KUALA LUMPUR: Malaysia has been recognised as one of the best countries for foreign exchange (forex) traders, achieving a forex suitability score of 6.18 out of 10 in a recent study by City Index.
The study evaluated factors such as forex instrument turnover, cost of living, broadband internet speeds and trading hours in 50 countries to determine the best countries for forex trading.
According to the study, Malaysia surpassed the Philippines as an ideal country for forex traders.
Despite having a higher turnover of US$1 billion in over the counter (OTC) foreign exchange instruments than Thailand, Malaysia is in 11th place with a forex suitability score of 6.18 out of 10.
This is partly due to the country's low cost of living (101), which ranks 94 places higher than Singapore for living affordability.
Not only this, Malaysia has a moderate average internet speed (100.84 Mbps), which is almost 2.5 times faster than the Philippines in 24th place (44.39).
City Index forex trading expert Fawad Razaqzada said in the fast-paced forex market, even a few seconds can make a significant difference in trade outcomes, so a reliable and speedy internet connection is crucial.
"Fast broadband is key for forex traders as it allows for faster trade execution, minimises the risk of connection drops or disruptions and allows for multi-platform trading across several devices," he said, commenting on why fast broadband speeds are key for traders.
Singapore retained its position as the third largest forex centre in the world according to daily trading volumes, after the UK and the US, and emerged as the most suitable country for forex traders.
Singapore has an overall forex suitability score of 8.07 out of 10, largely due to the country's high turnover of OTC foreign exchange instruments (US$929 billion), which is six times higher than China (US$153 billion).
China is in second place with a forex suitability score of 7.97, followed by Japan ranks third in the index with a forex suitability score of 7.64.