A CDS (Central Depository System) account records the Bursa Malaysia securities you own. You open it through a stockbroker or Bursa Malaysia's Bursa Anywhere app. You must be at least 18, and you will need your MyKad or passport. To actually buy and sell, you also need a trading account, which most brokers open at the same time.
You will usually need a CDS account in your own name. See our guide to IPO Pink Forms for the full checklist.
What is a CDS account?
A CDS account is the account where your Bursa Malaysia securities are recorded electronically. CDS stands for Central Depository System, which is run under Bursa Malaysia Depository. Shares listed on Bursa Malaysia are scripless, meaning there are no paper certificates. Your CDS account is the official record that you own them.
You do not open a CDS account directly with Bursa Malaysia at a counter. You open it through an Authorised Depository Agent (ADA), which in practice means a Malaysian stockbroking company, or online through the Bursa Anywhere app, where you pick the stockbroker you want the account with.
What does a CDS account actually hold?
Think of it as a safe deposit box for securities listed on Bursa Malaysia. Depending on what you invest in, it can hold:
- Ordinary shares listed on the Main Market and ACE Market
- REITs and exchange-traded funds (ETFs)
- Warrants, and rights entitlements during a rights issue
- Bonus shares and new shares from corporate exercises
- Shares allotted to you in an IPO
It does not hold cash. Your cash sits with your broker (in your trading account or trust account) or in your bank. Dividends are normally paid into your bank account rather than into the CDS account.
Do you need a CDS account to buy Bursa Malaysia shares?
Your Bursa shares must be recorded in a CDS account. That can be a CDS account in your own name (a direct account) or one held by your broker's authorised nominee company on your behalf. Which one you get depends on the broker. Either way, you also need a trading account to place orders.
This is why some app-based brokers seem to skip the "CDS step": they may hold your Bursa shares under a nominee structure, or open a CDS account for you in the background. If you need a CDS account in your own name, for example for an IPO application, ask the broker directly.
CDS account vs trading account
| CDS account | Trading account | |
|---|---|---|
| What it does | Records the securities you own | Lets you place buy and sell orders |
| Who runs it | Bursa Malaysia Depository, via your broker | Your stockbroker |
| Holds shares | Yes | No |
| Holds cash | No | Your broker holds your trading cash |
| Needed for IPOs | Yes, generally in your own name | Needed later to sell |
| How many | One per broker (individuals) | Depends on the broker |
Why beginners normally need both
The trading account is the shop counter where you place orders. The CDS account is the safe where the shares are kept after you buy them. You need the counter to trade and the safe to hold. Most brokers open both in one application, which is why many people never notice they have two accounts. For more on the trading side, read our guide to opening a trading account in Malaysia.
Who can open a CDS account?
According to Bursa Malaysia, a CDS account can be opened by:
- Individuals aged 18 or above on the application date
- Companies, limited liability partnerships, incorporated public authorities, co-operatives, trusts, registered societies and certain statutory bodies
The applicant must be either the beneficial owner of the securities or an authorised nominee. Foreigners can open CDS accounts using their passport, but brokers may have their own extra requirements.
Documents normally required
- MyKad for Malaysians, or passport for foreigners. If you apply at a broker's counter, Bursa Malaysia's guidance mentions two certified copies.
- A completed CDS account opening form, either on paper or as part of an online application.
- Bank account details in your own name, which brokers use for deposits, withdrawals and refunds.
- Payment of the account opening fee, if the broker charges one.
Online applications usually replace certified copies with eKYC: you photograph your MyKad and take a selfie or short video. Brokers can ask for more, such as proof of address or a bank statement. Requirements differ by broker.
How to open a CDS account
There are three common routes. The right one depends on how quickly you need it and whether you also want a trading account at the same broker.
-
Through a broker's online account opening (most common)
Sign up with a stockbroker online, complete eKYC, and the broker arranges your trading account and CDS account (or nominee arrangement). Ask whether the CDS account will be in your own name if that matters to you.
-
Through the Bursa Anywhere app
Bursa Malaysia's Bursa Anywhere app lets Malaysians with MyKad submit a CDS account application electronically, choose the stockbroker, upload supporting documents and pay fees through FPX. You will still need a trading account with a stockbroker to trade.
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At a stockbroker's office
Fill in the CDS account form, submit certified copies of your identity document and pay the fee. If you cannot be there in person, Bursa Malaysia allows your documents to be verified by authorised people such as a dealer's representative, a notary public, a licensed lawyer or a Malaysian embassy officer.
Once approved, your broker issues your CDS account number and Bursa Malaysia Depository sends a confirmation notice. Approval is not instant, so do not leave it to the last minute if you have an IPO deadline.
Direct vs nominee CDS account
| Direct CDS account | Nominee account | |
|---|---|---|
| Registered name | Yours | The broker's authorised nominee company, holding on your behalf |
| Who is the beneficial owner | You | You |
| IPO applications in your own name | Yes | Generally not accepted for own-name applications; some brokers offer their own IPO service or a separate CDS account |
| Company notices and AGMs | Sent to you directly | Usually handled through the broker or nominee |
| Typical use | Traditional brokers, IPO applicants | Some app-based brokers |
Neither structure is "wrong". Nominee accounts can make onboarding simpler. But if you want to apply for IPOs or Pink Forms in your own name, receive company documents directly, or attend AGMs without extra steps, a direct CDS account is usually easier. Ask your broker which structure applies before you open the account.
