Traders in Malaysia are best-served trading with well-regulated international Forex brokers. I have compiled a list below of the best brokers operating in Malaysia, including detailed assessments of each and an explanation of what brokers offer and tools you can use to pick the best broker for your needs. Read on to find out more.
Highly-competitive cost structure
Generous bonuses for active traders
High floating leverage + fast execution
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
A commission-free broker with a proprietary copy trading service..
Best all-around broker with high floating leverage and fast execution.
Best ECN trading environment, with scalping and hedging.
Highly regulated, choice of fixed or floating spreads.
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5.0/5 in this category
A commission-free broker with a proprietary copy trading service.
Founded in 2011, OctaFX is a “Straight Through Processing” (STP) broker, which means they do not have an internal dealing desk. They simply connect buyers and sellers directly. With this model, OctaFX aims to be more cost-effective than anyone else in the market. They offer low spreads and claim 97.5% of trades are executed without slippage.
OctaFX offers their clients a choice of three Forex trading platforms: the world’s most popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5). All of these can be traded as a desktop application, and on Android and iOS devices.
OctaFX is an unregulated broker but continues to earn the trust of traders around the globe, with more than 1,500,000 accounts opened. One reason for the ongoing success of this market maker is appealing bonus campaigns. This broker paid out almost $3,000,000 in bonus funds. OctaFX offers traders the MT4 and MT5 platforms, and a proprietary mobile trading platform. OctaFX additionally grants their clients Autochartist, but traders require a Silver Level in the Status Program. Traders have a choice between fixed and floating spreads, and the overall cost structure remains competitive.
Asset selection remains the distinct weakness at OctaFX, making it most suitable for new retail traders. A series of short educational articles offers a basic Forex introduction, and this broker maintains an excellent arsenal of research and analytics tools.
OctaFX Pros & Cons
Well-regulated globally, with the Bank of Ireland as the primary regulator
Low minimum deposit and in-depth educational tools
Wide asset choice across seven sectors
Superior mobile trading platform
High maximum leverage
5.0/5 in this category
5.0/5 in this category
Best all-around broker with high floating leverage and fast execution
FXTM was established in 2011 and has since quickly grown to serve 2 million customers. As a Malaysian Forex trader, you can feel secure knowing that FXTM is under the jurisdiction of a reputable regulatory body, the Cyprus Securities and Exchange Commission (CySec) and that it holds a Cyprus Investment Firm (CIF) license. Most importantly, FXTM holds clients’ funds in segregated accounts with top-tier banks separate from the company’s operational funds. If you are a short-term trader in Malaysia, you’ll be pleased with FXTM’s ultra-fast trade execution with an independently audited average of 0.1 seconds per trade. If you are a new Forex trader in Malaysia, FXTM offers trading signals that you can follow through MetaTrader.
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
Proprietary copy trading platform, low minimum deposit, and high leverage
4.5/5 in this category
Best ECN trading environment, with scalping and hedging
BlackBull Markets offers Malaysian traders a true ECN (Electronic Communications Network) account experience. This type of account connects clients directly to the markets without any internal dealing desks. This setup effectively means that BlackBull Markets has no conflicts of interest with their clients. The benefits for an ECN account are numerous: clients receive very low spreads (from 0.1 pips in BlackBull Markets’ case) and lightning-quick execution. An ECN account essentially gives you an institutional trading experience, but with account sizes from as small as $200 and massive leverage from 500:1. For Malaysian traders wishing to be Sharia-compliant in their financial affairs, BlackBull Markets also offers Islamic accounts that are in full compliance with Sharia law.
ECN/NDD execution model with deep liquidity
Institution-grade pricing for retail traders via proprietary price aggregation
ZuluTrade and Myfxbook for social trading
Leverage of up to 1:500
4.5/5 in this category
Highly regulated, choice of fixed or floating spreads
AvaTrade is regulated in the European Union, the British Virgin Islands, Australia, South Africa, Japan, and the United Arab Emirates, making it one of the best-regulated brokers offering services to Malaysian clients. As part of the regulations, Avatrade is subject to stringent compliance requirements, including how it handles client assets, the safety of client funds and regular financial reporting. Malaysian traders, just like other traders around the world, should never compromise on wanting their broker to have established regulators overseeing their operations. AvaTrade was founded in 2006 and has since expanded enormously, with over 300,000 registered customers globally, executing more than two million trades a month. The company’s total trading volumes now surpass $70 billion per month.
