Logo of Phnom Penh Post newspaper Phnom Penh Post - Royal into forex trading... deck chairs not provided

Royal into forex trading... deck chairs not provided

Royal into forex trading... deck chairs not provided

C AMBODIA'S Royal Group, with 50 percent private Malaysian partners, have moved

into the potentially rich market of foreign exchange (Forex)

trading.

Royal Cambodian Trusts and Investments will accept $2,000

minimum deposits from people wanting to speculate on fluctuations between the

dollar to the yen, deutchmark, franc and pound.

The company, which begun

trading on April 18, also offers dealing in gold and silver.

General

manager Bert Lim said many local companies now in the forex market allowed

investors to trade "based on their feelings."

"Those companies provide no

market forecasts. They don't teach proper trading techniques nor offer any data

on which to base rational decisions... people begin to play the markets like

they would a casino, and there are heavy losses being made," he

said.

"Companies allow speculators to lie around in deck chairs on their

premises, sleeping with blankets and pillows. While they sleep they lose their

money."

"We are not going to encourage that. We will have banks of

monitors where investors can watch their investments and talk with our marketing

executives, and take calculated risks based on solid information," he

said.

Forex trading has become increasingly popular as satellite dishes

allow "real time" trading, and more business people invest in forex markets to

hedge against damaging currency fluctuations.

However, for every 10

people wanting hedging facilities, there are as many as 90 more speculators who

"play" the forex market for thrills and profit.

"You would be surprised

how much money is around," Mr Lim replied to doubts expressed whether people

with money would bother with sophisticated forex markets.

He produced a

list of 30 or so individuals' running balances that together totaled more than

$1.7 million -"loose change" belonging to local speculators now playing the

forex market, though not yet with the Royal Group.

"I would say there is

anything from $2 million to $5 million now in margin accounts in Phnom Penh," he

said. A "margin account" where the minimum $2,000 deposit is kept; and that can

be used to trade in speculative "contracts" starting from $100,000.

"Each

person makes his or her own decision... we are not fund managers. But we can

give advise, trading plans and technical data on markets for informed

decisions," Mr Lim said.

He said even streetside money changers could

have enough cash and market savvy to be expected to invest on forex

markets.

Royal Investments are training 35 Khmer as advisors. The company

is targetting a margin base of $2 million from investors within six months of

its opening.

MOST VIEWED

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth

  • School reopening can’t wait

    With the Covid-19 pandemic now well into its second year, safely reopening schools has become an urgent priority. School attendance is critical for children’s education and lifetime prospects. The long-term costs of closures – both for individual children and society – are simply too large to

  • Kingdom set to be a gold producer

    Cambodia will soon join the roster of gold producing countries after the government announced the commencement of commercial gold mining operations in the Okvau area in southwestern Mondulkiri province's Keo Seima district from June 21. Prime Minister Hun Sen on June 10 announced that after 14 years of