Online Trading or Remisier Phone Trading ?

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Nowadays, with the convenience of readily internet facility. People's tend to buy shares online rather than the traditional methods by buying through remisiers.

Basically, online trading which means you buy and selling the shares yourself through the brokers companies or investment banks provided website. Comparatively, online trading brokerage are cheaper and lower than going through remisiers. The minimum brokerage charges for online trading is RM12 while remisiers minimum brokerage charges was RM40. It's almost 4 times. 

Ok. Lets see how its works:

Standard Trading Cost:

1. Brokerage Fee : 0.70% for below RM100,000 amount of transaction and 0.30% for transaction of RM100,000 and above and 0.15% Intra-day transaction. (But brokerage fee are negotiable)
2.  Clearing Fee : at 0.003% per transaction limited to maximum RM200 per transaction. 
3.  Stamp Duty : RM1 per RM1,000 amount of transaction or part of it.
4.  Minimum brokerage fixed rate is RM40. (Not necessarily apply)

Online/Internet Trading Cost: 

1. Brokerage : 0.42% for below RM100,000 amount of transaction and still negotiable as it is varied among stockbrokers company/banks. You may even see zero brokerage when there is promotions.
2. Clearing Fee : at 0.003% per transaction limited to maximum RM200 per transaction.
3. Stamp Duty : RM1 per RM1,000 amount of transaction or part of it.
4. Minimum brokerage fixed rate is RM12. (Not necessarily apply)

*The importants are still on the MINIMUM BROKERAGE for online trading. So, you could always profit within a tick with low minimum brokerage for small traders.

Fundamentally, traditional methods which through remisiers which means remisiers will tend to provide some research, information and professional opinion to their clients. But nowadays, people's are complaining about the services of remisiers as they feel there is no difference between buying shares through remisiers and online trading. This is because the investors/clients feel that remisiers do not provide any value-added services. The remisiers nowadays seldom provide their views on whether to buy now or later as sometimes investors may be able to get better prices if they purchase the stocks later.

Thus, many people's are changing their channel of trading by using online trading and monitor the price movement themselve. Despite the high stock market trading volume, trading are mainly done through online rather than through remisiers. So, if the remisiers does not improve or provide some value-added services such as providing some advice or better evaluation on stocks, they might phase-out in Malaysia.

In Malaysia, there is about 8,000 remisiers and dealers with a population of 28 million while Singapore had 3,000 remisiers with a population of about 4 million. So, actually, remisiers services are still needed and have the potential to grow. Thus, those remisiers should to upgrade and add more value to their services, on top of providing the best execution of trades to their clients, to differentiate their services from online trading and furthere advanced their financial knowledge and go for more advanced courses.