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.
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