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When we talk about generating dividends from a long-term perspective, one of the alternatives that most come to the fore is stocks. Coveted by investors, they are instruments generally taken with caution by beginners who are unaware of the benefits behind their purchase.

Therefore, we have put together a guide that will help you learn everything you need to know about how to buy stocks in Malaysia and the steps you should follow to take your first step in this market.

How to Buy Stocks in Malaysia – Quick Steps

  1. Open an account with eToro. Click on the ‘Join Now’ button available on the eToro website and enter your details. After that, you will be asked to enter your brokerage account login and password. 
  2. Confirm your account. KYC involves uploading a copy of your passport or driver’s license as proof of your identity. In addition, you will need to upload a copy of your utility bill or bank statement as proof of your address. 
  3. Deposit funds. Make sure you deposit a minimum of $50 via credit/debit cards, bank transfers, or e-wallets. 
  4. Pick the stocks you want to invest in. Click on the ‘Search’ button and enter your preferred stocks. Further, by clicking on the ‘Discover’ button, you will glimpse a host of shares available across 17 international stock exchanges. 
  5. Buying shares. If you want to buy a particular share, you will need to tap on the “Trade” button. After you click it, you will be requested to enter how much you want to invest.

How To Buy Stocks In Malaysia – Best Brokers List 2022

  1. eToro – Overall Best Stock Broker With 0% Commission in Malaysia
  2. Inceptial.com – Best Stock Broker To Trade Stocks With High Leverage For Malaysian Investors
  3. Skilling –  Best Malaysian Stock Broker For Professional Traders With MT4 & CTrader Support
  4. AvaTradeBest Broker In Malaysia With A Wide Stocks Offering

Step 1 – Choose a Broker to Buy Stocks

1. eToro – Overall Best Stock Broker With 0% Commission in Malaysia

how to buy us stocks in malaysiaFirst, we will be taking a look at eToro, which is a stock exchange considered to be the best choice for Malaysian traders. There are now over 20 million traders using the platform all over the world. eToro provides commission-free stock trading through access to over 2,400 global markets, making it one of the best places to purchase stocks. However, there is a spread charge, but it is quite affordable and reasonable. Moreover, it is also possible to buy fractional shares of major companies starting with a minimum investment of $50.

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There are two innovative copy trading features that eToro offers, CopyTrader and CopyPortfolios. By using these tools, you will be able to copy other traders’ trading strategies as well as their CFD portfolios. In other terms, even if you do not fully understand what is going on, you will still be able to profit from it.

Among the reasons that make eToro so popular is the ease of using the platform. You can place your trust in it and feel sure that you are investing in a very safe environment. The company takes every measure possible to make sure that you can invest safely online. In addition, experts consider its features to be very straightforward, as it was designed specifically with the newcomers in mind. Thus, there is no better platform for them to learn how to buy stocks and shares.

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As far as regulations go, eToro is regulated by the FCA, CySEC, and ASIC. So you can feel at ease knowing that your funds and trading account will be protected by the FCSC and other top financial authorities.

eToro fees

Fee Amount
Stock trading fee Free
Forex trading fee Spread, 2.1 pips for GBP/USD
Crypto trading fee Spread, 0.75% for Bitcoin
Inactivity fee $10 a month after one year
Withdrawal fee $5

Pros:

  • Several renowned financial regulatory agencies supervise it, including FCA, CySEC, and ASIC
  • There are no commissions and no share dealing fees
  • There are more than a hundred stocks listed on 17 international exchanges
  • Funds can be deposited using a debit/credit card, e-wallet, or bank account
  • Engaging features such as copy trading and social trading are supported
  • Customized price alerts for your mobile device

Cons:

  • Suitable only for beginning traders

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Inceptial.com - Best Stock Broker To Trade Stocks With High Leverage For Malaysian Investors

how to buy and sell stocksA Belarus-based brokerage firm, Inceptial.com, offers more than 160 trading instruments to its clients. As well as forex trading pairs, CFDs can be traded on commodities, precious metals, indices, and stocks. With a wide array of accounts and even higher leverage - 1:500 for professional clients, this service brings a well-known market platform, industry-standard such as MetaTrader 4.

