Personal Finance Term
Brokerage / CDS Account
The two accounts you need to trade shares on Bursa Malaysia: a brokerage (trading) account to place buy and sell orders, and a Central Depository System (CDS) account that holds your shares electronically in your name.
To invest directly in Malaysian-listed shares, ETFs, and REITs, you open a trading account with a licensed stockbroker and a linked CDS account maintained through Bursa Malaysia's depository. The brokerage account is where you fund and execute trades, while the CDS account is the electronic record of the securities you own, so shares you buy are held in your name rather than just on the broker's books. Some online brokers use a nominee structure instead, where shares are held under the broker's nominee, which is worth understanding when choosing a platform.
Opening these accounts is the practical first step before buying any Bursa-listed investment, and the choice of broker affects your fees, platform quality, and whether you get a direct CDS or nominee account. Brokerage charges apply on each trade, and a direct CDS account in your own name gives you clearer ownership and shareholder rights. For investors going global, separate accounts with international brokers serve the same purpose for overseas markets.