As a first-time trader in Malaysia, entering into the forex market which primarily speaks the currency of USD may seem like a risky prospect due to the high exchange rate from MYR to USD. Besides a demo account, what are the other ways you can trade with? The way we Malaysians can do it is with a no deposit bonus, which is no pre-funding required by the broker, offering traders a certain amount for free to trade.
For most of the brokers, you only must register an account and start using their platform for them to start giving you a free bonus to try out. This is usually a strategy that many brokers use to attract people to try their platform and then turn them into a client. The bonus that you’ve received from the brokers, the profits that you’ve traded with it will go to you if you’ve satisfied the platform’s terms and conditions.
Similarly to using a demo account, the no deposit bonus is a way for you to test the functionality of the platform. The benefit from this is that you directly experience the movements of the market as you are trading with real money. Before you deposit extra into the platform, test a few other platforms at the same time to make sure it is the right one for you and it suits your trading needs.
Although it is a no deposit bonus, build a mindset as if you’re trading with your own money. Trading requires patience and not an overnight success, so remember to use the bonus to make calculated trades and improve upon your strategy. This not only to improve your skill sets but also your confidence as every trade you’re executing, it has to be a trade that you believe in.
A note to Malaysians, the forex brokers that offer the best bonuses doesn’t mean it is the best platform available, which is why do compare the forex broker side by side to make sure it is what you’re looking for. To choose the best broker, there are a few criteria to evaluate:
A platform may offer you a bigger no deposit bonus, but all will go into waste if the platform is an illegal forex scheme, and your deposits and profits made later on will all be gone. To prevent this, make sure the broker is regulated by a governing body. Locally, there is the Bank Negara Malaysia (BNM), and internationally there are those such as Financial Conduct Authority (FCA), the Cyprus Securities & Exchange Commission (CySEC), and more.
Although the bonuses are not the most important, it should at least be $20 (around RM85) so that you still have a sizable amount to do some trading.
Most platforms will lure you with good bonuses, but it is also important to understand the terms and conditions before you sign up for it. For example, a broker may offer you $50 as a no deposit bonus, however, the profits that you make from the $50 can only be withdrawn if you deposit another $200 from your pocket. So do make sure you’ve done your research before you jump into the platform.
The selection of these brokers is based on the recommendations stated above:
Forex no deposit bonuses have its pros and cons, it is important to utilize it in a way that can be beneficial to your trading journey. To fellow Malaysians, never get drawn up to greed to all of these bonuses and open new accounts nonstop, it is more important to build consistency with a platform that yields the best results for you. Remember, brokers that offer a large amount of money may be too good to be true, so always beware and go through the few evaluation criteria stated above. As always, have fun trading!