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Avoid Illegal Foreign Exchange Trading Scheme 

Illegal Foreign Exchange Trading Scheme refers to the buying or selling of foreign currency by an individual or company in Malaysia with any person who is not a licensed onshore bank or any person who has not obtained the approval of Bank Negara Malaysia under the Financial Services Act 2013 or Islamic Financial Services Act 2013.What are the characteristics?This scheme involves the act of buying or borrowing foreign currencies from or selling or lending foreign currencies to a non-licensed onshore bank.It can also be in the situation where the non-licensed onshore bank does an act that involves, is in association with, or is preparatory to, buying or borrowing foreign currencies from, or selling or lending foreign currencies to, any person outside Malaysia. How it's done?
  • Illegal operators usually operate on a small scale and claim they can provide remittance services efficiently, without the need for any documents or identification. They rarely use documents to validate and verify the transactions. By engaging in these transactions, customers run the risk of being cheated and their funds may never reach its intended destination.
  • Illegal operators usually target job seekers by placing attractive advertisements to lure prospective employees to join the company, after which they use them to solicit for new investments. Most often, employees will be encouraged to approach their direct family, relatives and friends before targeting members of the public.
  • Illegal operators usually portray a professional and reputable image, a high-tech office layout and advanced IT facilities, such as a LCD screens displaying movements in exchange rates to provide the impression that a legitimate and real business is being conducted. These facilities are merely a false front.
  • Investors can either trade using their trading accounts with the company or through dealers appointed by the company. In some cases, investors are allowed to operate their accounts via the Internet.
  • Investors are also required to sign a business contract which is normally entered between the investors and a principal company overseas.
  • In most instances, the operators will inform the investors that they will have to send these contracts to its principal company overseas for signing. However, such contracts are usually left unsigned.
  • As such, in the event the investors are unhappy with future dealings and transactions, no action can be taken against the company as there is no binding contract between them.
  • Investors will usually get high returns on their initial investments. This will convince them to increase their investments in hopes of higher returns. Eventually, they will end up losing everything when the illegal operators suddenly go missing.
  • Investors who lose their money through purported volatility of exchange rate movements are informed by the illegal operators that they need to pay margin-call in order to recover their paper lose.
  • The illegal operators may also encourage investors to increase their investment to try to recover their losses.
How to Protect Yourself?
  • Deal only with licensed onshore banks;
  • Check with the relevant authorities before remitting/ investing/ depositing;
  • Be extra careful with investments over the internet;
  • Be sceptical of any investment opportunity that is not in writing; and
  • In case an investment has been made, keep copies of all the investment and communications
Licensed onshore banks to conduct foreign currency trading in Malaysia are as follows: How to Report? You can report directly to Bank Negara Malaysia via the following communication channels:Call: 1-300-88-5465 (1-300-88-LINK) Fax: 03-2174 1515 SMS to 15888: BNM TANYA [your report / query] Email: bnmtelelink@bnm.gov.my
information source: www.bnm.gov.my

Avoid Forex Trading Scams in Malaysia

As a result, many retail investors are constantly flocking in to reap the bountiful benefits the market presents. There is an entire industry centered on enabling people to trade in the forex market. This industry consists of various participants such as educators who train traders with the skills they need to succeed. Others, such as the brokers, provide the platforms on which they trade.Due to the size of the industry and the opportunities therein, there is a lot of scams claiming to offer these services as well. Their goal is to rip people off their hard-earned funds. This piece introduces you to the concept of forex scams in Malaysia and how to avoid them. First, you need to know the types of those scams that exist.Types of Forex Scams in MalaysiaThe first step in avoiding Forex scams in Malaysia is being able to spot them. These scams manifest in various forms and types. Thus, it is important that you can identify them. Outlined here are the most popular types of forex trading scams in Malaysia. Here, they are properly discussed:1. Forex Education Scam2. Forex Trading Signal Scams3. Forex Investment Scams4. Forex Trading Robots Scam5. Forex Brokers ScamsYou desire to profit from forex trading in Malaysia. However, many individuals are looking to capitalize on that desire to rip you off. You don’t want to fall victim to them. Thus, you have to avoid them. To avoid them will require you to learn how to first identify them, however. From the comprehensive guide we have provided here, you should have known how to do just that.

information source: vpsmalaysia

Disclaimer:

All content published and distributed by AverTrader.com (collectively, the “Company”) is to be treated as educational and general information only. None of the information provided by the Company or contained here is intended (a) as investment advice, (b) as an offer or solicitation of an offer to buy or sell or (c) as a recommendation, endorsement or sponsorship of any security, company or fund. Testimonials appearing may not be representative of other clients or customers and is not a guarantee of future performance or success. Futures and Stock trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. This is neither a solicitation nor an offer to buy or sell futures, options or stock. Past performance is not necessarily indicative of future results.CFTC Rules 4.41 - Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, because the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.Under the Exchange Control Act 1953 (ECA), it is an offence for a person in Malaysia to buy or sell foreign currency or do any act which involves, is in association with, or is preparatory to, buying or selling of foreign currency with any person, other than an authorised dealer. It is also an offence for a person to aid or abet another person to buy or sell foreign currency with any person, unless the person is an authorised dealer.