Malaysia is a federal constitutional monarchy located in Southeast Asia. It has a total landmass of more than , square kilometers, and consists of three federal territories and thirteen states. 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. 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 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. 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. 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 s. The activities of the bank, under Governor Jaffar Hussein , caught the attention of Forex players across the globe. Over the following few years the bank sold large quantities of some of its currency reserves and ended up being technically insolvent in 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. An insight into the world of Forex trading in Malaysia Malaysia has quickly gained a reputation for being an emerging market economy in Asia.More...