Forex for a trader
Legal forex trading in malaysia

Legal forex trading in malaysiaLegal Issues about Forex Trading in Malaysia. Forex Trading In Malaysia. First up, is Forex Trading legal in Malaysia? This question pops out at all forex discussions I’m sure and it worries you. I was worried too before, to be honest. Bank Negara Malaysia has clarified that the buying and selling of foreign currency in Malaysia is only allowed with licensed commercial banks, Islamic banks, investment banks and international Islamic banks as provided for under the Exchange Control Act 1953. When Bank Negara mentions “foreign currency” only (as opposed to foreign currency assets), they usually mean foreign currency CASH. NOT the balance in your bank account, which, if you really think about it, is JUST A NUMBER. Do note that BNM mentions “illegal investments”. Which means that “LEGAL investments” are okay. “Under the Exchange Control Act 1953 (ECA), it is an offence for a person in Malaysia to buy or sell foreign currency or do any act which involves, is in association with, or is preparatory to, buying or selling of foreign currency with any person, other than an authorised dealer. It is also an offence for a person to aid or abet another person to buy or sell foreign currency with any person, unless the person is an authorised dealer.” Which means I CAN sell my ringgit asset to USD with any authorised dealer (i. e. any Malaysian bank) and invest my new USD asset as per ECM9. The first part of the last paragraph refers to buyingselling foreign currency against the RINGGIT.

How I invest my new USD asset afterwards will be my own affair and I won’t cry about margin calls because I should always be financially solvent every time and as long as I’m strict with my stops. Some of the examples of dangers given in BNM’s last press release are true, however. Some disreputable training programmes do use hard-ball tactics to entice unready and unprepared investorstraders. I also get the impression that some programmes are merely “introducing brokers” for fly-by-night FX brokers, which is why there is a need to do proper research as to which brokers are (relatively) tightly monitored by the offshore countries’ monetary authorities… which basically rules out a lot of US brokers, and many Russian ones. As for the “margin call”, this so-called “modus operandi” is no different from trading KLCI futures, for example. It only becomes an issue when the trader is trading on borrowed money (which HE SHOULD NEVER EVER DO!). What must have happened: a financially unready investor loses money trading on borrowed money (eg. credit card advances). If this investor is already undisciplined enough to trade on credit, I think it’s reasonable to expect he lost money due to undisciplined stop-loss management or consistently wrong application of the techniques taught to him (such people should be called “gamblers”, by the way). What does he do next? He goes to complain to the government.

*sigh* What to do? To recap: Based on MY interpretation of the rules, FX trading (on non-MYR pairs) is legal subject to conditions: 1. Do trade responsibly. 2. BE responsible for your own trading. 3. Do not trade for someone else i. e. with someone else’s money (because that means unlicensed deposit-taking). 4. Do not ask someone to trade on your behalf (because that means placing a deposit in an unlicensed person or company). 5. Do NOT trade against the ringgit. 6. Do convert your ringgit asset to USD (for example) with any Authorised Dealer (i. e. Malaysian Banks) without fear. And after you receive your new USD asset, you may tradeinvest (i. e. place a margin deposit) within the context of ECM9 to your heart’s content. 7. Do NOT convert your ringgit asset to USD with unauthorised dealers (you know who they are). 8. Do research for (relatively) reputable offshore brokers. 9. NEVER EVER EVER trade on credit. Always make sure you have backup capital to help you pay day-to-day bills during the losing spells. By the way, did you know that XM is the NUMBER ONE forex broker in Malaysia in 2016. Forex Trading in Malaysia. Is Forex trading legal in Malaysia? The short answer to this question is yes, but only with a registered and approved financial institution. The official ruling is that you are only allowed to trade currency legally in Malaysia with licensed institutions, of which there are several.