CDS account fees and charges
Bursa Malaysia's guidance says an account opening fee is payable when you open a CDS account. How much you pay depends on the broker, and some waive it. For example, Rakuten Trade's official fee page listed CDS account opening as free when we checked on 4 October 2026. Always confirm with the broker you choose.
Separately, every Bursa trade has statutory and exchange charges on top of brokerage. Rakuten Trade's fee page (checked 4 October 2026) listed them as:
- Clearing fee: 0.03% of the contract value, up to RM1,000 per contract (charged by Bursa Malaysia)
- Stamp duty: RM1 for every RM1,000 of contract value, up to RM1,000 for shares, with a lower cap of RM200 for rights, warrants and REITs, and exemptions for some ETFs and structured warrants until 31 December 2028
Brokerage fees are set by each broker and vary a lot. That is where comparing brokers matters most. See our Malaysian broker comparison.
CDS accounts and IPO applications
To apply for a Malaysian IPO, you need a CDS account, and the prospectuses we reviewed required it to be in your own name. Nominee and third-party CDS accounts were not accepted. This catches out many people who have only used an app broker with a nominee structure.
- Public IPO applications are usually made electronically through banks, brokers or the issuing house, and ask for your CDS account number.
- Pink Form (staff) applications follow the instructions on the Pink Application Form, and also ask for your CDS account number. See What is an IPO Pink Form?
- Moomoo users: Moomoo Malaysia's help centre says a separate "CDS Account-IPO" is needed to take part in Malaysian IPO subscriptions, opened in the app under Accounts › More › CDS Account-IPO.
Receiving IPO allocations
If you are allotted shares, they are credited into the CDS account you gave on your application before the listing date, and a notice of allotment is sent to the address on your CDS record. To sell them later, you trade through the broker that holds that CDS account.
Common beginner mistakes
- Assuming a broker login means you have a CDS account in your name. Check whether your broker uses a direct or nominee structure.
- Opening an account the week an IPO closes. Approval takes time.
- Letting your address go stale. Notices of allotment and company documents go to the address on your CDS record.
- Using someone else's CDS account for your own IPO application. It will generally be rejected.
- Forgetting old CDS accounts. You can have one per broker, so an old account at a broker you no longer use may still hold shares.
- Choosing a broker only for the sign-up reward. Fees, account structure and platform matter far more over the years.
Your next step
Already decided? Read our Moomoo Malaysia sign-up guide (code BURSA88), the Webull Malaysia sign-up guide or the Rakuten Trade sign-up guide.
中文重点：CDS账户是什么？怎么开？
CDS account FAQ
What is a CDS account in Malaysia?
A CDS (Central Depository System) account is the account where your Bursa Malaysia securities are recorded electronically. It is operated under Bursa Malaysia Depository and opened through a stockbroker, called an Authorised Depository Agent, or through the Bursa Anywhere app. Listed shares are scripless, so the CDS account is your official record of ownership.
Do I need a CDS account to buy shares in Malaysia?
Every Bursa Malaysia share you own is recorded in a CDS account. That can be a CDS account in your own name (direct) or one held by your broker's authorised nominee on your behalf, depending on the broker. Either way, you also need a trading account to place orders.
Is a CDS account the same as a trading account?
No. The CDS account holds your securities. The trading account is your account with a stockbroker that lets you place buy and sell orders. Most beginners need both, and many brokers open them together.
Who can open a CDS account?
According to Bursa Malaysia, individuals aged 18 or above, as well as companies, limited liability partnerships, trusts, co-operatives, societies and certain statutory bodies. The applicant must be the beneficial owner or an authorised nominee.
Can I open a CDS account online?
Yes. Malaysians with MyKad can apply through Bursa Malaysia's Bursa Anywhere app by choosing a stockbroker, uploading documents and paying fees via FPX. Many brokers also run their own online eKYC account opening.
How much does it cost to open a CDS account?
Bursa Malaysia says an account opening fee is payable, and the amount depends on the broker. Some brokers waive it. For example, Rakuten Trade's fee page listed CDS account opening as free when we checked on 4 October 2026. Confirm the current fee with your broker.
Can I have more than one CDS account?
Yes. Bursa Malaysia allows an individual to open one CDS account with each Authorised Depository Agent, so you can have CDS accounts at several different brokers, but only one per broker.
Do I need a CDS account to apply for an IPO?
Yes. Successful IPO shares are credited into a CDS account, and the Malaysian prospectuses we reviewed required the CDS account to be in the applicant's own name. Nominee and third-party accounts were not accepted. Read our IPO Pink Form guide.
What is the difference between a direct CDS account and a nominee account?
A direct CDS account is registered in your own name. In a nominee arrangement, your shares are held in a CDS account belonging to the broker's authorised nominee company, with you as the beneficial owner. Direct accounts are generally needed for IPO applications in your own name. Ask your broker which structure it uses.
Sources we checked
- Bursa Malaysia (Bursa Assist): who can open a CDS account; how to open a CDS account; opening a CDS account without being present in person; opening more than one CDS account.
- Rakuten Trade official fees page: CDS account opening fee, clearing fee and stamp duty.
- Moomoo Malaysia help centre: "How to open a CDS Account-IPO".
- Procedures for application published with recent Malaysian IPO prospectuses (own-name CDS account requirement).
Checked on 4 October 2026. Fees and procedures can change.
This guide is general educational information about Malaysian market infrastructure. Broker requirements, fees and account structures differ and can change. Confirm with your broker before opening an account. BursaNews is not a licensed financial adviser and this is not investment advice.
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