Here are all the things you need to know about Forex trading 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.
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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.