Foreign or forex trading can be best described as a network of sellers and buyers who transfer currency between one another at an agreed price. It is also the means by which banks, individuals, and central banks convert one currency to another.
If you have ever traveled to a foreign country, then you have made a forex transaction in one way or another. Those who have tried to convert to Malaysian currency can report that other currencies tend to be against it in a big chart.
In this piece, we are going to teach you how to engage in forex trading and things to look out for. Consider this a comprehensive guide that covers all aspects of the industry to help you make the best decisions.
How to transfer back forex trading money to Malaysia
Not that while online trading is a great opportunity, but you have to take it seriously. Let’s say you have made a little profit, or you wimply wanted to withdraw some of the funds for any reason. There are a few things you must know:
If you decide to work with foreign brokers to withdraw and convert money to MYR, you must pay conversion fees. Since the MYR is hardly featured and offered, you should open USD, EUR GBP trading accounts to have the best experience. You will note that SGD trading accounts are also quite common, and you can open them, they also charge conversion fees. In fact, you will be charged fees for every deposit and withdrawals made regardless of the currency you opt for.
So, how can you withdraw money from your Forex Trading account?
To withdraw money from your trading account, it depends on the trading platform you’re using. Generally speaking, you will find a dedicated deposit-withdraw section. Note that you can only withdraw money to the original source of deposit.
Traders can withdraw excess funds through wire transfer or bank transfer. If you added an extra bank account to withdraw excess funds, you would be required to upload a bank statement as evidence of that particular account.
How Will Your Withdrawal be processed?
Deposited funds will always be returned to the original source. In case you deposited money through multiple methods, you are required to exhaust the entire deposit amounts based on the order below;
- Bank transfer
- Debt card
- Wire
Traders can access their excess funds through bank transfer or wire. If you add an extra bank account, you will be required to upload a bank statement before you can access funds.
How Much Money Can You Withdraw at a Time?
The minimum amount you can withdraw at a time depends on the broker, but it’s generally under $100 depending on the account type you’ve chosen. In fact, the lower the minimum deposit, the lower is the minimum withdrawal set by the broker.
Them Most offshore brokers can let you withdraw a maximum of $25,000 per transaction in case you are funding through bank transfer, and if you are doing so by debit card, you can withdraw $50,000 at a time. Note that wire transfers have no restrictions, so you can do as much as you want.
Withdrawals in Forex Trading: Here’s why they are safe
In Malaysia, forex trading is primarily regulated by Bank of Negara and The Securities Commission of Malaysia, so we can say that withdrawing forex trading money is safe and easy. However, withdrawing money from a non-regulated offshore broker is not necessarely harder: it depends on the broker.
In fact, you stand to enjoy many benefits when you choose a reputable offshore broker, such as investor protection, attractive bonuses, safety against frauds and scams, etc.
One of the biggest challenges of working with offshore brokers is that you can pick the wrong one.
Some online brokers are licensed and approved in areas with regulating bodies that don’t focus on their job. If you work with such companies, you are highly likely to get scammed or defrauded.
Therefore, if you choose to work with an offshore firm, make sure to ascertain that they are licensed and regulated by a high-tier regulatory agency. Some of the best ones include the Monetary Authority of Singapore, the Australian Securities and Investments Commission, the UK’s Financial Conduct Authority, and the Cyprus Exchange and Securities Commission.
If your offshore broker works with a reputable regulatory body, it means they follow all the rules and treat you fairly. They are compelled to do that, so they don’t lose their business. Most regulatory bodies require offshore brokers to enroll and become parts of some investor compensation programs so that when they go bankrupt, you will still get some compensation.
How Malaysia Regulates Forex Trading
Note that while forex trading is entirely legal in Malaysia, you can only trade after registering with registered and approved banks and other financial institutions. Initially, these approved financial institutions only comprised large banks and financial organizations, and most of them never had interest in engaging forex traders.
Thankfully, according to the Malaysian state, it is okay for citizens to make investments overseas. This is why today, most Malaysians prefer working with offshore brokers to trade online and make money. Though this has opened great opportunities for those looking to venture in forex, it comes with its own challenges.
The only way to be certain that you are legally doing forex trading in Malaysia is by using a licensed institution and having an Islamic account. This implies that you can still trade forex in the country without any problem, even though offshore investment.
The law, however, states that you can never use someone else’s funds to do forex trading in Malaysia. You are also prohibited from asking someone to provide you with finds to trade forex. However, currently, the Malaysian government is working to come up with lenient rules of forex trading.
What Do You Need To Start Forex Trading in Malaysia?
Opening a forex trading account is one of the easiest things to do in Malaysia. Though some details might vary among brokers, the process is the same.
To begin, you will need to fill out an application on the internet that needs you to share personal details such as;
- Your address and name
- Date of birth
- Phone number and email address
- Your national ID or passport number
- Unique passcode/password for your account
Some online brokers will require you to answer a few questions to gauge your trading experience and see that at least you have the basics of forex trading. From there, you will upload your ID or passport and a utility bill to help verify your address and identity. After your documents have been verified, you are free to deposit funds and begin trading.
Closing Thoughts
At the moment, Malaysia has stringent rules for forex trading, and to avoid facing the law, you are supposed to be familiar with the terms. Use free online resources to read the rules and regulations imposed by the Malaysian government. The rules are yet to be changed, and they will soon be friendlier, and people won’t have trouble trading forex in Malaysia.
The brokers may strictly require you to only have one account with them. There are free online resources to get you started on forex trading, including how to transfer back money from forex trading to Malaysia; you are strongly urged to check them out to avoid making petty mistakes that could otherwise cost you money.