While foreign exchange buying and selling is a prison in Malaysia, technically you can only do so with registered and permitted monetary institutions. Until recently, these institutions consisted broadly speaking of large financial groups and banks, which were now not involved in working with retail traders. However, Malaysian law states that it is legal to make distant places investments. Therefore, many Malaysian merchants decide to work with offshore brokers and classify their trading as an offshore investment. Some additionally claim that the rule of solely trading currency with licensed institutions solely applies to physical currency.