There are some that say that this rule only applies to physical currency and retail Forex Trading, especially online, does not fall into that category because online, you trade theoretical currency. That is why this is considered a tricky question requiring explanation and not just a simple yes or no. The easiest way to trade Forex in Malaysia legally is to use one of the approved institutions, and maintain an Islamic account. Investing overseas is legal in Malaysia and there are many opinions that say that retail forex trading with an offshore brokerage can be easily considered foreign investment. The main issues that the nation has with Forex is that they are a developing country that wants to control the value of their currency to some degree. Since most Forex trading even in Malaysia does not involve their own currency, they tend to overlook the many ways that Forex can be traded using other currencies. The idea here is that the laws are written in favor of the government being able to act if they see fit. Meaning, that it is extremely unlikely that you will be arrested in Malaysia for trading forex because there are ways to do it legally but the government reserves the right to have some control over what is happening. The law does strictly prohibit Forex trading with the funds of others and soliciting funds to trade. This is pretty clear and will get anyone who transgresses these regulations into a heap of trouble. There are many laws on the books that people do not comply with and they are not even aware of the law in the first place. This means that most of the time, you can go on your merry way and not have any problems with the law, but the minute you do something that crosses the authorities or brings your offenses to the attention of the authorities, you can be penalized for everything that you are doing wrong, even the ones you didn't know about. Forex trading in Malaysia is a pretty good example. It is likely that if you are trading your own funds, not bothering anyone and not being very public about it, nothing will happen to you at all. If you do something that angers the authorities, they can then come after you for every little law that you are breaking including this one. Since the law is very grey here, there is a risk of getting into trouble with the government, if you are trading with a brokerage that is not on the list of licensed institutions and then risking everything you do being examined closely as well. That being said, most people who are trading from Malaysia with their own funds and an overseas broker will never have a problem. The DailyForex. com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.

In several OIC nations, forex trading using a regular trading account is outlawed. In the Asian region, countries like Malaysia and Indonesia which are Islamic, only allow trading through an Islamic account. Reputed Forex brokers like WesternFX offer Islamic trading accounts. Get in touch with them to start trading in your country. hiransahil October 2017. Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say. Is online Forex trading legal in Malaysia? The legality of online Forex trading in Malaysia is something many traders are unsure of. This stems largely from the misinformation found in anonymous posts in trading forums, which are fuelled more by fear rather than fact. It also does not help that Bank Negara Malaysia (BNM) has not explicitly stated their stance on the matter. However, if you actually go to the BNM website and read through the relevant sections, the answer is quite clear. SoЂ¦ is online Forex trading legal in Malaysia? Read on to find out. Why Bank Negara Malaysia Restricts Currency Flows. To understand the root of the issue, weЂ™ll first have to understand why Malaysia is especially strict about currency flows in and out of the country. As a developing nation that relies significantly on exports, large currency fluctuations of the Malaysian Ringgit are undesirable (just look at the 1997 Asian financial crisis). Thus, the BNM wants to control - to a certain extent - fluctuations of the Ringgit by restricting its foreign currency exchange to only licensed banks and financial institutions.

Now as a retail Forex trader, youЂ™re probably thinking, Ђњhey, but IЂ™ll just be trading the major and minor currency pairs, none of which involve the RinggitЂќЂ¦ and youЂ™d be right! The main aim of the BNM is to limit speculation of the Malaysian Ringgit. It doesnЂ™t care much about the USD, Euro, or Japanese Yen. ThatЂ™s the first thing to keep in mind. MalaysiaЂ™s Exchange Control Act of 1953. Officially, the Exchange Control Act states that itЂ™s an offence for anyone to be involved in a foreign currency transaction with anyone who is not an authorised dealer. This essentially means that the buying and selling of foreign currency in Malaysia is only allowed with licensed commercial banks, Islamic banks, investment banks and international Islamic banks with the relevant license. Here are some helpful links from the official BNM website: The Root of the Issue. Since youЂ™ve probably not read everything in the links provided (admit it!), IЂ™ll save you the trouble and summarise the main points for you. The confusion about the legality of retail Forex trading in Malaysia stems from two conflicting points: You are only allowed to exchange currencies with licensed financial institutions You may send (and then exchange) up to RM10,000 for overseas investment purposes per transaction to non-licensed financial institutions. The thing is, the law is not crystal clear about which category Ђњretail Forex tradingЂќ falls under. As a retail trader trading with an offshore broker, are you exchanging currencies? Or are you considered to be investing your funds overseas? Consider This. Laws (especially in Asia) are worded such that the state will always have the upper hand in most situations. For example, under Singapore law, a gathering of 5 or more people is designated an Ђњunlawful assemblyЂќ.

