How to Start Trading in Malaysia as a Forex Beginner

How does Forex trading work in Malaysia?

Malaysia gained its independence in 1957. Back then, the economy was mostly about agriculture and natural resources. But over time, it shifted more toward manufacturing and services. Malaysia’s GDP could nearly triple by 2050, going from $1 trillion to $2.8 trillion (based on purchasing power). COVID definitely hit hard in 2020 with a 5.6% drop, but growth started picking up again in 2021. With that growth, a lot more people in Malaysia became interested in Forex trading. Apparently, over 200 000 Malaysians are already trading currency pairs through different brokers.

How to trade Forex in Malaysia as a beginner

If you are thinking of trading Forex in Malaysia, there are several things you need to take into consideration, such as your experience, your current budget, what amount of free time you are willing to invest, what your approach towards trading is, and whether or not you have a clear strategy and a plan of rather than act based on emotions.

Starting with basic learning and exploring the subject, practising on a demo account or maybe even asking your peers for their learning curve experience, could be valuable steps for future results.

Choose your broker

To start trading Forex in Malaysia, your first step is to find a reliable online broker. There are a number of options out there, some are local Malaysian brokers, and others are international platforms that give you access to Bursa Malaysia, the country’s main stock exchange.

Now, if you’re planning to trade outside your home country, you’ve basically got two choices:

• You can open an account with a broker based in the country you want to trade in (in this case, Malaysia).

• Or you can go with an international broker that offers access to foreign stock markets, including Malaysia.

Whichever one you choose, just make sure the broker is properly licensed and regulated. And it’s not just about access, it’s also about trust and security, as well as the availability of a steady education. This includes webinars, a demo account, and other learning materials.

Explore learning materials

When you are new to trading, there is nothing more important than getting into it with a clear head, a plan or trading strategy, and a decent amount of practice on a demo account. Use it to experiment with trading various markets and currencies, trading at different times of the day, and finding an effective trading strategy.

Other than that, try exploring possible trading webinars and learning guides. FBS offers a variety of learning tools and materials for both beginners and experienced traders. Check out our video tutorials and quick course on how to start trading Forex.

Find a trading strategy that fits you

If you want to find a solid Forex trading strategy, start by thinking about your goals. Ask yourself a question: do you want quick profits or long-term growth?

• Then study the market using basic tools like charts to understand what’s driving the market prices.

• Follow the news and main economic and political reports.

• Choose indicators that help you spot trading opportunities.

• Trade on a demo account first to test your strategy and get familiar with the platform. Don’t forget about risk management. It’s always recommended that traders set stop-loss orders and only trade what they can afford to lose.

Is Forex legal in Malaysia?

Yes, it is. Trading Forex is legal in Malaysia when you’re doing it through a licensed broker.

In Malaysia, trading is regulated by the Securities Commission Malaysia (SCM). The SCM’s job is to make sure that any brokers working in the country follow its legal and ethical standards.

If you sign up with an international broker, you will be accepting their terms of service and agreeing to be regulated by their regulatory authority. FBS is an international broker regulated by the Belize FSC and offers its services on a cross-border basis.

What time does the Forex market open and close in Malaysia?

Forex is open 24 hours a day, 5 days a week. If you want to catch the most action, the best time could be between 9 PM and 1 AM MYT (UTC+8). It’s the period when the London and New York markets overlap, and the market gets most volatile. More activity means more chances for traders to spot good entry points and potentially make a profit.

However, if you’re new to trading, you might want to avoid the busiest times at first, as things can move fast and the market’s volatility can be overwhelming.

How to open a trading account in Malaysia

• Choose a broker and register.

• Pass necessary verification to ensure the security of your account and funds.

• Deposit funds.

How much money do you need to start trading Forex?

Contrary to the popular belief that trading requires a significant amount of funds to start, you can begin with as little as $10. You should also check the minimum deposit amount set by your broker.

At FBS, you have a minimum deposit of just $5. At the same time, you should also check the minimum requirements set by your payment provider.

FBS offers over 200 payment methods you can use to deposit and withdraw funds. In Malaysia, you can use: AmBank, Islamic Bank Malaysia, National Savings Bank (BSN), CIMB, DuitNow QR and many more.

Risks, regulations, and best practices

Let's summarise everything we put out here.

• It can be a great opportunity, but it comes with risks. That’s why learning the basics is so important. Don’t skip the education part.

• Use a demo account to get some practice before trading real money. It helps more than you think.

• Also, make sure your broker is regulated. Check reviews online from other traders.

• Stick to a trading plan, and don’t let emotions mess with your decisions.

• Manage your risk on every trade. Even small trades need a backup plan.

• It’s also smart to keep a journal of your trades to see what worked and what didn’t so you can keep improving.