Malawi is an emerging or ‘frontier’ Forex market that is still developing in terms of the market size and sophistication, but those Forex brokers prepared to take a long-term view can plant the roots for a vibrant trading environment likely to emerge in the years to come. As a frontier market, Forex traders and brokers should expect changes as Malawi evolves as a jurisdiction.
I have reviewed dozens of trusted Forex brokers in order to compile my list of Forex brokers in Malawi and have attempted to rank the most suitable options for Malawians to get involved in Forex margin trading at the current time.
Best Forex Brokers in Malawi at a Glance
- FP Markets, ECN trading with leverage up to 1:500.
- Pepperstone, Great ECN execution on MT4 platform.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- eToro, Best broker for social traders and crypto traders : 74% of retail CFD accounts lose money.
Best Malawian Brokers Comparison
| | | | | |
Regulators | ASIC, CySEC, FSCA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FCA, FSA |
Year Established | 2005 | 2010 | 2006 | 2011 | 2007 |
Execution Type(s) | ECN/STP | No Dealing Desk, NDD | Market Maker | ECN/STP, Market Maker | Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.1 pips | 1.1 pips | 0.9 pips | 0.1 pips | 1.0 pips |
Average Trading Cost GBP/USD | 1.4 pips | 1.6 pips | 1.5 pips | 0.2 pips | 2.2 pips |
Average Trading Cost Gold | $0.21 | $0.20 | $0.29 | $0.18 | $0.45 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, cTrader, Trading View | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5, Proprietary platform | Proprietary platform |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Get Started Visit Website74% of retail CFD accounts lose money |
FP Markets
In Summary ECN trading with leverage up to 1:500Traders at FP Markets benefit from a wide choice of available payment processors, including the ability to fund using 15+ cryptocurrencies. That makes FP Markets top of my Forex Brokers in Malawi ranking for the best deposit and withdrawal options. This broker also upgrades MT4/MT5 with 12 additional plugins, plus the popular Trading Central, and Autochartist platforms ensuring its clients can access a competitive trading edge.
MAM/PAMM account options exist for licensed account managers only, but FP Markets really shines with its copy trading functionality. Besides the embedded copy trading services within MT4/MT5/cTrader, traders can use the proprietary FP Markets solution, the fee-based Signal Start, and the well-known Myfxbook Autotrade service. FP Markets also publishes its own daily market reports via the FP Markets newsletter.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Pepperstone
In Summary Great ECN execution on MT4 platformPepperstone is an award-winning broker offering high quality trading guides and webinars for beginners. It also ranks among my best Forex Brokers in Malawi listing for providing the best copy trading environment. Traders can use embedded services from MT4, MT5, and cTrader platforms, Myfxbook Autotrade, and DupliTrade. Additionally, social traders can connect to the TradingView community, where 50M+ traders share ideas and discuss trading opportunities in real time.
Active traders benefit from same-day withdrawals, deep liquidity, and a balanced asset selection, which includes Forex, Indices and ETFs. Pepperstone stands apart from most competitors by making available Capitalise AI, which supports algorithmic trading without the trading needing to write code.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
- Leverage of up to 1:30 and superb trade execution
- Demo accounts have 30-day time limits
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade is on my Forex Brokers in Malawi list as having the best overall educational content and the greatest trading platform choice. Malawi-resident Forex traders should check out the proprietary mobile app AvaTradeGO, which along with the Webtrader platform features Trading Central as an inbuilt addition. The specialized Ava Option and Ava Social platforms and out-of-the-box MT4/MT5 platforms are also available.
Beginner traders benefit from the MT4 Guardian Angel plugin and the fee-based Ava Protect insurance policy protecting against trading losses. Passive income seekers can thrive in the high-paying affiliate program with 145,000 registered partners and $300,000,000+ in commission payouts made so far. AvaTrade also maintains a reasonable commission-free cost structure and copy-trading alternative platform - DupliTrade.
Pros & Cons
- High-quality educational offering via SharpTrader
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM features an innovative trading infrastructure, which includes price improvement technology that further decreases trading fees by an average of $3.00 per round lot.
Beginners benefit from actionable trading signals and market insights by its in-house research team. The educational content includes guides, eBooks, podcasts, and a well-designed glossary explaining core Forex terms.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
eToro
In Summary Best broker for social traders and crypto traders : 74% of retail CFD accounts lose moneyeToro is the broker from my Forex Brokers Malawi review with one of the best trading environments for copy traders and beginners. It is home to 30M+ traders who manage portfolios from the user-friendly web-based eToro platform, while the mobile app is an excellent alternative for copy traders. Beginners additionally benefit from quality resources like the eToro Academy, eToro Plus, and Digest & Invest.
