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Help needed in OANDA + users from Malaysia 105 replies

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Malaysia

Quoting ZouJieMing
{quote} Sorry ya Here is that link, but in chinese content http://biz.sinchew.com.my/node/59491?tid=8 another link which is taxation Q&A replied by tax agent about trading income you can find (4月21日) 5th and 17th column and (4月7日) 20th column http://biz.sinchew.com.my/tax2014_qna This 2 links is about forex trading income http://biz.sinchew.com.my/node/72566 Taxation Q&A Question 4 and 7 http://biz.sinchew.com.my/node/111107 I saw 1 full time forex trader he choose...
No worries, bro!

I don't read chinese characters, but at least you posted links that may be helpful to somebody out there.

Good stuff!

Quoting Blesser
Hi all, may I know whether selling Paypal considered money laundering in Malaysia? Hope someone will explain this...thanks
What does "selling Paypal" mean?
I'm not trying to convince anyone. I'm not in the "convincing" business.
I recently went to the bank to fund my CFD and forex account for a broker in Australia, and was told that overseas telegraphic transfer for purposes of 'investments' now requires supporting documents to be attached. Meaning, they no longer just let you fill up a simple form as before and that was it.

Anyone experienced this? It was a wake up call to me as it looks like they are tightening rules to send money out of Malaysia, making things more troublesome.

And I can't do it online via internet banking because investments, trading funds, and real estate purchases must and can only be done at the counter.

Also, even if I do the transfer of funds online for any other transaction, one staff told me it is limited to only RM10,000 a day? That is hardly not even US$2,500 !!! Why so much hassle?

Anybody can enlighten us with your recent experiences? In such bad economic times, and they choose to make life even more difficult for us, by forcing out the few other avenues available to make some money to get by.
Disclaimer:
My experiences are different from that of the average Malaysian retail trader. For example, the bulk of my trading funds are offshore that I have zero intention of repatriating. So I don't claim to be able to assist towards a favorable conclusion since your situation may be different from mine. Therefore I apologize in advance if whatever suggestion I make turns out to be less useful to you than hoped.

Quoting Wannabi
I recently went to the bank to fund my CFD and forex account for a broker in Australia, and was told that overseas telegraphic transfer for purposes of 'investments' now requires supporting documents to be attached.
What documents did the Bank want?

It could just be as simple as giving them a copy of your margin account opening form and you can say that you're a funding a CFD margin account to trade CFDs on global stock indices, US stocks or commodities. If it makes you feel better, just don't mention forex.

In any case, I don't think they want to STOP you from converting your money. They just want you to DECLARE why.

Quoting Wannabi
Meaning, they no longer just let you fill up a simple form as before and that was it. Anyone experienced this? It was a wake up call to me as it looks like they are tightening rules to send money out of Malaysia, making things more troublesome.
The rules have always been there. It was just a matter of how strict the enforcement is carried out, and such things can be seasonal.

It's trouble only to money launderers, drug dealers, gun runners, international pimps etc etc. If you're not doing anything wrong, perhaps it's better to just comply. Even advanced economies like the US have strict rules for declaring inflows/outflows of money.

Quoting Wannabi
And I can't do it online via internet banking because investments, trading funds, and real estate purchases must and can only be done at the counter.
Another suggestion: Change banks and/or use prepaid cards or debit cards.

Quoting Wannabi
Also, even if I do the transfer of funds online for any other transaction, one staff told me it is limited to only RM10,000 a day? That is hardly not even US$2,500 !!! Why so much hassle?
An equally valid question: Why are you in such a hurry to convert more that RM10k in a day? The market will still be there tomorrow.

Quoting Wannabi
Anybody can enlighten us with your recent experiences? In such bad economic times, and they choose to make life even more difficult for us, by forcing out the few other avenues available to make some money to get by.
The reasons for such strictness is actually quite valid (whether you believe them or not). The main reason is so that the central banks have a way to categorize this or that inflow/outflow for their regular reports. Another reason is it acts as deterrent to money launderers.
I'm not trying to convince anyone. I'm not in the "convincing" business.
Skenobi,

1) What documents did the Bank want?
2) The rules have always been there. It was just a matter of how strict the enforcement is carried out, and such things can be seasonal
3) An equally valid question: Why are you in such a hurry to convert more that RM10k in a day? The market will still be there tomorrow

1) That's the problem. The bank itself cannot tell me what they need, just ask me to show them some documents, so, it's like a matter of having to convince them. How brash is that? It's MY money.

2) I have asked a reputable stock training company in KL (I'm sure most people here will know or have heard of them, they are very visible in the media and advertisements), and they too tell me that the banks have tighten rules. They have to ask their Australian broker to send them a letter online and then the bank will accept it, but not all banks, though.

I have sent over a big sum of money before, RM45k, a few years ago, and I done that online without problems, all smooth sailing, no problem. No online restrictions, no limit on sending online amounts, and no documents required. Now, they require all 3.

So, yes, the rules definitely have changed, and for the worse.

