Should You Try Forex Trading? What Does the Malaysian Market Have to Say About It?

Should You Try Forex Trading? What Does the Malaysian Market Have to Say About It?

Forex trading is an investment process in which traders speculate on currency prices to profit. All the currencies in forex trading are traded in pairs, which means exchanging one currency for another. The traders predict the rise and fall in the value of one currency compared to another. Forex trading is a highly profitable but risky investment; therefore, it is advisable that traders must keep their financial situation in consideration while investing in forex commodities. The traders must also work only with the reputed and legally approved exchange platforms to avoid the nefarious elements that may cause them financial losses. 

The traders in Malaysia are inclining heavily towards the forex market, which is regulated by the Securities Commission of Malaysia (SC). SC is a government organization that governs and regulates the tradable markets in the country. It is responsible for establishing the rules and regulations to be obeyed by the forex exchange platforms based in Malaysia. The Securities Commission licenses all genuine Malaysian forex traders.  

What Does the Malaysian Market Have to Say About Forex Trading?

Forex trading has become highly popular in Malaysia in the last few years, but it has also come under scrutiny by the Securities Commission Malaysia. The Malaysian trader community is not very large but is highly preferred by young entrepreneurs. Numerous regulated forex brokers in Malaysia, national and international, allow Malaysian traders to open trades on a highly safe platform. 

The Securities Commission of Malaysia, also known as SCM, is the chief regulatory authority of Malaysia that grants Capital Markets Services License to forex brokers and ensures the safety and security of users’ funds and personal details. The Securities Commission of Malaysia (SCM) also sends warnings to forex brokers in Malaysia that are operating without a genuine trading license. 

The forex brokers currently operational in the country offer traders a wide range of currency pairs to choose from and execute highly profitable trades. However, before forex traders start investing money on these platforms, it is advisable that they must research thoroughly and compare multiple trading platforms before selecting the one that satisfies their requirements completely. 

Even though forex trading in Malaysia is open and smooth to carry out, it would be profitable for the traders to have patience and strategize their trades lest they face financial misfortunes. Novice forex traders are advised to learn to trade using the demo account feature offered by multiple competent forex traders. This exercise will help them to have first-hand experience with forex trading and its complexities. 

Some of the most famous forex trading strategies one can execute to open profitable trades are mentioned.

  • Price Action Trading
  • Range Trading
  • Scalping
  • Positional Trading

Overall, we can say that the Malaysian forex market is highly positive and full of lucrative opportunities for forex traders who are looking for potential investment options. However, traders must ensure tight risk management to avoid unnecessary financial losses. This can be done by trading on licensed forex trading platforms, practicing on demo accounts, and executing trading strategies appropriately. 


On a concluding note, we must say that forex trading is a highly risky investment; in this industry, no investment is safe. Every transaction executed by a forex trader involves some level of financial risk. However, one can reduce the risk by making smart decisions, such as choosing a trustworthy and licensed broker, practicing with a live demo account, determining entry and exit points via in-depth research, and keeping calm during difficult situations. 

Malaysian forex traders looking forward to starting trading must educate themselves about the forex markets first and know their limits, as recklessness may give them major financial setbacks. The traders looking for massive profits must practice forex trading as it is a lucrative investment opportunity that can earn them big money quickly.  


Is Forex Trading Legit in Malaysia?

Yes, forex trading is legit in Malaysia as it is regulated by the Securities Commission of Malaysia, which grants trading licenses to forex brokers and ensures the safety of users’ funds and personal information.

Do Forex Traders Pay Tax on Trading in Malaysia?

Yes, the forex income is taxable in Malaysia, but in the form of income tax. However, capital gains are exempted from all taxes. The traders using the swap-free Islamic accounts are not levied any tax.

Is Using Forex Legal in Malaysia BNM?

Yes, as per Bank Negara Malaysia, one can buy and sell foreign currency in Malaysia only with genuinely licensed commercial, Islamic, and investment banks. Some top Islamic banks are also allowed to operate in the Malaysian forex market.