Posted: Wed Apr 06, 2005 9:22 am Post subject: Shariah Forex
There's a lotsa company who provide shariah forex which is interest free. So far, I never heard of anything that say forex is NOT HALAL...especially when it is interest free. If there is any fatwa regarding forex, I would love too know about it.
As far as I know, the only thing that makes it illegal in our country is because we put a lot of our money to somewhere outside our country. I think it's about RM20,000.00. When u do forex it will be converted to USD, which is about USD5k.
But u know what, in less than a month, with a good analysis which is getting easier to learn this day, u can make it double. Which is USD10k equal to about RM40,000.00. It's risky, but it's worth it. So what makes it different than any legal business? We also have to take a risk in any business rite...?
There's also a lotsa company that provide a mini account, USD250, USD300, USD500......by opening a mini account, we do not exceed the limit, so why is it illegal?
By letting small amount of capital which is malaysian ringgit, we can have a profit in USD, a lot of USD, and when we want to use the profit, we have to withdraw it. In order to withdraw it, USD have to change to ringgit again. It is same like a foreigner who come to Malaysia and have to change their money to ringgit. They not just change it, it has a price. Goverment wants a lot of tourist in malaysia so they can change their money to ringgit rite..? If not the government would not allowed foreigner to come and change their money here.
The question is, where is it illegal? I would love to know too. I'm not encouraging, just wanna know what other peoples know.
This is important, what i'm writing here is not about any forex company in malaysia. i'm writing about online forex. As far as i know this is started since the existance of broadband. So it is quite new actually. And it's not just forex, there's also stock exchange and other investment is online now.
Online forex which u can monitor it from ur own pc at home or anywhere in the world, and anyone who have enough capital can open it.
It's our money, so why can't we do this kinda investment when it can make a thousands of dollar every weeks?
All other country are doing forex so why can't we...?
May be because of our country's economy in late 90's.
May be because our government concern of our business, to make sure we are a good technical analysis before doing this kinda business.
The real answer is...I don't know...ASK THE GOVERNMENT...
(don't be misunderstanding co'z i'm not anti government )
Here is some example of it. This is the policy of one of the company that provide interest free trading.
Interest Free Trading Policy
*** is proud to support interest-free trading for those valued clients who cannot or do not wish to pay or receive interest on positions held overnight. Instead of overnight cost-of-carry charges, clients can be free to trade under Shariah law by simply paying a per-lot commission, (1) once when the position is opened, (2) again on any positions held for more than 5 days (five calendar days from the opening date and time of the position), and (3) every 3 days thereafter. Charges (2) and (3) will be waived for fully hedged positions.
Account Type: Shariah per lot Commission
CFD Account: $15
Mini CFD Accoun: $3
Forex Account: $ 20
Mini Forex Account: $ 3
Told u guys earlier, must get license. Otherwise if u use the same analogy, anyone with money can open up a bank? Its your own money right?
Those who are still doing it are those who have not been caught and charged in court. But that doesnt mean that you can do it legally. Even if you are doing it using the internet, you are trading on Malaysian grround. Jadi, the offence is committed in Malaysia in which the Malaysian courts have power over you.
Fatwa? I dont think we have one dealing with currency trading. But as long as it doesnt deal with interests, I believe its OK, meaning not against any fatwa. In fact, one of the once big time fund manager (reported in the news paper) who dealt with TH funds got some religous justification about this kind of trading. Nevertheless, they still got busted because of different reasons.
At the end of the day, MANY got crashed and burnt. Sure, you will find all sort of nice stories about how easy it is to learn the trade, the candles sticks, bla, bla, bla..... But again, if its that simple, hell why cant somebody in this counrty do it and make money for the bigger good of the country? They are not that "pandai"? I doubt so....
Still, its good to have this forum. We tell each other and learn from other people's mistake so that we dont make one our own.
