Beginner’s Guide to Stock Investment in Malaysia 2025: Best Online Trading Platforms & Apps

Investing in stocks has long been a proven way to grow your wealth over time. With the right strategy, stock investments can generate substantial returns, but one golden rule remains essential: diversification. Spreading your investments across different markets, industries, and regions helps reduce risk and enhances potential returns.

While Bursa Malaysia offers a wide range of opportunities, Malaysian investors are no longer confined to local stocks. Today, global stock markets are within easy reach, thanks to modern trading platforms. The New York Stock Exchange (NYSE) and NASDAQ in the US, the Hong Kong Stock Exchange (HKEX), the Singapore Exchange (SGX), and the Shanghai Stock Exchange (SSE) are some of the world’s largest and most active stock exchanges. Each offers a wealth of opportunities across tech giants, financial leaders, and emerging industries.

By expanding your portfolio beyond Malaysia, you can tap into global growth stories, hedge against local market volatility, and build a resilient investment strategy. In this guide, we’ll explore the best online trading platforms and apps available in Malaysia, covering both local and international stock trading, to help you embark on your investment journey confidently.

How to get started with stock trading

What is stock trading?

Stock trading, also known as share trading or equities trading, involves the buying and selling of shares from publicly listed companies. When you buy shares, you become a partial owner or shareholder of that company. While trading stocks can lead to quick financial gains, it also carries the risk of significant losses if not managed carefully.

Where does stock trading take place?

Stock trading happens in the stock market, where buyers and sellers trade shares. In Malaysia, the primary stock exchange is Bursa Malaysia hits RM2 trillion in market capitalisation for the first time on 7 May 2024, making it one of the largest in Southeast Asia.

Globally, some of the most notable stock exchanges (as of Jan 2025) include:

• New York Stock Exchange (NYSE) – The largest stock exchange in the world with a market cap of approximately USD 31.65 trillion, hosting many of the world’s biggest companies.
• NASDAQ – Known for its tech-heavy listings, including companies like Apple, Microsoft, and Amazon, with a market cap of around USD 30.13 trillion.
• Hong Kong Stock Exchange (HKEX) – A major gateway to Asian markets, with a market cap of approximately HKD 34 trillion (USD 4.37 trillion).
• Shanghai Stock Exchange (SSE) – One of China’s largest exchanges, boasting a market cap of around USD 7.17 trillion.
• Singapore Exchange (SGX) – A key financial hub in Southeast Asia, with a market cap of approximately SGD 858 billion (USD 641 billion).

Each of these exchanges offers a unique set of opportunities for investors, from well-established blue-chip companies to high-growth technology firms. As a Malaysian investor, you have the flexibility to explore these markets, diversifying your portfolio and capitalizing on global economic growth.

Opening a brokerage and CDS account

To start trading, you’ll need to open a brokerage account with a licensed firm or an online trading platform. This account serves as the intermediary between you and the stock market. For trading on Bursa Malaysia, your brokerage will also assist in setting up a Central Depository System (CDS) account, where your shares will be securely held.

Placing your first trade

Once your accounts are ready, you can place your first buy order. This involves selecting the stock, specifying the quantity, and setting the price you’re willing to pay. With modern online trading platforms, this process has become seamless, with lower fees and an array of trading tools at your disposal.

How are stock prices determined?

Stock prices fluctuate based on:

• Company performance – Financial health, earnings reports, and growth potential.
• Market conditions – Economic factors, inflation rates, and global events.
• Investor sentiment – Market trends, news, and overall confidence in the economy. Prices are constantly changing throughout the trading day due to the supply and demand dynamics of the market.

Holding and selling your shares

Once you buy shares, they are stored in your brokerage account. When you decide to sell, you’ll place a sell order at your preferred price. The transaction is completed when a buyer matches your selling price and quantity.

Understanding the risks and rewards

The stock market is volatile, and while the aim is to profit by selling shares at a higher price, losses are also possible if share prices fall. Beginners should be aware of these risks and aim to diversify their portfolios to mitigate potential losses.

List of best online trading platforms & apps in Malaysia

The landscape of stock trading in Malaysia has evolved significantly over the past few years. While traditional banks like Maybank, RHB, and Hong Leong have long dominated the brokerage space, the entry of independent online trading platforms such as Moomoo and Webull has introduced more accessible and cost-effective options for investors. These platforms offer lower fees, user-friendly mobile apps, and access to both local and international markets, making it easier for Malaysians to diversify their portfolios.

Best online trading platforms & apps to trade in Malaysia stocks

Best online trading platforms & apps to trade in US stocks

Markets offered by each of the trading platforms

Trading Malaysian Stocks: What You Need to Know

Bursa Malaysia is the principal stock exchange in Malaysia, headquartered in Kuala Lumpur. Formerly known as the Kuala Lumpur Stock Exchange (KLSE), it is one of the largest and most dynamic bourses in ASEAN. As of Nov 2024, Bursa Malaysia's market capitalization stands at approximately USD 470 billion (RM 2.09 trillion), reflecting its significant role in the region’s financial ecosystem. 

The exchange offers a fully integrated trading experience, including trading, clearing, settlement, and depository services, making it a seamless platform for investors. It consists of the Main Market for established companies, the ACE Market for growth companies, and the LEAP Market for SMEs, providing a wide spectrum of investment opportunities.

Why should you try stock investing in Malaysia?

