Page 47 - Introduction To Investment Management

Summary of Trading Mechanics in Bursa Malaysia (Buying and Selling Shares):-

Open
Open CDS Trading Appoint a
account Remisier
Account

Payment Place Order
(Delivery and (Buying/Selli
Settlement) ng)

2.6.1 Transaction Cost involve in Trading on Bursa Malaysia
Berhad

To invest (buying and selling) shares in Bursa Malaysia, investors are required bare the
cost and fees in the settlement process such as brokerage fees, clearing fees and stamp

duty. Following are Standard trading cost as proposed by Bursa Malaysia:
i. Brokerage fees - maximum 0.70% of the value of total shares traded below

RM100,000 and 0.30% for transaction above RM100,000.
(Minimum brokerage fixed rate is RM40: for transaction estimated below

RM5,714.29.)
ii. Clearing fees - 0.03% of contract value or value of shares but subjected to

maximum of RM1000.
iii. Stamp duty - RM1 for every RM1,000 worth of value.

Therefore, the calculation for every buying and selling transaction will be:
Total Buy Settlement (RM) = Value of Shares + Brokerage Fees +
Clearing Fees + Stamp Duty
(Total amount of RM paid by investor for BUY transaction)

Total Sell Settlement (RM) = Value of Shares – Brokerage Fees –
Clearing Fees – Stamp Duty
(Total amount of RM received by investor for SELL transaction)

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