Posted: Thu Apr 07, 2005 6:12 pm Post subject: *sigh* Where do I even begin?
glenn, you are right. People can 'justify' all they want, and maybe they should open their own banks. But there are reasons why there are banks and why there is a central bank. Go to any website explaining the history of money and interest rates.
Also, trading FX (or even basic money market products) is not easy for a non-bank day-trader. I've been doing it for almost 10 years working for a bank, and I think I know what I'm talking about.
My reasons?:
1. basic analysis is easy to learn but you can't beat experienced bank-employed traders. They have access to better analytical tools.
2. bank traders have access to better market intelligence. You want to trade just by watching Bloomberg on TV? Good luck.
3. bank traders have access to better prices. Non-bank traders? No.
4. I've seen volatile price movements that would give an ordinary non-bank trader a heart attack.
Also don't forget, bank traders deal in millions of USD at a time, and they have better risk management systems. So in most cases, they have the bank's capital to back them up. Non-bank traders? They could end losing their house.
It's true: you can trade FX legally in other countries as a non-bank day-trader. But you'll be at the mercy of bank traders like me who can help move prices without breaking a sweat, for the sole purpose of making money from helpless non-bank traders like you.
Another thing: there's really no such thing as interest-free forex. It's not the same as those syariah 'green' counters on the stock market.
Every tick movement on FX rates (even dollar against ringgit) has an element of interest rate movement. It's supply and demand: who's willing to borrow/lend at the highest/lowest rate. The ordinary person may not see the connection, but can if he does his research. (There are books I can recommend)
Otherwise, you can just ignore what I said above and just know that according to Malaysia's BAFIA 1989, it's illegal for unlicensed entities to trade in FX.
*grin*
Hi solb1kenobi, wah sai 10 years in forex trading. As i know, to be a forex dealer firstly he/she must a member of PPKM and sit for a test, PKM Cert. Any route to be a Forex Dealer?
Hi solb1kenobi, wah sai 10 years in forex trading. As i know, to be a forex dealer firstly he/she must a member of PPKM and sit for a test, PKM Cert. Any route to be a Forex Dealer?
Ermm.. you have to be a bank employee, but otherwise you've just answered your own question, mate! LOL
And that's not just to be a forex dealer but also to be a dealer in any money or capital market products in any treasury dealing room of any bank practicing in Malaysia.
I would bet that when we open up to the foreigners, they would probably have to have their own dealers accredited in the same way.
i dont know what is the big fuss about Forex Trading being legal or illegal in malaysia. BMN is talking about an entity, means company, not individual.
if you think we cant trade Forex at the comfort of our own home, let me know. i shall open your eyes.
legal or otherwise, it is believed that 90% of forex traders lose $$, so the legality of it becomes irrelevant in the end ....
do you have any evidence or statistics to back your statement there? if 90% of forex traders lose money, i wonder how the forex market becomes the largest in term of trading volume in the world.
legal or otherwise, it is believed that 90% of forex traders lose $$, so the legality of it becomes irrelevant in the end ....
do you have any evidence or statistics to back your statement there? if 90% of forex traders lose money, i wonder how the forex market becomes the largest in term of trading volume in the world.
says who? for the last 70 years or so, it was stock exchange.
if the forex market is the biggest, there should've been a movie made by some hollywood director.
well, do a simple wikipedia search bro, and you'll find out the massive turnover the forex has in comparison with any or all the stock exchange markets in the world
hint: stock markets = billions per day turnover, forex = trillions per day turnover
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
Note: Your messages are your words, you are entirely responsible and liable for the content of your messages, as well as your overall behavior as a member of the PJNet community. Although the administrators and moderators of PJNet Forums will attempt to keep all objectionable messages off this forums, it is impossible for us to review all messages. All messages express the views of the author, and neither the owners of PJNet Forums, nor ViNSiGN will be held responsible for the content of any message.
You can syndicate the last 10 posted messages in Petaling Jaya Malaysia Forums using the file backendforums.php
)
