Forex Trading in Malaysia

Welcome to Forex Malaysia!  At Forex Malaysia we help traders find regulated forex brokers, and educational articles aimed to improve your forex trading experience.  I encourage you to read around, and learn some of the trading basics, and understand the qualities of brokers because this will empower you to make the right choice.  Whatever you are here for, we hope you that you enjoy your stay and that you find this information helpful and engaging.

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How do I trade forex?

When trading forex as an individual trader, you should first open an account with a forex broker and either open a demo account or invest a small amount of money to get you started. A forex trader then speculates whether the quote prices will decrease or increase and trade the currency pairs based on what you believe would be profitable.  As you get better at fundamental and technical analysis and become more familiar with your preferred currency pairs, finding profitable trades will become easier.

In forex trading, currencies are traded in pairs and an exchange rate is assigned to each currency pair.  The first currency in the currency pair is known as the base currency while the second currency is known as the quote currency.

As an example, the quote price of the Euro and US Dollar currency pair (EURUSD) may be 0.8100; meaning that one unit of the Euro can purchase 0.8100 units of the US Dollar.  In this example, the base currency is the Euro while the quote currency is the US Dollar.  For more information read more in this article about on choosing which forex pairs to trade, and which to avoid.

In forex trading, if a trader speculates that the quote price will decrease, they would sell the currency pair by placing a sell order or opening a short position.

Taking a short position is just like placing a bet that the exchange rate will decrease. If the price behaves as you had predicted, you close the order with a profit. But if the price moves in the opposite direction of your speculation, then you end up making a loss.

However, if a trader speculates that the exchange rate will rise, then they would buy the currency pair by placing a buy order or opening a long position.

As you can see, Forex trading does contain significant amounts of risk. In order to mitigate that risk, you really need to develop a good trading strategy and have a good understanding of risk management in forex trading.

Choose Forex Trading Platforms

The top Forex brokers are very good at trade execution, immediate access to the prices charts, and good training resources and can supply several platforms including ones that are specially designed for automated trading. The major factors that you have to consider when selecting a Forex trading platform are; what is your individual trading style, and what is your experience. Good performing Forex platforms will give you the most flexible solutions and enable you to manage risk and to be able to trade from any computer or mobile device.

Is forex trading legal in Malaysia?

The government of each country will write specific laws and regulations so as to govern the inflow of foreign currency and the outflow of the local currency. In Malaysia, the Malaysian government has done a lot to safeguard the interference of their currency while at the same time ensuring that the safety of their citizens who wish to participate in forex trading is not compromised.

In previous years, the central bank of Malaysia or Bank Negara Malaya labeled forex trading as illegal. However, as a Malaysian trader you should not be afraid to trade from Malaysia as long as you abide by the set laws and regulations that are put in place by the government and the other regulating bodies.