Does this mean that the police are out there arresting everyone who gathers in groups of 5 under suspicion of criminal activity? The answer is no. But if the authorities wanted to arrest any particular group of people under that law, it technically could. The question then is, why would the government want to do that? Unless they have good reasons, the authorities wouldnЂ™t be wasting their time and effort. This brings us back to the question of legality regarding retail Forex trading in Malaysia. Technically, the BNM can bring a case against you if youЂ™re a Forex trader, and accuse you of breaking the law. However, they probably wonЂ™t. Not unless you give them a reason to. So Is Online Forex Trading Legal In Malaysia? Ђ‹The strictly (and technically) correct answer is no. But the practical answer (which is probably the answer youЂ™re more concerned about) is that you wonЂ™t be arrested just for being a retail Forex trader. Note that this is only valid if you are trading your own funds. If you are trading with the funds of other people, or are soliciting the funds of others, the authorities will come after you. Also note that this discussion does not take into account Islamic customs and law, which to the best of my knowledge are not technically enforceable under Malaysian state and federal law. The Bottom Line. The way laws are worded are such that youЂ™re probably technically breaking several laws right now without even knowing it. ThatЂ™s the context with which to consider this issue. So hereЂ™s the bottom line: If youЂ™re a retail Forex trader trading with your own money and donЂ™t disturb others, you probably wonЂ™t get in trouble with the law. However, if for any reason the authorities are out to get you, it will argue in court that you are technically breaking the law. And along with that, it will probably dig out another 20 laws youЂ™ve technically broken without you even knowing about it. This is something that 99.99% of Malaysian retail Forex traders donЂ™t have to worry about, but there is a risk nonetheless. Disclaimer: I am not a lawyer, nor do I play one on TV. This is all simply my opinion based on my research. You are fully accountable for your own actions.

What do you think? Is Forex trading legal in Malaysia? Let me know what you think about this issue in the comments below. Legal forex trading in malaysia. Illegal Foreign Exchange Trading Scheme. Illegal Foreign Exchange Trading Scheme refers to the buying or selling of foreign currency by an individual or company in Malaysia with any person who is not a licensed onshore bank or any person who has not obtained the approval of Bank Negara Malaysia under the Financial Services Act 2013 or Islamic Financial Services Act 2013. What are the characteristics? This scheme involves the act of buying or borrowing foreign currencies from or selling or lending foreign currencies to a non-licensed onshore bank. It can also be in the situation where the non-licensed onshore bank does an act that involves, is in association with, or is preparatory to, buying or borrowing foreign currencies from, or selling or lending foreign currencies to, any person outside Malaysia. Illegal operators usually operate on a small scale and claim they can provide remittance services efficiently, without the need for any documents or identification.

They rarely use documents to validate and verify the transactions. By engaging in these transactions, customers run the risk of being cheated and their funds may never reach its intended destination. Illegal operators usually target job seekers by placing attractive advertisements to lure prospective employees to join the company, after which they use them to solicit for new investments. Most often, employees will be encouraged to approach their direct family, relatives and friends before targeting members of the public. Illegal operators usually portray a professional and reputable image , a high-tech office layout and advanced IT facilities, such as a LCD screens displaying movements in exchange rates to provide the impression that a legitimate and real business is being conducted. These facilities are merely a false front. Investors can either trade using their trading accounts with the company or through dealers appointed by the company. In some cases, investors are allowed to operate their accounts via the Internet. Investors are also required to sign a business contract which is normally entered between the investors and a principal company overseas. In most instances, the operators will inform the investors that they will have to send these contracts to its principal company overseas for signing. However, such contracts are usually left unsigned. As such, in the event the investors are unhappy with future dealings and transactions, no action can be taken against the company as there is no binding contract between them.

