Table of Contents
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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Forex Brokers in Malawi

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.

1
5/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Good educational content and research for beginners & 24/7 multi-lingual customer support.
Competitive, commission-based trading fees & a well-balanced selection of assets to trade.
2
4.8/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Highly regulated and trusted trading counterparty.
28-plugin Smart Trader Tools package and Autochartist for MT4/MT5.
3
4.7/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Industry-leading educational material from the Ava Academy.
Well-balanced asset selection, including Options trading, ETFs, and Cryptocurrencies.
4
4.5/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Well-regulated Forex broker experienced in operating within emerging Forex markets like Malawi.
Pivot Point Strategy plugin for MT4 & user-friendly mobile app, FXTM Trader.
Your investment value may change. Capital is at risk.
5
4.2/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
A well-balanced asset selection of 3,000+ potential trading instruments, including crypto assets.
Proprietary copy trading software, CopyTraders, with a built-in chat function.

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, FSCAASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFIDCMA, CySEC, FCA, FSC Mauritius, FSCAASIC, CySEC, FCA, FSA
Year Established
20052010200620112007
Execution Type(s)
ECN/STPNo Dealing Desk, NDDMarket MakerECN/STP, Market MakerMarket Maker
Minimum Deposit
$100
$200
$100
$200
$50 - $10,000
Average Trading Cost EUR/USD
1.1 pips1.1 pips0.9 pips0.1 pips1.0 pips
Average Trading Cost GBP/USD
1.4 pips1.6 pips1.5 pips0.2 pips2.2 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-basedMetaTrader 4, MetaTrader 5, cTrader, Trading ViewOther, MetaTrader 4, MetaTrader 5, Web-based+MetaTrader 4, MetaTrader 5, Proprietary platformProprietary platform
Islamic Account
Negative Balance Protection
N/A

FP Markets

In Summary ECN trading with leverage up to 1:500

Traders 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.

Read more on FP Markets »
5.0/5 in this category

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 platform

Pepperstone 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.

Read more on Pepperstone »
4.8/5 in this category

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 spreads

AvaTrade 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.

Read more on AvaTrade »
4.7/5 in this category

Pros & Cons

  • High quality educational offering via AvaAcademy
  • 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 execution

FXTM 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.

Read more on FXTM »
4.5/5 in this category

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 money

eToro 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.

Read more on eToro »
4.2/5 in this category
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Your investment value may change. Capital is at risk.

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:

  1. Invest enough time into quality educational content.
  2. Forex trading is a highly skilled profession and should be treated as such.
  3. Mastering trading psychology, which separates 90% of unprofitable traders from profitable ones, is critical.
  4. Understand the leverage/risk management relationship.
  5. Leverage magnifies profits and losses.
  6. Risk management is an important aspect of the trading strategy deployed.
  7. A suitable trading strategy should reflect your personality and strengths.
  8. Low trading fees form the backbone of a competitive trading environment.
  9. 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.

You might also be interested in reviewing the below top brokers:

FAQs

Which stockbroker is best in Malawi?

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It depends on individual preferences, but given the low deposit capabilities of Malawian traders, it should offer ETFs (exchange traded funds) as a means of efficient diversification.

Is Forex legal in Malawi?

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Yes and no. Malawi restricts physical Forex trading, making it illegal to deal in Forex without a license from the Reserve Bank of Malawi. It also imposed currency controls, making it illegal for Malawians to exchange more than $2,000 in cash. All rules apply to physical Forex transactions and not online trading via derivatives. Currency controls may pose a challenge to withdraw Forex earnings from offshore Forex brokers to Malawi.

What is the best time to trade Forex in Malawi?

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Most Forex analysts consider the London/New York session overlap the best time to trade Forex, which in Malawi corresponds to the hours between 3pm and 7pm local time.

Christopher Lewis
About Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.