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

  • Angkor Wat named as the top landmark for the second year

    Travel website TripAdvisor has named Cambodia’s ancient wonder Angkor Wat as the top landmark in the world for the second year running in their Travelers’ Choice Award 2018, an achievement Cambodian tourism operators expect will attract more tourists to the Kingdom. The website uses traveller

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Hun Sen detractors ‘will die’

    Prime Minister Hun Sen on Wednesday said those who curse or insult him would eventually die without a plot of land to bury their bodies after being killed by lightning, suffering the same fate as those who recently died in Thmar Baing district in Koh

  • Ministry’s plan for net sparks fears

    The government has ordered all domestic and international internet traffic in the Kingdom to pass through a Data Management Centre (DMC) that has been newly created by the state-owned Telecom Cambodia, in a move some have claimed is an attempt to censor government critics. Spokesman