Malaysians are always busy with work and traffic during rush hours and have little time to invest or trade in person, so documentary trading is popular in Malaysia。In this article, you will get tips and tricks for documentary trading。

Documentary transactions are part of social transactions that allow individuals to follow transactions made by selected individuals.

How Malaysia's foreign exchange documentary works？

Documentary transactions can be done in the following ways.

When a trade is docked, trades executed in the past by the docked trader will also be executed on your account, but at the current exchange rate。For example, a trader who was followed a few weeks ago paid $1 = 4.2 The price of the Malaysian ringgit executes the USD / Malaysian ringgit trade, but you start today with 1 USD = 4.4 The price of the Malaysian ringgit follows his deal, so the deal will be $1 = 4.4 Price Execution in Malaysian Ringgit。

Once the trade is followed, you will have the same stop loss (SL) and take profit (TP) as the followed trader and the operation of your account will be reflected to the followed trader.。

The amount invested is usually based on the percentage of trades being executed by the documentary trader。For example, the followed trader has a portfolio size of $2,000 and he executes a trade worth $200, or 10% of his portfolio size。As a documentary trader, you have $500 in capital, so the transaction amount will be $50, which is also 10% of the size of your portfolio, so that you two are basically making the same transaction。The computer system is automatically completed by the brokerage company.。

It is important to know the guide of each brokerage firm as they have their own documentary trading system。

Advantages and disadvantages of the Malaysian documentary trading network

Advantages

1.Bridging the knowledge gap

Trading is essentially a skill that requires hours or even years of learning to effectively understand the market。With documentary trading, traders require little technical knowledge because you are trading using the skills of the trader you are following.。This allows novices to take advantage of the expertise of experienced traders。

2.Diversification strategy (people-oriented portfolio)

A common strategy is that you can treat a well-performing trader as your fund manager and spread your money among several different traders, so you don't need to put all your eggs in one basket。In addition, you can documentary any number of traders。

Disadvantages

1.Knowledge Gap

This has both advantages and disadvantages because documentary trading is not a decision you make for yourself。This will lead to reliance on traders rather than accumulating trading knowledge and experience。

2.The right provider

Choosing a trader who performs well is risky because the trader may have made a high profit last week, but in the week you followed the trader, he / she lost most of the trade, and you as a follower will suffer similar consequences。

Best Documentary Trading Broker in Malaysia

Here is a list of highly acclaimed documentary traders:

HFM (HF Markets)

Advantages

• An extensive portfolio of over 3,500 tradable assets, including CFDs and direct stock trading。
  Four account types and free demo accounts。
  MetaTrader family of platform products and proprietary HFM platforms。
  Support for high leverage levels, up to 1: 2,000 for some items。
  Tightly regulated in seven jurisdictions。
  User-friendly website and easy registration process。

Disadvantages

• US residents are not included.。
  Educational materials have room for improvement。
  Spreads provided can also be more competitive。

Tickmill

Advantages

• Excellent trading experience, thanks to high-end technology infrastructure and ultra-fast transaction execution。ECN trade execution ensures that customers get the best possible price, with an average trading time of 0.20 seconds and no need to re-quote。
  Well regulated, the company is regulated by FCA (Financial Conduct Authority) and DFSA (Dubai Financial Services Authority)。
  Client funds are held in separate accounts and negative balance protection ensures that losses are limited to the size of the initial investment。
  Three types of accounts to choose from: Pro, Classic, and VIP。Each setting is designed to suit different types of trading styles and provides leverage up to 1: 30。
  Ultra-low transaction fees and commissions, spread from 0 points, management costs to a minimum。

Disadvantages

• Relatively limited number of portfolios and marketable markets。
  Minimum balance required to open an account is $100。

BlackBull Markets

Advantages

• The broker offers markets for stocks, forex, commodities, indices and cryptocurrencies, trading over 26,000 instruments。
  Leverage up to 1: 500 allows clients to extend risk returns。
  The customer support team is available 24 / 7 and can be reached by phone, email and live chat. The website is available in 11 languages。
  Excellent technical infrastructure for fast and reliable transaction execution。Customers can also take advantage of VPS server hosting to ensure that transactions take place close to the center of the market。
  Spreads start at 0 and there is no charge for cash deposits and withdrawals, nor for account idle fees。
  The minimum account opening balance is $0, and the fast account opening process allows traders to set it up in five minutes。

Disadvantages

• The regulatory framework is not strict enough。
  An out-and-out CFD broker that provides an excellent trading experience, but is not suitable for those who adopt a long-term investment style。
  Mobile trading app satisfying but not groundbreaking。

eToro

Advantages

• eToro is one of the first social trading platforms and is known for its highly innovative platform that makes it easier for new entrants to trade。
  Known for its wide range of investments, from forex, stocks, CFDs to cryptocurrencies。
• Can start documentary trading with an account as low as $200。
  It is regulated by financial institutions such as the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC).。

Disadvantages

• eToro has higher average spreads (transaction costs) and higher withdrawal fees。
  There is a problem with the stability of the platform, there have been crashes

Zulutrade

Advantages

• Known for its vast brokerage network, which allows you to follow traders from different platforms under its network, there are a large number of traders who can choose according to their performance。
  The platform supports multiple languages, including Malay。
  regulated by the Greek Capital Markets Commission (HCMC) in the EU and has been granted 3A Expert SA。

Disadvantages

• Not a trading platform, but a cross-trading platform, so no trading services are provided。
  Although the platform has a large network of brokers, it works best with only some brokers such as AAAFx。

FXTM

Advantages

• FXTM works with popular online trading platforms such as MetaTrader 4 and Meta Trader 5。
  The platform offers a wealth of trading knowledge, from e-books to articles, that can help traders improve their trading knowledge。
  It is regulated by financial institutions such as the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and is licensed as an investment dealer by the Mauritius Financial Services Commission (FSC).。

Disadvantages

• The platform has a limited selection of products due to its focus on Forex trading。
  Withdrawal period is poor according to trader's feedback。

Conclusion

Documentary trading sounds easy, but it does come with high risks. It is recommended that you conduct proper research and learn enough knowledge before starting to apply documentary trading in Malaysia。