Everything you need to know about forex trading in Malaysia

Forex trading is among the most profitable things one can do for money these days. Though it is fraught with risk, the rewards are tremendous, which attracts a lot of people to the trade. However, the rules are different in every country, and you need to be aware of them if you plan on trading there. Malaysia is no exception.

The stock market in Malaysia takes a while to understand. There are a lot of nuances involved and a lot of questions that can perplex someone getting into it for the first time. Well, all those questions and more are what we plan on answering in this article, so if you are one of those people seeking answers, you’re at the right place! Let’s get started!

Is Forex Trading Illegal in Malaysia?

This is the most important question, isn’t it? Let us clarify right off the bat that Forex trading isn’t illegal, though it is regulated. Bank Negara Malaysia announced way back in 2012 that the purchase and trading of foreign currency in Malaysia is allowed but should only be done through licensed commercial banks, investment banks, Islamic banks, and international Islamic banks.

Below, we have listed out the various bodies that regulate and oversee the trade of foreign currencies:

●     Bank Negara Malaysia

This is the central bank of Malaysia and was founded back in 1959, making it the most important governing body in the country where money is concerned. It issues currency, acts as a banker to the government itself, and regulates its financial institutions, credit system, and monetary policies.

●     Malaysian Investment Development Authority (MIDA)

The MIDA is Malaysia’s principal agency to look over and funnel investment towards the manufacturing and services sectors of the country. It is also responsible for putting down the rules which govern the exchanging businesses in Malaysia. This includes Forex traders of all kinds.

●     Securities Commission of Malaysia

The Securities Commission regulates every enterprise that deals with securities in the country. It supervises exchanges, central depositories, approval of corporate bond issuing while also regulating the mergers and acquisitions of companies and all matters related to securities and futures contracts, making it one of the most important financial bodies in Malaysia.

●     Finance Accreditation Agency (FAA)

The FAA accredits every financial body in the country as per the rules and demands set forth by Bank Negara Malaysia. It aims to standardize and certify every financial institution that aims to do business in the country.