How to Buy Stocks in Malaysia: Everything You Need to Know

Stock investment remains one of the most preferred investment choices among Malaysians today. According to the Malaysia Retail Investor Insights (MRII) 2023 report, 39% of retail investors expressed a strong preference for stock investing, placing them ahead of other popular asset classes like ASB (34%), unit trust (31%), fixed deposit (26%), previous metals such as gold (25%) and cryptocurrency (15%).

This growing interest is driven by the potential for higher long-term returns, greater access to global markets, and improved digital platforms that make trading more accessible than ever. 

Whether you're looking to invest in Bursa Malaysia stocks or diversify globally through US, Hong Kong, or Singapore markets, this guide will walk you through everything you need to know.

So, what are stocks?

Stocks, also known as shares or equities, represent ownership in a company. When you buy a stock, you're essentially purchasing a slice of that company—giving you the right to share in its profits (and losses). 

Companies issue stocks to raise capital through an initial public offering (IPO), and after that, investors trade these stocks on the open market.

Stock prices fluctuate based on factors like the company’s performance, investor sentiment, and broader economic conditions. When a company grows and earns profits, its share price tends to rise—rewarding shareholders with capital gains or dividends.

Types of stocks

What is a stock exchange

A stock exchange is a centralized marketplace where buyers and sellers trade shares, bonds, and other securities. It plays a vital role in the economy by helping companies raise capital and offering investors a way to grow their wealth. 

A thriving stock market is often seen as a sign of economic health—it signals strong corporate performance, job creation, and investor confidence.

Today, most stock exchanges operate electronically, replacing traditional trading floors with digital platforms that offer real-time trading access to investors around the world.

Major stock exchanges around the world

There are 80 stock exchanges globally, but a few dominate in terms of market capitalization and trading volume:

* market cap data as of November 2024

Best platforms for investing in Malaysia stock

Malaysia’s stock market plays a pivotal role in Southeast Asia, and its flagship index—the FTSE Bursa Malaysia KLCI (FBM KLCI)—tracks the 30 largest and most liquid companies listed on Bursa Malaysia. These include household names across banking, telecommunications, plantations, and consumer sectors. 

For Malaysians looking to invest in familiar brands and support domestic growth, the local stock market offers an accessible entry point with lower currency risk and local economic exposure.

If you're just getting started, here are some of the best platforms to buy and sell Malaysian stocks, including brokerage fees and features.

Invest in Malaysia stock with bank brokerage 

If you prefer the comfort of investing with a familiar institution, most major Malaysian banks offer brokerage services that allow you to trade stocks directly from your existing bank account. With just a savings or current account, you can apply for a trading account and begin investing in Bursa Malaysia via the bank’s online platform.

Bank brokerages are often seen as a reliable starting point for first-time investors, but their fee structures can be a bit complex. Costs vary based on your trade size, transaction method, and sometimes even the number of trades you make each month. Some may also include maintenance or inactivity fees, which can eat into your returns if you’re not actively trading.

* please refer to the bank’s official website to get the latest fees.

Invest in Malaysia stock with online trading platform

Beyond traditional banks, a growing number of digital-first brokerages now offer a faster, more cost-effective way to trade stocks. These platforms operate entirely online—either through a mobile app or web portal—giving investors the flexibility to buy and sell with just a few taps, anytime and anywhere.

Because they don’t rely on physical branches or relationship managers, independent brokerages tend to offer lower fees and a self-serve experience. You’re guided through the onboarding and trading process directly on the platform, with access to charts, real-time prices, and order placements all in one place.

Best platforms for investing in overseas stock

While the FTSE Bursa Malaysia KLCI provides stability, it has seen limited gains over the past decade compared to global benchmarks like the S&P 500 or the Hang Seng Index.

By investing in international markets such as the US, Hong Kong, or China, Malaysian investors can tap into sectors that are underrepresented locally.

Diversifying beyond Malaysia can bring better long-term returns, broader sector opportunities, and better currency diversification. With the right platform, you can easily access these markets and build a portfolio that’s both resilient and future-ready.

Best platforms for investing in US stocks (NASDAQ, NYSE, AMEX, BATS)

Read more: Malaysia’s investors guide to buying US stocks

Best platforms for investing in Hong Kong stocks (HKEX)

Best platforms for investing in China stocks (SZSE, SSE)

Read more: Malaysia’s investors guide to buying China stocks

Stocks vs ETFs: Key differences and similarities explained

When building a portfolio, you’ll come across two common investment vehicles: individual stocks and exchange-traded funds (ETFs). Both are traded on stock exchanges and offer growth and income opportunities, but they serve different purposes depending on your strategy.

