Trusted IBFC Forex Brokers

Are you trying to find the best IBFC regulated brokers? Good news – we have all the information you need in our free trading guide below. We’ll explain to you what the Labuan IBFC is, what they do, and what the LFSA is, too. Once you’ve learned all that, you’ll be in the perfect position to pick out the best brokers regulated by the IBFC.

Things are looking up for forex traders in Malaysia. Not too many years ago, it was illegal to participate in such a form of investment. Thankfully, things have changed and it is now possible for anyone to make trades without the fear of ending up in jail. The Labuan IBFC has been set up by the Malaysian government as a special free trade zone; one of the biggest in Asia.

Ready to find the best IBFC regulated brokers? Read on to find out more.

Picking the best IBFC regulated brokers

When it comes to choosing a broker in Malaysia it is imperative you pick a reliable and safe broker. In fact, this should be your priority, above and beyond picking one with bucket loads of enticing offers.

There are a number of scam brokers who will promise you the world, and unbelievable returns on investment, which should rightly be considered too good to be true. If you’re looking for a broker in Malaysia, make sure you pick one which has gone to the trouble of becoming IBFC licensed and regulated, as this will be a broker which enjoys a good reputation in the industry.

Picking a broker with offices all over the world and one which is regulated by a well-known regulatory agency will ensure you have chosen a reliable service provider that has its client’s interests at heart. And your trading capital will be safe and secure. Choose a broker which is unregulated and you’ll be forced to trade in an unsafe environment.

Are IBFC regulated brokers in Malaysia a trustworthy option?

The LFSA has so far proved itself to be a very efficient regulator and has one of the fastest turnaround times for brokers wishing to set up business in the area. It has been said it can take as little as two months for a company to incorporate a brokerage in the IBFC Malaysia.

The LFSA also allows regulated brokers to work with some of the big name banks for segregating client funds, which helps to improve trader confidence and trust. They’re also very keen to ensure all brokers in Malaysia follow the STP (Straight Through Processing) model of trading, which prevents brokers from acting as the counterparty to a client’s trade. There are very few other countries which place such a stipulation on brokers.

In 2008, the Malaysian government began to actively promote the IBFC as an attractive location for offshore investment. Since then, it has been increasing in recognition. A number of mainstream brokers have decided to set up shop in the Financial Center in order to target the Asian market.

Nevertheless, Malaysian forex brokers are still running a little behind and are not yet considered to be as reliable and trustworthy as brokers which are a little better known. The Malaysian Financial Services Authority also has a few negative factors including its inability to achieve the efficiency of some of the other better known regulatory authorities.

What is the Labuan IBFC?

IBFC stands for International Business and Financial Center. The Malaysian government set it IN 1990 up on the island of Labuan, off the Borneo coast.

The IBFC‘s location is conveniently situated between China and India. It is in close proximity to several financial centers, and shares a common time zone with a number of large Asian cities. All of this is advantageous to traders in the region.

Labuan is an island owned by the Malaysian government and boasts a number of benefits which make it the perfect location for the best IBFC regulated brokers. It can be very expensive for brokers in Malaysia to set up business on the mainland, but not so on Labuan. There is also a lower tax structure for investors. And the fact the IBFC is in such close proximity to other emerging superpowers is also a favorable situation.

Overseas investment

The island is considered to be a great place for overseas companies to invest, but it has some major competition in the form of Hong Kong and Singapore. There are more than 7,000 firms currently operating from the free trade zone including forex brokers, other financial institutions and businesses. So, it’s no wonder it is currently considered one of the fastest growing free trade zones in the world.

Malaysia is a largely Muslim country, so mainland trading options have to be in compliance with Sharia law. Labuan, on the other hand, has a more liberal attitude to such forms of investment, allowing Malaysian brokers to receive a recognized license and offer services to a much wider audience. Brokers setting up business in the zone also benefit from various privileges and advantages which only improve trading conditions, especially when there are no worries about the legality of forex trading.

Who regulates IBFC forex brokers?

Businesses operating in the IBFC are regulated by the Labuan Financial Services Authority (LFSA). Therefore, IBFC brokers are licensed and regulated by the LFSA. Standards are in line with recognized global requirements and the same minimal capital requirements and operational compliance apply.

The Labuan Financial Services Authority was created in 1996 following the approval of the Labuan Financial Services Authority Act. It is the statutory body responsible for developing and managing the IBFC.

Its objectives include:

• Promoting and developing the island of Labuan as an international center for financial services and business
• Developing objectives, policies and priorities in line with national ideals for the systematic development and administration of business and financial services
• Serving as the central regulatory, supervisory and enforcement authority for all international businesses and financial services

The main role of the FSA is licensing and regulating, and ensuring all licensed entities operate in compliance with national and international standards which have been adopted in the area. The FSA is also responsible for developing policies to ensure business and financial services are conducted in an orderly fashion.

How do I make a complaint to IBFC?

Now and then, you will need to lodge a complaint against a broker. First, try to resolve it with them directly. This is always the quickest way to get past any problems. If that’s not possible, you can complain to the IBFC.

If you need to complain to the IBFC, go to their official website and click ‘Contact Us’. There, you’ll see a physical address, phone number, email, fax, and online contact form. Use whichever suits you and the IBFC will get back to you shortly afterwards with advice on what should happen next.

How can I check for IBFC regulation?

While you’re checking out a broker’s website, scroll down and look for a license number. This is the quickest and easiest way to check for IBFC regulation, as the best brokers will have the information clear and visible. It’s also an easy way to see if they have licenses with other international regulators.

However, some brokers have been known to display false or outdated licensing information on their website to give traders a false sense of security. To make sure the information is accurate, you can look at the official IBFC website for a full list of all approved brokers. If your broker has an IBFC license on their own website but they don’t appear on the IBFC website, that should act as a huge warning sign.