Trading in the Forex Market in Malaysia is becoming far more trader-friendly.
There are less challenges for Malaysians entering the Forex Market than one would think. The barriers of entry exist, but they are not very high. Finding a Forex Broker in Malaysia is not too challenging either, but there are individuals who will make it seem like they need some sort of an underground solution. Malaysia is a growth center in Southeast Asia that is poised to become a major economic force, especially with a city like Kuala Lumpur serving as a cluster of innovation and foreign direct investment. There are only a handful of things for Malaysians to do that are rather basic in order to get in the market and they require little effort at all.
1. Sharia Compliant Accounts from Forex Brokers in Malaysia
Malaysia is attracting expatriates from all over the world, which would create a difference in how expatriates invest and trade in the Forex Market as opposed to the citizens. The expatriates may come from different cultures, religions, or lack of religious fervor. Malaysia has Freedom of Religion as guaranteed in their Constitution, even though it is a culturally Islamic nation with an Islamic population majority.
Forex Brokers serving Malaysia understand that in this growing economic power there are 32 million people and roughly 62% of them identify as Muslim. To ignore the religious convictions and cultural expectations of this faith would be foolish on the part of these global enterprises.
In fact, with a population of roughly 1.8 Billion (24% of the world's population), there is a need for a financial solution that includes this large population of Islamic adherents. Muslims want to invest and place trades, but there is an inherent problem in the FX Market as there are interest rate swaps associated with overnight holdings for some brokers and even intraday swaps from others. Islamic Law prohibits interest, which creates a conflict.
However, there is a solution for Muslims and that is a Swap-Free Account, which is commonly referred to as 'Sharia Compliant Accounts' or 'Islamic Accounts'. These accounts remove the interest swap element out of the transaction and thus enable adherents to place trades and invest without an issue.
This is an option that can be chosen during the application process with a particular broker. Anyone can choose to trade and invest with a Swap-Free Account, it is not limited to those of the Islamic faith. FX Trading in Malaysia means having options that fit needs.
2. Trading Your Own Funds
If you are not trading your own funds, expect to get a knock at the door and it will not be a good one. The laws are vague in Malaysia to say the least, but those trading others funds are going to face a legal quandary. Those trading solely their own funds are highly unlikely to face any issues, but the laws are still rather silent and gray on the subject matter. However, global Forex Brokers are entering the Malaysian market by storm in 2018, which means that there must be some level of legal comfort as far as operating and trading in this country.
Also make sure that you are not trading Malaysian Ringgits, but if you are trading with a licensed broker in the Eurozone, Australia or New Zealand this is not likely a problem as it is usually not a trading instrument that is commonly available.
3. Don't Repeat the Errors of Others
When it comes to choosing a Forex Broker in Malaysia, it should not be a matter of exclusivity and you should not be trading manually. Find the brokers that fit the automated and managed strategies that fit best.
The worst thing that can happen is that Malaysians make the same greedy and ignorant decisions that those in other countries make, which results in restrictions and prohibitions.