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
To choose the best trusted Forex broker in Malaysia, it is worth beginning by looking at the regulatory framework. There are two categories of regulations for Forex brokers in Malaysia: the first category is brokers regulated domestically in Malaysia; the second category is brokers that accept Malaysian clients but are regulated outside of Malaysia. I believe by far the best range of choice available comes from internationally regulated brokers rather than domestically regulated Malaysian brokers. Almost all international brokers also offer Islamic broker accounts which claim to be sharia compliant.
Domestically Regulated Senarai Brokers
The Securities Commission Malaysia (SCM) regulates all matters relating to the financial markets in Malaysia. Underpinning the SCM’s activities is the ultimate responsibility of protecting the investor. The SCM first issued a licensing scheme in 2007 and subsequent guidelines in 2018.
The SCM has made it easy for anyone to verify the SCM authorization through an online portal. You can search here for a firm’s name to see if they are authorized by the SCM.
Internationally Regulated Brokers Accepting Malaysian Resident Clients
Countries with active financial markets have regulatory bodies, and some regulate Forex brokers more strictly than others. Top regulatory bodies include the UK’s Financial Compliance Authority (FCA), various EU-based regulators such as in Cyprus and Ireland, the Australian Securities & Investments Commission (ASIC), and New Zealand’s Financial Services Provider Registry. These jurisdictions have safeguards to help protect client assets, including requiring brokers to disclose how they hold client funds.
Getting started with Forex in Malaysia remains a hassle-free process, open to all individuals 18 years and older who can afford to meet the minimum deposit required.
- Beginner traders should start by educating themselves to understand the Forex market. Many high-quality and free educational courses are available online, including from some Forex brokers.Attend free seminars in Malaysia hosted by international Forex brokers, if possible, to learn more about their offerings.
- Carefully examine the trading cost structure of your shortlisted Forex brokers, where major currency pairs should usually be offered at a spread between $4.00 and $8.00 per 1 standard lot.
- If you are interested in algorithmic trading, make sure you choose a broker offering a cutting-edge trading platform, ideally from a user-friendly mobile app such as are provided by market leaders MT4 and cTrader.
- Practice trading on a demo account and ensure you are profitable over 6 months before opening and funding a real money account.
- Opening and funding a real money trading account completes the process, and this is usually a simple step that your chosen Forex broker will be happy to guide you through.
In Malaysia, the Securities Commission of Malaysia (SCM) expands and regulates the domestic financial system, including Forex trading. Given the high demand for Forex brokers from Malaysian residents, who are often young, tech-savvy, but financially inexperienced, scammers attempt to undertake fraudulent activities. Trading with a regulated broker can minimize the risks of loss and unethical business practices.
Here is how Malaysian resident Forex traders can verify SCM Authorization:
- Check the broker’s website for a license number, which is usually listed in the footnote of the home page
- The SCM issues two licenses, the New Capital Markets Services License (CMSL) or the New Capital Markets Services Representative’s License (CMSRL)
- Traders should cross-reference the license number with the Public Register of License Holders available on the SCM website, where the SCM lists all current and former licensed intermediaries and representatives
- The regulatory history is equally important, and traders can contact the SCM for specific details
- Malaysian traders may trade with licensed international brokers, where favorable trading conditions exist
- Islamic accounts are widely available
You can start trading forex in Malaysia with a range of 1$-100$ depands on the brokers minimum deposit to open account. Keep in mind that small deposits will limit your profits returns.
The short answer to this question is yes, but only with a registered and approved financial institution. The official ruling is that you are only allowed to trade currency legally in Malaysia with licensed institutions, of which there are several. There are some that say that this rule only applies to physical currency and retail Forex Trading, especially online, does not fall into that category because online, you trade theoretical currency. That is why this is considered a tricky question requiring explanation and not just a simple yes or no. The easiest way to trade Forex in Malaysia legally is to use one of the approved institutions, and maintain an Islamic account.
Forex traders in Malaysia should consult a licensed professional to receive the most up-to-date information, pay what they owe to the government, and ensure they record their Forex income accordingly.
Malaysia considers Forex income as income tax, but capital gains tax from Forex trading is tax-free. Therefore, if trading does not result in income, it could remain tax-free. Since most profitable traders trade Forex for a living, they are likely to pay income taxes, where an eleven-tier tax bracket levies taxes between 1% and 30%, with 0% taxes on income below MYR5,000. Non-residents pay a flat tax of 30%. An accountant can assist Forex traders in navigating the Malaysian tax law and advise on how to proceed, given the tax complexity between income and capital gains, plus possible exemptions.
