Bursa Malaysia quotes
- Bursa Malaysia News and Company Announcements
- Timely push notifications
The downside would be the app function itself. It seems based on Google Play reviews. The product does not really cater too well to Android users. The main problems faced would be lagging, screen freezes and loading issues. It seems these loading issues could in certain instances make or break the individual’s investment chances as it takes time for them to make a trade.
In short, this AmEquities trading accounts seems to provide a very good user experience when comes to the desktop view or usage but not on the app. Even though, one of the unique selling points is their adaptability. We can deduce that this could be situation of Ambank spreading their data configuration capabilities too thin. It still however competes relatively well with its competitors. Here are some of its suitability.
Pros
- Ability to enter a wide range of prices
- Real-time bursa quotes
- Contest for trade and win chances
Cons
- Buggy app functions
- High brokerage fee (RM28.00)
MayBank Investment Account
Maybank is the bank that all Malaysians are familiar with. This ranging from their wide product ranges in diverse fields. From loans, banking & finance, and their MAE app. They certainly have not left themselves out of the trading industry. This is made even more attractive when all these can be easily view in the Maybank2u.com platform.
The main selling points of their system comes in the form of
- Real-time stock processing
- Discounted brokerage
- Latest news & announcements from Bursa
- Online cash withdrawal
Unfortunately, the downside for this product is its lack of promotion and rather high brokerage fee. The product offerings compared to the MAE app and their other products does not receive the promotion that it rightly deserves. The higher-than-average brokerage fee certainly does not make things much better for them.
All in all, Maybank being the powerhouse that it is in the entire financial industry. The product certainly rivals all other competitors by pure brand name itself. It also goes to show that Maybank always put consumer convenience at heart by integrating the investment feature direct into the Maybank2u app. This makes many more features more accessible especially cash withdrawals. Here are some of its suitability
Pros
- Real time stock processing
- Integration to Maybank2u app
- Cash withdrawal functions with ease
- High brand awareness
Cons
- Higher brokerage fee (RM12.00)
- Low promotional efforts
CGS-CIMB iTrade
CIMB berhad, a brand that you would only be compared to Maybank berhad. CGS-CIMB would be a flagship online share trading platform with a leading investment bank. In fact, it is so much so that they have won a variety of recognition and awards. This includes Best Broker in Malaysia and Best Overall Equities Champion in 2019. Here are some of its main selling points
- Easy to use sharing trading platform
- FTSE Bursa Malaysia KLCI and Bursa Malaysa Futures live quotes
- Free access to regional research reports
- Electronic share application services for IPOS
We want to highlight that this product brings forth a more than average selling points that caters to everyday consumers. However, it also allows for research reports and technical analysis in Chinese. This is truly a testament to their vision of being ASEAN banking choice. In fact, the other point worthy of highlight is their auto e-mail notifications of IPO on balloted results without delay.
However, with all its greatness. There are definitely disadvantages with this product. This comes in the form of its limited global exchange. CGS-CIMB only facilitates trades from a limited to number of markets which only covers. This is a far smaller pool compared to its competition.
- Singapore (SGX)
- Malaysia (Bursa)
- Hong Kong (HKEX)
- Thailand (SET)
- Indonesia (IDX)
- Shanghai (SSE)
- Shenzhen (SZSE)
- Vietnam (VN)
- United States (Nasdaq and NYSE)
All in all, the product is definitely one of the top leaders in the market. It is backed by a large number of data which can prove and diminish any hypothesis. Additionally, the variety in language that it provides to its consumers definitely shows that it cares and wants to social inclusivity at all stages. Here are some of its suitability
Pros
- Variety of language to consumers
- Provides access to e-IPO
- No delay in auto e-mail notifications
- Data backed by award winning analysts and economists.
Cons
- Limited global exchange
- High brokerage fee (RM28.90)
Affin Hwang e-Invest Go
Affin Hwang is once again anther huge financial player that has skin in the training industry. This would be in the form of their e-Invest platform. It is relatively new in the market but definitely one that we should all keep our eyes on. As quoted by the CEO of Affin Hwang, the bank is the first investment bank in Malaysia to offer a fully online account opening service.
Some of the main selling points of this product would include
- Fully online account opening
- Low brokerage fee
- Live price quotes and trading functions
- Personalised products and services
Certainly, one main thing that we want to highlight is its security feature in account opening. As we know most account opening happenings in person but with the pandemic, this is certainly a challenge. Affin taking this into consideration has ensure a simple, smart and secure system neatly packaged into the e-Invest Go.
The downside of this product definitely comes from being the new kid on the block and some typically bug features. According to the Google Play store, the pages take a long time to reload when switching to other screens on your mobile device. So, we recommend that if you are using this app. Do not change screens too often.