3) You may think US$2,500 is alot and question my hurry, but it is not. It is peanuts. If you want to buy a proper Apple stock, it'll costs you more than $10,000, okay. Just look at it from that dimension. People paying monthly installments for real estate properties overseas will also be more than that, and even this aspect of investment is subject to curbs now.
I see a lot of confusion here regarding taxation and opening trading accounts.

Malaysia is a territorial taxation country. This means that in most cases only locally sourced income is subject to taxation. A properly structured offshore entity can eliminate the burden of taxation entirely for a Malaysian resident.

As a matter of fact, you should never ever trade in your own name. It is disadvantageous tax-wise and carries a huge liability risk. It is fairly cheap to register an offshore entity for forex trading. A good combination is a Samoa corp + HK USD bank account + SG USD brokerage account (iOCBC is a good one).
Quoting Wannabi
That's the problem. The bank itself cannot tell me what they need, just ask me to show them some documents, so, it's like a matter of having to convince them. How brash is that? It's MY money.
Change banks, bro. Some banks respond to new BNM reporting guidelines in different ways. Banks like CIMB and Maybank (ESPECIALLY Maybank) tend to become more risk averse. Some other banks are more laid back. Bottomline is BNM just wants more information and Banks get over-zealous in passing down the requirement to customers. I understand it's your money. Just comply and don't look like you have to "convince". Trying to "convince" makes you look guilty, and you have nothing to be guilty about.

Quoting Wannabi
.... and I done that online without problems, all smooth sailing, no problem. No online restrictions, no limit on sending online amounts, and no documents required. Now, they require all 3. So, yes, the rules definitely have changed, and for the worse.
Well, we'll just have to agree to disagree. From my reading of the rules, the rules haven't really changed much. The documentation requirement has always been there as part of KYC; it's just that different banks react differently to how they enforce the rules whenever BNM adds a new column in their Excel spreadsheets...

Quoting Wannabi
3) You may think US$2,500 is alot and question my hurry, but it is not. It is peanuts.
LOL.. I don't think it's a lot. Probably because I don't repatriate funds back so I don't bother testing my limit anymore.

Quoting Wannabi
If you want to buy a proper Apple stock, it'll costs you more than $10,000, okay. Just look at it from that dimension. People paying monthly installments for real estate properties overseas will also be more than that, and even this aspect of investment is subject to curbs now.
Well, good luck anyway. If it becomes too much trouble for you, you may want to consider incorporating offshore. As a starting point, I can recommend the resources at Sovereignman.com

All the best!
I'm not trying to convince anyone. I'm not in the "convincing" business.
Salam, and good evening everyone, I nearly forgotten about my FF account, so many years ago, I've leaved this thread, looks like a good new start for trading forex again, Pray for my success guys
Quoting azmn396
Salam, and good evening everyone, I nearly forgotten about my FF account, so many years ago, I've leaved this thread, looks like a good new start for trading forex again, Pray for my success guys
You from CG ? seems familiar the nickname.
please can you accept me as member of this thread?
am a new forex trader here in malaysia kuching
  • Post #24,270
  • Quote
  • Edited Apr 13, 2016 10:38pm Apr 12, 2016 10:13am | Edited Apr 13, 2016 10:38pm
Hi Malaysians,

Due to a few factors, I am moving away from forex to trading foreign equities, indices, and commodities.

I am going to open an account with Interactive Brokers to trade.

After reading some of the above posts, regarding paying tax for 'frequent trading', I would like to ask some opinions.

If the facts were true, it would be better to set up a company to trade foreign equities, indices, and commodities (tax advantages). You will actually pay lesser tax when you are incorporated.

Any thoughts on this?

Another question, especially to { sensitive information deleted by staff, per request }, does anyone know what is the minimum account size requirement for an individual/corporation to open up a prime brokerage account (trading forex/stocks/indices/commoities) with Malaysian banks.

Thanks.
Quoting superblack
Hi Malaysians, Due to a few factors, I am moving away from forex to trading foreign equities, indices, and commodities. I am going to open an account with Interactive Brokers to trade.
Interactive Brokers is a reputable broker.I don't think you could go wrong with them.

Quoting superblack
After reading some of the above posts, regarding paying tax for 'frequent trading', I would like to ask some opinions. If the facts were true, it would be better to set up a company to trade foreign equities, indices, and commodities (tax advantages).
It depends on the trader's circumstances. In general, it doesn't hurt.

Quoting superblack
You will actually pay lesser tax when you are incorporated. Any thoughts on this?
If you do it right, you might even pay no tax. Look up Sovereignman.com

Quoting superblack
does anyone know what is the minimum account size requirement for an individual/corporation to open up a prime brokerage account (trading forex/stocks/indices/commoities) with Malaysian banks. Thanks.
I will answer this if no one else has yet. AFAIK, Malaysian Banks do not provide prime brokerage accounts on their own, certainly not in FX. As for the other trading instruments, you can check the Banks where they have their own affiliated securities or commodities trading subsidiaries or sister companies.