Forex traders in Malaysia, just like traders around the world, must consider whether their time zone and daily routine fit with the best times of the day to trade the Forex markets.
Although the Forex markets are open 24 hours a day, 5 days a week, certain times of day are more active with more trading volume flowing through the market.
The most active time of day with the heaviest trading volume is the U.S./London markets overlap from 1 p.m. to 5 p.m. GMT (9 p.m. to 1 a.m. Malaysian Standard Time, or MST). Most traders consider it the best time of the day to place trades, especially intraday trades.
Before beginner traders start trading Forex, they should clearly understand the risks as well as the potential advantages in trading Forex.
Advantages of Forex Trading in Malaysia:
- Lower capital entry requirements / minimum deposit compared to stock trading.
- Forex markets are open 24/5, allowing retail traders the flexibility to trade part time while having the time to hold a regular job.
- High liquidity of the Forex market creates many trading opportunities for all strategies across time frames
- Algorithmic trading is available through market-leading trading platforms like MT4 or cTrader available from most brokers.
- Social trading provides another way for beginner traders to get involved in Forex trading through their mobile phones, a widely popular approach in Malaysia.
Risks of Forex Trading in Malaysia:
- Trading without a reliable edge will always result in loss of account over the long-term.
- Unrealistic expectations encouraged by overly aggressive marketing.
- Insufficient trading capital creates insignificant returns / dangerously high-risk appetite / overly leveraged trading. Minimum deposits required by brokers do not necessary equal adequate levels of capital.
- Poor risk management.
- Lack of portfolio building strategy via monthly deposits.
- Lack of realistic trading education will result in bad trading habits.
Forex brokers can give Malaysian traders excellent regulation and trading conditions, whether regulated internationally or domestically by the SCM.
Choose a Forex broker with segregated accounts for client funds, a trading platform that you enjoy using and lets you trade all the markets you want at reasonable spreads and commissions.
If you’re new to Forex trading, always start with a demo account until you are profitable over many months. Then you will be ready to start trading a small live account, which you will probably find feels very different, which may bring new challenges. Slowly build up your account size as you become more profitable. If you are not profitable over several months, ask yourself why. You may be using a trading strategy which has no track record of success, or you may be taking poor discretionary trading decisions. It is important that you stop trading and get to the root of the problem before you suffer a very serious loss. When you have identified your problem, you should be able to fix your trading and put the odds back in your favor.
Which Forex Broker is best in Malaysia?
The best Forex broker in Malaysia will be properly regulated in a recognized jurisdiction and have segregated accounts for client funds. And the best Forex broker in Malaysia will have a trading platform that you find suitable for your trading, with spreads and commissions that are competitive. Don’t forget customer service—the best brokers are easy to reach and reply quickly to your messages, or have live support.
Which Forex broker is legal in Malaysia?
The SCM regulates financial activities domestically and has a licensing scheme for financial firms operating in Malaysia which you can find here.
Is Forex legal in Malaysia?
Historically, the Malaysian authorities have allowed individuals to trade Forex through internationally located Forex brokers. The Malaysian authorities have clear rules against retail traders trading other people’s money—you should only be trading your own money and not running a fund!
Which is the best trading app in Malaysia?
With more than 10 million downloads and offering access to a broker giving competitive fees and trading conditions to Malaysian traders, the OctaFX trading app is the best in Malaysia.
Can I trade Forex in Malaysia?
Forex trading is 100% legal in Malaysia with few restrictions, so it is easy to start trading Forex in Malaysia.
Which trading platform is best in Malaysia?
MetaTrader remains the best, most intuitive, and most popular retail trading platform in Malaysia.
Is Forex taxable in Malaysia?
Profit from Forex trading is taxable in Malaysia, and traders should consult with a licensed tax professional to ensure they understand and fulfill their obligations.
Is FXTM legal in Malaysia?
It is unclear whether trading with FXTM from Malaysia is legal, as FXTM does not hold a local license. However, some analysts argue that as no physical currency is traded, trading with FXTM is legal.
Is Forex legal in Malaysia Bank Negara?
Malaysia Bank Negara (MBN) has clarified that trading Forex is legal with licensed commercial banks, Islamic banks, investment banks, and international Islamic banks.
What time doe the Forex market open in Malaysia?
The global Forex market opens at 5am local time on Monday morning in Malaysia, closing on Saturday at 4am.
What is the best broker for Forex in Malaysia?
OctaFX is the best broker for Forex in Malaysia due to its highly competitive trading fees and low slippage rate.