• Sat. Jul 20th, 2024

10 Steps to Start Trading Forex in Malaysia

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If you have decided to become a forex trader, congratulations on being at the start of a wonderful journey. Not sure yet how to take the first steps in that journey? This post will explain exactly how Malaysian traders can get started with forex.

1. Pick a forex broker in Malaysia.

Malaysia has fairly specific laws regarding forex trading, especially if you are Muslim and subject to Syariah law. You will want to take a look at that post before you proceed further so you understand what to look for in a forex broker.

In fact, we have another post that has a chart that compares top Malaysian forex brokers. We carefully vetted this list based on rigorous criteria to make sure that it contains only trusted, reputable brokers who offer the best possible trading experience.

2. Create your account.

After you decide on a Malaysian forex broker, you need to register as a trader. This is a quick process that involves answering a few brief questions, and usually confirming your email account.

3. Verify your identity.

Identity verification can take place at either of two stages:

1-When you register.

Or …

2-When you want to make your first withdrawal.

Our recommendation? Take care of it after you register rather than waiting. When you want to withdraw your money, you probably will want fast access to your funds. If identity verification is done at that point, you can initiate the withdrawal right away.

What goes into verifying your identity? You will need:

  • A document that proves your identity.
  • A document that verifies your residence.

 

Your broker will let you know what documents they accept for this process.

Pro tip: After you scan in your documents and successfully complete the process, hang onto your digital copies! Having to re-verify your identity in the future is likely, as brokers sometimes do this as part of random (or not-so-random) security checks.

4. Claim the no deposit welcome bonus.

If you signed up with a broker that offers a no deposit bonus forex promotion in Malaysia, it is time to claim your no deposit welcome bonus. Learn more about how no deposit welcome bonuses work.

As the name states, you do not have to make a deposit to claim this promotion. You can trade in a live account with the bonus money, and even withdraw your winnings after you meet the requirements the broker lays out in the terms and conditions.

5. Deposit your first funds and grab the welcome match bonus.

When you feel ready, you can make your first deposit. When you do, your broker may offer you a match bonus on your initial deposit, providing you with even more money to trade with. Find out more about how deposit bonuses work.

6. Decide on a method for trading.

Trading profitably is not just a matter of opening an account with a broker, depositing some money, and then placing some random trades.

You need to trade only when you have a strong likelihood of winning, and that means you need a trading method.

We realize at this point you might be feeling a little lost. You might be wondering, “How do I get started with a trading method? Where do I even find one?”

To make it easy for you, we have written a guide specifically on this topic.

You can choose your broker first, and then decide on your trading method, or the other way around. There is no “wrong” order in which to do these steps. What is important is that you do not start trading live without a method.

7. Backtest your trading method.

You found a trading method that appeals to you. But how do you know if it is going to work or not?

Well, being as there is no way to guarantee future profits based on past results, you can never be certain. But you can take an educated guess by testing it out.

Backtesting is a method for running a large number of test scenarios extremely quickly. You look through historical charts and practice using your trading method to see what results it would have generated. Learn about how you can conduct your first backtest.

8. Demo test your trading method.

You might think that once you have completed the step above, you are ready to trade with real money, but not just yet. First, you need to demo test your system. Here are the basic steps:

    • Open a demo account with your broker (you might have done this already when you registered).
    • Each day, check your charts and look for trade opportunities. Pretend you are trading live with real money.
    • Place your trades in your demo account with the virtual currency your broker provides.
    • Record your results.

If you can be profitable in demo, then you have good reason to believe you are ready to be profitable live. Keep in mind that “profitable” does not mean just several trades. You need to demo for long enough to collect sufficient data to be sure you see a pattern of profitability.

You might also be able to participate in a demo trading forex contest while you are at it for a chance for additional bonus funds for your live account. So, practicing before you risk real money can pay off in more than one way.

9. Choose a money management plan.

You are all ready to trade now, right? Wait—first you need to make sure you have a money management plan.

Your trading method tells you when to trade and when not to. But what it does not tell you is how much money to risk on each trade. That is what the money management plan is for.

While there are pretty much endless approaches you can take with trading systems, money management is different.

You can ignore all those progressive systems you see for position sizing; they don’t work.

Instead, just risk around 2% of your total account size on each trade. That’s it.

10. Go live.

Now you are finally ready to go live! You will need to open a live account with your forex broker.

Keep in mind that if you are a Muslim trader in Malaysia, you have to follow Syariah law. That means that you will need an Islamic trading account that does not earn riba (interest).

Once your live account is open and your money is deposited, you can make your first live trades!

Start Trading Forex in Malaysia Now

You now have a blueprint for how you can start trading forex profitably in Malaysia. If you are ready to begin, take a look at our recommended Malaysia forex brokers who are offering no deposit bonuses.

 

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