Concerning accounts, four types can be selected from Inceptial depending on variables such as budget, preferences, skills, and user experience. You will be able to determine which of the Classic, Silver, Gold, and VIP accounts is the right one for you if you look closely at their specifications. High-level account holders' benefits include senior account managers, exclusive webinars, and other valuable services.

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Inceptial will offer you a wide variety of educational resources which you can access at any time to enhance your skills. Providing eBooks, videos, and courses to enhance your trading skills and knowledge, Inceptial can provide the learning tools you need.

Regardless of the choice of account, you can fund your account using credit cards, Skrill, Neteller, or wire transfers. A $250 minimum deposit is all you need to get started.

Inceptial.com fees

Fee Amount
Stock trading fee Spread
Forex trading fee Spread. 2.5 pips for EUR/USD
Crypto trading fee Spread
Inactivity fee $120 for 2 to 6 months. $500 for 6 to 12 months.
Withdrawal fee 3.5% for credit/debit cards. $30 for wire transfer

Pros:

  • Provides support for 160 different CFD instruments
  • MetaTrader 4 platform also available for trading
  • There is a wide range of trading tools is available to its customers

Cons:

  • High spreads when compared to the average
  • The only currencies accepted for funding accounts are EUR and USD

Your capital is at risk.

3. Skilling - Best Malaysian Stock Broker For Professional Traders With MT4 & CTrader Support

how to buy stocks onlineIn 2016, Skilling was founded, and since that time, it has become one of the most popular brokers for novice traders. The main reason behind its growing popularity is the ease of use when ordering buys and sell orders. In addition, the user-friendly explanations and guides that Skilling provides for trading education make it incredibly useful for trading education.

Because it specializes exclusively in CFD trading, this trading broker does not allow you to purchase traditional assets through it. Instead, there are also over 800 different kinds of financial instruments available for trading - among them are stocks, commodities, indices, and forex. Skilling alike offers leverage in all of these markets in compliance with FCA regulations.

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No matter what CFD asset class you decide to trade, Skilling does not charge commissions to traders. Similarly, it offers some of the lowest spreads in the industry and low-cost contracts for difference.

The fact that Skilling is excellent for both newbies as well as seasoned pros, who wish to deal via MT4 or cTrader, is what makes it so complete. A wide variety of advanced order and chart analysis tools can be accessed with the help of Skilling's integration with third-party platforms. Skilling also offers a desktop trading app and its mobile app and offers both native and web-based apps.

Skilling fees

Fee Amount
Stock trading fee Skilling's Trader Account: 0% Commission
Forex trading fee Starting at 0.7% for variable spreads
Crypto trading fee Spread—0.20% for Bitcoin
Inactivity fee After one year, $10 per month
Withdrawal fee Free

Pros:

  • Low commissions and no spreads when you trade shares
  • Low minimum deposits and small account fees
  • Quality stock charting
  • Trading platform powered by algorithms
  • Access to MetaTrader 4 for forex trading
  • Easy-to-use apps for iOS and Android

Cons:

  • ETF trading is not supported
  • There is limited research and analysis available
  • There are no price alerts

71.2% of retail investor accounts lose money when trading CFDs with this provider.

4. AvaTrade - Best Broker In Malaysia With A Wide Stocks To Buy

how to buy international stocks in malaysiaWith AvaTrade, you will be able to trade stocks with some of the most interesting features of any trading app on the market today. This is one of the largest brokers in Malaysia in terms of trading tools as well as a wide diversity of assets as the broker has more than 1,250 stocks and indices in its portfolio.