Investors will usually get high returns on their initial investments. This will convince them to increase their investments in hopes of higher returns. Eventually, they will end up losing everything when the illegal operators suddenly go missing . Investors who lose their money through purported volatility of exchange rate movements are informed by the illegal operators that they need to pay margin-call in order to recover their paper lose. The illegal operators may also encourage investors to increase their investment to try to recover their losses. How to Protect Yourself? Deal only with licensed onshore banks; Check with the relevant authorities before remitting investing depositing; Be extra careful with investments over the internet; Be sceptical of any investment opportunity that is not in writing; and In case an investment has been made, keep copies of all the investment and communications. Licensed onshore banks to conduct foreign currency trading in Malaysia are as follows: You can report directly to Bank Negara Malaysia via the following communication channels: Malaysia Forex Brokers. 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. 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. 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. 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. 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. Malaysian Forex Trading & Brokers in Malaysia. Malaysia is one of the biggest oil manufacturers in Asia.

It has expanded and improved its national economy with about 40% for the last few years. And these are not all the new things that happen in economy and financial sphere in Malaysia. Forex world has been popularized here for the last decades, as well, and no matter how many followers it has found, recently it was nothing else, but another form of gambling. Thankfully, things have changed for Malaysia and today anybody of you can make trades, while being in Malaysia and while being based there without facing the jail. We remind you thank only 5 years ago, several people went to jail due to Forex trading in Malaysia. And it wasn’t because of a fraud, but because the country did not want to accept financial trading as a legal activity. Today it is and here are all the things you need to know about Forex trading in Malaysia, if this is your plan. Overview of Malaysia Forex world. Malaysia goes on keeping the liberal Foreign Exchange Administration (FEA) approaches and methods for regulation and official license providing procedures, which are mainly prudential measures to support the overall economy in good condition. The monetary and financial stability are top priorities for the agency, which made it rearrange its drastic measures against both – Malaysian traders and all financial brokers that are listed here. Meanwhile, the National Bank of Malaysia has also made a commitment to ensure that FEA strategies and measures will continue to support and enhance the competitiveness of national economy alongside with the Forex market growth. First-Class Forex Brokers In Malaysia 2018. The role of Bank Negara in Malaysia Forex sphere.

Bank Negara is actually the name behind Malaysian National Bank. It has a giant role for traders and trading websites, because it is the official regulator for them in the country. The Bank is responsible to provide official licenses for the brokers and to keep the Malaysian traders safe regarding their personal data and money they invest or win by trading. The Bank has a very strict, but quite working transparency policy for Forex brokers. In the beginning, experts in the field from UK and Cyprus (the leaders in regulation of Forex trading) believed that such measures cannot work in such a sphere as Forex. Though, Bank Negara proved it can handle it. Today, the Malaysian National Bank does handle over 50 different officially registered and quite popular Forex brokers in the country. The Bank is also in charge for all the complaints about or from traders, brokers and independent financial agencies that have any connection with financial trading market. Bank Negara Malaysia was set up to provide certain financial services that would position the whole country to future growth with the purpose to turn into a really recognized developed country by the year 2020. Financial trading on the local currency in the Forex market was considered by this establishment to propel the nation to compete at the global markets. Is it illegal to trade in Malaysia after all? Trading in Malaysia is not illegal.

It is fully official and conducted with the national laws for financial activity. After its program for economy growth, Malaysia has provided the opportunity for Bank Negara to operate in this market, as well. Being a developing country, Malaysia aims to permit its residents to trade freely in the foreign currency market with official and convenient Forex accounts that should be, though, executed and at first opened only with licensed onshore banks or offshore banks as well as identified and approved International Islamic Banks. It is curious that Malaysia does allow its residents to open a specific Forex account – joint account. The joint account lets several people to group and to trade with their money together. As you can guess, this provides the chance for the traders to have bigger capital for Forex activity. The main reason for such a policy is the fact that Malaysia is trying to encourage financial trading, but it is harsh yet for doing so since the citizens here are neither so familiar, nor so rich to spend so much money on online Forex trades. Now, with the joint account it could sound more interesting and profitable. When joining a Malaysian broker, on the other side, as a person from another country you might be feeling some difficulties as to customer support communication or account management. Still, let`s give this country a chance to grow, because we are sure that in few years local Forex world will modernize and become as interactive and convenient as it is now in leading financial trading countries like UK or Canada. Forex Trading In Malaysia | Maklumat Penting! by forexmy_admin · Published February 13, 2015 · Updated December 28, 2016. This website will reveal to you how to trade forex in Malaysia and live like a king from now on. All your friends are talking about it. You hear stories of their friends making thousands and you’re sitting there wondering ‘When am I going to get off my bum and do the same?’ which I’m sure led you here. There’s a lot of issues nowadays regarding forex trading in Malaysia.

