Lesson 2: Broker Fee and Other Fee

Part 1: What is Broker Fee

Broker fee is a fee charged by an agent from a investment bank such as RHB,Hong Leong Bank & etc for every time you do a transaction wether you buy or sell a stock.

As mention in "Lesson 1" most broker will charge from 0.70% - 0.08% depends on the broker house you are trading with. But usually for lower brokage fee it will required some special terms.

In my knowledge so far CIMB Bank is offering 0.08% per Trade but it comes with a condition that required you to lock in RM 10,000 in there bank and cannot be use to buy stock.

For more brokerage info check out with all the investment house or bank too see which one is suitable to you. For now 0.42% is consider standard rate out there.

Part 2:What is Intraday Trading

Intraday Trading on the other hand have a different story it brokerage charge is 0.15% or minimum RM 8 for each transaction you do. (Note: Intraday Trading required you to buy and sell the stock in the same day) 

example: you bought a stock [4707]Nestle at date 10/9/2012 and you must sell the stock at date 10/9/2012 in order to get the 0.15% Broker Fee

Part 3: What is Clearing Fee

The Clearing Fee is charged by Bursa Malaysia in my opinion is some sort of admin fee. Clearing fee is 0.03% is charge for every transcation done.

Ok let me show you how it's done =P

example: You bought [4707]Nestle  1,000 shares at price RM 40, so it will become RM 40 x 1000 Shares = RM 40,000 and x 0.03% Clearing Fee = RM 12

So your clearing fee is "RM 12" (clap clap now you know how to calculate the clearing fee congratz)

Part 4: What is Stamping Fee

Stamping fee is charged by goverment is more like goverment tax in my opinion.
Stamping fee is abit different is not charge by percentage but by total value of shares in each transaction.

for each RM 1,000 you will be RM 1 and the maximum is RM 1,000 (how are we suppose to hit the maximum -_-")

example 1: you bought a stock for "RM 8,000" your clearing fee is RM 8.
example 2: you bought a stock for "RM 8,500" your clearing fee is RM 9.
example 3: you bought a stock for "RM 9,900" your clearing fee is RM 10.

Part 5: Multiple Trade in a Day

(Raise hand i have a question what happen if i buy multiple times of the same stock ? Will i be charge few times broker fee?)

Answer: No ! you will only be charge once.

Example: You bought [4707]Nestle RM40X500 shares at the date of 12/20/2013 at 10am, Then you buy again  [4707]Nestle  RM40X500 shares  at 2.30pm on the same day.

 So it will become like this [4707]Nestle RM40X1,000 shares = RM40,000 X0.42 Broker Fee = RM 168.