With the emergence of widely available internet connections, many previously restricted sectors of the economy have experienced a boom. The same goes for trading, as many people were previously taken back by the alleged complexity of it, the need for a third party (as in, professional broker), and the relatively high entry margin.
With the advance of fast and secure internet connection, online forex trading has become the fastest-growing sector of trading and is attracting more and more “entry-level” participants every day. Today we have a large selection of tools and apps that help us monitor how the market is changing and give us various options on how to react.
And the Malaysian market fits the description – with its high GDP growth, an English speaking population, and stable currency politics – the country is becoming a very popular center for online forex trading.
Forex Trading 101
Foreign currency and exchange, or Forex for short, is the selling and buying of different national and electric currencies for one another. This is usually done for tourism, trading, or commerce. As most countries today are oriented towards a free market economy, their currency’s value will simply be regulated by supply and demand. In a constantly fluctuating market, where one currency can be compared to several others, there is always room to make a profit by selling and buying in the right moment of low or high demand.
Most of us who have traveled abroad have been a part of forex trading when we went to the exchange office to buy some of the local currency, needed for any further commerce in the country. Today, the same exchange can be done with less fuss and much quicker, by performing the exchange online. Banks, online exchange offices as well as specialized forex trading companies all offer a convenient and novel way of doing this.
Several parameters are looked into before any action is taken, the most basic one is what is the current currency comparison, best provided by a trustworthy institution.
Getting Into Forex in Malaysia
The Malaysian forex market is centered around the ringgit, formerly known as the Malaysian dollar. Considering how well connected the country has become, all the globally stable and popular currencies, the US dollar, EUR, bitcoin, etc, are being traded back and forth here also, so it is only a matter of finding a reliable broker and having starting capital.
Concerning starting capital there isn’t much fuss – you could theoretically start with 1$ and build up from there, but a good starting point is 500$ so that you can see some actual profit from it in due time. What you would want next is to search for an internationally licensed and reliable broker that offers forex trading in Malaysia, as any office engaged in this has to have a license issued by financial regulatory bodies. Those who also offer customer service in Malaysian and have direct deals with a bank for deposit/withdrawal are among the favorites.
To open a forex trading account in Malaysia all it takes is five easy steps:
– find a suitable broker
– complete the registration form
– complete the verification process (you will need an ID of some kind for this)
– deposit funds in your account
– start trading
Challenges of the Trade
Traders in the forex market are constantly facing old and new challenges, and while some will think that this is easy money – they need to be aware of the trouble that comes before it.
Swimming with the big sharks
Like any other global market, this one is also dominated by the big sharks. Large players in the game will almost always have information beforehand and will play their moves accordingly. When you just start you may have beginner’s luck but in the long run you would need to devote a certain part of your day to reading, interpreting, and predicting how the world’s economy will move.
Every business has its share of scammers, the forex one being no different. Be on guard of those who would “let you in on a secret” to gain cash fast, conveniently at the same time offering you to buy from them. This practice is most often aimed at newcomers to the market, as anyone more experienced would sniff them and turn around.
The psychological factor in this business can be a determining one for success or failure, even when everything else is known. Online trading is a quick-paced game and having the courage to make a decision quickly, when a large stock exchange is opening, for example, can make the difference between that day’s (or month’s!) profit or not.
Fear of loss is also present, and many would chicken out of the market as soon as they see that they’ve lost on a transaction. But fear not, in all investment patience is needed, and giving it a few years of persistent buying and selling will make you a confident and wealthy professional.
Banks and International Institutions in Malaysia
There are many financial institutions in this multi-million country and if dealing with any of them it would be wise to check if they are licensed and what their rating is. Considering the rising popularity of cryptocurrencies and international trade, it may be best to find an institution that already has those checked out in their portfolio and know what they are doing.
Other things to consider are where to store the profit gained from trading. While some people invest directly back to earn a larger profit, or would rather put them into a savings account if the forex pattern they usually pursue is not profitable in the near future. Averaging around 3 percent for deposit interest rates, Malaysian banks are a worthwhile partner in this business.
The foreign exchange market is a relatively young and interesting one, where players have not yet established their presence like in the stock market community. Emerging economies, such as those in Malaysia, should look forward to new opportunities to invest their money gained through the real economy so as to one day have an easy flowing and passive income.