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Malaysia central bank states Forex is illegal

  • #261
  • Jan 31, 2011 2:54am Jan 31, 2011 2:54am
Quoting imranyusof
1. I see you've only just joined. Welcome.

2. It appears that you may not be quite savvy with internet forum SOPs (Standard opereating procedure), which may lead to you not understanding how your concerns may have already been answered.

3. Please do read this thread in chronological order from beginning to end before responding to this thread, to avoid any misunderstanding.

4. I recommend you use this same methodology in any forum thread or discussion you find interesting.

5. Good luck.
Thnanks for the input i will do what you've said.
  • #262
  • Feb 19, 2011 10:52pm Feb 19, 2011 10:52pm
Quoting imranyusof
Interesting articles in The Star online today. (sorry. In Malay only.)

here: http://bit.ly/gvFJrG

and here: http://bit.ly/gOycA0

1. In this forum, I've already expressed my opinion and interpretations of the Law, while still taking into account the vagaries of the Malay language.

2. I've done the above enough times till my face turned blue.

3. Up to y'all how you want to interpret the above articles.

4. To all Malaysians, please leave the market if you really feel what you're doing is illegal and you think you might...
thanks for this informative thread.
imho, small traders like me, keep it low key. withdraw small amount regularly.

thanks again.
azlan1

p.s. and dont forget to pay zakat... hehe
  • #263
  • Sep 8, 2011 11:02pm Sep 8, 2011 11:02pm
Quoting imranyusof
The short answer is "Yes".

Hi ImranYusof,

I've read through some of your very informative post here and really learn much about the current situation.

I have attached with a oversea fx broker, they allow us to use credit card to fund my fx account. If I do so, has this against the conversion law?

And just some doubts in my head wondering where:
The oversea fx broker won't borther about how much ringgit are we going to convert, the minimum of funding account is USD500, if we agree, then they will just charged us USD500 from credit card(The only thing when we see is during the credit card statement came, then we will noticed how much we need to pay in RM). Just like if we wish to buy a series of encyclopedia from Amazon.com, if we agree, we will just buy it online using our credit card which will be charged in USD. Takan kita kena pergi bank, do the onshore RM to USD conversion, then only we wire the amount to amazon? or is it because it involves currency stuff and the scenarios is not comparable?..

Sincerely to hear from you

Tq
  • #264
  • Sep 8, 2011 11:56pm Sep 8, 2011 11:56pm
1. Interesting predicament.

2. I personally have never considered funding using a credit card as that would mean trading on borrowed money, which is something I would never do or recommend anyone else to do.

3. I'm not sure what conversion law you're talking about, but I suppose from a legal perspective you're buying "something" with that USD500, just like you can buy anything else in foreign currency. So I don't think the Law is an issue here. But I'm no legal expert, of course.

4. As for your imagined difficulty of going to the bank to wire money, you can't really compare Amazon credit card purchases with funding a margin account.

5. These days you can transfer money abroad online from any of the major local Banks' internet portals, so there's no real excuse to use a credit card (unless you mean to trade with borrowed money).

6. If speed of transfer is an issue for you, I recommend finding a broker that accepts Paypal transfers. At least, it will be your own money.


Quoting neon78
Hi ImranYusof,

I've read through some of your very informative post here and really learn much about the current situation.

I have attached with a oversea fx broker, they allow us to use credit card to fund my fx account. If I do so, has this against the conversion law?

And just some doubts in my head wondering where:
The oversea fx broker won't borther about how much ringgit are we going to convert, the minimum of funding account is USD500, if we agree, then they will just charged us USD500 from credit card(The only thing when we see is...
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #265
  • Sep 9, 2011 9:58am Sep 9, 2011 9:58am
Quoting ForexQuant
Let's consider the following scenario...

Let say a Malaysian converts RM to USD (Of course below RM50k threshold that permitted by BNM) through the authorized banks, and then the USD is remitted into foreign bank.

However the USD need to be converted into EUR for some reasons. So do this transaction considered as illegal? Do they need to report to BNM about this transaction? No right? Dont say that this transaction is not a trading. It is a trading as long as it involves buy/sell of currencies.

Personally I think what Imran said make sense....

hi forexquant, i have several question to ask about you,but due to me is a new member, i cant pm u, mind to leave me ur email, allow me to contact u?
  • #266
  • Sep 9, 2011 10:28am Sep 9, 2011 10:28am
Quoting imranyusof
1. Interesting predicament.

2. I personally have never considered funding using a credit card as that would mean trading on borrowed money, which is something I would never do or recommend anyone else to do.

3. I'm not sure what conversion law you're talking about, but I suppose from a legal perspective you're buying "something" with that USD500, just like you can buy anything else in foreign currency. So I don't think the Law is an issue here. But I'm no legal expert, of course.

4. As for your imagined difficulty of going to the bank...

Hello again,

Thanks for your kind reply.

3. What I mean is, if I fund my fx account using credit card, does this against the bnm policy? where in this case are we consider not converted the RM to USD onshore and had RM straight out to offshore fx broker?

Thank you.

Regards
  • #267
  • Sep 11, 2011 7:39pm Sep 11, 2011 7:39pm
1. Whenever you buy something priced in USD (for example) with a ringgit-based credit card, the conversion is still legally done onshore.

2. i.e. there is therefore no outflow of ringgit, physical or otherwise.

3. So I don't see where there is anything illegal.

4. I hope the above answers your question adequately.

Quoting neon78
Hello again,

Thanks for your kind reply.

3. What I mean is, if I fund my fx account using credit card, does this against the bnm policy? where in this case are we consider not converted the RM to USD onshore and had RM straight out to offshore fx broker?

Thank you.

