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Malaysia central bank states Forex is illegal

  • #141
  • May 22, 2010 1:15am May 22, 2010 1:15am
hi and salam to all..

just have a quick question.. im using a broker that has a debit card for me to withdraw all my earnings.

but i haven't received it yet.. so in order for me to withdraw my profits (for now) they are going to send it back to my debit card...

so the question is: can the govt detect this transaction or even stop it?

regards

wan
  • #142
  • May 22, 2010 2:29pm May 22, 2010 2:29pm
still wandering when will BNM or M'sia goverment legalized forex exchange...

hmmm...still far i'll guess hehehehe....

same like to build a house in a 1 lot land in the urban area, must have only one kitchen....build more is illegal....

still wandering what kind of act that m'sia's have.....huhuhuu
  • #143
  • May 22, 2010 3:15pm May 22, 2010 3:15pm
Quoting MasterOfFibo
how can our activity affect ringgit? doesnt make sense at all. most of traders in malaysia have small account including me.
Probably something similar to what happens here in Venezuela, "depletion of foreign currency reserves"... the ringgit stays onshore, but USD or EUROS don't...
  • #144
  • May 29, 2010 8:02am May 29, 2010 8:02am
ayah, malaysia boleh lah cuti cuti malaysia
Success consists of going from failure to failure without loss of enthusiam
  • #145
  • May 30, 2010 1:06am May 30, 2010 1:06am
Quoting Quantum Z
still wandering when will BNM or M'sia goverment legalized forex exchange...

hmmm...still far i'll guess hehehehe....

same like to build a house in a 1 lot land in the urban area, must have only one kitchen....build more is illegal....

still wandering what kind of act that m'sia's have.....huhuhuu
Latest circular sound like, as long we dont exchange RM illegally its ok with forex Business.

Someone please digest the circular. http://www.bnm.gov.my/microsites/fxa...s/20100405.pdf
  • #146
  • May 30, 2010 3:02am May 30, 2010 3:02am
I assume Malaysia Central Bank is of naive. Perhaps its because of their Islamic Banking merely Law of Shariah Banking that prohbits Speculation Economy.

It's indeed bullshit theory. Pardon me for those of Muslim Faith.

I do not believe in All-Might God.

I believe in Reality. The world current phenomena is indeed the most Reality. Therefore, Forex Speculation is the current phenomena, hence it is reality and materialistic.

Forex Speculation is about economic survival.

Is there a difference between trading beef in wet-market via an intermediaries and Forex Speculation of Electronic Pricing.

I assume there is no difference.

Trading beef in wet-market, consist of several components, seller of beef to intermediaries the markets or so called butcher, then selling to consumer.

The system of conventional trading apparently, farmer sell beef at a very low prive level to butcher in wet-market as farmer was force by the butcher's marketing technique. Proviso farmer can indulge direct-marketing without the relience of butcher then only farmer will earn pure-economic profit.In our case that don't hold true. Hence, farmer sell to butcher at low price-level. Butcher inreturn sells to consumer at high price-level. Thats the end of conventional trading.

While I assume Trading intruments of derivatives is virtues as it reduces the cost of markup, eliminates intermediaries, promotes direct-marketing. Hence in economic doctrine is indeed a beneficial to Economic Development.

Let me justify, proviso intermediareis or butcher is eliminated, then only farmer will earn more, hence too we will perveice a lower price difference between selling and buying, Therefore reducing cost of markup and inreturn steady inflation, boost buying-power in short-run.
  • #147
  • May 31, 2010 10:29pm May 31, 2010 10:29pm
Quoting berlinwong1
I assume Malaysia Central Bank is of naive. Perhaps its because of their Islamic Banking merely Law of Shariah Banking that prohbits Speculation Economy.

It's indeed bullshit theory. Pardon me for those of Muslim Faith.

I do not believe in All-Might God.

........................
Something I agree with your statement..but something I need to clarified...

Shariah Banking is totally new to m'sia but act on forex is much more older, to tell you the truth I'm also disagree with shariah banking although I'm a Muslim (many point to elaborate, not stated here) and still I'm preferring conventional banking.

