Intraday vs Swing Trading Costs: Why You Should Exclude Intraday
Generally, everyone knows that Malacca Securities Sdn Bhd, or MPlus, offers brokerage fees — the cost of buying and selling shares — that are among the cheapest compared to other brokers.
2 Different Rates
For those who open a CDS Cash Upfront account, MPlus provides 2 different rates: an Intraday rate and a Swing rate.
The brokerage fees charged by MALACCA SECURITIES are as follows:
| INTRADAY | 0.05% | Minimum RM8 |
| SWING | 0.08% | Minimum RM8 |
So, every time a BUY and SELL transaction occurs, investors are charged a brokerage fee along with several other charges. You can read more here: Charges Involved in Stock Trading
For this article, we will focus solely on the BROKERAGE FEE so that you can more easily understand what happens.
What is Intraday?
Before we proceed to the main point of this article — "Why You Should Exclude Intraday" — it is best that you first understand what intraday means.
| Intraday is the process of buying and selling the same stock, in the same quantity, on the same day |
When 2 buy and sell transactions of the same stock occur on the same day, the brokerage fee charged to you is automatically set at the intraday rate, which is 0.05% or a minimum of RM 8.
Example:
- Ahmad buys 100 lots of Stock A on Monday at 9.30 am
- Ahmad then sells 100 lots of Stock A on Monday at 4.30 pm
"That sounds great — you get a lower rate. So why would you want to exclude intraday?"
Why Exclude Intraday?
There is no issue if you buy and sell the same quantity of a stock on the same day. However, a conflict arises when the quantity of shares you buy and sell differs.
To make it easier to understand, I will explain using scenarios below:
Scenario 1
- Ahmad buys 150 lots of Stock A on Monday at 9.30 am
- Ahmad sells 100 lots of Stock A on Monday at 3 pm
- Ahmad''s remaining holding of Stock A is 50 lots
What happens without Exclude Intraday?
- 100 lots sold and bought will be "paired" as intraday
- 100 lots bought are charged 0.05% or minimum RM 8
- 100 lots sold are charged 0.05% or minimum RM 8
- The remaining 50 lots are charged at the purchase rate of 0.08% or minimum RM 8
- Total brokerage fee charges amount to 3 times
What happens with Exclude Intraday?
- All 150 lots bought are charged 0.08% or minimum RM 8
- 100 lots sold are charged 0.08% or minimum RM 8
- Total brokerage fee charges amount to only 2 times
Scenario 2
- Ahmad buys 100 lots of Stock A on Monday at 9.30 am
- Ahmad sells 100 lots of Stock A on Tuesday at 9.30 am
- Ahmad buys back 150 lots of Stock A on Tuesday at 3 pm
- Ahmad''s remaining holding of Stock A is 50 lots
What happens without Exclude Intraday?
- 100 lots sold and bought on Tuesday will be "paired" as intraday
- 100 lots bought are charged 0.05% or minimum RM 8
- 100 lots sold are charged 0.05% or minimum RM 8
- 100 lots bought on Monday are charged at the purchase rate of 0.08% or minimum RM 8
- The remaining 50 lots bought on Tuesday are charged at the purchase rate of 0.08% or minimum RM 8
- Total brokerage fee charges amount to 4 times
What happens with Exclude Intraday?
- 100 lots bought on Monday are charged 0.08% or minimum RM 8
- 100 lots sold on Tuesday are charged 0.08% or minimum RM 8
- 150 lots bought on Tuesday are charged 0.08% or minimum RM 8
- Total brokerage fee charges amount to only 3 times
You can also watch the video below for a better understanding of this topic:
Request Exclude Intraday
To avoid being charged excess brokerage fees when buying and selling the same stock on the same day, you need to apply for Exclude Intraday.
Request Exclude Intraday through your Remisier.
For Maher Alias CDS clients, you can apply for Exclude Intraday using the Google Form provided.
Get the Google Form link at the Mahersaham Support Bot
You can also refer to this article for instructions on how to request exclude intraday
Happy Trading.
FAQ: Intraday vs Swing Trading Costs
What is the difference between intraday and swing trading costs?
Intraday trading (buying and selling the same stock on the same day) is charged a lower brokerage fee of 0.05% compared to swing trading at 0.08%. Both have a minimum charge of RM8 per transaction. The broker offers this special rate for intraday transactions.
Why should I exclude intraday on my MPlus account?
By default, MPlus may set your account to the intraday rate. If you are not an intraday trader, you should request to exclude intraday so that your brokerage fee is calculated based on the swing rate. This prevents your transactions from being split into multiple charges when buy and sell quantities differ on the same day.
How do I request exclude intraday on MPlus?
You can contact your remisier or dealer to submit a request to exclude intraday. For Maher Alias CDS clients, you can apply through the Google Form available via the Mahersaham Support Bot on Telegram. The process typically takes 1-2 working days to activate.
Is intraday trading suitable for new investors?
Intraday trading requires advanced chart-reading skills, quick decision-making, and sufficient capital. It is more suited for experienced traders. New investors are encouraged to start with swing or position trading, which involves holding shares for several days or weeks.
Understanding the cost difference between intraday and swing trading helps you choose the trading style that best suits your budget and investment strategy.
Download our free investment basics ebook to learn the fundamentals of stock investing.
Ready to start? Open a CDS account to begin buying shares on Bursa Malaysia.