Trading of Forex in Malaysia

by Simply Offshore Labuan Offshore Company

Malaysia is one of the most attractive emerging markets today. It is attractive not only to various investors but also to the forex dealing investors as well. But there are tighter restrictions included for dealing forex transactions in Malaysia by the Central Bank of Malaysia (Bank Negara Malaysia). With the growing industry of forex market in Malaysia, there has been a need to regulate the same as well. It is easy to start the business in dealing with Labuan Forex in Malaysia.

The Central Bank of Malaysia has laid down laws, guidelines, and regulations to monitor these transactions effectively. There also Commissions and Regulating bodies set up to provide instructions and monitor the forex trading transactions.

Laws and Acts in Malaysia for Forex Trading:

The Exchange Control Act of 1953, Securities Commission Act of 1993 and the Money changing Act of 1998 monitor and facilitate the rules and regulations behind the forex and foreign exchange transactions in Malaysia.

1. The Securities Commission Act 1993: This Act majorly deals in providing power to the Malaysia Securities Commission body to license and also regulate the business dealing in forex securities.

2. The Exchange Control Act 1953: This Act governs the guidelines on the dealing of foreign exchange commodities such as securities, gold and other currencies. It also administers and monitors the import and export-related transfer of goods and commodities

3. Money Changing Act 1998: As the name suggests, this Act governs the licensing and regulation of all the money-changing businesses and ensuring the commission layout are standardized across the country. This Act also outlines strict guidelines for forex brokers and money changing brokers which they need to follow. It is majorly managed by the Central Bank of Malaysia

Institutions and Regulations governing Forex Trading:

• In Malaysia, the foreign exchange business is majorly regulated and controlled by different regulatory bodies and commission. They include Central Bank of Malaysia(Bank Negara Malaysia), Malaysian Investment Development Authority (MIDA), Securities Commission of Malaysia, Bursa Malaysia, Finance Accreditation Agency (FAA) and also by the Shariah Advisory Council (SAC).

The principal functions of these bodies are as follows:

• Ensuring proper controls over the dealings of Malaysian currencies, controlling the fiscal deficit of the economy.

• Regulating the money-changing business in Malaysia including the retail forex traders as well.

• Supervising the different stock exchanges, bank clearing housing and other central depositories.

• Monitoring the registration of prospectuses of various companies.

• Providing approval to firms to issue bonds.

• Any other matters relating to regulation of contracts mainly involving securities and futures and also regulating the amalgamations and acquisitions of different companies.

The forex traders especially Labuan Forex traders have growing opportunities today in the market. It has become considerably easy to start own forex trading business with a Labuan Company. The brokerage and commission are also not very high making it a very tempting offer.

Author Bio

Mr. Ahmad writes articles for outsource services. He has good knowledge in writing for outsource services i.e Labuan Forex,and much more. Further more information please call us @ 006-03-21613430

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Created on Oct 24th 2017 05:32. Viewed 397 times.

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