This year, currency trading in Malaysia is more popular than ever before. Due to the pandemic, conventional systems of employment have been shaken to the core, and layoffs have been massive. Online money making tools were popular before, but now they are vital.
Through regulated brokers, anyone can make a profit from the largest financial market. The currency exchange still stands regardless of any crisis. Moreover, as COVID-19 has caused high volatility, insightful traders are making higher profits than before.
How the System Works
Did you know that foreign exchange is the largest market worldwide? Every day, institutions and individuals exchange currencies to the tune of 6 trillion US dollars. This system rarely sleeps as it functions 24 hours a day 5 full days a week.
Unlike the stock exchange, it does not have a physical center. Any individual may connect to it from their laptop, tablet, or even smartphone. This is a modern way to earn money through knowledge and foresight.
Today, Malaysians have access to global brokerage brands that provide excellent support and free education. They can also teach you how to trade currency in Malaysia successfully. However, there are a few caveats.
The Legality of Forex in Malaysia
Malaysians may access the market through international or homegrown brands. Any company based in Malaysia must be registered and authorized by its central financial institution - Bank Negara Malaysia. It is also possible to use the services of offshore brokerages, i.e., companies based overseas.
The key advantages of dealing with a global giant are cutting-edge technology, excellent support, free education, and a vast community of peers. For example, FXTM offers over 250 different instruments through its proprietary app, responsive support, free education, demo trading, and more. The company is also regulated by international watchdog organizations like the FCA in the United Kingdom, the FSCA in South Africa, and the CySEC in Cyprus.
This guarantees the protection of traders' rights, including negative balance protection. This limits losses in case of bad decisions. Trading through such brokers is classified as foreign investment, and it is also not taxable when done via Islamic swap-free accounts. In this situation, your profits are not interpreted as income derived from trading, so income tax does not apply.
How to Get Started
First, research the market and compare different brokers to find the perfect provider. Pay close attention to licensing. Honest companies publish full details of their licenses on their official websites - often, in the footer of every page or in the ‘About Us’ section.
Never trade through an unregulated company. You are likely to be scammed and never see your deposits, let alone profits. Unfortunately, fraud is rampant in this industry, and scammers create attractive sites promoting Forex as a get-rich-quick scheme.
Open a demo account to learn and practice for free. Account details are generated through the broker's website. Usually, you only need to fill out a basic contact form. Once the credentials are emailed, you may enter them on the trading terminal suggested by the broker.
Today, the most popular systems are MetaTrader 4 and MetaTrader 5. Both of them come in three versions - desktop, web-based, and mobile. They work on all popular operating systems, so compatibility is not an issue.
Accounts do not expire, so you can practice as long as you need. Explore the trading software and all of its features, so you know how the controls work. When you switch to live trades, your decisions need to be well-calculated, and you should not be distracted by technicalities.
Tips for Success
One may be disappointed to hear that mind-blowing profits are not guaranteed. This is because Forex is not for the lazy or impulsive. It is for people who can make measured decisions based on objective facts and control their emotions.
Learn the basics of technical and fundamental analysis to see which method suits you. You can try any popular strategies in the safety of the demo mode. This is a wonderful opportunity to find your own course of action, so you are well-prepared for our live trading.
Everyone needs a sound strategy to make consistent moves and profits. It is important to calibrate every parameter of your trade, such as volume and risk tolerance. Keep a trading journal, so you can review your own performance more easily.
Bear in mind that currency exchange is not entirely predictable. You may see where the market is headed, but you have no power over its forces. Therefore, mistakes may and will happen. Your goal is to minimize the damage through careful strategizing and risk management techniques.