Regards
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #268
  • Sep 11, 2011 8:03pm Sep 11, 2011 8:03pm
ah,when they can get some tax of it,they will say it legal.
simple
  • #269
  • Sep 11, 2011 8:05pm Sep 11, 2011 8:05pm
so the threshold for TT and wire transfer to msian account is 50k.
how about prepaid visa/master card? can msian central bank detect transaction on broker prepaid visa/master card? be it on ATM machine or terminal swipe.
  • #270
  • Sep 11, 2011 8:11pm Sep 11, 2011 8:11pm
paypal also can.
  • #271
  • Sep 11, 2011 8:24pm Sep 11, 2011 8:24pm
1. All ATM or POS terminal swipes in ringgit is tracked.

2. Do you mean prepaid BROKER-issued cards? If these cards are issued in foreign currency and not in ringgit, I don't see why BNM should care.

3. They only care that ringgit does not flow out of the country. If you convert ringgit to foreign currency before remitting out, the ringgit is still in this country.

4. If anyone disagrees with the last statement above, kindly say why.

5. I hope no one here still has the misguided notion that BNM is out to "get you".


Quoting wnvoo
so the threshold for TT and wire transfer to msian account is 50k.
how about prepaid visa/master card? can msian central bank detect transaction on broker prepaid visa/master card? be it on ATM machine or terminal swipe.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #272
  • Sep 11, 2011 8:31pm Sep 11, 2011 8:31pm
as long as you don't wire too much of money out of the country, they don't care one la.

we are ikan bilis. they have no time for us.
  • #273
  • Sep 11, 2011 8:40pm Sep 11, 2011 8:40pm
1. haha.. I've been in this business long enough to know never to say "they have no time for us".

2. Just don't behave like a money launderer or like Jason Bourne, you should be fine.

Quoting clc4x
as long as you don't wire too much of money out of the country, they don't care one la.

we are ikan bilis. they have no time for us.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #274
  • Sep 11, 2011 10:34pm Sep 11, 2011 10:34pm
Man, you guys are all crooks, you guys are terrible. How can you all trade the forex, it will some how destroy the MYR! And I don't care about any reasoning! lol. I am a Malaysian citizen living overseas and apparently the rules still apply to me. Wrote this to express my discontent.
Riding the order flow
  • #275
  • Edited 2:50am Sep 13, 2011 2:35am | Edited 2:50am
Quoting Binyamin
Man, you guys are all crooks, you guys are terrible. How can you all trade the forex, it will some how destroy the MYR! And I don't care about any reasoning! lol. I am a Malaysian citizen living overseas and apparently the rules still apply to me. Wrote this to express my discontent.

I can't delete this post, I had a thought and I think what I wrote was wrong I think it is right that we obey the law and not break it. The law makes sense, it is there to protect our well being. Sorry for 2 useless post I would have delete it if I could.

EDIT: If it is possible for the admin or thread starter please delete my 2 post here. It is something I don't want to post,it is not helpful and out of topic.
Riding the order flow
  • #276
  • Sep 13, 2011 4:58am Sep 13, 2011 4:58am
I think that's fine.

I personally do not feel offended.
  • #277
  • Sep 13, 2011 7:30pm Sep 13, 2011 7:30pm
1. Actually, your sentiment is understandable.

2. But if I may add my opinion: The constitution may have had the original intent to protect our "well-being", but some laws created thereafter (for the most part) only serve to enrich the few and hinder our ability to make money for ourselves on a level playing field.

3. The way I see it: if anyone has a problem with their tax domicile government that cannot be fixed by the ballot box or if they cannot find a way to exploit legal loopholes to make more money, they owe it to themselves and to the families that they support to leave that country at the earliest possible opportunity and find another place that allows them to reach their full potential.

4. Let's lock up our emotions in that dark place in our souls, and focus on making money for ourselves and for our families. Some people might say that's being selfish. But you can't please everybody. It's more economical to please yourself first.



Quoting Binyamin
I can't delete this post, I had a thought and I think what I wrote was wrong I think it is right that we obey the law and not break it. The law makes sense, it is there to protect our well being. Sorry for 2 useless post I would have delete it if I could.

EDIT: If it is possible for the admin or thread starter please delete my 2 post here. It is something I don't want to post,it is not helpful and out of topic.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #278
  • Sep 13, 2011 8:07pm Sep 13, 2011 8:07pm
Quoting imranyusof

4. Let's lock up our emotions in that dark place in our souls, and focus on making money for ourselves and for our families. Some people might say that's being selfish. But you can't please everybody. It's more economical to please yourself first.
Imran,

I totally agree on your statement above.

See if anybody agrees to this:

"The best way to help the poor is not to become one of them"

Sorry for off topic
福 子 Victor V
  • #279
  • Sep 13, 2011 8:13pm Sep 13, 2011 8:13pm
Excuse my ignorance, but has this anything to do with Islamic rules and law? I know a big portion of Malaysia belongs to the Sunni Islam Religion.

And as far as I'm concerned there are special rules for Islamic Forex Accounts, that's why when you join a forex broker, they ask you if you are Islamic or not.

But anyone can clear this up if you have more info.
The Black Swan: The Impact of the Highly Improbable
  • #280
  • Sep 13, 2011 8:48pm Sep 13, 2011 8:48pm
Quoting MapleLeaf
Excuse my ignorance, but has this anything to do with Islamic rules and law? I know a big portion of Malaysia belongs to the Sunni Islam Religion.

And as far as I'm concerned there are special rules for Islamic Forex Accounts, that's why when you join a forex broker, they ask you if you are Islamic or not.

But anyone can clear this up if you have more info.
I think the closest thing most brokers do is to offer SWAP free accounts.
福 子 Victor V
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