Forex Trading In Malaysia. First up, is Forex Trading legal in Malaysia ? This question pops out at all forex discussions I’m sure and it worries you. I was worried too before, to be honest. Bank Negara Malaysia has clarified that the buying and selling of foreign currency in Malaysia is only allowed with licensed commercial banks, Islamic banks, investment banks and international Islamic banks as provided for under the Exchange Control Act 1953. When Bank Negara mentions “foreign currency” only (as opposed to foreign currency assets), they usually mean foreign currency CASH. NOT the balance in your bank account, which, if you really think about it, is JUST A NUMBER. Do note that BNM mentions “illegal investments”. Which means that “LEGAL investments” are okay. “Under the Exchange Control Act 1953 (ECA), it is an offence for a person in Malaysia to buy or sell foreign currency or do any act which involves, is in association with, or is preparatory to, buying or selling of foreign currency with any person, other than an authorised dealer. It is also an offence for a person to aid or abet another person to buy or sell foreign currency with any person, unless the person is an authorised dealer.” W hich means I CAN sell my ringgit asset to USD with any authorised dealer (i. e. any Malaysian bank) and invest my new USD asset as per ECM9. The first part of the last paragraph refers to buyingselling foreign currency against the RINGGIT. How I invest my new USD asset afterwards will be my own affair and I won’t cry about margin calls because I should always be financially solvent every time and as long as I’m strict with my stops.

Some of the examples of dangers given in BNM’s last press release are true, however. Some disreputable training programmes do use hard-ball tactics to entice unready and unprepared investorstraders. I also get the impression that some programmes are merely “introducing brokers” for fly-by-night FX brokers, which is why there is a need to do proper research as to which brokers are (relatively) tightly monitored by the offshore countries’ monetary authorities… which basically rules out a lot of US brokers, and many Russian ones. As for the “margin call”, this so-called “modus operandi” is no different from trading KLCI futures, for example. It only becomes an issue when the trader is trading on borrowed money (which HE SHOULD NEVER EVER DO!). What must have happened: a financially unready investor loses money trading on borrowed money (eg. credit card advances). If this investor is already undisciplined enough to trade on credit, I think it’s reasonable to expect he lost money due to undisciplined stop-loss management or consistently wrong application of the techniques taught to him (such people should be called “gamblers”, by the way). What does he do next? He goes to complain to the government. *sigh* What to do? To recap: Based on MY interpretation of the rules, FX trading (on non-MYR pairs) is legal subject to conditions: 1. Do trade responsibly.

2. BE responsible for your own trading. 3. Do not trade for someone else i. e. with someone else’s money (because that means unlicensed deposit-taking). 4. Do not ask someone to trade on your behalf (because that means placing a deposit in an unlicensed person or company). 5. Do NOT trade against the ringgit. 6. Do convert your ringgit asset to USD (for example) with any Authorised Dealer (i. e. Malaysian Banks) without fear. And after you receive your new USD asset, you may tradeinvest (i. e. place a margin deposit) within the context of ECM9 to your heart’s content. 7. Do NOT convert your ringgit asset to USD with unauthorised dealers (you know who they are). 8. Do research for (relatively) reputable offshore brokers. 9. NEVER EVER EVER trade on credit. Always make sure you have backup capital to help you pay day-to-day bills during the losing spells. By the way, did you know that XM is the NUMBER ONE forex broker in Malaysia in 2016. Click here to find out more about XM! Legal forex trading in malaysia. is forex legal in malaysia.

