Trading Products
Securities (POEMS Global MY 3.0)
Click here to view the Securities FAQ (POEMS Global MY 3.0).
Securities (NOVA US Securities)
NOVA US Securities is a new offering under the NOVA multi-asset trading platform that provides clients access to US-listed equities and Exchange Traded Funds (ETFs) traded on major US exchanges
Client can trade US exchanges such as:
a) NYSE
b) NASDAQ
c) AMEX
Nova US securities allows trading in:
a) US-listed equities (stocks)
b) US-listed Exchange Traded Funds (ETFs)
No. Client signature on the withdrawal form is not required. Dealer is required to drop an email together with the client’s written WhatsApp consent for processing.
The platform operates on a cash upfront trading model, meaning:
a) Full funding is required before placing an order
b) No credit or leverage is provided
Margin financing is not available under NOVA US Securities. All trades must be fully funded.
Short selling functionality is not supported in the NOVA US Securities offering.
Trading Hours (MYT)
During Daylight Saving Time (approximately March to November):
• Pre-market: 4:00PM – 9:30PM
• Regular Market: 9:30PM – 4:00AM (next day)
During Standard Time (approximately November to March):
• Pre-market: 5:00PM – 10:30PM
• Regular Market: 10:30PM – 5:00AM (next day)
NOVA US Securities follow a T+1 settlement cycle, meaning settlement is completed one business day after the trade date.
Yes. NOVA is a single-login multi-asset platform that allows access to different asset classes under separate client codes (e.g, Futures, CFDs, Securities).
Yes, you may trade US stocks, subject to the onboarding process for NOVA US Securities.
A) Existing Futures Clients
Online Application via System
1) Select either Futures or Stocks on the first page.
2) If Stocks is selected, choose between US Stocks Only or Global Stocks.
3) Select US Stocks to proceed with the NOVA US Securities application.
Alternative Application Method
1) Clients may also apply via the physical account opening form.
B) Existing Securities Clients
1) Online Account Opening (OAO) is currently not applicable due to system limitations in differentiating account types.
2) Clients are required to complete the full physical application form to open a NOVA US Securities account.
For new clients, you are required to submit a Form W-8BEN before trading stocks listed on the U.S. Exchange.
If you are an existing PCSB client, you may reuse your previously signed Form W-8BEN / W-8BEN-E and submit it to your respective branch dealer, provided there are no changes to your particulars and you are not a U.S. resident, citizen, taxpayer, or U.S. domiciled entity.
| Account Type | Form |
|---|---|
| Individual | W-8BEN |
| Corporate | W-8BEN-E |
Form W-8Ben form is an IRS mandated form to collect Non-resident Alien (NRA) tax payer information for individuals for tax reporting purposes. It has a validity of 3 years commencing from the date of declaration to the last day of the third succeeding calendar year. Any changes to the information provided in the W8-Ben form will require you to re-submit a new form to certify your tax status.
Your sales proceed will be credited to your account on the due date of the transaction. However, you will only be able to withdraw sales proceeds after the sale has been settled.
14. What are the commission charges for US stocks/ETFs?
| Exchange | Commission (Online) |
|---|---|
| United States (NYSE, AMEX, NASDAQ) | Fractional Share: Flat fee of USD 0.99 per order Standard Share: 0.02%, minimum USD 3.99 per order |
Example of commission charges for NYSE, AMEX, NASDAQ exchange counters
| Ref | Description | Calculation |
|---|---|---|
| A | Purchase 300 shares on BBB at USD 50 | Equity required: 300 x USD 50 = USD 15,000 |
| B | Commission on purchase on BBB shares | Commission Payable: USD 15,000 x 0.02% = USD 3 Minimum commission of USD 3.99 will be charged instead |
| C | Total Amount = A + B | USD 15,000 + USD 3.99 = USD 15,003.99 |
| Exchange | Type | Charges | Charged By |
|---|---|---|---|
| United States (NYSE, AMEX & NASDAQ) | SEC Membership Fee (Sell only) | 0.0% of trade value (effective 13 May 2025) | SEC (U.S. Securities and Exchange Commission) |
| Trading Activity Fee (Sell only) | USD 0.000166 per share, max USD 8.30 | FINRA (Financial Industry Regulatory Authority) | |
| ADR (American Depositary Receipt) Fee | USD 0.01 – 0.05 per share | Depositary Banks |
Note: ADR fees are charged by the Depositary Banks. These are service fees charged periodically to compensate the agent bank for custodial services. More details can be found in the ADR prospectus.
