How to Get Lower Brokerage Rate !
Filed Under (Brokerage Rate, Happy News) by Webmaster on 28-08-2008
Tagged Under : ASCM, association of stockbroking companies Malaysia, Bursa Malaysia, low brokerage rate, SC, securities commission
Extra! Extra!
Latest news on brokerage rate for ECOS and Cash upfront trade!
A Pro Trade Shares scoop! This article is dated 28 August 2008.
End of December 2007, the Association of StockBroking Company of Malaysian (ASCM) wanted the Securities Commission (”SC”) of Malaysia to set a floor or minimum brokerage rate for ECOS and Cash upfront trading. Refer to my earlier posting on BURSA MALAYSIA STOCK TRADING FEES AND CHARGES.
SC was not agreable to a minimum brokerage rate. Bursa Malaysia on 31 December 2007 issued a circular on the new rules to all Brokers that the brokerage rate for ECOS and Cash Upfront trading will be fully negotiable without any minimum amount.
However majority of the big Brokers have decided to have a ‘gentlemen’ agreement that the minimum limit for ECOS is RM28 and for Cash Upfront trade is RM40.
NOTE: Fully negotiable brokerage rate is only applicable to Purchase contract only as defined by the Ministry of Finance and NOT Sales contract.
(1) ECOS Trade
If you keyin to buy via the internet, you can request to your Broker to give you a lower than the standard brokerage rate of 0.6%. You can even request for the ‘Floor’ rate which is the minimum rate.
(2) Cash Upfront
The defination for Cash Upfront is that you have cash in the account BEFORE you Buy. Again you can get your DR to request lower rate.
TIPS : As the Floor rate is based on few big Brokers ‘Gentlemen’ agreement, you can shop around for lower minimum rate with smaller Brokers (also known as ‘Boutique’ Brokers). They would probably ‘undercut’ the big Brokers in order to get the business.
The above is my Tips on HOW TO GET LOWER BROKERAGE RATE. I hope you benefit from my posting.
[...] 5th, 2008 · No Comments · Brokerage [...]
[...] WHAT IS THE LOWEST BROKERAGE FOR INTERNET TRADING AND CASH UPFRONT TRADES? To my feed subscriber I wish to apologise for not posting for the last 2 weeks. I was just assigned 3 new projects that run concurrently that I am unable to find the time to continue with Part 9 of my series on HOW TO START TRADING STOCK IN BURSA MALAYSIA. I promised I will start soon on Part 9 which will cover Share Margin Trading. [...]