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 Is Copy Trading allowed in Malaysia?, Stock exchange related question

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Cubalagi
post Feb 8 2022, 11:27 AM

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QUOTE(Dato Gujimiao @ Feb 7 2022, 10:30 PM)
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
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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.


Cubalagi
post Feb 8 2022, 01:27 PM

Look at all my stars!!
*******
Senior Member
4,503 posts

Joined: Mar 2014


QUOTE(Dato Gujimiao @ Feb 8 2022, 01:12 PM)
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.
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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.



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