Choosing a Forex Broker – Does it Need to be in Malaysia Only?

The Bank of Negara allows investors in Malaysia to invest in currencies for speculation purposes. And while Forex trading is legal in the country, investors have limited choices as to what local brokerage companies to choose in trading currencies.

For traders who are based in Malaysia and would like to see a wider range of choices for Forex brokers, the best option is to look among the offshore brokers. You can find a lot of these with just a simple query online.

Now, selecting a Forex broker used to be a fairly simple process because there was only a handful available. But with the rise of the Internet and the massive growth of Forex trading, the number of Forex brokers has skyrocketed. It may seem daunting given the vast number of Forex brokers available to everyone, but by doing some thorough research, selecting the right Forex broker for you can be a bit easier. Below are the things you need to consider when finding the right Forex broker.

Regulation of the Forex Broker

If you are going to choose a Forex broker in the US jurisdiction, then it is vitally important that it is registered with the Commodities and Futures Trading Commission or Securities and Exchanges Commission. Forex brokers that are based in other countries should be registered with the authorized regulatory organization in that country. For example, UK based Forex brokers should be regularized by the Financial Services Authority of the United Kingdom. You can visit the organizations’ website and look up the Forex broker you are assessing if it is included in their list. Make sure you deal with a broker that has a clean record and has solid financial standing. Any broker that doesn’t meet either of these criteria should be taken off your list of candidates.

Trading Style Suitability and Customer Support

Trading styles vary among traders so it is essential that you choose a trading platform that suits your own trading style. It should do basically everything you need. Most trading platforms today are customizable to suit the traders’ strategies and allow for automated trading. 

As for the customer support, make sure to prove the reliability of a broker’s customer support service before committing to them. A customer support staff that you can reach at anytime of the day can make a difference in your trading experience.

There are a lot more factors that you need to consider when choosing a Forex broker. Depending on your experience and needs, these may or may not be crucial to your decision making process. Ultimately, be sure to choose one that is regulated and provides all your trading requirements.