Foreign Currency Exchange (FOREX) trading is the largest financial market in the world, recording a daily turnover of over $6 trillion. As a result, the forex trading market represents a unique and highly lucrative opportunity for traders worldwide. In addition, forex trading has proven to be a great source of income for successful investors, and unlike in the past, when this incredible market was available only to a select few, is now easily accessible to retail investors of any experience level through Prolution
Return on Investment: 15-20%
Minimum Cap: US$25,000
Investment Period: No lock-in period
More and more people are getting involved in trading forex due to the benefits it can give you. These include being your own boss, making your own investment decisions and having the flexibility to trade anywhere in the world.
In this workshop you’ll learn how Prolution saves you time and helps you identify buying and selling opportunities that the markets provide on a daily basis.
Sign up for a FOREX account and allow our trading team and experts to do the rest. All you have to do is to earn returns on your assets, and pay a nominal fee to Prolution for actively managing your funds.
There are several things to consider before you start Forex trading in Malaysia:
The Malaysian government, through the Securities Commission, has done a lot to safeguard the interference of the Ringgit (MYR), while at the same time ensuring that the safety of their citizens who wish to participate in Forex trading is not compromised. Trading Forex is legal in Malaysia as long as you abide by the set laws and regulations that are put in place by the government and the other regulating bodies. In short, if a major regulator regulates your broker, you will be fine using this broker.
Forex trading is a high-risk activity and most traders will lose money – the best way to avoid being one of the losers is to develop a good trading strategy and have a good understanding of risk management in forex trading. The principal risks of trading:
Risk 1: The Forex market is extremely volatile at times. It is because of this volatility that we can profit from trades. But the market can move very swiftly, and this can mean a trade can go against you very quickly. If you are trading, you must watch your trades constantly or set automated safeguards to protect your money.
Risk 2: The Forex market is not something you can predict. There are just too many factors and actors in the market for it to be fully predictable. Traders need to set a win-loss target ratio where you account for some losses and use a strategy to minimise them.
Risk 3: CFD trading requires using leverage. Leverage is a tool used in trading to amplify your profits, but it also amplifies your losses which are automatically deducted from your trading account. Your account balance can be wiped out with a single bad trade. Risk 4: In some cases, interest can be charged on your trades. For example, interest can be charged when you carry trades overnight where a tom-next adjustment is applied, and this could mean that your broker will take funds from your account to pay this fee.
Trading accounts can be opened for as little as 5 USD, but a recommended deposit is between 200 USD to 500 USD. A minimum 200 USD deposit is advised because your account balance will determine how much leverage you can use.
When you place a leveraged trade, your contribution is called the margin – depending on the leverage you have on your account this could 1% (with 100:1 leverage) or 0.5% (200:1 leverage) or even 0.25% (400:1 leverage). Your margin is your initial trading cost but your broker may also charge a commission per trade or other fees (such as a deposit fee if you use a credit card or bank wire).
The main cost of CFD trading is the spread. This is the difference between the buy and sell prices of a currency pair and is the broker’s fee for placing the trade. The spread is measured in pips (the smallest price move a currency can make). If the sell, or bid, price for GBP/USD is 1.22415 your broker may set the buy, or ask, price at GBP/USD at 1.22424 – a 9 pip difference – and the spread will be 0.9. The tighter the spread, the lower your costs will be.