Per contract :-
Brokerage fee : RM 50.00
Trading fee : RM 9.00
Clearing fee : RM1.00



This post has been edited by TheAssociates: Sep 28 2005, 02:33 AM

Some banks do offer low interest rates. And BLR is no more controlled by Bank Negara. It's all up to the banks since last year. It's just that economic fundamentals have made it remain as it is.

If you ask me 5 stocks is very easy to monitor. 5 industries is more like it, with multiple stocks in each industry if you want. If it's 5 stocks in one industry, it's real risky. Imagine if you're holding on to 5 oil companies' stocks, and oil prices fall badly, you're in deep shit. It's all about not putting all your eggs in one basket.

Hmm..are you sure the brokerage rate is a fixed amount? i do not invest in stocks but i think it is a certain percentage of the transaction value with a maximum cap...the rate u had given looks more like brokerage fee for trading in futures to me...

Correct me if I'm wrong, thx

Minimum brokerage rates :-

RM100,000.00 and below min ->RM12.00 or 0.60% max -> 0.70%
Above RM100,000.00 min -> 0.30% max -> 0.70&

i maybe wrong.... is it 0.3% of your every transaction.

Yes, BLR is not controlled by BNM... but the underlying of BLR calculation based on (Overnight Policy Rate) OPR is controlled by BNM through tightening and loosening of money via Treasury Bill etc. OPR is currently around 3.5% (I think, I'm not into treasury btw), so bank makes profit margin between difference in BLR and OPR. Currently, every banks don't want to produce any price war so BLR is respectedly kept at 6.0%, coz don't want to hurt their margin. However, foreign banks is not subjected to the OPR, that's why we saw some banks like ABN Amro lowering its BLR to 5.5% in June, I think.

That's why I said study first what you want to invest... Diversification apply across every countries, sectors, sub-sectors etc. I'm just giving example to help our fellow friend here...

Brokerage can vary between stockbroking houses, so scout around for the best rate... if I'm not mistaken online transaction brokerage rate is lower i.e. through Maybank2u, CIMB@iTrade, OSK88 etc... normal is 0.3%, for large institution its 0.25%... if you are a son-in-law to Bill Gates and can invest in hundreds of million, you might get 0.1%.

Is Maybank the only bank that allows buying/selling stocks online? Ie. you dont even need a broker?

I've got 2 account, one with RHB and the other with HLB and both only allow you to buy trust funds, and not even online, just at their branch....so maybank is the only one then?

Beside maybank, u can try www.osk188.com.

Do anyone of you know what is the minimum model size and other requirement to open up a trading accounf for online stock such as Maybank?

Robert Kiyosaki's advice is that if you want to do safe investment, then you should be looking at Mutual Funds (MF).

My dad actually has someone to help him manage his MF or stocks for him while he's working. He also explained to me that there are brokers or dunno what do you call these people that advise you to buy/sell certain stocks in the day. Your returns might not be as high as these people because they help alot of people trade.

Imagine you're a broker with 100,000 in your pocket and your job is to find potential stocks to invest. Your returns are higher with that huge amount invested whilst giving back the small profit gained by people who gave you money to help invest.

Hope that makes sense.

I'd actually like to know more about Mutual Funds and Stocks.

Like, can I just leave the Stocks inside and assume it will always generate revenue for me even though I don't buy or sell more?

You buy 1 lot of XYZ's stock at RM 1,000. A year down the road, XYZ might be doing extremely well and your stock is worth RM 1,500. If you sell it now, you'll have RM 500 in profit (before the brokers, etc. have taken their cut). But let's say you decide to hold on to it for another month. Unfortunately XYZ had some internal problems, so the stock's value drops to RM 900. If you sell now, you'll lose RM 100 (your losses will be higher after everyone has taken their cut). If the company folds, you'll end up with a piece of paper.

^ correct me if i'm wrong didn't take into account mergers and stuff.

This post has been edited by Gamers: Sep 30 2005, 11:02 AM

They are called defensive stocks... never really fluctuate in share price performance but return a hefty sum of money in term of dividend. British American Tobacco (BAT) used to be a very good defensive stock which gives dividend of 8.0% (more than savings or FD) but with sin taxes increase, it creates a lot of uncertainty... there a quite few number of them in the market, you just need to look for them.

Didn't know about defensive stocks... *goes out and do some research*

RHB Invest
http://rhbinvest.com/rhbinvest/default.asp

geminist: What do you mean by that question?

A portfolio looks like whatever you put into it....

For example it may consists of cash only .. or bonds .. or stocks .. or all sorts of other types of investment vehicles ..

defensive stocks can also mean stocks which are 'recession proof' ...

like bank stocks ....for example ... ie if the stock market in general falls alot, what you term 'defensive stocks' are those that remain resilient against huge falls/moves in the market.

This post has been edited by khoong25: Sep 30 2005, 02:56 PM

erm, what I meant was... I kept seeing ppl mentioning investment portfolio and etc...

Anyways, for the term portfolio, I always hv the idea that it is something you can show to ppl... Something like a hard copy...

So the portfolio in investment, I meant how does it look like? Is it a file consisting of my previous achievement in investment? or is it just a term used to classified all the investment I have?

hmm..how do i put this in...
portfolio is like you having a pool of funds and you have to decide which instrument to invest in...perhaps certain percentage in bonds, some in equities, some in futures, etc...

and can also say that portfolio is like a basket of ur investment...

This post has been edited by dEviLs: Sep 30 2005, 04:21 PM

AH !! I finally started to see ligh at the end of the tunnel...

Thank you to both of you for explaining it to me...

Currently, I just put most of my money in Mutual Funds and a small sum in FD...

Is there any other investment which I can consider? Like unit trust? or is it unit trust is the same with mutual funds?

Is Mutual Funds the same as Trust funds?

"My dad actually has someone to help him manage his MF or stocks for him while he's working. He also explained to me that there are brokers or dunno what do you call these people that advise you to buy/sell certain stocks in the day. Your returns might not be as high as these people because they help alot of people trade.

Imagine you're a broker with 100,000 in your pocket and your job is to find potential stocks to invest. Your returns are higher with that huge amount invested whilst giving back the small profit gained by people who gave you money to help invest." etsuko

Doesnt this sounds like trust funds? Whereby there's a manager that gather all your funds and others and use them to buy stocks... I'm confused...

I did invest some money into the prudential unit trust, but so far it aint looking really good.