Forex Trading in Malaysia

Welcome to Forex Malaysia!  At Forex Malaysia, we help traders find regulated Forex brokers and learn to trade Forex to improve the 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

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) is 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.  Novice traders will tend to prefer trading a limited number of pairs, so choosing which Forex pairs to trade, and which to avoid, will help traders get started.

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.

Going Short or Going Long?

There are two kinds of trades you can make – short or long.  This is unique to CFD trading and is only possible because Forex traders are only speculating on price instead of taking ownership of an asset.

Taking a short position is placing a wager 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.

Getting Started With Forex Trading

Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 70-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Is Forex Trading Risky?

Forex trading does contain significant amounts of investment risk. To mitigate this risk, you need to develop a good trading strategy and have a good understanding of risk management in forex trading.  In order to mitigate counterparty risk, it is important to find a broker which is regulated by multiple recognised regulators.

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.

Featured Sections

Islamic Trading Accounts

Islamic swap-free accounts are available with most brokers.  To get these accounts, sign up for a regular live account and your account manager will make it swap-free for you before you trade.  Compare Islamic Forex Accounts here.

Forex Demo Accounts

Indіvіduаlѕ who want to succeed in Fоrеx trading need to practice before turning to the live mаrkеt.  This is done with a demo account.  Read more about the best demo accounts offered in 2019.

Forex Bonuses

Always consider the bonus that brokers will award you for opening a new account.  A select few brokers will give you a bonus without even depositing.  Compare the best Forex brokers with bonuses.

How to Choose A Forex Trading Platform

The top Forex brokers support a wider variety of trading platforms, have faster trade execution, give trades access better analysis material, and have good training, webinar and onboarding resources.

When choosing a trading platform, you need to consider if you want to use a trading platform that will work with different brokers, or if you want to use a platform that is specific to a broker while might be more user-friendly.  MetaTrader 4 & 5, along with cTrader are examples of software that has wide industry adoption, which would make the trader less dependent on a broker and easier to change between them when looking for better trading conditions.

On the other hand, brokers like eToro have their own trading platform as they have functionality that is unique to their business.  Learning a platform that is not cross-compatible with other brokers, will mean learning a new platform should you wish to make a change.

Is Forex trading legal in Malaysia?

The Malaysian government, through the Securities Commission, 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 a major regulator regulates your broker, you will be fine using this broker.

Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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