Besides CopyTraders, eToro offers Smart Portfolios, custom-tailored products featuring thematic long-term buy-and-hold investments managed in-house by eToro analysts. The provider caters to both active traders and those favoring a more passive approach, which makes eToro a little different in its business model. eToro is also a leading cryptocurrency CFD broker having been active in the space since the inception of the new asset class.
Pros & Cons
- Active investment community ideal for social trading
- Dedicated tools for social trading
- Broad cryptocurrency selection
- Expanding educational offering for beginner traders
- Internal withdrawal fees
What to Look for in a Forex Broker from Malawi
All competitive Malawi Forex brokers should offer the following:
- Regulation - A clean regulatory track record of 10+ years.
- Low trading fees - Low trading fees and swap markup rates, including paying out on positive swaps when it pays the trader to hold positions overnight.
- Trading platforms – Offering a choice plus Copy trading and user-friendly mobile apps for on-the-go trading.
- Asset diversity - A wide choice of tradable liquid assets.
- Deposits/Withdrawals - No internal transaction fees and low minimum deposit requirements.
Forex Trading Regulations in Malawi
In Malawi it is illegal to deal in Forex without a proper license from the Reserve Bank of Malawi. However, the rules apply to physical Forex transactions only and not online margin trading. The country imposed strict currency controls, making any Forex exchange exceeding $2,000 illegal.
The Finance Ministry stated Malawians should use electronic media for Forex transactions exceeding $2,000. Currency controls can pose a challenge when withdrawing Forex earnings from offshore Forex brokers into Malawi. The World Bank warned Malawi about its Foreign Exchange Act, and the situation remains fluid.
How Much is Forex Leverage is allowed in Malawi?
There is no upper limit to Forex leverage in Malawi, and the brokers from our Forex Brokers Malawi ranking offer a maximum of 1:1000 with negative balance protection. Forex traders should always use proper risk management when trading leveraged accounts.
How to Start Forex Trading in Malawi?
Before opening an account with any of the brokers within my Forex Brokers Malawi list, traders should consider our top tips below.
Here are tips on how to start Forex trading in Malawi:
- Invest enough time into quality educational content.
- Forex trading is a highly skilled profession and should be treated as such.
- Mastering trading psychology, which separates 90% of unprofitable traders from profitable ones, is critical.
- Understand the leverage/risk management relationship.
- Leverage magnifies profits and losses.
- Risk management is an important aspect of the trading strategy deployed.
- A suitable trading strategy should reflect your personality and strengths.
- Low trading fees form the backbone of a competitive trading environment.
- Master proper take profit and stop loss placement.
What is the Best Trading Platform in Malawi?
Malawi is a frontier Forex market that is very much in the development phase. Less than 25% of the population use the internet, with less than 4% active on social media. Therefore, the current growth in retail trading comes from mobile trading. Mobile phone adoption in Malawi exceeds 57%, making copy trading from mobile phones the dominant trading strategy at present, followed by passive income generation via affiliate programs. It makes MT4 the best trading platform in Malawi, followed by MT5 and cTrader. Most brokers from our Forex Brokers Malawi review offer both MT4 and MT5.
Forex Trading Taxation in Malawi
My Forex Brokers in Malawi review found limited information on Forex trading taxation in Malawi. Big Four accountancy PricewaterhouseCoopers noted income derived outside Malawi is not taxable, suggesting Forex trading remains tax-free, as all online retail trading occurs with offshore Forex brokers. Malawian Forex traders should consult a legal professional about their own situation and seek tax advice in Malawi to ensure compliance with local rules and regulations.
Pros & Cons of Forex Trading in Malawi
Traders should consider the pros and cons of Forex trading in Malawi before funding an account with any of the brokers within my Forex Brokers in Malawi review.
The pros of Forex trading in Malawi are:
- Lower capital requirements versus other assets
- 24/5 decentralized trading
- Mobile trading
- PAMM/MAM accounts
- Copy and social trading
- Passive income opportunities
The cons of Forex trading in Malawi are:
- Insufficient capital of the average trader
- Scarce internet connectivity and usage
- Disrespect for Forex trading as a high-skilled profession
- Unrealistic trading expectations
- Scams and fraud
- Misleading marketing campaigns
- Domestic currency controls on physical Forex
- Disconnect between leverage and its relationship to risk management
- Emotion-based decision-making
- Demo trading results in a false sense of accomplishment
- Manual trading in an algorithmic environment
Bottom Line
Malawi ranks amongst the least developed of countries and heavily relies on agriculture, offering little economic prospects for its younger population. Forex trading provides a unique opportunity given its lower capital requirements, availability of mobile trading, passive income, bonuses, and incentives that can boost smaller than average deposits. Traders should also focus on education if they are new to retail Forex.
The Forex brokers listed within my Forex brokers in Malawi review each offer necessary infrastructure for Malawian-resident Forex traders to start their journey.
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