But towards forex, it's only the government can make the act available, I'm still confused when only gold and tin (metal) can be traded, but others metal is prohibited, same with CPO, but others country can trade soy, corn etc and funny no CPO available...huhuhu

If you get more touch on m'sia act..you will find more funny stuff....for example forex is legal for institutional, but illegal for individual...huhuu

for me this is not about the religious, but about the people behind the mask of so call government.....
  • #148
  • May 31, 2010 10:32pm May 31, 2010 10:32pm
Quoting wanrayman
hi and salam to all..

just have a quick question.. im using a broker that has a debit card for me to withdraw all my earnings.

but i haven't received it yet.. so in order for me to withdraw my profits (for now) they are going to send it back to my debit card...

so the question is: can the govt detect this transaction or even stop it?

regards

wan
govt is surely detect your transaction....if your transaction below rm40k it still ok, above the amount they will require you to declare where the money come from.....

huuhuuu
  • #149
  • Jun 2, 2010 1:21am Jun 2, 2010 1:21am
Quoting Quantum Z
govt is surely detect your transaction....if your transaction below rm40k it still ok, above the amount they will require you to declare where the money come from.....

huuhuuu
heheheh ok thanks.. wont be that high.. just a few k

thanks
  • #150
  • Jun 2, 2010 3:01am Jun 2, 2010 3:01am
Quoting wanrayman
heheheh ok thanks.. wont be that high.. just a few k

thanks

Hahaha...I havent withdrawn any sum yet. Why? B'coz always loosing money but still manage to stay on track.. So I cant comment on this. Just trade...
  • #151
  • Jun 3, 2010 6:53am Jun 3, 2010 6:53am
Quoting wanrayman
heheheh ok thanks.. wont be that high.. just a few k

thanks

wahhh....when u make 'open table' do call me aaaa......hehehehee
  • #152
  • Jun 4, 2010 3:25am Jun 4, 2010 3:25am
Quoting Quantum Z
wahhh....when u make 'open table' do call me aaaa......hehehehee

heheheeh can teach you my method if u want.. just using thv and synergy from compass fx.. trading mainly on support and resistance
  • #153
  • Jun 7, 2010 7:50pm Jun 7, 2010 7:50pm
1. Sorry Ed. I think you quoted an incorrect circular.

2. The circular you mentioned only refers to LOCAL onshore futures brokers (i.e. incorporated in Malaysia) being able to transact (on behalf of Malaysian Residents) in foreign currency-denominated derivatives (eg. equity index, bond futures, commodity futures denominated in a currency other than ringgit) in offshore EXCHANGES.

3. Spot FX is NOT an exchange-traded product. i.e. Spot FX is not traded in an organised Exchange like KLSE or SIMEX or CBOT etc etc. There ARE currency FUTURES contracts, but these are exchange traded with fixed terms like face amounts, delivery dates, trading hours etc etc. Spot FX has no such restrictions.

4. Note that the circular you mentioned re-iterated that foreign currency assets include "foreign currency deposits". That margin deposit you place with a broker is such a deposit (not principal-protected but still a deposit nevertheless). You may wish to refer to my earlier replies in this thread on this issue.

5. In any case, the circular you are looking for is ECM 9.

Quoting Eddie_yes
Latest circular sound like, as long we dont exchange RM illegally its ok with forex Business.

Someone please digest the circular. http://www.bnm.gov.my/microsites/fxa...s/20100405.pdf
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #154
  • Jun 27, 2010 11:37am Jun 27, 2010 11:37am
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Guys, save your breath. Are we seeing a light at the end of the tunnel or is it an oncoming freight train? Read here...

http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2076

It seems foreign brokers are allowed from July 1st 2010. But they stopped short of saying that they are reversing their earlier policy regarding retail trading, which means... its open to interpretation. Again.
I have seen the enemy, and it is me.
  • #155
  • Edited 1:15am Jun 28, 2010 12:56am | Edited 1:15am
1. It's not good news or bad news for the RETAIL FX community (to which most of us belong), i.e. it does not refer to retail trading in any way, shape or form.

2. The BNM statement refers to the WHOLESALE INTERBANK Malaysian FX market (to which *I* personally belong) which means BANK players or traders who trade for Banks.

3. What it means is that foreign online brokers who service BANK traders (not retail traders) can offer their platforms for MYR pairs. By foreign online brokers for wholesale markets, I mean platforms like EBS, Reuters, Barclays Capital's BARX platform etc etc.

4. If anything, this is BAD NEWS for local interbank money/FX brokers like Affin Moneybrokers, First Taz Tradition etc (Pls google yourself) because it means their bread & butter market in MYR crosses are being encroached by foreigners.