To my knowledge in bank negara regulations forex trading in malaysia is illegeal. However i've been approached by introducer brokers who claim that it is legal as long as you put your money overseas. To my knowledge in bank negara regulations forex trading in malaysia is illegeal. However i've been approached by introducer brokers who claim that it is legal as long as you put your money overseas. It's illegal. However if income tax people come knocking, show them proof (letter from your broker) where you get your money and they will leave you alone. Most likely That person is going to ask you to join network xxx which invest in Forex. If that's the case, run the opposite direction as it is most likely a scam. dont trade in malaysia , go to singapore. To my knowledge in bank negara regulations forex trading in malaysia is illegeal. However i've been approached by introducer brokers who claim that it is legal as long as you put your money overseas. Have u heard any forex trader being prosecuted or jailed for forex trading on his own? Why they selling forex trading books at the bookstores. if its illegal?

isnt forex broker agent has a license to do it? btw does you tt from your own local to from foreign account consider forex? isnt forex broker agent has a license to do it? btw does you tt from your own local to from foreign account consider forex? If a forex broker claimed doing forex operation in Malaysia, then the broker needs to have BNM license, as simple as that. We have list of approved financial institutionbanks that can operate forex activities. While there is reason, why you see those money changer out there, always put up signboard "licensed money changer". Because you cannot do forex activities without BNM license. All the list are available in the BNM website, which one can easily look upon. If a forex broker claimed doing forex operation in Malaysia, then the broker needs to have BNM license, as simple as that. We have list of approved financial institutionbanks that can operate forex activities. While there is reason, why you see those money changer out there, always put up signboard "licensed money changer". Because you cannot do forex activities without BNM license. All the list are available in the BNM website, which one can easily look upon. How can you transfer RM to a foreign account. While foreign money transfer (eg. converted to USD then TT out) then it is subjected to BNM's foreign money transfer regulation. How can you transfer RM to a foreign account.

While foreign money transfer (eg. converted to USD then TT out) then it is subjected to BNM's foreign money transfer regulation. lemme give a example. you got a local bank account. you transfer money to sg bank account via TT. you earn the exchange rates. something like that. it is both your account btw. lemme give a example. you got a local bank account. you transfer money to sg bank account via TT. you earn the exchange rates. something like that. it is both your account btw. The SG bank account may not accept the money in RM. You need to change to SGD or USD or whatever first locally before TT. which means need atleast go thru licensed money changer. You can trade no issues.

it's just an instrument, eg stock . there are of course scammer cashing on forex to cheat people and of course there are bad brokers. not sure about legal forex group..don't think there are legal forex group. This post has been edited by ninjawin : Mar 9 2016, 11:27 PM. Here a disclaimer. Gotta becareful..i guess if there are no "FX" in the transaction details then it's safe. This post has been edited by ninjawin : Mar 10 2016, 12:17 AM. So far my TT no issue. . no guessing work can or can not. i have done it already. If still worried. just use credit card to fund the account.

easy! This post has been edited by cmk96 : Mar 14 2016, 01:49 PM. To my knowledge in bank negara regulations forex trading in malaysia is illegeal. However i've been approached by introducer brokers who claim that it is legal as long as you put your money overseas. forex trading in malaysia is not illegal, however it is only applicable to banks and licensed money changer. however, another type of forex 'trading' which is the speculation on forex is illegal in malaysia. therefore you can not see any FOREX broker in malaysia like what u see in aus or singapore where everyday we can trade or gamble those that you are seeing in malaysia are all operate overseas, they are agent of these overseas operated website. just like online gambling, its illegal in malaysia but they have agents or ad in malaysia to 'introduce' you these online gambling website. This post has been edited by klthor : Mar 10 2016, 05:38 PM. Want to Know More About Forex Trading in Malaysia? Keep Reading… Malaysia is a federal constitutional monarchy located in Southeast Asia. It has a total landmass of more than 330,000 square kilometers, and consists of three federal territories and thirteen states. Malaysia has seen major improvements and enjoyed rapid expansion of its economy in recent years, with some experts putting it at 40%. Coupled with improved living standards and increased wealth, Malaysia has also seen a rise in interest in the Forex market. Not too many years ago, trading on the Forex market would have been illegal, with caught offenders being sent to jail. Thankfully things have moved on from there and would-be Forex traders can now go about their business without the threat of jail. An insight into the world of Forex trading in Malaysia.

