One of the most beautiful countries and economic centers of south-east Asia witnessed a growth in the capital market just like the western world. Many feel attracted to the potentially lucrative business opportunities available there. Many others, on the other hand, still feel skeptic about untraditional ways of conducting business and are concerned about frauds and scams.
This article wants to break prejudices of conservative Malaysians and familiarize them with the business. Of course, many businesses work under pretences and look for taking your money, but we will explain to you how to find decent companies that are among the best Malaysian Forex brokers.
Top Forex brokers Malaysia will offer you fair conditions and fair trade. You just have to know the criteria that need to be met. If you are interested in the Malaysian market, either as a trader or just a market analyst, we have some useful tips for you coming up.
Top Malaysian Forex Brokers
| Broker | Bonus | More |
|---|---|---|
|
Check Website | Review |
The Malaysian Controversy
Currency trading became legal just recently in Malaysia. The Malaysian government started to slowly give in and legalized the trade. Be aware that some parts of Malaysia allow the trade to a certain point and if you cross that legal line you can find yourself at the other side of the law. The best way is to research the laws and regulations that apply to your area of business and start from there.
After you analyzed and asked around about the legal boundaries, you can move to selecting a fine Malaysian Forex broker to enter the market.
The Authority on Malaysian Brokers
As we already stated, the Malaysian Forex broker market might have some unresolved issues, but still the authorities make an effort to implement a steady regulation, and they are committed to the task.
The Central Bank “Negara Malaysia” is in charge of the national currency – the Malaysian Ringgit. The government discussed at great length trading of the national currency and the currency exchange in the past. By now, the Malaysian government permitted Forex trading in their country, and the regulation was left to the Securities Commission in Malaysia under the purview of the Central Bank.
Their scope of responsibilities includes exchange of traded products, Forex exchange, and overall broker operation in the country. Nevertheless, the regulation is still not quite clear, given its recent creation date.
The bank issues licenses for brokers and protects the investments and personal data of traders. Brokers work under very strict conditions which made experts from the UK and Cyprus believe that Forex trade is impossible in such an environment. However, the bank proved them wrong. The bank controls over 50 Forex brokers Malaysia which are quite successful.
The Bank handles anything that has to do with the financial trading market like complaints from traders, brokers, or financial agencies.
After all this confusion, let us clearly state that Forex trading is legal in Malaysia. It works under national financial laws. As a developing country, Malaysia permits its residents to trade in foreign currencies with registered Forex accounts that should be opened with licensed onshore and offshore banks, as well as with International Islamic Banks.
The Central Bank came up with innovation in the business that is not that usual in the Western world. Residents can open a joint account. This means that two or more people are allowed to trade with their money together. In that way, they can enlarge their capital in the Forex market.
This move of the Central Bank tries to encourage Malaysians to enter the business since they are now hesitant due to legal-illegal ups and downs, and they are not familiar enough with the market. The majority is also not that wealthy to have the extra money to invest, but by joint forces, they can manage to play in the Forex league.
You can join the Malaysia Forex brokers as a foreigner, too. Take the chance to be one of the pioneers in the Malaysian market given that Malaysia is predicted to become very successful in global Forex trading in a few years.
What is Forex exactly and what do best Malaysian Forex brokers offer
As we identified the responsible institution behind the Forex trading market that grants you legal protection and security we can move onto explaining the business in general.
The Forex trading market is a major player in the global economy with a turnover of billions of dollars on a daily basis. The amount of money speaks for itself, and that is the largest indicator of the market’s success. Trading in currencies can be defined as sophisticated gambling and is, therefore, attractive and profitable but also risky.
As a newcomer, you should be aware that risk is always a part of the game. Study the market for a while before you invest real money.
The Malaysia Forex brokers, just like other fine brokers, offer, first of all, a demo account for practice. A demo account grants you virtual money to invest and to test the grounds without any risk of losing real money.
After you had familiarized yourself with the account, the interface, and how trading works, a reliable Forex broker Malaysia should offer you a standard professional account with more options.
If you want the best Malaysian Forex brokers, look for the ones who offer various platforms since the software platform will be your primary tool in the business. The platform should display all available currency pairs and a chart with trend movements (the movement of pips in the market, indicating if the value of the currency goes up or down). The amazing thing in this business is that you can do business around the clock on weekdays. It is a dynamic environment that changes every second and that is the charm of the business.
Like many others, best Malaysian Forex brokers offer the Stop Loss option for your account. The option will appear as soon as you make an investment. The Stop Loss is especially beneficial for beginners who are still inexperienced to handle their finances without help. The Stop Loss offers you to put a limit on your investments and at what point to take the profit without incurring further losses.
You can set the option manually so it automatically sells if things start to go south.
Forex Terminology: Leverages and Spreads
In the currency trade, spread refers to the difference between two currencies. For example 1EUR equals 4.558 MYR. The spread would refer to the difference of 3.558.
The Malaysian top brokers offer narrow spreads, i.e. 0.3. This is something you should look for as a beginner. The above-mentioned spread would be a little bit too high for a beginner and increases the risk of loss. Trade in currencies that are closer in value to each other. Those pairs are the most traded in the world.
Leverage is the amount of money you can borrow in proportion to the money you invested. Malaysian brokers offer leverages that range from 1:50 to 1:500. This means that for every dollar invested you can get $50 to $100 depending on the leverage your broker offers.
Leverage policy is a regular tool for operation in the business, but it does not diminish the risk of debt. Leverages are to be handled carefully. Ideally, ask someone more experienced on that matter.
The deposit requirements vary among the best Malaysian Forex brokers. Deposits can range from $1 to $1,000 or more, again depending on the broker you choose.
Customer Support
As a newbie, you will probably have a lot of questions and concerns. Forex brokers Malaysia should have a customer support system if they operate under regular standards. The customer support should help you with your issues and give you guidelines for your actions. Make sure that your Malaysia Forex broker has well-prepared and friendly staff.
Experienced Traders
All the above stated also applies to the experienced and professionals. In addition, you can look for brokers that offer wider spreads in their currency pairs, a larger currency pair variety, and if you are a real pro, a VIP account to really fit your needs.
Conclusion
We hope that this was helpful for all those who are interested in the Malaysian market. Traders are advised to be cautious with brokerage companies and should always look for registered, official, and widely-recognized brokers in Malaysia, who are under the strict control of national authorities, and hence can be trusted.