Go through any Malaysian Telegram trading group and you will come across endless discussions on indicators, entry signals and when to trade USD/MYR. However, there is one subject which seems oddly not a subject of serious debate-broker selection. And it is in that silence that most traders lose money that they need not lose. Visit us!

The bad news is as follows: a mediocre strategy in combination with a good broker tends to do better than a brilliant strategy with a bad one.

But where then are you to start?

Begin with regulation–there must be no compromises. Bank Negara Malaysia and the Securities Commission Malaysia have the responsibility of financial oversight in Malaysia. The FCA, ASIC and CySEC are the reputed regulators on the international scene. These organizations do not merely give out licenses; they have very strict regulations that safeguard traders. Your money is legally under the responsibility of a licensed broker. A black market one is based solely on pledges. The fact that a broker avoids answering the questions regarding regulation is a red flag on its own.

Then have a closer look at spreads–but not merely at them. Calculate them. 0.4 pips and 1.3 pips might not matter in one particular trade, but it will add up in no time after weeks of frequent trading. Most traders just discover this on their monthly review and they are interested to know how they were making good trades and could not see the gains. These hidden costs are usually the answer.

The ways of payment can tell a lot regarding the extent to which a broker will take Malaysian customers. This deposit and withdrawal capability, as well as such options as DuitNow or transfers to a local bank, should not be regarded as features, this is a basic set of expectations. The brokers who will compel you to convert currency or send a wire transfer to foreign countries, charge unnecessary fees which will consume a significant portion of your capital before you can even begin trading.

Another aspect that is not given much consideration by traders is platform reliability until it collapses. Picture yourself as a trading entity in the midst of transacting a trade and suddenly an announcement by Bank Negara occurs, and your network crashes. This is not just a hypothetical thing, but it occurs. The speed of execution and stability of the platform under volatile circumstances is much more significant than smooth interface and fancy design.

Leverage is sold as a benefit, particularly to the novice traders. The concept of owning big stakes using small amounts of money is attractive. But leverage is a two sided sword. It is able to increase the profit, but will equally increase the losses at a rapid rate. You should handle it as you would a tricky circumstance, you have to be aware, disciplined and respectful of it.