You do not need to pay platform fees for your account.
You do not need to pay for custody fees for your account. In the event where changes are made to the fees, the revised terms and conditions will be posted on this FAQ or on the PCSB website.
There will be no live market data charges for trading stocks on the U.S. market until the end of 2026. However, if no trades are carried out during the last three months of 2026, access to live market data will be removed effective 2027.
You will not be charged inactivity fees for the account.
The NOVA account used for stocks trading is a prepaid cash account. You may purchase any stocks with the available funds in the account.
Profits and losses are realised when positions have been closed and you will be able to make new purchases after the funds have been released. The proceeds from the previous sale will be released after the sale is settled. You can then make new purchases thereafter.
You can withdraw your funds after the settlement of the sale of the stock and/or ETF.
Share financing is unavailable at this moment.
No. NOVA-Stocks, Futures, and CFD accounts are maintained under separate ledgers.
Therefore, unrealised profits from leveraged product cannot be directly used to purchase stocks, CFD or options.
However, fund transfers between accounts are possible. Please refer FAQ Question 30 for the fund transfer process.
Yes, on NOVA, unrealised P&L will be separated for stocks and derivatives. Unrealised P&L for stocks can be found under the tab – Unrealised P&L (Non- Leveraged). Unrealised P&L for derivatives can be found under the tab – Unrealised P&L (Leveraged). There will not be any tab for realised P&L for stocks as any realised P&L will be calculated under Net Sales Proceed.
Yes, under the tab Total Share Value, you will be able to view the valuation of your holdings in stocks in real-time. Mark to market of your holdings will be done against the last traded price of the respective security.
Our account is a multi-currency account designed for the ease of your trading and foreign currency management. You will be able to purchase foreign currency stocks as long as you have sufficient available funds in your account. To avoid interest charges, currency conversion can be done easily after the purchase by contacting your respective dealer or remisier to cover any deficit in your foreign currency balance.
No as the stocks which you bought through NOVA can only be sold through NOVA as we are the custody to your holdings of the stocks.
There is no trading limits imposed on stocks trading as it is a non-leverage product. However, a maximum order size of MYR 1 million notional value will be applied. Should you wish to request for an increase of limits, please contact your respective dealers, calling the dealing line at 03-2783 0388 or assistance or email to pcsb_enquiry@phillipcapital.com.my.
Withholding tax of 30% is applicable for dividends distributed from US counters, regardless of your citizenship or country of residence.
You may request the withdrawal form from your respective branch dealer and submit it to your branch dealer for processing of the funds transfer
Please refer to the example below for guidance on how to complete the withdrawal form:
| Risk Type | Explanation |
|---|---|
| Equity Risk | – Equity price risk refers to the risk of losses due to adverse movements in the prices of securities. – The market price of a stock moves based on supply and demand. If demand exceeds supply, the price is expected to rise; if supply exceeds demand, the price may fall. – A stock price can fall to zero, meaning the stock loses its entire value and investors may lose their full investment. |
| Concentration Risk | – Concentration risk refers to potential losses arising from overexposure to a single stock, sector, or geographical region. – For example, a portfolio concentrated in the tourism sector may suffer significant losses during a global health pandemic that impacts the industry. |
| Liquidity Risk | – Liquidity risk arises when investing in stocks with low trading volume. – Investors may find it difficult to sell such stocks and may need to exit at an unfavourable price. |
| Foreign Exchange Risk | – Foreign exchange risk occurs due to changes in currency values relative to another currency. – Currency fluctuations can impact returns; for example, a stronger Ringgit may reduce returns on USD-denominated stocks. – However, a stronger Ringgit also means lower cost when investing overseas. |
| Interest Rate Risk | – Interest rate risk refers to potential losses due to changes in interest rates of the country where the stock is listed. – Higher interest rates may reduce consumer and business spending, indirectly affecting stock prices. – Rising rates may also shift investor preference towards fixed income instruments. |
Exchange Traded Fund (ETF)
ETF is a collection of securities that are listed and traded on a stock exchange. ETFs typically aim to track or replicate the performance of an underlying index, sector, or asset class.
