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.

Forex Trading Brokers

Malaysia Trading News

International Market News

How do I trade forex?

In forex trading, currencies are traded in pairs.  As you sell one currency, you are buying another.  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 United States 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.  A 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.

There are two kinds of trades you can make – short or long.

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.

When trading forex as a retail (individual) trader, you should first open an account with a forex broker who will be responsible for making sure that your trades are taken to the market.  At this point, you can either open a demo account or invest an amount of money to get you started.

Choose Forex Trading Platforms

The top Forex brokers have faster trade execution, give you access to the price charts, have good training and onboarding resources and can supply several platforms including ones that are specially designed for automated trading like MetaTrader 4.

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.  If you are new to trading, you don’t yet have experience and you are yet to find your style of trading and pairs that you are comfortable in trading.

Is forex trading legal in Malaysia?

The Malaysian government has done a lot to safeguard the interference of the Ringgit (MYR), while at the same time ensuring that the safety of their citizens who wish to participate in forex trading is not compromised.  Trading Forex is legal in 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.  In short, if your broker is regulated by a major regulator around the world, you will be fine using this broker.