In short, this app definitely has some glitches to be fixed but with the direction that Affin is heading towards and how they are going to improve this app as time passes. It will surely be one of the leading trading account apps to be looking forward to. This is especially said with its fully online security features. Here are some of its suitability
Pros
- Excellent security features
- Fully secure online account opening
- Low brokerage fee (RM5.00)
- Useful educational materials
Cons
- Buggy loading features
- Lack of brand awareness
KenTrade Online Share Trading Account
Kenanga investment bank is a Malaysian financial services company. They have been established for more than 45 years. Today, their motto is to drive continuous improvement and commitment towards collaboration, innovation and digitisation of the marketplace. Kentrade is an integrated financial portal that provides share trading capabilities. Some of their main selling points include
- Their on-the-go capability
- Global trading capabilities
- Research report
- Investment tools (Technical Analysis, Invesk, Fundamental Data, Good till date order)
One of the main disadvantages of this product comes with its high brokerage fee. Their fees are one of the highest in the market. This is at a staggering RM28.00. Additionally, this is not so much a disadvantage but consumer’s review mentioned that if there would be a place to view “closed positions”. It would be very helpful to traders all alike.
In short, KenTrade can be considered as one of the premiums in the market. This is like how Louis Vuitton is the premium is the retail industry. However, all these premiums definitely give it its consumers convenience at their fingertips. As reviews have stated, this has definitely been the case for the app in the current market. Here are some of its suitability.
Pros
- Brand recognition in Bursa Excellence
- Secure, fast and convenient e-payment
- On-the-go capabilities
- Security features
Cons
- High brokerage fee
Frequently Asked Questions (FAQs)
Consumers always ask what are the main key pointers to look out for when it comes to selecting a best trading account in Malaysia. This is because majority of the products in the market are pretty similar in stature and offerings. Here are three questions that you may be asking yourself now.
Is it brokerage fee considered a deal breaker?
We would say, it is not a deal breaker. This is because like all products on a premium scale, the prices that have to be paid are bigger. We encourage to find a middle ground in terms of prices such as Maybank or Ambank.
I have no knowledge about stock broking, how can I begin?
We recommend that you tap into your circle of friends to provide you this knowledge, preferably if there is someone you trust that is in the field. However, if you do not have anyone who is experience in this matter. We recommend sourcing from sites such as “Investronomics” or “GreenTrades”
There are a variety of trading account that are available. Which one do I know is fit for me?
Our recommendation would be for you to study all available accounts and determine the best fit for you depending on your risk appetite and its returns. The rule of thumb would be to look for the account that provides the highest return and with the largest support. This would be all while looking for accounts that charges the lowest brokerage fee.
Selection Guide
In terms of selecting a proper trading account, we would recommend that you always base your decision on your risk appetite and spending power for investment. We are here to show you a variety factors that you should take into consideration when selecting the best trading account in Malaysia for yourself. Here are 6 factors.
Brokerage fee
Brokerage fee ranges from as far RM28.90 to RM5.00 in the Malaysian industry. These fees are the fees you pay to a broker to select which stock to purchase or sell. These brokers also provide advice to you in terms of when to sell the stocks. This could be a huge advantage to you assuming you get a good broker. So, sometimes the higher the price grants you a better broker. This would be give you more skin in the game.
Funds available
There is another fundamental tip that should be a given. This is where one has to decide how much capital do, they have to spend. In terms of market spend on investment, many traders often risk only 1% or 2% of their account on the trade. So, this means if you have RM4,000 monthly salary. You should only invest RM40 to RM80 in stocks. This would be a conservative amount, however it all depends on your own risk appetite.
Availability of investment tools
Many trade accounts provide you with investment or trading tools. These could come in the form of webinar sessions or research tools. When it comes to investment, all we scan say is. Research, research, research and learn. You can never have too much knowledge when it comes to the trade market, the more you gather, the more you can estimate how to spend your money.
Predicative analysis
We are seeing this more frequently during these current days. This could be due to growing number of users who are jumping on the bandwagon of stock trading. As per the previous point, we recommend you always do your research but it will be wise to note if the trading account provider you are selecting has this analysis algorithm. This will allow you to better predict the market with the help of a supercomputer behind the scenes crunching big data.
Time availability
Times are tough but for those of us that are lucky, we still have our jobs. This means we do not have as much time as other freelance traders who are view and predict the market as often as they like. This is a crucial aspect to whether you can maximize your return from your trading account. So, if you have a limited amount of time, we highly recommend for you to select a trading account that can provide you with real-time push notifications. These notifications should indicate changes in the market before or during the scenario for you to make your decision.
Mobile friendly
It is researched heavily that most consumers nowadays view or consumer content on their mobile devices. This is due to the increasing trend of us needing to travel and be on-the-go at all times. This means it is equally as important for your trading account to have a mobile friendly version. This means its charts be easily rotated and adapted for viewing purpose on your mobile. It should also allow you to make transaction or withdraw purchases with ease through your mobile. This would eliminate the need to have your laptop with you at all time.
Conclusion
In a nutshell, there are a variety of trading accounts in the market nowadays for your selection. It can be confusing at times. In fact, taking the first step to start your trading journey may be one of the most difficult decisions. However, in these desperate times, trading could be one of the best ways to make your money work for you. These definitely bring more benefit that leaving your money idle in your savings account.
So, with all these tips and tricks at your perusal now, what are you waiting for? Give trading a shot with one of these best trading account in Malaysia listed above, and see your wealth grow and work for you.