| Type | Description |
|---|---|
| Passively Managed ETFs | Passive ETFs seek to track the performance of a reference index, which may be a broad market index or a sector-specific index. Their objective is to replicate the performance of the underlying index rather than outperform it. Replication may be achieved by holding all securities in the index or by holding a representative sample of the securities. As passive ETFs require less active portfolio management and generally involve lower portfolio turnover, they typically have lower expense ratios compared to actively managed ETFs. Examples of passively managed ETFs include SPY, VOO and QQQ. |
| Actively Managed ETFs | Active ETFs are managed by fund managers who actively determine the portfolio composition, security selection, and weightings based on the fund’s investment objective. Although an active ETF may use a benchmark index for performance comparison, the fund manager has discretion to deviate from the benchmark in seeking investment opportunities. Active ETFs may have the potential to outperform the benchmark, but they also carry the risk of underperforming it. They generally have higher management fees than passive ETFs. Examples of actively managed ETFs include ARKK, JEPI and DIVO. |
| ETF Type | Description |
|---|---|
| Equity ETFs | Equity ETFs track an index by holding a portfolio of equities or stocks similar to its reference index. Equity ETFs can provide exposure to the overall stock market, specific geographical regions, or particular sectors. |
| Bonds / Fixed Income ETFs | Bonds and fixed income ETFs provide exposure to corporate and/or government bonds. These ETFs are generally less volatile than equity ETFs and offer access to instruments that are typically less liquid in the secondary market. |
| Commodity ETFs | Commodity ETFs use futures or other derivatives to provide exposure to commodities such as gold, silver, and oil. These ETFs may incur higher expenses due to the need to roll over futures contracts continuously. |
| Currency ETFs | Currency ETFs track specific foreign currencies or baskets of currencies through instruments such as cash deposits, money market securities, forward contracts, and swaps. |
| Inverse ETFs | Inverse ETFs are designed to profit from a decline in the value of a benchmark index and are commonly constructed using derivatives such as futures. They may be used as a hedging tool for investment portfolios. While traditional short selling carries unlimited risk, the maximum loss on an inverse ETF is limited to the amount invested. Inverse ETFs are generally not suitable for long-term investing due to daily rebalancing and higher management costs. Markets also tend to have a long-term upward bias, which may reduce their effectiveness over time. |
| Leveraged ETFs | Leveraged ETFs use derivatives and debt instruments to amplify the movements of their reference index, either positively or negatively. |
The most popular ETF families include iShares, Vanguard and SPDRs (SCP Depository Receipts). These brands are owned by mutual fund companies. For example, iShares ETFs are marketed and managed by BlackRock, while SPDR ETFs are managed by State Street Global Advisors.
An ETF provider may offer funds across different asset classes. For example, the U.S. Aggregate Bond ETF provides exposure to investment-grade U.S. bonds. The iShares Core S&P 500 index tracks the S&P 500 and provides exposure to large-cap U.S. equities. The iShares Gold Trust is designed to track the spot price of gold as reflected in the London bullion market.
Trading Stocks, ETFs, and other investment products involves a high level of risk and may not be suitable for all investors. These products are generally more appropriate for individuals with a medium to high risk tolerance.
