Things are looking up for Forex traders in Malaysia. Not too many years ago it was considered illegal to participate in such a form of investment. Thankfully, things have changed and now it is possible for anyone to make Forex trades without the fear of ending up in jail. The Labuan IBFC has been set up by the Malaysian government trusted a special free trade zone, thought to be one of the biggest in Asia. IBFC stands for International Business and Financial Center and the Malaysian government has set one up on the island of Labuan off the Borneo coast.
Established init is being marketed as an area with a unique position for tapping into investment opportunities in Asia and beyond.
Its location is conveniently situated between China and India and is in close proximity to several financial centers, as well as sharing a common time zone with a number of large Asian cities. Labuan is india island owned by the Malaysian government and a number of benefits make it the perfect location for IBFC regulated brokers. It can be very expensive for Forex brokers forex Malaysia to set up business on the mainland, but not so on Labuan.
There is also a lower tax structure for investors and the fact the IBFC is in such close proximity to other emerging superpowers is also a favorable situation. The island is considered to be a great place for overseas companies to invest, but it has some major competition in the form of Hong Kong and Singapore. There are more than 7, firms currently operating from the free trade zone including Forex brokers, other financial institutions and businesses.
Malaysia is a largely Muslim country, so mainland Forex trading options have to be in compliance with Sharia law. Labuan, on the other hand, has a more liberal attitude to such forms of investment, allowing Malaysian Forex brokers to receive a recognized license and offer trusted to a much wider audience. Forex brokers setting up business in the zone also benefit from various privileges and advantages which only improve trading conditions, especially when there are no worries about the legality of Forex trading.
Businesses operating in the IBFC are regulated by the Labuan Financial Services Authority LFSA. Therefore, IBFC brokers are licensed and broker by the LFSA.
Standards are in line with recognized global requirements and the same minimal capital requirements and operational compliance apply. The Forex Financial Services Authority was created in following the approval of the Labuan Financial Services Authority Act.
It is the statutory body responsible for developing and managing the IBFC. The main role of the FSA is licensing and regulating and ensuring all licensed entities operate in compliance with national and international standards which have been adopted in the area.
The FSA is also responsible for developing policies to ensure business and financial services are conducted in an orderly fashion. The LFSA has so far proved itself to be a very efficient regulator and has one of the fastest turnaround times for brokers wishing to set up business in the area.
It has been said it can take as little as two months for a company to incorporate a brokerage in the IBFC Malaysia. The LFSA also allows regulated brokers to work with some of the big name banks for segregating client funds. All of which helps to improve trader confidence and trust.
There are very few other countries which place such a stipulation on Forex brokers. Inthe Malaysian government began to actively promote the IBFC as an attractive location for offshore investment. Ever since then trusted has been increasing in recognition. A number of mainstream Forex brokers have decided to set up shop in the Financial India, in order to target the Asian market.
Nevertheless, Malaysian Forex brokers are still running a little behind and still not considered to be as reliable and trustworthy as brokers which are a little better known. The Malaysian Financial Services Authority also has a few negative factors including its inability to achieve the efficiency of some of the other better known regulatory authorities. When it comes to picking a Forex broker in Malaysia it is imperative you pick a reliable and safe broker.
In fact, this should probably be your priority, above and beyond picking one with bucket loads of enticing offers. There are a number of scam brokers who will promise you the earth, and such unbelievable returns on investment which can only be considered too good to be true.
Choose a broker which is unregulated and you do so broker your peril. Risk Warning forex Your capital is at risk. Trade with caution, these products might not be suitable for everyone so make sure you understand the risks involved! Looking for a Way to Start Forex Trading in Malaysia? Read our Guide to IBFC India Brokers Things are looking up for Forex traders in Malaysia. What is the Labuan IBFC? Other Forex Brokers by regulation authority BCU Forex brokers FSB Forex brokers BFSC Forex brokers MFSA Forex brokers CNMV Forex brokers HCMC Forex brokers FCMC Forex brokers CNB Forex brokers MTR Forex brokers MNB Forex brokers PFSA Forex brokers CSSF Forex brokers.
Was the information useful? Get The Latest Forex Brokers Reviews Broker