Lately,
there is a huge interest being generated from global foreign exchange (FX)
trading in the Malaysia, especially among real-estate investors. Reuter
reported that the average trading per day in December 2015 is $4.47 trillion
per day. World finance interview with Simon Smith, Research Director of FxPro,
in June 2012, says that “the foreign exchange market has remain robust during
the financial crisis and continue to grow.”.
When
there is huge surge in a certain type of investment product, it only show that
this particular product might be able to generate bigger profit and an
attractive return in investment.
Real
estate has always been the traditional investment product which require one to
have patient and long term planning. It also seldom experience huge fluctuation
in prices and very much a tangible asset which one can see, hold and feel.
Wherelse,
FX movement is in nano minutes which requires fast action and quick judgement
from the investor as profit taking is all about correct timing . Investors need
to be knowledgeable of it trend and movement of each currencies in order to
have a better position in trade. Since the product is a fast moving investment,
it is provide a quick entry and exit mechanism to the investors.
Investing
in real-estate, investor just need to identify the product and purchase the
product wherelse, for FX, one can trade on electronic platform with
pre-deposited funds or choose to participate into group investment organized by
the brokerage house or brokers.
Real
estate investment are very much secure as purchasers are registered to the
buyers and transaction are mostly done via lawyer. For FX, the investor can
trade through license financial institution or corporate institution. The
investor must only invest or participate in FX activities only with regulated
and license brokers or traders.
According
the the Wall Street Journal dated July 2011, “FX is the biggest financial
market in the world” but “the potential pitfall are also huge”. The number one
looses are due to investor being lure to dubious FX investment scheme. Leap
Rate reported in October 2014, investors can check with New Zealand Financial
Market Authority (FMA) on all license operators in New Zealand or check on all
the list of names and company that is operating without license or
authorization. International of Security
Commission (IOSCO) also provide similar services as FMA. According to Miss
Campbell; “But the fact that a firm is licensed or registered is not a
guarantee for your money.”
