Malaysia, as one of the economic centers in South-East Asia, has become one of the leading Asian powers in the capital market growth. Malaysia is divided between two major groups: the conventional Malaysians, who are skeptic about the online market, and the ones who are more than excited to try to make it in the new and potentially profitable market.

IBFC and the Malaysian Market

labuan-ibfc logoThe Labuan International Business & Financial Center (Labuan IBFC) was established in 1996, and more and more Asian companies are looking to secure the IBFC license. The IBFC is an offshore regulatory agency for Malaysian brokers. Initially, the IBFC’s goal was to make Malaysia the focal center for offshore investments, but the country did not have the capacity which Hong Kong and China had. As already known, before 2008, the Malaysian government was not fond of the Forex industry. Moreover, Forex trading had to be legalized, and the country had to deal with confusion for a long time. After 2008, the Malaysian government seemed to have changed its mind realizing that the country needs new investments to boost the economy. From then on, the Malaysian government focused more on the Forex market and the potential gains it comes with. The government brushed up the regulations and rules and managed to upgrade the market to international standards.

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The IBFC Brokerage License

As said, many Malaysian Forex brokers apply for the IBFC off-shore license which is in line with on-shore licenses. This means that the license is equally accepted as any other national license. IBFC brokers have to comply with strict regulations and to meet high standards, like minimum capital requirements, separate funds for clients’ investments, transparent and fair business conduct, submission of reports on business activities, etc. Another thing which is characteristic for IBFC is that it authorizes only the STP model. The STP model refers to Straight Through Processing which, first of all, eliminates the risk of conflict of interest. STP means that the trader is directly forwarded to the liquidity provider, which, in this case, is never the broker a trader is registered with, but a large-scale brokerage house or a bank. Hereby, the broker’s interest is neutralized, since their profit making does not depend on trader’s loss. This is a great business model for both parties since it automatically rules out mutual dependency. STP brokers connect you automatically to the platform of the liquidity provider which usually offers better prices than dealing desk brokers who make a profit when their traders lose. For the STP services, traders are usually charged a small commission. What attracts brokers to register with the IBFC is mostly that costs are lower by 1/3 for Malaysian offshore companies, in comparison to other international regulatory organizations. According to certain data, the applications for an IBFC license have tripled since 2014.

Advantages of IBFC for Forex Brokers

One of the advantages of IBFC that brokers find extremely convenient is the short time needed for application processing. IBFC is one of the fastest regarding this issue, and it takes only two months to process an application. The IBFC agency facilitates access to international and domestic banks and opens the path to the Asian community in general for the broker companies under their wing. Therefore, it is no surprise that a vast number of companies secured this strategically important license. This regulator represents the link to the majority of Asian traders and markets. Cross-border transactions are more than easy with IBFC who boost a variety of business structures. IBFC offers regional brokers an opportunity to go global, and simultaneously, the possibility for global Forex brokers to enter the Asian market with ease. IBFC registered brokers are an excellent choice if you want to trade in the exotic Asian market. These brokers grant you the right of fair trading and in the case of violation you are entitled to legal protection. Your rights are defined by law, and strict penalties await the brokers if they act contrary to the law.

Top Qualities of IBFC Regulated Forex Brokers

A registered Forex broker is a must if you want to trade safely. Especially recommended are IBFC registered brokers. As in other parts of the world, Asian brokers should offer the most convenient conditions for traders in all aspects. Of course, as a beginner in a foreign market, you will be probably looking for a broker who offers a demo account, which of course, should be free of charge. Top Malaysian brokers, just like other brokers, will offer you the a demo account for every account type. Multiple account types should cover the different needs of different traders, and the best Malaysian brokers will provide a standard, VIP, and other account types. The platform is the traders’ tool and should be accompanied by all the necessary features (Stop Loss, Take Profit, history of trend movements, etc.). Many Malaysian IBFC Forex brokers offer the award-winning MT4, which is convenient for beginners and the experienced traders alike. Given that IBFC brokers are STP brokers, you will be already provided with the best offers and prices in the market. Narrow spreads, decent leverage, and low commissions will be at your disposal. What every trader needs, especially in the beginning, is an efficient customer support service. If you are not a native Asian, you can search for brokers who specifically include English speaking customer support. Some of the Asian brokers are multilingual, including Indian, Chinese, and other Asian languages, but lack English speaking staff. Luckily, top brokers are aware that English is essential to attract European and American traders and they have specifically trained employees who speak English.

IBFC Opening New Possibilities for Malaysia

Many doors to the Malaysian market have been opened thanks to the inter-link of IBFC, which represents a bridge between the two continents and enables faster and more efficient business executions. Malaysia has become one of Asia’s favorite centers for Forex trading. The IBFC regulated Forex brokers contributed significantly to the development of the Malaysian market. Many brokers enjoy a great reputation thanks to the IBFC rules and regulations.

Other Forex market regulators

FCMC regulated Forex brokers FMRRC regulated Forex brokers Danish FSA regulated Forex brokers
CBI regulated Forex brokers CBK regulated Forex brokers CB UAE regulated Forex brokers
SEBI regulated Forex brokers FSPR regulated Forex brokers SCAUAE regulated Forex brokers