Forex Brokers in Malaysia

Forex Regulations in Malaysia

The main regulatory body in Malaysia is the Securities Commission of Malaysia (SCM). The SCM’s main function is the regulation and development of the Malaysian capital market. It also supervises exchanges, regulates securities and futures contracts as well as mergers and acquisitions of companies.

The official regulator’s website is www.sc.com.my, also check out their official Twitter for regulatory updates — @SecComMalaysia

• The government and regulatory authorities in Malaysia have been taking steps to further develop the country’s financial markets, including the forex market. For example, SCM has introduced initiatives to enhance the transparency and efficiency of the forex market, such as the introduction of electronic trading platforms.
• In addition, the central bank of Malaysia, Bank Negara Malaysia (BNM), also plays a significant role in regulating the forex market. BNM regulates the licensed onshore banks and licensed investment banks that are authorized to offer forex trading services to Malaysian residents.
• Most international brokers accept Malaysian traders, while for the Malay Forex Brokers holding an SCM license is preferred but not required.
• However, Malaysian residents are only allowed to trade in forex through licensed onshore banks and licensed investment banks. Trading with unlicensed brokers is illegal and can result in severe penalties.
• Therefore, while Malaysian traders can use international brokers, they must be cautious and ensure that they are compliant with the relevant regulations and guidelines.
• Overall, the forex market in Malaysia is showing signs of growth and potential. However, as with any financial market, there are risks involved in forex trading, and it is important for traders to have a solid understanding of the market and exercise caution when making investment decisions.

Read more about Malaysian regulator vis Wiki.