If you are thinking of starting an investment in foreign currency trading, it is important to know about the legal status of Forex trading in Malaysia. Is Forex trading legal in Malaysia? How do you ensure your Forex trading is legitimate and safe?

Bank Negara Malaysia clarified in February 2012 that the buying and selling of foreign currency in Malaysia is allowed. However, you can only trade with licensed commercial banks, Islamic banks, investment banks, and international Islamic banks.
LAW AND REGULATION ON FOREX TRADING IN MALAYSIA
There are three main laws and regulations set in place in regulating Forex trading in Malaysia as below. Thus, it is important for you as a trader to understand that these regulations are applied while trading. The platforms or brokers you use are also advised to comply with these rules.

1. THE EXCHANGE CONTROL ACT OF 1953
The Act imposes general restrictions on foreign exchange dealings by residents and non-residents. There are no restrictions for non-residents to invest in Malaysia to purchase ringgit assets, such as land property and securities.

There is also no restriction for non-residents to transfer abroad, in foreign currency, all profits, returns and divestment proceeds from their investments in Malaysia.

2. THE SECURITIES COMMISSION ACT OF 1993
This Act, which also includes the latest updates in 2017 gives powers to the Securities Commission Malaysia, to license and regulate businesses dealing in securities.

3. THE MONEY CHANGING ACT OF 1998
This Act is to provide for the licensing and regulation of money-changing business and other matters related thereto. Under the Money-Changing Act 1998, a person licensed under the Exchange Control Act 1953 (ECA) to buy and sell foreign currency is deemed to be licensed under the Money-Changing Act 1998.

INSTITUTIONS AND AGENCIES REGULATING FOREX TRADING IN MALAYSIA
Below is the list of institutions, agenci

HOW TO DETECT FOREX SCAMS

Although forex trading is legal in Malaysia, there are still quite some Forex scams going on. It is quite simple to detect which Forex are scams and which ones are legit. Alternatively, when you are offered something and you think that is too good to be true, it probably is.

As a trader, you should beware of over-the-moon claims and always lookout for a scam sign.

Now, what are the tell-tale signs of a Forex scam?

Companies, headquarters, and bank accounts that are registered in countries where the banking rules and tax regime are loosely controlled.
Scammers that require your bank details and signatures, but their side of paperwork and signatures is unclear.
A demonstration that is most likely with fake transactions in a controlled environment and not on the real, open, currency markets, where real risks exist and profits are far from guaranteed.
Fake testimonials and pictures of people with huge amounts of cash or luxury items. This is the easiest way to get clueless people who are intrigued by cash and luxurious items.
The scammers that payout the first return on a small investment as a bait to get you to agree to a larger investment.

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