Starting with Currency Trading in Malaysia

With much of the world’s economy experiencing slow growth in the past few years, it is pleasantly surprising for Malaysia that its economy is enjoying a boom that has even amazed skeptics. According to the second quarter gross domestic product figures that was released this week, the Malaysian economy has grown by 5.4 percent, which is above the consensus expectations of 4.6 percent, as well as the 4.0 per cent recorded after an upward revision.

Malaysians economy growth has been contributed by the lending to business by well capitalized banks, exorbitant government spending as well as healthy consumer demand which was allowed for by pay rises for civil servants and cash handouts that have been distributed among citizens.

With these dramatic advances at hand, a number of local investors have become more engaged in various manners of investment instruments, including retail Forex trading. The Malysian Ringgit (MYR) has improved its value since the 2009 global recession. It appreciated by 26% before pulling back to lower levels after commodity prices stabled down and the oil barrel price went to a more realistic price point of below $100.

While the evolution of the Forex trading sector in the Malaysia has been a long one, the country is reported to be an attractive target for Forex market players.

Forex in Malaysia – Options for Forex Traders in Malaysia

The Bank Negara Malaysia is the central bank of the country and is responsible for overseeing the operations of the local currency. The regulatory authorities belong to the Securities Commission Malaysia, which is headquartered in Kuala Lumpur.

While there is an existing authority that manages the currency, the regulations however have some pronouncements from government officials that there are some illegal forms of Forex trading. Basically, the legal way to trade Forex in the country is to do so through local banks which do not support leverage to any extent.  Another acceptable way to get involved in Forex trading is by converting one’s ringgit money into dollars and used it for speculation purposes. Simply put, trading currency pairs that do not directly involve the Malaysia ringgit is allowed Forex traders.

That saying, there are a number of offshore Forex brokers which traders can consider instead if they are interested in retail Forex trading.  When going this route, every trader should do his careful research in finding a broker that is regulated and offers a reliable trading platform and customer support.