when is forex trading illegal?

when is forex trading illegal?

forex trading is not illegal

it's just haram, based on malaysian fatwa a few years back. correct me if i'm wrong

just like gambling is legal in malaysia, but haram for muslim

forex trading is not illegal

it's just haram, based on malaysian fatwa a few years back. correct me if i'm wrong

just like gambling is legal in malaysia, but haram for muslim

as long as they can tax it, it will be legal.

Bank Negara Malaysia would like to caution members of the public not to participate in any illegal investment or training programme on foreign currency trading offered by individuals or companies both domestic and foreign.

Members of the public are usually enticed to attend such investment or training programmes with promises of quick and good returns. The modus operandi of such programmes have included:

    Offering free training, seminars or workshops to lure investors, prior to inviting investors to set-up an online foreign currency trading account with a principal company (purported to have valid licence to trade foreign currency overseas);
    Providing convenient access to the principal company's website and trading facilities to facilitate online foreign currency trading by investors;
    Recruitment of fresh graduates as marketing executives and encouraging them to get their family and friends to trade foreign currency; and
    Requiring investors to deposit an amount of money into a bank account to begin trading foreign currency, and subsequently, requesting for a top up on their initial investment ("margin call") to avoid losing their capital.

Under the Exchange Control Act 1953 (ECA), it is an offence for a person in Malaysia to buy or sell foreign currency or do any act which involves, is in association with, or is preparatory to, buying or selling of foreign currency with any person, other than an authorised dealer. It is also an offence for a person to aid or abet another person to buy or sell foreign currency with any person, unless the person is an authorised dealer.

The list of authorised dealers and financial institutions permitted by the Controller of Foreign Exchange to buy or sell foreign currency can be obtained from Bank Negara Malaysia's website (http://www.bnm.gov.my).

sosej

so now legal or not?

Its is illegal if you buy it from non-authorize dealer. that all.

define non-authorize dealer

forex broker is one of them?

my opinion, forex is the new mlm....  somewhere in the future, ppl will corrupt it like ppl do with mlm

fuuu, i see nazri's son , muka minta penumbuk

problem is whether BNM want to approve the forex broking house which i think its unlikely.

i rather go to singapore or aussie, apply for their online trading platform while at the same time open account as well.

Just pray your internet is stable

some Malaysian apply forex brokerage license in NZ, Mauritius and Cyprus
but their server and office operation in Malaysian under IT license

isnt the IT license need to be approved by BNM as well?

KPDN.. IT license sure got approval
like apply cybercafe license, approve and put gambling machine inside cc.

as long as they can tax it, it will be legal.

will they accept trading in RM instead of other currencies?

hi slickslick, hows ur gym gay encounter

got broker offer USD/MYR

nola i mean using rm to trade instead of change to usd or other currency.

nola i mean using rm to trade instead of change to usd or other currency.

no have. unless govt approve fx broker in  malaysia

Yes and the government will not approve forex borkerages because of the fatwa issue

Fatwa is only for muslim

It should be.. but they still won't. Another issue is the deposit-taking. I don;t know why, but it seems to me any company that is taking deposits eventually goes "south". I still have an ongoing investigation with moneybookers because they debited my card twice when they were pre-authorizing it. It's only 2 Euro and I am having that much trobule. I had a really bad time getting money out of any forex account, they ask for docs and then they delay, and then you have to push them, and threaten to report them to their regulators, and then only something gets done.

It's just nuts.

forex is not gambling...u need to evaluate a country to trade forex.

btw i shudn't really interfere with other ppl's belief so feel free to ignore me

BNM saga reawakened

THE ghost of Bank Negara Malaysia’s (BNM) epic foreign exchange trading losses, said to have run into tens of billions during the 80s and 90s, has reawakened.

Like a dormant volcano whose time to re-erupt has come, the controversy involving the central bank’s infamous speculative practices blew up with such a shudder last weekend that even Tun Dr Mahathir Mohamad was called to respond.

Mahathir, who was prime minister at the time, commented to reporters that he was not afraid to be investigated. The Opposition can open any file they had on him, he said in response to DAP adviser Lim Kit Siang’s assertion that Pakatan Rakyat, should it take over the federal government, must initiate a royal commission of inquiry into the affair.

Other key figures reportedly implicated are the then finance minister Tun Daim Zainuddin and BNM governor during that period, the late Tan Sri Jaffar Hussein. A fourth person, the then BNM deputy governor, Tan Sri Nor Mohamed Yackop, is now a minister in the Prime Minister’s Department.

Although the issue has been raised before, this time it was perhaps more damning and detailed. This is because the individual who spoke about it at a forum organised by the Penang Institute, a state government think-tank, on Saturday was privy to the internal happenings at BNM until 1994.

Dr Rosli Yaakob was a senior manager during the crucial years when the speculative practices were said to occur, and was even on the panel that prepared and presented the bank’s semi-annual brief. He is currently Negri Sembilan PAS deputy commissioner.