The AvaTrade platform provides over 200 tradable markets around the world, which includes commodities, indices, forex, bonds, and ETFs, providing a complete view of the stock market. You can trade any instruments out there for as little as $0.10. It means you can trade stocks without risking a lot of money, making it a great choice for beginners.

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MT4 is available in both mobile applications and desktop software. For example, if you intend to spread bet while on the go, it may be wise to choose the latter. Fees at AvaTrade are based on the spread, and the spread is integrated into everything. However, the spread may vary depending on the market you are trading. In general, forex and indices spreads are usually competitive, particularly when trading on major indices.

One of the best features of AvaTrade is that there are a lot of educational resources available on the platform. On top of that, the platform also provides analysis and market insights.

If you are ready to start trading stocks right away, you can open an account with AvaTrade within a few minutes. You can deposit funds using payment methods such as debit/credit card or a bank transfer.

Avatrade fees

Fee Amount
Stock trading fee Variable spread
Forex trading fee Spread. 0.9 pips for EUR/USD
Crypto trading fee Commission. 0.25% (over-market) for Bitcoin/USD
Inactivity fee $50 per quarter after three months of inactivity
Withdrawal fee Free

Pros:

  • Dedicated forex trading platform
  • Provides stock, currency, and commodity CFD trades
  • Paper trading is included on MetaTrader 4
  • Spreads include all fees
  • Without any commission

Cons:

  • Inactivity fees are extremely high

Your capital is at risk.

Step 2 – Research on Stocks Investing for Buying Stocks

What is a Stock?

how to select which stocks to buy

Investments representing a small piece of a company are called shares or common stock. Consequently, the stockholders have the right to a certain proportion of the company's assets and profits based on how much stock they own through purchasing shares they think will appreciate over time.

Stocks are a means to raise money that companies can use to grow and invest in their business, while stocks are a means for investors to grow their investment and keep up with inflation. Public companies sell their stock through stock exchanges, and investors can then buy and sell these shares among themselves through brokers, who buy and sell for them on the exchanges.

Essentially, a stock exchange tracks the supply and demand of each company's stock, which affects the price of the company's stock. As a result, many individual investors' portfolios are made up of stocks, which are bought and sold primarily on stock exchanges. Investments in these types of funds can be purchased from most online stockbrokers, and the transactions need to comply with government regulations intended to protect investors from fraud.

Best Malaysian Stocks

Below in our guide, you will find a compilation of the Malaysian companies with the highest dividend percentage concerning their stocks.

Malayan Banking Berhad 

how to buy stocks directly from the companyMalaysia's major financial services firm, Malaysian Banking Berhad, is recognized for its regional presence around the ASEAN. In addition to providing an expansive range of financial products, Maybank offers a variety of insurance and Takaful products under three key segments. Profitable activities of the bank include retail banking, corporate banking, investment banking, and investment banking. This is what Maybank's business model is all about: distributing banking products to its market of Islamic clients, which is one of the most important parts of Maybank's target market.

UOA Development Berhad

how to buy stocks without a brokerThe UOA Development Berhad Investment Holding Company is a Malaysian company that specializes in investment holding. UOA Development is engaged primarily in developing real estate through its subsidiaries and affiliate companies. UOA Development has developed a wide range of residential and commercial real estate projects covering a broad range of market sectors. UOA Development is predominantly based in Malaysia. As a subsidiary of Malaysia's UOA Holdings Group, UOA Development is also a company with headquarters in the country. Among its main components are property development and construction.

Bursa Malaysia Berhad

how to buy sell stocksIn addition to offering a spectrum of products, such as equities, derivatives, offshore, and Islamic products, Bursa Malaysia offers exchange-related services, such as securities trading, clearing, settlement, and depository services. It hosts hundreds of companies listed on either the main market or ACE market, depending on the company's size. Its strategy facilitates a more favorable trading environment, provides tradeable alternatives, and develops regional markets with international access via collaborations and partnerships, among further purposes. Its primary source of income is securities trading, followed by derivatives trading.