5. Whether or not this move is a pre-cursor to MYR being freely traded offshore again, remains to be seen. For now, this latest BNM statement does NOT concern retail FX traders (i.e. Non interbank players).

6. Existing rules apply.


Quoting Jey
Guys, save your breath. Are we seeing a light at the end of the tunnel or is it an oncoming freight train? Read here...

http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2076

It seems foreign brokers are allowed from July 1st 2010. But they stopped short of saying that they are reversing their earlier policy regarding retail trading, which means... its open to interpretation. Again.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #156
  • Jun 28, 2010 2:14am Jun 28, 2010 2:14am
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Thats what I thought too... that is why I said they stopped short of saying retail fx trading is legal.

Some traders that I know seemed to have taken this to mean their retail fx trading is now legalized.
I have seen the enemy, and it is me.
  • #157
  • Jun 28, 2010 2:17am Jun 28, 2010 2:17am
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Quoting from BNM's press release;

Quote
This initiative is aimed towards enhancing the participation of new players in the foreign exchange market to further increase the dynamism and competitiveness of this market. This flexibility will promote greater trading activities as electronic broking platform increases transparency, improves market efficiency and lowers transaction costs for the market participants.

So how do you interpret the hilited in bold Imran? Who are the new market players that they are trying to encourage?
I have seen the enemy, and it is me.
  • #158
  • Jun 28, 2010 2:29am Jun 28, 2010 2:29am
1. The statement was never meant for retail FX guys, i.e. retail FX was not even on BNM's radar at the time of the statement.

2. The local moneybrokers are the ones who are worried.

3. Retail FX trading in MYR pairs is never legal, except indirectly in the form of Dual Currency Deposit structured products offered by some local Banks.

4. Retail FX trading in G7 pairs are ok within the sphere of existing exchange control rules as long as BAFIA/SC rules are observed in parallel. In particular, where deposit-taking activities are concerned.

Regards,
Imran
Quoting Jey
Thats what I thought too... that is why I said they stopped short of saying retail fx trading is legal.

Some traders that I know seemed to have taken this to mean their retail fx trading is now legalized.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #159
  • Jun 28, 2010 2:39am Jun 28, 2010 2:39am
1. Refer to the recent issuance of new banking licenses to five new foreign banks less than 3 weeks ago.
http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2068

2. More foreign banks in the mix means more Authorized Dealers in MYR pairs.

3. Electronic broking platforms will naturally narrow trading spreads and consequently trading costs.

4. In the Malaysian context, brokerage commissions are part of trading costs to Banks.

5. To encourage the newer participants to the local scene (who are used to electronic broking systems like EBS), BNM will have to allow outfits like EBS to set foot on our shores.

6. It has the benefit of forcing the local moneybroking industry to consolidate sooner rather than later. They have been known to drag their feet on this issue in recent years.

Regards,
Imran


Quoting Jey
Quoting from BNM's press release;



So how do you interpret the hilited in bold Imran? Who are the new market players that they are trying to encourage?
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #160
  • Jun 28, 2010 2:54am Jun 28, 2010 2:54am
Quoting Greenmoney21
Hi guys,

I did even spoke to BNM via phone few days back, and they said its still illegal, but i didnt mention that i did wire transfer the funds from Maybank and trading using USD currency not RM and trading instruments not currency itself. Maybe i shall call them again next and check with them again.

But and again, im afraid that they wont understand what I'm saying, and still says its illegal, lol...

Worst to worst, just keep trading as usually, withdraw the funds like regular, and migrate once got enough cash.

I think they are more...
yes bro.. i did email them 2 times and they actually doesnt understand what im asking about( I dont know whether they really dont get me or just pretend to be dono). the 2 emails that i received nothing rather than they keep repeating saying illegeal..illegall...also illegeal....until i felt that the word illegal was sticked hardly to their mind and heart. BNM received complains from some newbie's who went to some kind of seminar which they promote their robots(EA) and they try to use them blindly without any single knowledge about forex, finally when the robot wiped out their account they goto BNM and report stating the term "FOREX".

So what we need to right now, we trade as usual and wihtdraw as usual. Im not so sure but i heard from 1 reliable stock market trader(KLCI & BURSA), he told me that by end of this year they likly to announce a regulated broker for m'sia in fx trading and/or they going to release a software where to trade stocks online(right now by phone). so im not so sure about this but the person who told me is a milloinaire in bursa and quite reliable too.

Any how wait n see....
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