Key Takeaways
- A CDS account electronically records the Bursa-listed securities held for an investor.
- You normally open a CDS account through an Authorised Depository Agent, usually a stockbroking company.
- A CDS account holds securities, while a separate trading account is used to place orders.
- Direct and nominee arrangements differ in account administration and access to certain Bursa services.
- Bursa Malaysia’s schedule dated 1 October 2025 lists a RM10 account-opening fee.
A CDS account is the electronic record used by Bursa Malaysia Depository to hold and move Bursa-listed securities. Investors normally open one through an Authorised Depository Agent, usually a stockbroking company, and also need a separate trading account before buying or selling shares.
What a CDS Account Is
CDS stands for Central Depository System. It is operated by Bursa Malaysia Depository Sdn Bhd and provides the book-entry system used for Bursa-listed securities. Instead of relying on physical share certificates, purchases are credited to a CDS account and sales are debited from it.
The CDS account is therefore a record of securities ownership or custody, not an order-entry platform. A trading account performs a different job: it is the account you use through a broker to submit buy and sell orders.
CDS account
Purpose: Records eligible Bursa-listed securities electronically
Used for: Crediting purchases, debiting sales and maintaining holdings records
Opened through: An Authorised Depository Agent
Trading account
Purpose: Provides access to place buy and sell orders
Used for: Order submission, broker services and trading-related transactions
Opened through: A participating stockbroker or trading provider
You generally need both before trading Bursa-listed shares. If you are starting from the beginning, Trade.com.my’s guide on how to buy stocks in Malaysia explains the wider process.
Direct vs Nominee CDS Accounts
Bursa Malaysia’s account-opening information distinguishes between accounts opened for a beneficial owner and those operated through an authorised nominee. In everyday broker discussions, these are commonly described as direct and nominee arrangements.
With a direct CDS arrangement, the individual is the named holder in the depository record. Bursa Anywhere currently supports direct CDS holders for services such as balance enquiries, monthly statements for direct accounts and updating selected particulars.
A nominee arrangement is administered through an authorised nominee. The exact service process can vary by provider, so do not choose solely from a short label on a signup page. Ask how statements, transfers, corporate communications and account updates are handled, and confirm every applicable charge directly with the broker.
Use this checklist when comparing arrangements:
- Whose name appears in the depository record?
- Which statements and notifications will you receive directly?
- Can you use Bursa Anywhere with the proposed account type?
- How are transfers and changes to personal particulars requested?
- Are there provider charges beyond Bursa Depository fees?
How to Open a CDS Account
The practical route starts with a Malaysian stockbroking company acting as an Authorised Depository Agent. Compare the account arrangement offered, the trading platform, support process and disclosed fees before applying.
A typical sequence is:
- Choose and verify an Authorised Depository Agent.
- Confirm whether the account will be direct or administered through a nominee.
- Complete the required application and identity-verification process.
- Pay the applicable account-opening fee through the approved channel.
- Receive confirmation and your CDS account number.
- Complete the separate trading-account setup needed to place orders.
Bursa Anywhere also supports requests to open a new individual CDS account. Bursa Malaysia’s current guidance states that this online opening route is limited to Malaysians with MyKad. Eligibility, identity checks and procedures may change, so confirm the current requirements in the official app guidance before applying.
Opening a CDS account does not mean a trade has been placed. For more beginner material, visit the Trade.com.my Malaysia stocks resources page.
Fees and Documents Required
Bursa Malaysia Depository’s fee schedule effective 1 October 2025 lists an account-opening fee of RM10 per account, collected by the Authorised Depository Agent. The same dated schedule lists RM10 for an ordinary transfer. These are dated figures, not permanent promises, so recheck the latest official schedule before publication or application.
For the branch-based route described by Bursa Assist, applicants submit the prescribed form and certified identity documents. Malaysians provide two certified true copies of their NRIC, while foreign applicants provide two certified true copies of a valid passport. A broker may need further information for identity verification or regulatory checks.
Prepare these items before contacting a provider:
- The correct account-opening form or approved digital application
- The required certified identity-document copies for your applicant type
- A payment method for the stated opening fee
- Contact and personal details that match your supporting documents
- Any additional information requested by the selected provider
Separate Bursa Depository fees from broker-specific charges. Platform fees, service charges or transfer-related costs should be checked in the provider’s current fee schedule. Keep copies of your submission and account confirmation in a secure place.
Common CDS Account Questions
Many setup problems come from assuming the depository account, trading account and broker platform are interchangeable. They work together, but each has a different function.
Before funding a trading account, confirm the CDS number, holder arrangement and personal details shown in your records. If something is incorrect, use the official update process provided by Bursa Anywhere or your Authorised Depository Agent rather than sending identity documents through an unverified contact.
Once the account is active, learn how company information supports investment research. This guide explains how to read Bursa Malaysia annual reports.
Choose the Right CDS Account Malaysia Setup
A suitable CDS account Malaysia setup starts with three checks: verify the Authorised Depository Agent, understand whether the arrangement is direct or nominee, and separate depository fees from broker charges. Prepare the required documents, confirm current Bursa guidance and remember that a trading account is still needed to place orders.
What does a CDS account hold?
It electronically records eligible Bursa-listed securities. Purchases are credited to the account and sales are debited through Bursa Malaysia Depository’s book-entry system.
Why do I need both a CDS account and a trading account?
The CDS account records securities holdings. The trading account is used through a broker to place buy and sell orders, so the two accounts serve different purposes.
How do direct and nominee CDS accounts differ?
A direct arrangement names the individual holder in the depository record. A nominee arrangement is administered through an authorised nominee. Confirm service access, communications, transfers and fees with the provider.
Do I have to pay to open a CDS account in Malaysia?
Bursa Malaysia Depository’s schedule effective 1 October 2025 lists a RM10 opening fee per account. Check the latest schedule and any separate provider charges before applying.
Are foreigners allowed to open a CDS account in Malaysia?
Bursa Assist describes a branch route for foreign applicants using two certified true copies of a valid passport. Eligibility and additional provider checks should be confirmed with an Authorised Depository Agent.
How can I open a CDS account through Bursa Anywhere?
Bursa Anywhere supports new individual CDS account requests. Current Bursa guidance limits online opening to Malaysians with MyKad, so check the latest app eligibility and instructions before applying.
Disclaimer
Educational information only; this article is not financial, investment, legal or tax advice. Procedures and fees can change, so verify current requirements with Bursa Malaysia and a licensed broker.
Disclaimer: All of the content was thoroughly fact-checked and verified by our editorial team to ensure accuracy, clarity, and reliability.
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Sources (Bursa Malaysia)
- Central Depository System (CDS)
- Opening of Account (CDS)
- How do I open a Central Depository System (CDS) account?
- Fees and Charges Structure for the Central Depository System
- Bursa Anywhere
