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Forex trading is illegal in India? 29 replies

Forex trading in Malaysia 1 reply

Forex trading illegal in Malaysia? 0 replies

will forex trading be illegal? 6 replies

Attachments: Malaysia central bank states Forex is illegal
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Malaysia central bank states Forex is illegal

My feeling is too many layman people got lured into forex and losing big money. Maybe it's similar like Indonesia (where I'm from), gambling is very illegal, many people never exposed to any form of gambling in their life. However the arrival of retail forex trading enable these people to use them like a gambling platform.

The whole situation is a combination of not-so-educated lower class people getting lured into get-rich-quick scheme, their silly believes into supernatural things such as luck, and government not being able to put in place appropriate safeguards over emerging forex industries.

I've seen so many people (even mutual friends and relatives) losing a very big proportion of their wealth and savings into forex trading. They have little or no knowledge about risk management and personal finance.

The situation is completely different than developed countries where majority are more well educated and government has strict regulatory control.
Quoting superblack
{quote} Based on the article from the site, I understood that it is illegal to trade Forex. But it didn't state as to whether it is the form of cash, instruments, etc. They did not specify that.
They don't have to specify anything. It's not BNM's job to make things easy for retail investors, just as it is also not BNM's mandate to actively encourage speculative investing behavior. The more vague BNM is, the more likely the unsophisticated country yokels (who don't understand legal jargon in English) will stay out of the markets and be drawn to "safer" mutual funds like Amanah Saham instead.

Quoting superblack
To be honest, I am not 100% convinced. Maybe you are right, what BNM meant about Forex trading is in the cash form, but I just wanted to be on the safe side.
Some people will NEVER be convinced but that's good for serious traders like me. The less crowded the market is from unconvinced people, the less likely BNM will pay too much attention on the retail trading scene in Malaysia.

Quoting superblack
As for now, I am going for other markets, and at least not remitting large Forex withdrawals to Malaysia.
This is the first sensible thing you've said in the entire thread. Congratulations!

While I do hope you will reconsider your move to other markets (provided you observe the laws of this country), perhaps the environment in Malaysia is too "restrictive" for you.

I wish you well, regardless.

Good luck!
I'm not trying to convince anyone. I'm not in the "convincing" business.
Skenobi, I am planning to venture into CFDs ,Commodities and Futures. By the way, do you or anyone knows if it is possible for a full-time trader like me to get a visa in Singapore as a retail trader?
Quoting superblack
Skenobi, I am planning to venture into CFDs ,Commodities and Futures. By the way, do you or anyone knows if it is possible for a full-time trader like me to get a visa in Singapore as a retail trader?
There is no such specific retail-trader-related visa.... If you plan on joining an exchange as a "local", just get a work permit or something.

But if you plan to trade from home or private office, there is no need to even be physically present there. You can run it from wherever you want, including (surprise! surprise!) Malaysia without any trouble.
I'm not trying to convince anyone. I'm not in the "convincing" business.
Quoting skenobi
{quote} There is no such specific retail-trader-related visa.... If you plan on joining an exchange as a "local", just get a work permit or something. But if you plan to trade from home or private office, there is no need to even be physically present there. You can run it from wherever you want, including (surprise! surprise!) Malaysia without any trouble.
Thanks for the reply. You have given me a great idea.
HI Skenobi,

Assuming that i am a full time trader and I've always laid low, what are the points i can use to explain to IRB if they suddenly show up?
Quoting okie dokie
HI Skenobi, Assuming that i am a full time trader and I've always laid low, what are the points i can use to explain to IRB if they suddenly show up?
Do you have an IRB tax file number tagged to your name? When was the last time you filed an income tax return?

Do you currently have (or did you recently have before now) a salaried day job or a business (unrelated to your trading) or both? Have you filed income tax returns (for the incomes derived from your salaried jobs/businesses) recently and in previous years?

How many years have you been filing returns?

Do you trade for regular income or to gradually build equity?

Do you trade for other people?

How often do you repatriate (i.e. withdraw from your trading account) money to your ringgit account? What's the largest amount you've ever withdrawn in a single transfer request?

Do you use your trading profits to buy assets in Malaysia i.e. properties, cars, etc etc?

What examples can you provide of things that you have done to "lay low"?

FYI, AFAIK gains from forex trading is capital gains which AFAIK is not taxable. BUT there are certain things that some stupid Malaysians (not you, obviously) do that creates red flags at BNM and/or IRB.
=====

The above are just SOME of the questions I can think to ask you BEFORE I can even form an opinion about your own question.

You see, your question is too general and not comprehensive enough. Without knowing your personal circumstances, I have to guess. If you need a comprehensive answer, would appreciate a detailed question, as long as you realize I'm not a tax agent and that no two traders will have the same income tax profile.
I'm not trying to convince anyone. I'm not in the "convincing" business.
Skenobi,

1. Yes i have a tax number, been paying taxes from 2002 to 2009 from a salaried job, from 2009 onward been submitting tax forms but without declaring any income because from 2009 onward been solely trading the markets.

2. I don't trade for people neither do i buy properties or cars with my trading gains, my purpose is to have a regular income as well as building equity.

