Old V5
http://forum.lowyat.net/topic/880976/+2520

Forex trading is never legal in Malaysia

Today news.
http://www.thestar.com.my/news/story.asp?f...3337&sec=nation

Those are overseas brokers, which investors have no protection, so it is investors own responsibility and due dilegence to find out whether they are legitimate brokers or not. Nobody stop or care about or can care about it or stop, if investors want to put money in overseas.

Locallly, no company can operate forex trading, or taking deposit from investors without BNM/SC approval.

The definition of border is the broker location.

As said, nobody will or can stop you to participate in overseas dealing, but you have no protection and it is your responsibility to find out and do your own due dligence whether those brokers are real and legitimate.

BNM has no intention or targetting on individual.

It is just a pre-cautious to avoid any unwanted circumstances occuring, as investors might not know whether the broker is legitimate or not, or just some con job.

It is to avoid public money being conned instead try to nab individual.

If one wants to invest in overseas on oneself, nobody can stop one doing it. It is your money, you decide how to do it, even one want to throw money into the sea, no one can stop it.
But a lot of people don't know how to do their own due diligence on the legitimate part which is why BNM need to come out this statement as a precautious word.

Unregulated part of issue is very risky, because you don't know whether when you trade the forex, is actually a real trading or not, or just some paper game between broker and you. And another issue is that you money is totally in broker's hand, which you have no control on your money, so if a particular broker is not regulated or not real, then the money is totally at risk all together.

Has explained many times, BNM gain nothing in the process of warning people. BNM warned because it become more rampant and some seminar even claim can get rich with attending seminar/talks or can earn few ten k with just 1k money put in. <--- this is the worrying part.

Because it is your money in risk, as most don't have a clue on forex issue. Even anyone can come out a website to claim as forex broker and tell people to put money in it. Do you know it is real? most don't know.
In actual fact, you never trade forex at all (there is no real currency exchange nor your order buy/sell did send through the actual currencies trading), it is like pips gambling only which based on exchange rate.

The answer is no currencies trade involved actually, there is no physical or real currency conversion taking place. It is like online gambling which use the forex rate as indicator only

Don't get me wrong, I don't say it is legal, nor illegal in the above statement. Just whatever trade is going on, you don't have real money conversion or money trade in market, so any your buy/sell order from you is not channelled into the real trade, nor affecting the real trade.

For sure it is definitely illegal to trade FX in Malaysia.

But with internet age coming into play, it becomes a grey area. As broker or online gambing is at overseas, your money is at overseas, which Malaysia authorities has no control about it, but you are sending order instruction from Malaysia. So it become a grey area.

This post has been edited by cherroy: Jan 19 2010, 03:51 PM

BNM and banks will question the money inflow due to worry of money laundering. Banks and BNM don't care how and how much money inflow but what they are concern is money laundering.

Buying stocks with contra, short sell, trade in futures derivatives market (besides hedging purposes) are all spread betting as well.

But I don't say it is legal, but there are plenty of non-legitimate scheme that claim to be FX trading as well which in behind run as ponzi scheme only or only care about selling EA only.

As I posted before, it is in grey area.

Simple answer :
It is not legal for any FX trading being done in Malaysia.

From BNM website

Or more correct word is pip house?

Somebody please create Forex V7 for continuity of this topic, as this topic has reached more than 125 pages already.