Malaysia is a developing country, and financial services are in high demand. Forex trading is popular there, and many brokers compete to offer the most attractive trading conditions to Malaysian traders, but not all of them are honest with their clients. Some of them are shady, and others are certain scam companies trying to steal your money. In this article, we explain how to spot such scammers to avoid getting in trouble.
Forex in Malaysia
Many countries seem to treat Forex with caution, but Malaysia is not among them. In this country, the Forex market is perfectly legal for all citizens, and any brokers are officially supervised by the financial regulator called Bank Negara Malaysia (BNM). However, that doesn’t mean that you don’t have to pay any attention to companies that promise you access to Forex trading. Scammers are very active here, so you should definitely learn how to spot them. The first thing to check is the broker’s license. Issued by BNM or another financial authority, it proves that the broker has at least some equity and credibility.
If a broker doesn’t have a license, don’t trust it with your money, no matter how attractive or downright unique its conditions may be. On the contrary, too bright prospects should alert you: when your broker is too eager to guarantee you extreme profits in almost no time without any prior knowledge of trading, it’s definitely a scam. Trading is inherently risky, so even the most reputable broker should warn all its clients about the possibility of financial losses. Another way to spot obvious scams is to check out the broker’s website. If there are no contacts and no specifications, just promises, don’t trust this broker.
One of the simplest ways to spot a scammer is to check out the Scammer Forex Malaysia blacklist by the regulator. The list already includes more than 400 fake brokers, and it’s frequently updated. If any broker is caught operating without license, refusing to pay its clients, or stealing deposits, it is added to the blacklist. If you have any doubts about your current or potential broker, make sure to check out the list and search for that company.
It guarantees that you won’t fall victim to well-known scammers. However, new scams appear every day, and it takes a while for the regulator to notice them. So make sure to do your own research and think twice before investing into some shady enterprise promising you enormous profits.