Stocks Fundamentals

These metrics are among the most pertinent metrics for a company because they include cash flow, return on assets, conservative leverage, history of profit retention for future funding growth, and capital management's soundness for maximizing shareholder earnings and returns. As part of this approach, information that may be expected to affect a stock's price or perceived value must be examined. Therefore, in addition to quantitative, measurable numbers such as cash flow and debt-to-equity ratios, there are also qualitative criteria to consider, such as the business model and competitive advantage.

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Fundamental analysis can be challenging since it requires fiddling with financial statements to determine when the stock price is incorrect. This is to determine whether the stock could go up or down. In order to perform fundamental analysis on a company, you need first to create a profile of it, identify its intrinsic value and directly relate that value to whether or not to buy it or sell it.

Fundamental analysts consider different factors to determine how a stock will perform. In addition to the overall industry, the competition, the structure of the management, income, and revenue of a firm and its growth potential are some of the factors considered.

What Are Dividends in Stocks?

Generally, dividends are regular payments made by companies to their shareholders that represent a regular distribution of profits. There are many ways investors can earn returns from investing in stocks, but dividends are one of the most popular ways to do so. However, some stocks do not pay dividends, and you should be aware that not all stocks pay dividends. This is one of the reasons why dividend stocks should be specifically chosen.

Dividends come in many forms, some of which are the following:

  • Cash dividends. The company usually pays these dividends directly into the shareholders' brokerage accounts.
  • Stock dividends. In addition to paying dividends in cash, companies may also offer investors extra shares in their company.
  • Dividend reinvestment programs. Any dividends the investors receive can be reinvested into the company's stock at a discount, which is often the case.
  • Special dividends. Unlike regular dividends, these payouts apply to all shares of a company's stock. 
  • Preferred dividends. Stock in this category works more like a bond than stock, as it operates more like a bond and generally has a fixed term of payment.

As a general rule, these dividends are distributed as a fraction of the stock value. For example, in circumstances where a corporation will issue a stock dividend of 5%, it will be needed to issue 0.05 shares for every existing share held by an existing shareholder. Thus, a shareholder that holds 100 shares of stock would receive five additional shares. The stock owner does not have to pay taxes on dividends earned from the stock until they sell the shares.

What Stocks To Buy Today?

how to buy malaysian stocksAccording to market experts, today is a good time for investors to acquire stocks from various companies, including Facebook, Apple, Amazon, Netflix, Tesla, and many others. However, for the present, it is advisable to remember that this list is subject to daily changes, so it would be prudent to research the matter before investing carefully.

Best Growth Stocks to Buy Now

Apple Inc, Microsoft Corporation, Amazon.com, Tesla, and many other technology giants are among the best growth stocks to buy right now. They have been dominating the market for years. However, the key to identifying the stocks to buy is always to take the time to analyze the market.

Apple (AAPL)

Currently, Apple's share price is below a new entry-level cup-and-handle price. As a result, 176.75 is the best buy point according to MarketSmith's analysis. In addition, AAPL's 50-day line will be a key short-term target for the stock in the coming weeks. During the last week, the stock fell below the key benchmark.

However, Apple's stock price has recently reached new highs on the relative strength line. While that is a positive development, it is also an indication that the market hasn't been doing well. When markets are choppy, the first stocks to break out are those that have strong RS lines.
According to the Composite Rating, Apple now has a score of 93 out of 99. Over the last month, Apple became the first company to reach a market capitalization of three trillion dollars. Nonetheless, the company's market capitalization has fallen below that mark since then.

IBD Stock Checkup says the Covid-19 pandemic has led to a rebound in earnings growth in recent quarters due to the strong rally in the stock market. Furthermore, apple's stock rose after the company announced its first-quarter results for the fiscal year 2022.

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67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Microsoft (MSFT)

It is safe to say that Microsoft enjoys a high level of visibility and predictability in terms of revenue, and the company has several key indicators to support its assertion.