Before trading, it is important to understand that there are various risks involved, including but not limited to the following:
| ETF Risks | Description |
|---|---|
| Market Risks | While ETFs may be diversified, they are still affected by market volatility. Investors should understand the underlying benchmark tracked by the ETF and the associated risks. |
| Tracking Error | – The price of an ETF may diverge from the value of the index or asset it is designed to replicate. – Tracking error refers to the relative performance difference between the ETF and its reference index. High trading costs may negatively impact fund performance. – Position or share limitations may prevent full replication of the benchmark, resulting in tracking error. |
| Foreign Exchange Risks | ETFs that invest in international securities or assets may expose investors to foreign currency fluctuations and exchange rate risks. |
| Liquidity Risks | – Liquidity risk may arise if the ETF invests in less liquid securities such as emerging market bonds or small-cap companies, affecting the market maker’s ability to create or redeem ETF units. – ETFs are traded like stocks in the secondary market. If demand exceeds supply, prices may rise, and vice versa. |
ETFs are bought and sold on a stock exchange during market hours, similar to ordinary shares. Investors may place market orders, limit orders, or other order types subject to exchange rules.
The market price of an ETF may fluctuate throughout the trading day based on market supply and demand.
Yes, the market price of an ETF can sometimes differ from its Net Asset Value (NAV). The ETF may trade at a premium when the market price is higher than the NAV or at a discount when it is lower. These differences may occur due to supply and demand conditions, market volatility, or temporary liquidity differences in the underlying assets. However, the creation and redemption mechanism generally helps keep the ETF price closely aligned with its NAV over time.
Some ETFs distribute dividends to investors when the underlying securities generate income, while others may reinvest the income back into the fund. The frequency of dividend payments depends on the specific ETF and may be monthly, quarterly, semi-annually, or annually. However, dividend payments are not guaranteed and may vary depending on the performance of the underlying holdings.
In general, ETF investors do not have direct voting rights in the underlying companies. Instead, the voting rights attached to the shares held inside the ETF are exercised by the ETF fund manager or investment management company on behalf of all investors, based on the fund’s proxy voting policy.
When investing in ETFs, investors may be subject to brokerage fees, exchange-related charges, clearing fees, and other applicable regulatory costs depending on the market. In addition, ETFs also charge an internal management fee or expense ratio at the fund level. These fund expenses are already reflected in the ETF’s performance and are not charged separately to the investor.
ETFs can be suitable for long-term investing, portfolio diversification, or tactical trading depending on the investor’s objectives and risk tolerance. However, certain ETFs such as leveraged or inverse ETFs are generally designed for short-term trading due to daily rebalancing and compounding effects, and may not be suitable for long-term holding.
If an ETF is delisted or closed, investors will typically be notified by the fund provider or relevant exchange. The ETF may be liquidated, and investors will receive proceeds based on the final net asset value after applicable costs and expenses. However, the final amount received may be higher or lower than the original investment depending on market conditions.
Daily Leverage Certificates (DLC)
Click here to view the DLC FAQ.
Cryptocurrency
As opposed to traditional fiat currencies, cryptocurrencies are a form of digital currency secured by cryptography, allowing individuals to transmit them in a virtual setting, anytime and anywhere. Cryptocurrencies are decentralized with no overarching regulatory body.
The Bitcoin, launched in 2009, was the first cryptocurrency. Other examples of cryptocurrencies are Ethereum, Litecoin, Ripple and etc.
A blockchain is a database that functions as a decentralized virtual ledger, existing on a network of many computers. Data is arranged chronologically in blocks and each block’s metadata contains information linking it to the previous one. As such, once data has been stored, any modifications or deletions will be almost impossible.
No, you do not need to set up a virtual wallet.
All cryptocurrency trades made are Futures. Hence, you will not own the underlying physical cryptocurrency.
You will be able to go both long and short for all cryptocurrencies products offer
It is important for customers to know the inherent risks and characteristics of Bitcoin Futures. As with any investment product, customers are responsible for their own risk management.
- Bitcoin is a relatively new product and is known to be volatile. As much as 30% of price movement has been recorded within a trading day.
- Bitcoin cash trades 24 hours including weekends. However, its Futures contracts listed in CME have specific trading hours. This may result in wide price gap that could potentially be as high as 25% or beyond.
- Liquidity is also an inherent risk for Bitcoin Futures. Near month Bid/Offer spreads had been recorded to be as wide as 120 points, and up to 1000 points for the far month expiry.
- Please note that there will be no call in trading support for Bitcoin contracts. Customers would need to manage the possible risks and choose to trade during active hours.
