| Online
Brokers Must Be Registered with Authorities
 |
In
Malaysia, online trading can only be done through licensed
representatives comprising paid representatives or commissioned
ones, commonly know as remisiers. Orders that are keyed
in are not conveyed directly to the exchanges but go
through a brokers front-end (BFE) system. |
For
orders routed through KLSE, for example, the remisierwill route
the orders through the BFE to the KLSE System on Computerised
Order Routing and Execution (SCORE) where orders are matched.
When there is a right price, between a seller and a buyer, the
orders would be matched. Upon matching, the delivery of both
payment and securities will be cleared and settled through the
Security Clearing Automated Network System (SCANS).
For
a more detailed description of these processes, the reader
is advised to refer to the KLSE website at the following link
: http://www.klse.com.my/website/trading/tradingsys.htm
The
brokerage fee is fixed and is the same as if the trade was
done through the telephone or in person at the broking house
but there is a move towards making the brokerage fees negotiable
from July 2001.
Be
sure to check the following details when choosing your online
broker:
 |
Check
out who your broker and remisiers are and whether they
are properly licensed by the SC. |
|
Check
whether the online trading facility is approved by KLSE |
|
Find
out the broker's policy on the following:
|
Payment
for trades routed |
|
Confirmation
and cancellation of trades |
|
Dealing
with outages and failed trades |
|
Treat
of personal and confidential information provided
over the Internet |
|
|
Read carefully any disclaimers when registering for the
service |
|
