Forex Brokers of Malaysia in 2018 Year: Best brands to open an account with

Forex trading in Malaysia was illegal until recently when it finally got legalized. The idea of legalizing Forex trading in Malaysia arose from the need to allow citizens the chance to take part in this income generating activity. Forex trading would also help to improve the economic status of the country. This lead to the emergence of Forex brokers who are licensed to operate in Malaysia. As much as Forex trading is legal in Malaysia, you should be aware of certain rules and limitations to ensure you do not get in trouble with the law.

How do Malaysian Forex market is structured

The Malaysian Forex market industry is fairly new. Irrespective of this, the Forex market in Malaysia is highly regulated. Negara Malaysia, the central bank in Malaysia plays a key role in regulating Forex trading in Malaysia. It is the central controller of the Ringgit, the Malaysian official currency and it has been tasked with regulating the Forex market in Malaysia. Among its responsibilities, it is tasked with

  • controlling the Forex exchange
  • it is the oversight body tasked with keeping Forex brokers n check
  • it aids in the transaction that involves traded securities

It is also important to note that the Negara Malaysia is the only institution that can offer a license to anyone who wishes to enter the Malaysian Forex market as a broker.

The bank has registered several Forex brokers (over 50) which now operate freely in the country. This shows that indeed the Forex market in Malaysia is growing at a steady and inviting way. This is despite the skeptic remarks by some people who thought that the restrictions that are in place may tamper with the people’s freedom to trade freely.

How the Malaysian Forex market operates.

Generally, Forex trading is legal in Malaysia. It is important to stress the fact that you should first make sure that you have prior knowledge of the law in certain areas which restrict Forex trading to a certain extent. Do this and you will avoid problems with the law. To be safe while trading in Malaysia, trade Forex using an Islamic account.

In Malaysia, trading in Forex is the same as any other country in the world. You approach a broker, deposit funds with them and you can commence trading in the Forex market. However, it is advisable to try out a Forex broker with a demo account. This account gives you the hands-on experience of Forex trading by exposing you to the trading platform where you get to trade with virtual money. It is purely for practice and you will not have to deposit any funds in the demo account. Once you are familiar with Forex trading,you can now deposit funds into your accountand start trading.

In Malaysia, it is possible for individuals to open joint accounts which they can use to trade. It is used by the people with limited financial capabilities who combine their money so they can engage in FX trading with an aim of getting profit.

What do you look for in a Forex broker?

Looking for a Forex broker to trade with can be a an onerous task. The reason to compare the Forex brokers is so that you can make an informed decision on the broker you think suits your need. Brokers are different and they offer different products. You have to understand how the trade works before you decide to start. So, before you embark in opening an account with any Forex broker, there are things you should consider.

The regulators of the trading platform

The idea of regulation for Forex firms is very important. You trust Forex brokers with your money and for this reason you should be extra cautious. The idea of regulating Forex brokers is to ensure that the trader is protected from unscrupulous practices that may lead to them losing their money.it also ensures that if the client loses money, there are mechanisms put in place to ensure they are remedied. The regulator in Malaysia is the Central Bank. So, look for the other regulators of the Forex brokerage firm. This will ensure you get a Forex broker who is well regulated across the board, and in turn you will be assured of the safety of your investment.

Compare the different Forex companies trading methods

While embarking on trading Forex in Malaysia, ensure the broker you chose has the trading platforms that suit you. If you prefer to trade on the go, you should choose a Forex broker that has their trading platforms that can be used on your phone.

How many currency pairs are offered?

Look at the number of currency pairs the broker offers. Chose a broker that offers currency pairs that are convenient for you. Do you want a broker with a lot of currency pairs or are you looking for one with minimal currency pars?

 Top Forex brokers in Malaysia

FXTM

This particular broker won the award for the best FX broker in Asia in the year 2017.what makes it favorable?

  • It is very well regulated.
  • It offers fast services.
  • It offers leverages up to 1000:1
  • The customer support response service is top notch. It is fast and effective.
  • You are offered $30 as a bonus upon opening an account.

GKFX

It is a firm that deals with not only Forex trading but also deals with other types of securities.  They bagged the award for overall best broker in Asia in the year 2017. The advantages of trading with them are;

  • They are adequately regulated
  • They offer you a 55% bonus upon your first deposit
  • They have spreads that are attractive. The spreads are reasonable
  • They have a good reputation when it comes to customer support
  • Their interface is simple and understandable

XM

XM offers some very enticing offers and services.

  • They are adequately regulated
  • You have very attractive bonuses according to the amount you chose to invest.
  • It has no minimum amount required to deposit when using a micro account.

Conclusion

In order for you to invest in Malaysia, make sure you know the law. It can be very easy to fall prey to illegal trading activities as FX trading is highly regulated. The market is, however, starting to expand and this may be a frontier industry in future.

 

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