"Hands that help are holier than lips that pray" Shirdi Sai Baba
Bank Negara Malaysia, just posted on their website saying that, those who trade currency from Malaysia its consider illegal.
Any comments guys?
I've been trading Forex as well, now with these kind of regulation, making me a little worried...Ignored
Dislikedif you do not deal with any of those banks/dealers, it seems that it might be illegal.
i suppose those mentioned banks won't offer leverage and only gives high net clients access to fx.Ignored
Dislikedwhen you buy/sell EURUSD you are buying FX Premium Instrument .
EURUSD or USDJPY or GBPUSD is not a currency it is instrument.
EUR or GBP or JPY is currency since it has physical existance.
But EURUSD is not a currency since it has no physical existance .... it is Exhange rate.
Forex broker offers Exchange rate instrument not Currency.Ignored
DislikedMaster Ramdas.. Yours is actually another very good explanation. I've been trading for 14 years and I've never thought of it that way before.
But I don't think BNM will see it that way though. For them, speculative traidng of any MYR pair (eg EURMYR, USDMYR, JPYMYR etc) or instrument (as we call them) is a no-no.
In my reply in the link below, I offer a more plausible reason why retail FX (if properly done) is legal in Malaysia.
DislikedHiya peeps ,
Bro Imran , i hope BNM can accept the intepretations of the ECM9 as per your arguments above . I have myself emailed BNM last Monday regarding the legality issue and until now , no answers from them yet .
My take on the matter is that the Act itself ( ECA 1953 - Act 17 ) is outdated and needs to be updated to be relevant. If need be , we must push this matter all the way to Parliment . An association of traders ( PPMM - Persatuan Pelabur Matawang Malaysia ) is a good idea too .
Lets see how this matter will develop in a couple...Ignored
Dislikedhow can our activity affect ringgit? doesnt make sense at all. most of traders in malaysia have small account including me.Ignored
Disliked5. Come to think of it, our activity DOES affect the ringgit but in a small and negligible way. BNM makes you convert your ringgit to USD ONSHORE first simply because they don't want you bring the ringgit OUT of the country, which makes it difficult for the Government to track ringgit flows.Ignored
Dislikedhmm, eventhough they know who bring the ringgit out in huge amount, they can close their eyes.
1. For your guide, ECM9 is really nothing for BNM to "accept". it's actually a BNM-issued circular.
2. To me, ECA does not contradict the ECM circulars. And I feel ECA is still relevant and not really outdated as it does serve an important purpose outlawing the unauthorized (physical or electronic) trading of ringgit, which is BNM's primary concern.
3. It is also my view that BNM simply does not wish the inexperienced and not financially-savvy segment of the Malaysian public to take part in something that is too big for...Ignored