Hi there, I'm checking in term of Legal and Technology. As we are planning to develop a system where the Newbie Investors can follow the Experienced Investors. The system will place trades on behalf of the Newbie, based on the Experienced trades.

Here are some Use Cases of our Copy Trading features:
1. Experienced-Trader (AKA Investment Mentor) login to our app, Experienced-Trader places a trade order.
2. Beginner-Trader deposits a sum of money into his own account
3. Beginner-Trader set which Experienced-Trader that he wants to follow.
4. Our system will automate the trade (buy or sell) everytime the Experienced-Trader places an Order.

I know there is currently no such platform in Malaysia, it doesn't means such trading platform was disallowed by SC Malaysia.
Does anybody have any idea? Thanks in advance

Etoro kan ada

go ask SC...

Under SC regulations there is grey area whereby copy trading is not allowed

Before you embark such venture I suggest you to get SC approval for your trading platform before embark8ng further

Do the experienced trader gets any remuneration? From the beginner trader?

This SC will probably say u need a stockbroking license to do this. Those are hard to come by.I think the best way is to see if can JV with a broking company.

etoro doesn't have local Stock exchange, User can only buy Overseas stocks like Apple, Fb, etc
Our aim is develop the Social Trading app for the Bursa.
Our vision is to develop an investment platform that allows investors to invest in the local stock market, to preserve the capital fund in this country, instead of letting the investor invest into foreign platforms like etoro.

Yes, the Experienced Trader will earns a portion of money as commission. We are still working on the commission structure.
We partnered with a company which have license on that, so I don't think Stockbroking license is a challenge for myside.
The only thing I need to clarify is the SC's side, because the Copy Trading is still not mentioned clearly on their Handbook or website.

It's not mentioned because they haven't allowed it yet. But new things are always like that. Malaysia SC is very conservative (read slow) when it comes to new things. N even when they allow new things, they tend to make it very hard to do. But there is always a chance.

SC replied a only , not much info I can get.

Go read about CMSA Act 2007 as you need license to run a trading platform in the 1st place and copy trading in vague terms is not allowed by SC

This kind of serious questions, whoever you partner with will have compliance department or legal, they will also worry. It's not something you should be getting advise from forum.

We have the license, however the original of this threat question isn't about licensing fyi