Incidentally, Opposition Leader Datuk Seri Anwar Ibrahim, who was finance minister from 1991 to 1998, also spoke at the forum. Anwar maintained that the matter was kept from him after he assumed the post. He has however been accused of covering up for it, including by Lim – the opposition leader and DAP’s Tanjung MP in the early 90s – who held Anwar personally responsible for the losses.

The problem with this whole affair is that there has been neither an official investigation nor an inquiry into the matter to assuage public confusion and concerns. No one, aside perhaps from the perpetrators, knows how much money, if any, was lost or how this was done.

Rosli’s account, delivered to a packed hall seated in stunned silence, would have raised more curiosity about what could have occurred.

Even the volume of money that was supposedly involved has come into question. Lim has put the losses at about RM30 billion. Rosli, however, pointed out that it was once reported that at the height of the speculation BNM had spent RM270 billion. “This is no small amount,” he said.

According to Rosli, the market norm then was to trade in lots of US$1 million, US$5 million or US$10 million, but that BNM traded in US$50 million lots (up to 5-10 lots per call) and sometimes, a few “yards” (US$1 billion per yard) a day.

Its closest rivals were Japanese fund managers who also traded in lots of US$50 million, but only once or twice a year, he said.

If true, this effectively made BNM the largest player in the international currency market, as it is said to have competed head-on against the likes of George Soros.

And Rosli’s indictment was emphatic: “They did not speculate, they gambled and did so recklessly and irresponsibly with no regard for the safety of BNM assets.” Even Alan Greenspan of the US Federal Reserve had warned BNM to stop its speculative activities, he added.

BNM’s strategy was to hit a currency for a couple of yards, and once the initial transaction had gone through, hit it again with another couple of yards, normally only minutes later, Rosli alleged.

“This sent shocks through the market and dealers scrambled to buy the currency, sending it up. BNM sold the currency with a healthy profit,” he said. “But then, other dealers caught on to the scheme. They hit back.”

Rosli specifically pinpointed Jaffar’s appointment as governor in 1985 at the beginning of the foray.

“Previous governors were all against speculation and fiercely defended BNM against any undue outside interference,” he said. “Prior to this, the main thrust of reserve management had always been to preserve the value of the Malaysian ringgit and to maintain liquidity.”

The government should once and for all put this matter to rest with a proper inquiry, to address the inevitable public disquiet on the affair. For after having begun to spew smoke again, this billion-ringgit volcano is not likely to simmer down for some time to come.

Himanshu is theSun’s Penang bureau chief. Comments: letters@thesundaily.com http://www.thesundaily.my/news/400264

Forex is not gambling, it's investing. What is gambling is depositing money into the account of a foreign company and actually hoping to get it back. If they say your money is missing, or they just ignore your withdrawal requests, what can you do?

huh! what forex broker is that

lol that one betul betul ppl who want to become millionaire overnight. and i cant believe got ppl really fall for this

That was Alpari, not even some unknown bucket-shop. And now I don't know what to do with Moneybooker's double pre-auth, maybe I should call the bank and have them investigate it, or I should be arguing with MB for 2 Euro... I dunno lol.

forex is not gambling...u need to evaluate a country to trade forex.

btw i shudn't really interfere with other ppl's belief so feel free to ignore me

Alpari. i heard they r good. but that is scary bro

forex is illegal in malaysia from what i reckon, anything that can go Long and/or go Short is illegal in malaysia.

forex is illegal in malaysia from what i reckon, anything that can go Long and/or go Short is illegal in malaysia.

yes it is. but not bcoz of the long/short position. bcoz BNM said so

I know, I heard that too.. so I sent in the money. After I made some money (not so much even) I suddenly had some serious trouble withdrawing it. As for ID scan... and then no word for days... and then send email.. nothing. And then threaten to report to regulators, then I got the money.

It made me wonder, they are so well-known and regulated, and they want to pull this on me. I wonder about the other brokers. Anyway that is the risk you have to take. Trading risk can be managed -- just don't overtrade and make sure you have enough to cover margin.

But how do you make sure your money is safe? that's a risk that is not acceptable.

most of forex broker are bucket shop eventho they are regulated
they trade against their customer. a customer gain is their loss and they dont like u to make money.

this is how they operate actually

life is also a gamble, so haram?

A Fine Line Between 'Trading' and 'Gambling' Is Called Discipline..

most of forex broker are bucket shop eventho they are regulated
they trade against their customer. a customer gain is their loss and they dont like u to make money.

this is how they operate actually

Yes trading is not a gamble, depositing/withdrawing is a gamble. If you are a good trader, you can almost guarantee a profit. But the best trader can't even almost guarantee that they will be able to withdraw what they make.

there is always a risk involved in depositing/withdrawing in any business/investment. not only in forex.

Well when I was in KLSE, my broker was my bank, so there wasn't a risk at all

ok lah tu. local bank. wait PR govt to legalize bank open forex brokerage then.

So what should we follow malaysian rule or islam rule?

So what should we follow malaysian rule or islam rule?

and why you must necro this thread?