Microsoft's Q2 FY 2022 earnings call was held on January 25, 2022. During the call, it was disclosed that its commercial remaining performance obligations increased by 31% and 32% in constant currency to $147 billion. Microsoft also forecast that roughly 45% of the obligation will be recognized in revenue within 12 months. In addition, Microsoft disclosed in the earnings report that it had witnessed an increase of one point in its annuity mix over the past year. In other words, the stock is backed by a significant contractual recurring revenue stream, which is a key positive for the company.

15 out of the 16 quarters in which Microsoft's revenue growth has exceeded market expectations, the company has outperformed market expectations. MSFT only reported a revenue miss in one quarter (quarter ended December 2018), but its actual quarterly revenue was only -0.1% above the sell-side's consensus top-line forecast.

Last but not least, the market values Microsoft at an Enterprise Value-to-Revenue multiple forward next twelve months of 10.2 times, which is the highest among the FAANGM companies. Even though the forward revenue growth rates of MSFT are not among the highest among its peers, according to expert analysis, it is expected that the market is willing to assign MSFT a relatively high Enterprise Value-to-Revenue valuation multiple due to its predictable and visible revenue growth rates.

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67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Amazon (AMZN)

Amazon has long been regarded as one of the more attractive stocks to own, especially due to its elite management team. In addition, Amazon has always had an attention to long-term goals, dedication to customers, and a dedication to innovation at any cost. Bezos, in particular, has always been a proponent of these values.

With the switch to online shopping, Amazon continues to see new opportunities from people who do not want to go to stores because of the pandemic and, in addition to its record-breaking fourth-quarter earnings, AMZN forecasts that first-quarter revenue will be between $100 billion and $106 billion, which is a meaningfully higher figure than analysts' consensus of $95.8 billion. Wall Street views a company's future as even more valuable than a strong prior quarter or earnings report.

It is true that Amazon's e-commerce business heavily depends on consumers' health and purchasing power. Still, the company is diversified since it is involved in the "growth business" of cloud computing and has also ventured into advertising. Concerning the business prospects of Amazon in the long-term, it is likely that the company will continue to grow in all three of its core operating units: e-commerce, cloud computing, and online advertising, the latter of which is a major opportunity for the company.

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67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Is It Worth Investing in Stocks?

The answer depends entirely on what you buy. However, even though the future looks positive for some companies, it cannot be said that the same is true for all companies. Due to this reason, if you decide to invest in a company, you should do your research prior to buying. In addition, you must make sure you see the financial results of each company due to the fact that these results can give you important insight as to how healthy the company is in the market.

On the other hand, it is not realistic to predict the future of the markets. This is why many investors look for undervalued stakes, so whatever the market does will not affect them.

As a result, it is an intelligent decision to buy stocks when they are at an attractive price. You will never have to get concerned about the short-term losses if you rely on your research over a long period. However, it does not mean that you should completely ignore the company. On the contrary, you must remain on the right road.

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Growth stocks do not require risking your future by investing in them. It is common for growth stocks to drop in price more frequently during corrections or crashes, but these times are also great growth opportunities. There is no doubt that companies with management teams focused on long-term growth will also perform well when the stock market fluctuates. Therefore, there may be a chance that the company will be able to recover from a fall in the stock market.

A slight price drop can be scary for investors who believe that there will be more losses in the future. However, the chance of a market correction is higher than that of a market crash. Moreover, market crashes tend to occur approximately every two years. Therefore, it is in every investor's best interest to take advantage of the cheap prices while they last.

Step 3: Open Account & Invest with eToro

Once you identify the stocks you need, the next step is to trade them. Again, let's use eToro as an example to help illustrate our guide. Several different apps allow you to buy stocks and several suggestions that can be used to do so. As far as the setup process is involved, they are all very similar, so there will be no issues setting them up. It is as straightforward as following these steps.

