CGS International Securities Malaysia Sdn Bhd (CGS Malaysia) has introduced fractional share trading on Bursa Malaysia, marking the first time this option is available on the local bourse.
The new feature allows investors to start trading with as little as RM1, significantly lowering the barrier to entry.
The launch coincides with the debut of CGS Malaysia’s new trading platform, UP.
According to The Edge, the initiative aims to make investing more accessible to a wider audience.
“As barriers come down and affordability goes up, we hope to encourage more youth and first-time investors to embark on their trading and investing journey,”
said CEO Azizah Mohd Yatim.
Deputy CEO Khairi Shahrin Arief Baki added that fractional share trading is particularly geared toward younger individuals and those with limited income.
The goal, he said, is to promote early market participation, allowing new investors to gain hands-on experience and deepen their understanding of investing.
“With as little as RM1, investors can gain exposure to the top 30 largest companies listed on the FTSE Bursa Malaysia KLCI,”
Khairi said, noting that the minimum investment amount on the UP platform is RM1. At present, fractional trading is limited to KLCI component stocks.
Fractional shares allow investors to own less than one whole share.
For instance, with Tenaga Nasional Bhd (TNB) closing at RM13.22, a RM1 investment would translate to owning approximately 0.075 of a share.
The value of the fractional share rises or falls in tandem with market fluctuations.
Khairi clarified that the UP platform enables fractional trading via nominee accounts, meaning the shares are held by the brokerage firm rather than directly under an investor’s name in a central depository system (CDS) account.
As such, investors won’t have voting rights or be able to attend annual general meetings. However, they may still receive dividends and corporate action entitlements proportional to the amount of shares they own.
For example, in the event of an acquisition priced at RM2 per share, a holder of 0.5 shares would receive RM1 once the deal concludes.
During the promotional period, CGS Malaysia is waiving brokerage fees for purchases, while sales will incur a flat RM2.50 fee, excluding other charges like stamp duty.
The firm plans to assess the platform’s performance over the next two to three months and may extend the promotion or expand fractional trading beyond KLCI stocks depending on the response.
To further promote financial literacy, the brokerage is targeting 5,000 to 10,000 signups for its Asean Investment Challenge (AIC), which aims to equip young investors with essential investment knowledge.
The competition has expanded into the Philippines this year, with plans to grow its reach across major ASEAN markets.
Addressing the timing of the launch amid market volatility, Azizah said the current conditions provide an ideal opportunity for new investors to learn.
“Rather than posing a challenge, the current market conditions offer a valuable learning opportunity for young or new investors to conduct fundamental or technical analysis and identify the right time to buy or sell stocks,”
she said.
Featured image credit: edited from freepik
