Analyzing Malaysia as a Forex Trading Market

There are many reasons why Forex trading is attractive for investors around the world. For one, it has the potential to turn your humble capital into large amounts of profits. Many traders speculate in the Forex market for monetary purposes. For some Forex traders, the advantages of Forex trading over stocks, fixed income, bonds, equities and other types of investments outweigh its drawbacks.

The Forex market is open 24 hours a day, 5 days a week. It operates through a network of banks and institutions in different sectors. However it does not have a central marketplace where all transactions take place. The Forex market is a decentralized market as currencies are exchanged online across different banks around the world.

Forex Trading in Malaysia

If you will be trading from Malaysia, then you probably are confused whether Forex trading is legal or illegal in the country. There had been a fuss about the financial regulation in Malaysia that bans Forex brokers to operate in Malaysia but for the time being, retail Forex traders in Malaysia can participate in the market without worrying about legal issues, so long as we do it in a law abiding manner. 

According to Yeo Chin Tion, Head of Financial Markets for Alliance Bank in Malaysia Bhd, Forex trading is legal in the country.  ““Bank Negara has liberalised many of its policies, including allowing individuals to open foreign currency accounts (even joint accounts) with any authorised bank” said Yeo Chin Tion.

What are the Options for Malaysian Traders?

 Now, when it comes to Forex brokers, you’ll also find that there are only a few options out there for investors who prefer to go with a regional broker. Here is where offshore Forex brokers come in. If you broaden your choices, specifically considering brokers outside the country, then you’ll find that there are so much more that you can choose from.

The key to dealing with a good broker is to choose one that meets your trading requirements, offers a platform that’s easy to navigate and provides excellent customer support. More importantly, you should deal with a Forex broker that is regulated. A regulated broker is one that operates under the strict observation of a credible financial authority.  You can find out if a broker is regulated by checking it in their website. Most brokers display this information in their website. If you don’t find any, then it’s safe to assume that they are not regulated and you should look for another broker.