1. Create Your Account

Any regulated broker platform, including the eToro platform, requires the user to have a brokerage account to trade stocks. So to open an account with eToro, you should go to the eToro website site. The first thing you have to do is click on the 'Join Now' button and create a username, email address, and password. If you use your Facebook or Gmail account, you can skip this step.

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67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Verify Your ID

KYC or identification verification is required for all regulated platforms. Users are protected against identity theft due to the ability to prove that they are who they claim to be. Additionally, since the system integrates traders, any activity that might imply shady activity will be inhibited.

If you want to verify your account, you simply have to provide personal information, such as submitting a photo of your ID, passport, or driver's license. As a convenience, eToro may also ask you to submit a copy of your bank statement to confirm the address on your application matches the one on this document.

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3. Deposit Funds

In case you want to invest in stocks, you will need to deposit funds. By clicking on the "Deposit Funds" button within your eToro account, you will be able to do all of this by simply signing into your account.

After that, you will be transferred to a new window where you can select the payment method and amount to be used. You are now ready to move on to the last step of the process once you have completed the payment details.

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4. Buy Stocks in Malaysia!

The stocks are now available for purchase. eToro allows you to directly access the page for a stock by entering the ticker or name of the stock. They can also be viewed on eToro's stocks page.

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Conclusion

Given that the stock market has a long-term average return of about 10%, many investors want to know how they can buy stocks and shares right now. However, a well-diversified portfolio will help protect you against losses and uncertainty, despite the stock market's volatility.

Investing in stocks can be a valuable investment, but if you can do so, you should always try to reduce their prices as much as possible. It is ideal to buy stocks on platforms that do not charge commissions to achieve this.

Therefore, eToro is a reliable option for anyone wondering how they can purchase stocks online. There are several options provided by this CySEC regulated broker, such as copy trading and CFD trading. You will also be able to buy and sell shares with eToro's mobile app, which comes with a wide range of features.

eToro - Overall Best Stock Broker With 0% Commission in Malaysia

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67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

What is a stock?

Stock refers to a fractional share of ownership in a business or corporation. Using platforms such as eToro, investors can trade stocks on exchanges and brokers.

Can I invest in stocks from Malaysia?

Yes, in addition to allowing access to a wide range of global markets and Malaysian stocks, the platforms allow access to stock exchanges and contracts for difference (CFD).

How can I earn dividends from a stock?

You can earn dividends by purchasing stocks and holding them for a long time. Despite this, some stocks do not pay dividends. So be sure to make sure that you are investing in companies that pay dividends.

What are the best stocks to buy nowadays?

Throughout time and events about the company they represent, stocks' profitability changes every day. Therefore, it is not a fact that there is ever a good stock to buy at any given time. Instead, the best strategy would be to analyze the market, determine what experts recommend, what other investors are investing in, and determine which stocks are the most promising based on performance and other factors.

Should I buy Facebook stocks?

Recently, Meta Platforms (FB) shares have been under pressure, with the company's valuation being severely impacted. During the fourth quarter of 2021, the social media company reported its first-ever decline in daily users. That was the catalyst that caused the stock to sell-off. The recent price action has caused investors to rethink their opinions about the company's prospects, which has forced them to decide whether they should buy the dip or trade the stock in the opposite direction. However, according to experts, investing in Meta Platforms could result in superior returns over the next decade. It could potentially be possible for Meta Platforms to tap into an $800 billion market by 2024, which could eventually reach $1.6 trillion by 2030 if it successfully applies its new concept based on the metaverse development.

How do I buy stocks in eToro?

If you haven't already done so, just sign up for an account on eToro, verify the account, deposit some money, and then use eToro's search tool to find stocks you want to buy. When you find the stock you're interested in, click on the trade button. Finally, make sure to fill in the trade details.

About Omar Ortiz
About Omar Ortiz

Radio producer, interested in international media, long distance communications, technology and world cultures.