Forex trading in Malaysia is one of the most popular ways for Malaysians to invest or earn extra income。

Forex or FX is short for Foreign Exchange, Currency Exchange。Foreign exchange is defined as the process of converting one currency into another for business activities, travel purposes, etc.。

The foreign exchange market, the world's largest financial market, hit 6 in September 2019..A $6 trillion historical record that proves the liquidity of the market。

Forex can only be traded over-the-counter (OTC) online, which essentially means that transactions are all done online.。Read on to learn more about the basics of Forex in Malaysia。

The difference between forex trading and stock trading

1.Trading time

When trading forex, you can use the trading hours of 24 hours 5 days a week (except weekends) because it is traded electronically over the counter and the forex market is not centralized。

Unlike forex, trading stocks means youto buy through a broker on the Kuala Lumpur Stock ExchangeShares in Malaysian companies, operating from 9 a.m. to 5 p.m.。

2.Liquidity and Trading Volume

As mentioned earlier, the foreign exchange market is the largest market in the world, with a daily trading volume of over $5 trillion.。However, the daily trading volume of the stock market is only $200 billion.。This suggests that the foreign exchange market has higher liquidity and trading volume compared to the stock market。

Taking the first step in learning how to trade forex can be a daunting task。Here are some tips to help you get started:

Tips for Forex Trading

1.Trading knowledge

Before starting trading, remember to familiarize yourself with common terms in forex trading。Terms such as leverage, buy / sell spreads, charts, fundamentals and technical analysis are common, but it is also important to understand before trading。

2.documentary transaction

Beginners tend to prefer follow-up trading because it allows followers to directly follow experienced traders.。This trading method does not require much knowledge and saves time for individuals who are busy with their daily work。Of course, there are pros and cons to documentary trading, and it is important to understand the risks before proceeding with documentary trading.。

3.Demo Account

You can always start with a reputable demo account and learn to trade without risk。Most premium Forex brokers in Malaysia will allow traders to open demo accounts, through which you can not only learn how to trade, but also experience the platforms of different brokers and make comparisons。

4.Select Broker

Arguably the most important step before trading。It is perfectly legal to conduct foreign exchange transactions in Malaysia if it is a registered and authorized financial institution。Write down and research the transaction fees, techniques and services provided by the brokerage firm and compare them to know which one is best for you。There is no perfect broker, only the best broker.。

How to Choose the Best Forex Trading Platform in Malaysia

1.Cost

Normally, opening a trading account is free, but brokers may charge fees for trading, spreads, or any additional features of the platform。Some platforms also charge withdrawal fees and have specific features such as leverage, which may add more costs。Compare different brokers and evaluate their fees, choose the broker that offers the best interest rate。

2.Platform (Technology and Services)

A good platform will not only provide an attractive user interface, it must also provide a variety of services that can meet different strategies or functions。A good platform will also provide educational content to help you with your trading。Flexibility such as a phone app is very important for forex trading, so you can monitor your trades outside of your home when you need it, try the app before deciding to choose a broker to make sure it is user friendly。

3.Regulation

Highly recommended platform fully compliant with Bank Negara Malaysia (BNM) regulation。If you want to use a foreign broker, make sure they are regulated by international regulators such as the Financial Conduct Authority (FCA)。

4.Customer Service

A platform that serves you well before and after sales is just as important as executing trades。In this way, when you have an account or trading problem, customer support can effectively solve your problem。Remember that the broker of your choice needs to have a good reputation for customer support。

Malaysia Forex Market Opening Hours

Forex is also known as the sleepless market (except on weekends), this is because the foreign exchange market operates 24 hours a day according to different parts of the world, when one major market is closed, another major market opens。Here is an example of forex market opening hours according to GMT:

Time zone (country)	GMT	Malaysia Time Zone (+ 8)
New York	On: 1: 00pm Off: 10: 00pm	On: 9: 00pm Off: 6: 00am
Tokyo	On: 11: 00pm Off: 8: 00am	On: 7: 00am Off: 4: 00pm
London	On: 8: 00am Off: 5: 00am	On: 4: 00pm Off: 1: 00am
Sydney	On: 9: 00pm Off: 6: 00am	On: 5: 00am Off: 3: 00pm

By viewing the time zone, you can trade 24 hours a day, even when trading in another country's time zone。In Malaysia, 9pm to 1am is one of the busiest times for trading as the New York and London foreign exchange markets cross each other.。In general, the market for currencies such as the US dollar, British pound, euro, etc. will experience huge fluctuations, and most traders are always ready to trade in anticipation of the market opening。

Conclusion

Forex trading in Malaysia may seem like a simple way to earn extra income, but in reality, it requires a lot of effort, analysis, risk management, timing, etc. to achieve real success。Please note that when you start Forex trading, you will immediately be able to access a margin account, which allows you to use leverage, which is a riskier way to obtain larger funds。