If you are thinking of starting an investment in foreign currency trading, it is important to know about the legal status of Forex trading in Malaysia. Is Forex trading legal in Malaysia? How do you ensure your Forex trading is legitimate and safe?
Bank Negara Malaysia clarified in February 2012 that the buying and selling of foreign currency in Malaysia is allowed. However, you can only trade with licensed commercial banks, Islamic banks, investment banks, and international Islamic banks.
There are many best forex broker Malaysia, offering services to their Malaysian clients. These include brokers regulated by the Securities Commission of Malaysia (SCM) and the Labuan Financial Services Authority (LFSA).
How to Verify SCM Authorization
To identify if a forex broker is regulated by SCM, the first step is to identify the registration number from the disclosure text at the bottom of the broker’s Malaysia homepage. Next, look up the firm on the SCM website to validate the current regulatory status of the broker in Malaysia.
How to Choose the Best Forex Trader
There are many forex traders who are providing different kinds of services. But the most important thing is, which forex is better and how to choose that forex trading partner. Here are a few factors you need to consider.
Regulated – Before any Malaysian trader signs up to a new broker, the trader needs to check if the broker is regulated. A Regulated broker is one that follows the strict rules of the forex regulators to prevent scamming.
Broker Trading Conditions and Costs: Better Forex brokers will often have lower trading costs, meaning that spreads are tight and minimum deposits are low. Trading execution should be lightning-fast and with little or no intervention. Forex brokers should also publish their spreads, execution policy, and a list of all CFDs available to Malaysian traders.
Broker Education and Analysis: Brokers should offer beginner traders a coherent and well-structured trading course alongside a demo account. Brokers should supply detailed market analyses to highlight trading opportunities and provide a complete learning experience.
Broker Trading Platform: Brokers will have their own trading platform or provide support for a third-party platform, such as MT4, MT5, or cTrader. Some brokers will do both. Most Forex traders generally have a platform preference, so brokers with multiple platforms are more likely to have the platform a trader wants to use.
Offers Mobile Trading: Every Malaysian forex trader needs to have access to the inter-bank market irrespective of which device they own. This is why brokers make available mobile apps for android and ios, desktop, and web apps for traders. This makes trading seamless and less stressful.
Easy Deposit/Withdrawal: As a Malaysian forex trader, you need to choose a broker that supports the payment option that works in Malaysia. Also, the payment option needs to provide the lowest fees and fast in processing payments. For Malaysians, Skrill, Neteller, Master Card, Visa Card, and WebMoney are the best payment options.
Effective Customer Service: Before signing up to a broker, you need to first visit the brokers’ website and ask as many questions as possible. This helps you gain confidence in the platform and helps you resolve any issues that might come up during trading.