Do note that the Initial margin (IM), which is based on CME daily settlement price, may experience huge fluctuations daily.
Contract For Difference (CFDs)
Click here to view the CFDs FAQ.
Commodities
Commodities trading involves undertaking an agreement to buy or sell a set amount of a commodity at a predetermined price and date. Buyers use these to avoid the risks associated with the price fluctuations of the products or raw materials while sellers try to lock in a price for their products.
We offer commodity products in three main categories:
- Energy Futures contracts: Crude Oil, Brent Crude Mini Crude Oil, Natural Gas, Mini Natural Gas, Kerosene, Gasoline and Crude Palm Oil.
- Metal Futures contracts: Gold, Mini-sized Gold, Silver, Mini-sized Silver, Copper, Palladium, and Platinum.
- Agricultural Futures contracts: Corn, Soybeans, Soybean Oil, Soybean Meal, Oats, Wheat, Cotton, Cocoa, Coffee and Sugar.
Futures contracts are traded on an intra-day “First In, First Out” (FIFO) basis. This means that for an intra-day trade, a customer’s first position bought or sold will be the first to be liquidated.
Example (FKLI):
Glenn bought 2 contracts of December FKLI on 2 different days:
- Day 1 purchase price: 1,965.0
- Day 2 purchase price: 1,960.0
Before the end of the main trading session of Day 2, he proceeds to close 1 contract at 1,963.0.
Under the FIFO rule, Glenn’s Day 1 contract (1,965.0) will be liquidated first.
- Close price: 1,963.0
- Entry price (Day 1): 1,965.0
- P/L = –2.0 points × RM50 = –RM100 (loss)
The Day 2 contract (1,960.0) remains open.
Please refer to the relevant exchange website and search for the particular contract specifications or you can refer to the margin list
Option
Trading options gives the buyer the right but not the obligation to either buy or sell a specific asset at a predetermined price on a future date.
It differs from futures trading as the options’ purchaser has no obligation to either buy or sell for the exercise price and will do so only if it is profitable.
Options are flexible instruments because they allow you to tailor the exact exposure and risk you wish to have for an anticipated move in the options price.
Trading options allows an investor to gain leverage in a contract without committing to a trade. Furthermore, risk is limited to the option premium for the buyer of an option. (Writers of options face unlimited downside risk.) In addition, trading options allows investors to protect their positions against adverse price fluctuations when it is not desirable to alter the underlying position.
Writing an option provides one with an additional source of income arising from the premium one receives from the buyer of the option. The premium also serves as a cushion against the risk exposure one would incur.
For example, if you write a call option in anticipation of a decline in the price of an underlying, you will reduce your potential capital loss by the amount of premium you receive. However, if you expect the price of a particular underlying to rise, you may wish to write a put option and earn the premium as the put option holder will not exercise his right.
Options is both an exchange traded product and an OTC product.
No, because the value of the Option will depreciate with time and is worth nothing once expired.
The exercise style of an option does not prevent an investor from closing the position by engaging in a closing transaction on an exchange up to and including the last trading day for the contract. A long (purchased) option contract can be closed by one of two methods: entering into a closing sale at an options exchange, or by exercising the contract. A European exercise style option can only be exercised at expiration so the only way to close your position prior to expiration is to execute a closing trade.
Index options can have different exercise styles and trading hours. Option holders would want to be certain that they know the difference between closing an open option position by exercising the contract, and closing the position via a trade on an exchange. Even the last trading day for expiring options can vary. The contract specifications of these index products contain important trading information regarding these options.
Gold/Silver
Phillip Nova has the following Gold/ Silver products for trading:
1. Bursa Gold Futures (FGLD)
2. JPX Gold and Mini Gold (JAU & MINIJAU)
3. JPX Silver (JSV)
4. COMEX 100oz Gold, Mini Gold, E-Micro Gold, 1-Ounce Gold (GD, QO, MGC &C10Z)
5. COMEX 5000oz Silver, Mini Silver and Micro Silver (SV, ID & SIL)
Can't find what you are looking for?
Should you have any query, you may contact us at 03-2783 0388 or
email us at pcsb_enquiry@phillipcapital.com.my