3. My single biggest withdrawal was USD1000 and i do it on a monthly basis.

4. I lay low by controlling my withdrawals to below ECM9 treshold, not buying anything that would get me redflagged and complying with the requirements of IRB by submitting my forms on a yearly basis without any income declaration after 2009.
Quoting okie dokie
Skenobi, 1. Yes i have a tax number, been paying taxes from 2002 to 2009 from a salaried job, from 2009 onward been submitting tax forms but without declaring any income because from 2009 onward been solely trading the markets. 2. I don't trade for people neither do i buy properties or cars with my trading gains, my purpose is to have a regular income as well as building equity. 3. My single biggest withdrawal was USD1000 and i do it on a monthly basis. 4. I lay low by controlling my withdrawals to below ECM9 treshold, not buying anything that would...
In that case, I'm happy to suggest that perhaps you're less likely to attract an audit.

But if I may also suggest the following to decrease the likelihood even further: Create a "consulting" job into which you can pay "consulting fees" that you can report. Just enough to keep you below or within the lowest taxable income threshold. There are advantages in showing that you're paying SOME tax instead of none at all. But I will leave that decision up to you.

Do not ask me to elaborate further as I'm sure you're smart enough to know what to do. The fact that you've done as per your last post (as you say) shows you have your survival instincts well set up, and this puts you well above most Malaysian retail traders.

All the best!
I'm not trying to convince anyone. I'm not in the "convincing" business.
Thanks for your sharing Skenobi
Thanks Skenobi & Okie dokie,

This is a question I always want to ask as well. Thanks for sharing, appreciate it very much :-)
Thank you so very much skenobi for your knowledgeable repies to this thread. I have been demotrading for the past 3 years or so and have been backtesting my ass off for the past year and a half. Finally have a solid plan in place and I AM READY. (FYI I have read the entire thread)
So let me just clarify the entire process:
!.) I need to create an account with any bank of my choice and deposit money.
2.) Create a debit card and transfer the money to my offshore broker
3.) After profiting from the markets (I am very confident), transfer the money from my trading account to my bank in Malaysia.
4.) Then go to any ATMs and withdraw money from there.
5.) When (not if) I become taxable then just declare my earnings and pay taxes (if required)
6.) The end (full time trader living up the mountains)

Am I missing any steps? Are my steps wrong? or are there any better steps that you would recommend Mr. Skenobi?

Your reply will be greatly appreciated Ah bang.
Quoting Vldo
Thank you so very much skenobi for your knowledgeable repies to this thread. I have been demotrading for the past 3 years
Too long.

Quoting Vldo
or so and have been backtesting my ass off for the past year and a half.
Attached Image


Backtesting Harmonics and ratios? Good luck!

Quoting Vldo
Finally have a solid plan in place and I AM READY. (FYI I have read the entire thread) So let me just clarify the entire process: !.) I need to create an account with any bank of my choice and deposit money.
Avoid Maybank. But don't ask me for recommendations either. I don't want to be anybody's personal helpdesk.

Quoting Vldo
2.) Create a debit card and transfer the money to my offshore broker
A debit card from whom? Your bank or your broker? Do you plan on using that debit card to transfer money or is the transfer a separate process?

Quoting Vldo
3.) After profiting from the markets (I am very confident), transfer the money from my trading account to my bank in Malaysia.

4.) Then go to any ATMs and withdraw money from there.


Quoting Vldo
5.) When (not if) I become taxable then just declare my earnings and pay taxes (if required)
AFAIK, there's no field in the return forms you can use to declare such things.


Quoting Vldo
6.) The end (full time trader living up the mountains) Am I missing any steps? Are my steps wrong? or are there any better steps that you would recommend Mr. Skenobi?

Suggestion: I don't think you are ready to go Live with a big account yet. Especially if you're backtesting Harmonics and ratios.

The only way to know if harmonics and ratios work for you is to FORWARD test with a small Live account, not backtest.

Good luck!
I'm not trying to convince anyone. I'm not in the "convincing" business.
Quoting Vldo
Thank you so very much skenobi for your knowledgeable repies to this thread. I have been demotrading for the past 3 years or so and have been backtesting my ass off for the past year and a half. Finally have a solid plan in place and I AM READY. (FYI I have read the entire thread) So let me just clarify the entire process: !.) I need to create an account with any bank of my choice and deposit money. 2.) Create a debit card and transfer the money to my offshore broker 3.) After profiting from the markets (I am very confident), transfer the money...
Have you been profitable doing demo trading? If yes, how long have you been profitable with your demo account? How about the consistency?
Hello, Is online gold trading (XAU USD) is legal in Malaysia? Please advise. Thank you
I found this:

"Bank Negara made a specific announcement in January 2009 where it outlawed individual investors from transferring funds to overseas counterparties for trading in FX."

http://www.financemagnates.com/forex...d-in-malaysia/

Not sure if anyone has mentioned it before. Any comments on this?
They better stop international business as well, lol....
https://www.theguardian.com/world/20...malaysia#img-4

And we are still talking about whats legal and illegal...
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