When deciding on a forex broker in Malaysia, it might seem like preparing nasi lemak in a new kiosk- you do not know whether it is good until you have paid. The disparity is that a bad meal will cost you a few ringgits and a bad broker will empty your trading account. The following are what you must get right before making that decision. Check this out!

All this starts with regulation. A broker has to be licensed by the Securities Commission Malaysia (SC) or be authorized by the Bank Negara Malaysia (BNM). This is a non-negotiable. Unless you regulate it, there is no actual protection of your money. Should the broker close, be hacked or just not pay attention to your withdrawals requests, you cannot sue him or her. That’s the reality.

Then, have a closer look at trading costs. They can appear straightforward at least, on the surface–but they are seldom. Brokers advertising zero commission tend to recoup their gains by bigger spreads. As an illustration, a spread of 0.2 pips in the quiet hours can be easily widened to 2-3 pips when there are major announcements like the decision of the US Federal Reserve. Add some overnight swap rates into the equation, and the overall price is far more than anticipated. Never judge a book by its cover.

You have a significant part in your success through your trading platform. Metatrader 4 (MT4) is a popular trading platform, as it is very good at the fundamentals: high-speed trading, powerful charting, and a huge collection of indicators. MetaTrader 5 (MT5) builds upon this and supports additional instruments, as well as an inbuilt economic calendar. Other brokers are selling their platforms, which might seem to be fancy initially but fail miserably when it comes to the actual market conditions. Take a test account at least two weeks to ascertain performance in varying market conditions before putting money in it.

Another factor that is essential yet neglected is the local banking support. The brokers also enable Malaysian traders to deposit and withdraw easily in their banks such as Maybank, CIMB or even Public Bank through the currency, the Malaysian ringgit. Balances can be eroded silently by the conversion fees and delays incurred by brokers who process transactions via many foreign payment processors. These little inefficiencies can accumulate.

In leverage is a two edged sword. There is a reason why Malaysia places limits-unchecked leverage can clear accounts within a very brief period of time. Although it has the ability to increase earnings, it increases losses as well. Use it wisely and in case of due risk management.