I would not know their requirements (if any). No sure why that's important if you're already considering incorporating offshore. Would be better to open trading accounts elsewhere rather than Malaysian banks.
I'm not trying to convince anyone. I'm not in the "convincing" business.
Quoting skenobi
{quote} Interactive Brokers is a reputable broker.I don't think you could go wrong with them. {quote} It depends on the trader's circumstances. In general, it doesn't hurt. {quote} If you do it right, you might even pay no tax. Look up Sovereignman.com {quote} I will answer this if no one else has yet. AFAIK, Malaysian Banks do not provide prime brokerage accounts on their own, certainly not in FX. As for the other trading instruments, you can check the Banks where they have their own affiliated securities or commodities trading subsidiaries or...
Thank you for the reply skenobi.

I read on The Edge's newspaper, I think last year regarding prime brokerage. Maybank said they offers prime brokerage services and the minimum deposit is about 10 million (can't remember if it was USD or MYR). They said they have one of the lowest requirements.
Quoting superblack
{quote} Thank you for the reply skenobi. I read on The Edge's newspaper, I think last year regarding prime brokerage. Maybank said they offers prime brokerage services and the minimum deposit is about 10 million (can't remember if it was USD or MYR). They said they have one of the lowest requirements.
Good luck with that! And do let us know later how you get along.

As for myself, if paying less or zero tax is my objective, I would not be dealing with a Bank or institutions that are subject to BNM audit. And yes... even foreign-incorporated offshore subsidiaries (not even fully-owned) such as Maybank Kim Eng are subject to BNM audit.

Certainly, not Maybank or any related company, which has seen its risk averseness remaining at high levels since spiking following the fall of Lehman.

Things may have changed in recent times, I don't know, so again: good luck!
I'm not trying to convince anyone. I'm not in the "convincing" business.
Quoting skenobi
{quote} Good luck with that! And do let us know later how you get along. As for myself, if paying less or zero tax is my objective, I would not be dealing with a Bank or institutions that are subject to BNM audit. And yes... even foreign-incorporated offshore subsidiaries (not even fully-owned) such as Maybank Kim Eng are subject to BNM audit. Certainly, not Maybank or any related company, which has seen its risk averseness remaining at high levels since spiking following the fall of Lehman. Things may have changed in recent times, I don't know,...

I didn't know that Maybank Kim Eng is also subjected to BNM audit.

If I have a chance and have not forgotten, I will try to update. As for now, My capital is not very huge, but it is growing. So, I am getting a little bit 'cautious' on every aspect.

I am actually considering incorporating my trading (forex/commodities/indices) in Singapore (paying lower tax). Then I live in Malaysia trading in the name of my company (Singapore). The I could remit however much my profit from Singapore to Malaysia. Skenobi, Do you think this is a good idea? I don't mind paying some tax.

Anyway, Thank you.
Quoting superblack
I am actually considering incorporating my trading (forex/commodities/indices) in Singapore (paying lower tax). Then I live in Malaysia trading in the name of my company (Singapore). The I could remit however much my profit from Singapore to Malaysia. Skenobi, Do you think this is a good idea?
Only you can answer that. Different people have different tax payer profiles and different tax paying aversions and preferences.

Quoting superblack
I don't mind paying some tax. Anyway, Thank you.
I've never met anyone who didn't mind paying taxes.

It should not be about "not minding". It's about not paying more tax than what you're liable for.

Anyways, if you insist on incorporating in SIngapore, maybe you can try DBS or OCBC for your private banking or trust account needs. I hear State Bank of India (Singapore branch) is acceptable as well. In all cases, you may need an introduction which is why you should consider engaging consultants specializing in offshore incorporations.
I'm not trying to convince anyone. I'm not in the "convincing" business.
Quoting skenobi
{quote} Only you can answer that. Different people have different tax payer profiles and different tax paying aversions and preferences. {quote} I've never met anyone who didn't mind paying taxes. It should not be about "not minding". It's about not paying more tax than what you're liable for. Anyways, if you insist on incorporating in SIngapore, maybe you can try DBS or OCBC for your private banking or trust account needs. I hear State Bank of India (Singapore branch) is acceptable as well. In all cases, you may need an introduction which is...
LOL.

Do you provide consultation for this?
I am not sure where to look for 'these' people/consultants. Having someone of your background to shed some light on how to find them would be great.
Quoting superblack
{quote} LOL. Do you provide consultation for this?
Not my field of interest, I'm afraid.

Quoting superblack
I am not sure where to look for 'these' people/consultants. Having someone of your background to shed some light on how to find them would be great.
If you Google "how to setup an offshore company in singapore" you should find plenty of useful links. Time to do some homework!
I'm not trying to convince anyone. I'm not in the "convincing" business.
Hi there am new here, couldn't fund my fx account with Maybank card, any other bank card could easily to fund without issue?
Quoting weisik123
Hi there am new here, couldn't fund my fx account with Maybank card, any other bank card could easily to fund without issue?
Contact your Maybank Card. Somehow overseas payment gateway unable to capture your payment due to Maybank was blocked unpopular site. What broker are you using?
Artist lead and hacks ask for a show of hands.
Quoting al_yaqen
{quote} Contact your Maybank Card. Somehow overseas payment gateway unable to capture your payment due to Maybank was blocked unpopular site. What broker are you using?
bearish AU
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