Did any Forex Agent approached you before? If yes, you might notice that they are driving the latest car model ranging from Mercedes to BMW. Best part of all, they will always credit that they earn it from trading Forex. The usual question that we will ask them is, “Is that Legal?” or “How You Do It?”
If you ask whether its legal or not, their usual answer is Malaysian Government is strict in this so they will open account under their parent company based in USA, Europe, New Zealand & etc. If you are interested, they will even share with you how to trade via their free seminar or 1-on-1. Most of the time in the seminar, you will hear lots of SUCCESS story from the trader.
Is Forex Trading Risky?
It depends on your risk tolerance level. Some people think that forex is very risky but its high return. Personally I think its a pure speculation. The world economy is too hard to predict & it requires more than a chart to predict it. Legendary investor George Soros had his share of success & failure in forex trading. Of course people knows about his success in crashing few country currency but he actually did fail multiple times too. Honestly do you think your forex agent friend able to speculate currency by using chart? Think twice. Before you decide to trade, ask yourself, are you willing to risk your hard earned money?
Is Forex Trading Legal In Malaysia?
It depends. Malaysia have strict law on Forex Trading. Trading in form of speculation & chart is illegal. So if you come across companies that claimed they have branch in this country & that country, its definitely illegal.
The only legal entity for Forex Trading in Malaysia are Commercial Banks & Investment Banks. Those banks enable us to invest in Foreign Currency Fund or opening Foreign Currency Account to hedge against Foreign Exchange Risk.
How To Detect Forex Scam
It’s really simple. There are days where we hear some too good to be true investment scheme. They can provide all sorts of evidence to convince you that they are true. Not sure if you guys remember JJPTR. Their sales pitch is where they take your money to trade in Forex & later on the move on to all sorts of business. Many people approached me & showed me their investment return. I would categorize those company as scam. If they are really that good, most probably they will be featured in Forbes Magazine.
There is no such thing as Free Lunch or Durian Runtuh in this world. When someone share those really really good investment scheme, you should start to check the legitimacy of it.
Always do your own homework & check before you invest your money. Everyone loves to grow their money & sometimes rushing into things might cause us to fall into some scam. You can always check by going to Bank Negara Website or Securities Commission of Malaysia Website for further detail.