Malaysia has quickly gained a reputation for being an emerging market economy in Asia. However, change and rapid growth also have a tendency to attract unscrupulous elements that seek to profit from the inexperience of citizens, particularly if they hold in their hands newfound wealth. It’s all too easy to learn lessons the hard way and fall victim to the ruse of a fraudster. But this doesn’t have to be the way Forex trading works. It is easy to protect yourself from unwelcome risk if you want to participate in the trading of foreign currencies. The most important rule is to always be aware. Forex trading in Malaysia and Malaysian Forex brokers are still relatively new concepts. Legislation in most locations is a bit behind the times. Trading on the Forex market in a more experienced jurisdiction will offer far more protection. Some local government officials still deem the practice to be illegal, in certain forms, and some local Islamic tendencies can mean it is outlawed all together. Our advice is to study local legislation, and make sure anything you read is bang up to date. Alternatively, seek out other traders to ask for guidance, and be clear on your religious grounds before starting to trade. How to choose a reliable Forex broker in Malaysia. Once you’ve jumped the first couple of hurdles the next decision involves selecting the right Forex broker in Malaysia to use to access the market.

You want to pick the right business partner to work in the background and keep your funds safe and secure. You will need to practice due diligence in order to ensure there are no problems waiting to catch you unawares. Fraud goes hand in glove with the Forex market, wherever you may be located in the world. There have been a lot of advances in fraud prevention, but it still pays to be vigilant. Follow our tips and you’ll be well on the road to success. There are plenty of websites that will help you find a reputable broker, not just ours. But you will still have to conduct your own research. Understand the industry and make yourself aware of the most up to date options in the market for Malaysia. Speak with other traders and compile a list of possible candidates. Investigate local credentials and see if you can find any negative reviews. Take advantage of the free demo account that is offered by the best Forex brokers in Malaysia. Your own money won’t be at risk as you get to play the Forex market with ‘virtual cash’.

It’s a great way to get a feel for a broker and be prepared for real money action further down the road. If it seems too good to be true, it probably is. Be very wary of seemingly unbelievable claims. Check that the Forex brokers in Malaysia are regulated. Wherever you may be located in the world, there will be a regulatory body that ensures brokers perform to a certain standard. The connection between the Bank Negara and Forex trading. The Bank Negara Malaysia is the country’s central bank, as well as being responsible for managing the local currency, the Ringgit. Financial regulatory responsibilities are left with the Securities Commission in Malaysia. This commission overlooks exchange-traded products, including commodity and Forex futures and how brokers operate in the country. However, regulations are still pretty much in their infancy, and it is still really hazy, as to whether Forex trading is legal.

The Bank Negara Malaysia was a major player in the Forex market in the late 1980s. The activities of the bank, under Governor Jaffar Hussein, caught the attention of Forex players across the globe. It wasn’t long before the influence the Bank Negara had on the direction of the Forex market was substantial. The bank was requested to stop trading when the Federal Reserve’s chairman realized the impact of its speculation. Over the following few years the bank sold large quantities of some of its currency reserves and ended up being technically insolvent in 1994. Luckily it was bailed out by the Malaysian Finance Ministry. Which just goes to show that even the so-called experts can get their calculations wrong. But that being said, Forex trading is an exciting market to be in, and we’d love to think that we’ve helped you make the best of what’s available. Forex Brokers in Malaysia. The Malaysian economy is on the move, having transformed itself from merely an exporter of raw materials some four decades back to one of the major emerging market economies in Asia. Oil and gas are still its primary exports, supplying more than 40% of government revenues, but it has moved dramatically into the regional value-added production chain. By virtue of this transformation, it continues to attract new investment capital in Islamic finance, high technology industries, biotechnology, and services. With these dramatic advances in hand, many local investors have become active in all manner of investment vehicles, including retail forex trading. The Malaysian Ringgit (“MYR”) has appreciated since the global recession in 2009 by 26% before pulling back to lower levels after commodity prices cooled down and the price for a barrel of oil pulled back to a more reasonable price point below $100. In the meantime, the evolution of currency trading in this country has not been an easy one. Malaysia is reported to be an attractive target for forex crooks in a way similar to the situation in many Middle Eastern Muslim nations enriched through commodity exports.