Malaysia, classified as an upper middle-income country, boasts a well-diversified economy spanning agriculture, commerce, manufacturing, and services. After a strong recovery from the pandemic with an 8.7% real GDP growth in 2022, Malaysia continued to display resilience with a 3.3% growth in Q3 2023, surpassing the forecasted 3.0%. Despite global economic challenges, the Malaysian economy growth accelerated by 3.6% in 2023 and 5.1% in 2024, supported by domestic demand and structural reforms. Inflation is also moderating, though food prices remain elevated.

Malaysia's economy is bolstered by its diverse export base, particularly in commodities and electronics manufacturing, positioning it as one of Asia’s top exporters. The nation also continues to attract substantial foreign direct investment (FDI), with approvals accounting for 4% of GDP – higher than many ASEAN peers. Notably, China's FDI footprint in Malaysia has grown significantly, highlighting the country’s strategic importance in regional trade and investment.

Eight steps to trade stocks online in Malaysia

1. Open accounts
   • Open a trading account with a Participating Organisation (PO).
   • Open a Central Depository System (CDS) account to track your share ownership.
2. Engage with a licensed dealer or remisier
   • Assign or engage a licensed dealer or remisier to handle your trades.
3. Placing an order
   • Submit your order (buy/sell, quantity, price) to your remisier along with your CDS account number.
4. Order entry
   • Orders are entered into the Automated Trading System (ATS) by the PO or via the PO’s internet trading platform.
5. Match order
   • Bursa Malaysia’s system automatically matches buy and sell orders based on price and availability.
6. Trade confirmation
   • A trade confirmation slip is issued with transaction details by the remisier.
7. Contract notes
   • The broking house sends contract notes including brokerage fees, stamp duty, clearing fees, and transaction costs.
8. Delivery and settlement (T+2)
   • Settlement is done on a T+2 basis (2 trading days post-transaction) via book entry system in the CDS account.

Trading Foreign Stocks: What You Need to Know

Investing in foreign stocks allows Malaysian investors to tap into some of the world’s most dynamic markets. With platforms like Moomoo Malaysia and Webull Malaysia, accessing US, Hong Kong, Singapore, and China stocks is now more seamless than ever. As of 2024, the New York Stock Exchange (NYSE) and NASDAQ continue to dominate with a combined market capitalization of over USD 61 trillion, while HKEX and SGX remain attractive for their proximity and growing influence in the Asia-Pacific region. By diversifying beyond Malaysia, investors can explore industries not prevalent locally, such as global technology giants, leading financial institutions, and emerging markets, thereby reducing risks tied to a single economy.

Why should you invest in foreign stocks?

Access to global market leaders

Foreign markets, especially the US stock market, are home to some of the biggest companies like Apple, Microsoft, Amazon, and Tesla. Investing in these markets gives you exposure to industry leaders, high-growth sectors, and innovative companies that are shaping the future.

Diversification and risk management

Investing in foreign stocks helps Malaysian investors diversify their portfolios, spreading risk across different economies, sectors, and currencies. This reduces the impact of local market fluctuations and provides more stability in the long term.

Higher liquidity and market potential

Markets like the NYSE, NASDAQ, and HKEX offer high liquidity, ensuring faster transactions and competitive pricing. Additionally, foreign markets often present higher growth potential, especially in tech, healthcare, and finance sectors.

Foreign direct investment and global economic trends

As Malaysia continues to attract FDI, investing in foreign markets allows Malaysians to benefit from global economic trends, technological advancements, and multinational corporations’ growth.

Eight steps to trade foreign stocks online from Malaysia

1. Choose a trading platform
   • Select an online brokerage platform like Moomoo, Webull, or Maybank Trade that offers access to foreign markets.
2. Open accounts
   • Open a trading account with the chosen platform.
   • Ensure your platform supports the desired markets (US, HK, SG, China).
3. Fund your account
   • Deposit funds in your trading account, ensuring you comply with any currency exchange requirements if trading in USD, HKD, SGD, or CNY.
4. Research foreign stocks
   • Utilize the platform’s research tools to analyze foreign stocks, market trends, and company performance.
5. Placing an order
   • Place a buy order for your selected foreign stock, specifying the price, quantity, and market.
6. Order execution
   •Your order is processed through the chosen foreign stock exchange (e.g., NASDAQ, HKEX) and confirmed once matched.
7. Trade confirmation
   •Receive a trade confirmation with details of the transaction, fees, and currency conversion if applicable.
8. Settlement and portfolio management
   • The settlement process may vary based on the market (typically T+2 for US stocks) and shares are credited to your account.
   • Continuously monitor and manage your foreign stock portfolio for performance and rebalancing.

Types of investment explained

Investing today involves a variety of financial instruments that allow individuals to grow their wealth by allocating capital to businesses and assets. Here are some of the most common types of investments:

Types of stocks explained

Understanding the different types of stocks can help you build a well-rounded portfolio while managing risk. Here are the most common stock categories every investor should know:

Importance of diversification in your investment journey

Diversification is crucial for building long-term wealth, spreading your investments across different asset classes and markets to reduce risk. StashAway’s General Investing portfolios simplify diversification by offering expertly managed portfolios that balance stocks, bonds, and other assets globally.

Why StashAway General Investing?

• Global diversification: Invest across various regions and industries to mitigate market risks.
• Data-driven investing: The ERAA® framework continuously optimizes your portfolio based on economic data.
• Personalized risk levels: Choose from 12 risk levels tailored to your goals.
• Cost-effective and flexible: Low fees, no lock-ins, and no minimum investment required.

Diversification matters because it helps protect your wealth while unlocking growth opportunities worldwide. With StashAway, your portfolio is globally diversified, managed with precision, and built to withstand market ups and downs.