ETFs provide instant diversification across multiple companies or sectors, making them ideal for broad market exposure with lower risk. Stocks, on the other hand, allow you to invest directly in a specific company, giving you more control—but also higher risk.

Here’s how they compare:

Read more: Complete guide to exchange traded funds (ETFs) in Malaysia

7 steps to start your stocks investing journey

1. Decide your investment approach

Before you start investing, choose how hands-on you'd like to be:

A. “I want to test the waters first before risking real money.”

It’s perfectly normal to feel hesitant about investing your hard-earned ringgit right away. Start with a demo account from platforms such as Bursa Marketplace’s virtual trading, or use international platforms offering simulated trading with virtual funds. 

B. “I want to pick my own stocks and funds.”

Great! You’re ready to learn how to select, manage, and grow your investments yourself. Keep reading—we’ll guide you step-by-step on account selection, picking investments, and portfolio management.

C. “I prefer someone else handles my investments for me.”

Consider a robo-advisor or managed investment platforms in Malaysia, like StashAway, which automatically create and manage a globally diversified portfolio suited to your risk tolerance.

D. “I’d like to leverage workplace investment options like EPF.”

For employed Malaysians, your EPF account (Employee Provident Fund) can be an excellent starting point. Some EPF savings can even be invested into unit trusts via the EPF Members Investment Scheme, helping you diversify beyond basic savings.

2. Select your broker or robo-advisor

Once you've decided your investment approach, the next step is to choose the right platform.

A. Investing independently

If you're keen to trade independently, Malaysia has various reputable brokers from bank brokerages to international online trading platforms. 

Evaluate them based on fees, ease of use, customer support, educational tools, market access (local and global stocks), and convenience, such as integration with your existing banking services.

B. Investing via robo-advisor

If you prefer automated investments, Malaysia offers several regulated robo-advisors with the likes of StashAway.

StashAway charges between 0.2% and 0.8% annually. Choose one based on fees, ease of use, reputation, and the markets and asset classes they provide.

3. Open the right investment account

Whether you're choosing a brokerage or robo-advisor, you'll need to open an appropriate investment account.

For trading stocks listed on Bursa Malaysia, open a Central Depository System (CDS) account linked to your brokerage. Opening this account typically requires your MyKad, bank details, and basic financial information and can often be done fully online within minutes to a day.

If you plan to invest in global stocks (like US, Hong Kong, or Singapore) or a guided path like the robo-advisors, your chosen broker/ robo advisors will guide you through opening an international trading account, which might involve additional verification and document submission.

4. Invest in stocks or funds

If you're investing independently, decide whether individual stocks or diversified funds suit your goals:

A. Mutual funds and ETFs

Mutual funds and ETFs allow you to buy into numerous stocks simultaneously. For example, Malaysian investors commonly invest in index-tracking ETFs, like QQQ that tracks Nasdaq or VOO that tracks S&P500.

Funds offer instant diversification, lowering risk, ideal for long-term investors.

B. Individual stocks

You can also directly purchase shares of individual companies like Maybank or Apple (US). This approach offers potentially higher returns—but at increased risk. 

Investing directly requires thorough research into companies' financial health, competitive advantage, and market position.

5. Set a realistic investment budget

New investors often ask two common questions:

A. How much do I need to get started?

To buy individual Malaysian stocks, you typically need to purchase at least one "lot" (100 shares).

For international stocks, fractional shares (buying partial shares of high-priced stocks) are available through some international platforms. 

B. How much should I invest in stocks?

Deciding how much to invest in stocks depends heavily on your personal finances, comfort with risk, and long-term goals. 

While there’s no magic number, a good practice is to start by allocating a manageable portion of your monthly income — towards stocks, gradually increasing the percentage as you gain confidence, financial stability, and a clearer picture of your investment strategy.

6. Think long-term investing

Historical data consistently shows stocks are one of the most effective ways to grow wealth over the long-term. S&P 500, for instance, has delivered an average annual return of about 10% historically.

Understand that short-term market volatility is normal. Resist panic selling during temporary downturns. 

Instead, regularly invest (dollar-cost averaging), remain disciplined, and let your investments grow steadily over many years.

7. Review and rebalance your portfolio periodically

Although daily stock market monitoring can be stressful and unproductive, regular check-ins every other months help ensure your portfolio stays aligned with your investment goals.

If your investment timeframe shortens (as you approach retirement), gradually shift towards conservative assets like bonds or fixed deposits. If one sector, country, or asset type dominates your portfolio, diversify to manage risk better.

Also, consider global diversification—aim to allocate a meaningful portion of your stocks internationally, not just in Malaysia.