- Over 1M Account Registered - More than 250 Trading Instruments - MT4, MT5 and Web Trader Platforms - Full ECN Trading Model - Crypto-trading only avail. for FT Global Limited. – 40% New Member Bonus – MIFID, ASIC, FSA & FSCA regulated – Free Online Trading Coach. - Well established - Beginner friendly - Free Webinars. - Trusted Global Market Leader - Online FX & CFD Trading - 180+ Global Markets, 84 FX pairs, 65 shares, 17 popular indices and more - Forex, Indices, Commodities, Equities & Bitcoin - Available to US traders. - Support in 18 languages - Negative balance protection - 245 Support. - Free ebooks, webinars + Tutorials - Free award-winning daily technical analysis from Autochartist - 1 on 1 account management + mt4 training. - Forex Pairs and CFD Trading - Tight Spreads as low as 1.2 pips - ESMA Compliant. – Min. Deposit $5 – Up to 1:500 leverage with micro-lots (0.01 size) available for everyone – Scalping, hedging, trading on the news, and EAs are permitted at OctaFX. – First Time Deposit Match: 50% Up To Any Max Deposit. - Well Established - Good Educational Material - CySEC Regulated. – FREE Live trading signals delivered 3 times daily 5 days a week. – Complete Education pack for novices and advanced traders alike. Designed to support long term – reliable trading.

– Alvexo’s New Webtrader – user friendly, tailored reports and built in trading signals. - Phone and live chat support - PAMM Accounts Available. - $30 non-deposit Bonus up to $5,000 (t&c apply) - Very well regulated - 24 hour support. - 100% FTD Bonus(only non-EU) - Social Trading Features - Available in 25 languages. - 245 Customer support - Well established - Well regulated. - From 0.0 Spreads - No Fees - 9 Ways to Fund your Account. - 245 Support - FTD Bonus up to $4,000. - Automated mirroring service - One on one training - 24x5 customer support. The Bank Negara Malaysia is the central bank of the country and manages the Ringgit. Regulatory responsibilities are left to the Securities Commission Malaysia, which is headquartered in Kuala Lumpur. The Securities Commission oversees exchange-traded products, as well as commodity and forex futures and the activities of brokers in the country. Regulations, however, have not been updated to accommodate retail forex trading, and in some cases, pronouncements from government officials have suggested that some forms of trading may be illegal. Finding a legal pathway often involves sticking with local banks that do not support leverage to any extent. Central bankers are notorious for discouraging speculation in any form, but trading currency pairs that do not involve the Ringgit tend to be acceptable, an interpretation designed to restrict Malaysian currency flows and retain audit trails for tax collections. Islam is also the official religion of Malaysia, and 16.5 million Muslims account form nearly 60% of the nation’s total population. Local forex brokers are obliged to offer special Islamic law accounts, as appropriate, to attract this larger sector of potential traders, but the local Fatwa Council has ruled that trading in currency spot markets violates their principles.

The Fatwa, however, does not have the power to enforce their rulings, and it should be said that Islamic jurists in other parts of the world have disagreed with this local ruling. If you are a Muslim considering retail forex trading, then be sure to review the many materials on the Internet and reach your own personal assessment before acting as your conscience guides you. Once past these “hurdles”, an aspiring trader must select a business partner from a host of possible forex brokers. To protect yourself from fraud, it is highly recommended that you invest the time it takes to complete a detailed review before making your final decision. Safety and security should be uppermost on your priorities. Check credentials with authorities, verify that there truly is a local office to support your needs, and validate the quality of your short list with other traders in the area. Be careful to avoid offshore firms. Pressing your legal rights in a foreign jurisdiction can be a nightmare waiting to happen. Choosing the best forex broker among the many available offers may be a difficult task, but with our help, we hope that you will find it easier. We have prepared the above list of some of the most reputable and competent forex brokers in the market, and since you will lose nothing by taking a look, it is a good idea to check it out before you make a final decision about your forex broker!



Articles:

  • Legal forex trading in malaysia