Securities Commission Malaysia registration keeps the legitimate company from intricate fraudulent operations that are claiming to be brokers. Before transferring money, check with the official list of brokers provided by the SC. Traders are drawn to the high leverage and deposit bonuses offered by offshore sites which are senseless from an economic point of view; they’re scams. These operations disappear within a blink of an eye and taking your ringgit with them. One of Johor’s friends lost RM15,000 to a broker from the Marshall Islands with a leverage of 2000:1 and “VIP account manager” who refused to respond to requests for withdrawal when calls began. If you don’t have regulation, then you don’t have protection. Comparing a Forex Broker Malaysia becomes more convenient when traders browse here for insights.
The transaction costs are hidden like credit card interest, so you don’t know the total until you’re adding them up for the year! Brokers that offer zero commissions merely widen spreads to make up for it, sometimes to the extreme. Be sure to ask for all the details regarding costs. The four-pip spreads on the major pairs during the most liquid session means that you are being over charged on a systematical basis. Although they may seem expensive, commission based ECN accounts can offer a better value. Work out what the normal volume of trades is and what your actual cost per trade is. A three pip spread is superficially better than a seven pip spread, but from a mathematics standpoint it is not.A three pip spread is superficially better than a seven pip spread, but mathematically, it is not.
Reliability of the platform is crucial when market is going crazy and all the traders are executing at the same time. MetaTrader 4 reigns supreme in the Malaysian trading world, having withstood a number of market collapses. Proprietary platforms raise immediate suspicions unless they have a few years of experience. The quality of test execution for big news day events – Federal Reserve decisions, nonfarm payroll data, unexpected Fed rate announcement. Does it get stuck during the freeze? Are orders 20 pips away from some point of entering? These stress tests are applied in real world situations and reveal the quality of the infrastructure, which demo accounts purposefully conceal. You don’t have time to wait until you get home to work with your trading app, so the performance must be the same on both the mobile and home computers.
Payment should be made in a way that is convenient to the Malaysian who is making the payment, rather than impose outdated international banking processes. These are minimum requirements – FPX integration, Maybank2u and CIMB Clicks. International wires minimum of RM50 and hidden intermediary fee that magically appears. When used properly, e-wallets such as Touch ‘n Go are a great solution. The speed of withdrawals tells of the integrity of the operation immediately. Ask for a sample withdrawal after the first week. Competence is evidenced by lightning quick approval (48 hours). Still not passing documents after three attempts?Still not passing documents after 3 times? Immediately close this account.